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    Monday, 21 November 2016

    Tongaat Hulett bails out Tokwe-Mukosi project



    BUSINESS REPORTER

    Sugar giant, Tongaat Hulett Zimbabwe, has released $6,6 million to Salini-Impreglio JV towards the completion of the Tokwe-Mukosi dam project.
    Salini-Impreglio JV is constructing the dam.
    Tongaat Hulett Zimbabwe managing director, Sydney Mtsambiwa said proceeds from exports that were deposited into the Barclays nostro account were used to facilitate the payment.
    "Tongaat Hulett availed foreign currency from its export proceeds to enable a critical stage of the dam construction to be completed," he said.
    The deal was brokered through Barclays Bank of Zimbabwe, Tongaat Hulett's banking partners. On completion, the Tokwe-Mukosi Dam will be the largest in-land dam in Zimbabwe resulting in far-reaching socio-economic benefits for Masvingo communities.
    The assistance is in addition to the $20,3 million released recently by the Infrastructure Development Bank of Zimbabwe to clear outstanding arrears. Last month, the Italian firm threatened to walk away from the project due to arrears.
    The contractor was also not willing to be paid in United States dollars, but in euros, as its arrears were in euro terms.
    The Tokwe-Mukosi dam has been under construction for over 15 years, with initial construction having started in 2001 and there were stops in between.
    It has a capacity to provide water for 25 000 hectares of agricultural land.
    – Newsday business
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