Pomona Dump deal

Mbare biogas digester

The City of Harare has an incomplete biogas digester plant for the conversion of waste to energy situated in Mbare. This project was started around 2015 and US$500 000 was reportedly sunk into it with the support of the European Union, and implemented by a company named Synlak (Pvt) Limited. The contracted company was paid for the incomplete works. The City of Harare has not done anything substantial to ensure the completion and functioning of the Mbare Biogas digester despite the huge investment in the project. It is now lying idle and completely abandoned. The biogas digester would have gone a long way in reducing the amount of solid waste that required to be transferred to Pomona Dumpsite. The Environmental Management Agency (EMA) has been pushing the City of Harare to improve its management of the Pomona Dumpsite as on several occasions, the council seemed to have neglected the disposal landfill.

According to a solid waste characterization report done by the City of Harare with financial support of the German International Development (GIZ), solid waste must be collected weekly by the City of Harare. The report says that refuse compactors available are completely depreciated due to vehicles being out of service. This has led the City of Harare to collect garbage fortnightly in some suburbs while other communities have gone for longer periods without collecting garbage, (COH, 2020). During the data collection, the research established that 60 percent of residents pointed out that refuse collection was so irregular that they were not sure how often it should occur. Garbage remains uncollected in most suburbs, and Geogenix BV would have endeared itself to the ratepayers if it had come in and invested in the refuse collection first before taking control of the Pomona Dumpsite. To residents, uncollected garbage is the real challenge that requires urgent intervention, and not the waste to energy intervention. ^[3]

Flighted Tenders

Hosiah Abraham Chisango, the Town Clerk of the City of Harare who flighted tender number COH/S.5/2018 on 2 December 2018 in the Government Gazette as an invitation to international tender for the establishment of a waste to energy plant at Pomona Landfill site. The closing date for submissions was 27 September 2016. Chisango stated in his background and information section to the expression of interest advertisement that the total investment shall be covered by the investor and in return the City of Harare shall “ensure the availability of waste and the purchase of power generated at an agreed upon rate to support the investment and the city shall provide the land for the plant.”

Based on this background information to the Waste-to-Energy Project, one may conclude that the City of Harare was seeking an investor who would fit in with their criteria set in the Harare Master Plan which required the investor to detail the specific technology being offered. Geogenix BV dids not meet any of the criteria, which explains why the company failed on two occasions to secure this deal. ^[3]

Contract

Signing

The dubious contract was signed by Acting Harare Town Clerk Engineer Phakamile Moyo without consulting the Mayor and other city fathers while the sole representative of the Netherlands based company in Zimbabwe is Delish Nguwaya / Dylish Nguwaya of the Draxgate firm (Drax International LLC), in an affair known as Covid-Gate.

Contents

Geo Pomona Waste Management Private Limited (GeoGeneix) will run the waste management site for 30 years while charging Harare City council US$40 000 per day.
The company is building a waste management facility and waste-to-energy plant that will see it generate between 16-22 MW plant at Pomona in Harare.
The contract as seen shows that the Pomona dump site shall be handed over to the Contractor, as specified in Schedule 15 (Handover of the Sites) free of charge and against no payment of any fees, tariffs, or taxes whatsoever, on the Site Handover Date, which shall occur not later than the Commencement Date.
It is a lucrative deal where Harare rate payers will have to pay US$40 000 per day for the minimum 1000 tonnes of garbage per day. The contract will run for 30 years meaning the company will be paid over US$300 million while at the same time realising profits from the power which will be generated and fed into the national grid.

Contractor general obligations

The concession agreement seen indicates that the contractor, Geogenix BV is obliged to: “carry out all the specified works, finance, procure, install and maintain equipment, set up the logistics for the delivery of the services, hand over the site, the facilities, and the equipment to the City of Harare or any third party designated by the City of Harare, upon the expiry of the term or the agreement, or upon the termination of the agreement, whichever happens earlier,” Section 2.1.1 (a) to (f). It further states that Geogenix BV shall establish the project company that will represent it in the execution of the project at Pomona Dumpsite. While the agreement purports that Geogenix BV shall finance the project, it is apparent in the contractor’s rights that most of the work will be done by the City of Harare with Geogenix BV largely pocketing the money. The project company established is called Geo Pomona Waste Management (Pvt) Ltd. On 28 April 2022, the City of Harare did a site handover to this project company after signing of the Joint Statement on 27 April 2022. From then until 12 May 2022, the City of Harare and Geo Pomona Waste Management (Pvt) Ltd agreed to jointly operate the Pomona Dumpsite until 20 May 2022 after which Geo Pomona Waste Management (Pvt) Ltd would take over the dumpsite and be in control for the next 30 years.

Contractor’s rights

In terms of section 2.2 of the concession agreement initially signed between the parties, the City of Harare “shall grant and shall cause any government entity to grant the contractor from end of term or early termination of the agreement all those rights over the sites and premises specified in the agreement. The City of Harare shall grant and cause any government entity to also grant exclusive rights of use, operation and control of the project to the contractor from start to end of the project. Further, the City of Harare is obliged to duly and timely pay the US$40 per tonne, assist Geogenix BV to obtain any and all permits as required in terms of Zimbabwe’s laws, and represents and warrants that all payments agreed will be paid to Geogenix in compliance with the agreement. The stipulated daily delivery of garbage stands at a minimum of 550 tonnes per day or at least 200 750 tonnes per year, which translates to US$8.03 million for the company in the first year of the project. The daily tonnage of garbage will rise to 650 in second year, and not less than 237 250 tonnes, 750 tonnes per day in the third year equivalent to 273 750 tonnes, and not less than 850 tonnes per day in the fourth year, coming to 310 250 tonnes. From the fifth year until the end of the contract, not less than 1 000 tonnes per day which converts to 365 000 tonnes per year.

The Concession Agreement specifies that in the event that the City of Harare fails to deliver and deposit the minimum agreed quantities of waste to Pomona Dumpsite, “the contractor shall invoice and shall be entitled to receive an annual fee which is the amount equal and not less than the annual agreed amount of waste in tonnes multiplied by the US$40 per tonne rate.” The agreement further states that the payment of the annual minimum guaranteed amount shall not be contested or disputed by the City of Harare throughout the contract period of 30 years. This is most undemocratic, and one may conclude that the contract terms are unfavourable to the interests of the residents of Harare and the City of Harare.

The controversial part of the agreement follows: “The contractor (Geogenix BV) shall be entitled to serve any other private or public clients and provide them with services similar to the services to City of Harare especially in connection with waste depositing, management, treatment and processing for as long as the services to the City of Harare are not negatively effectuated, and capacities of the sites and facilities allow for.” ^[3]

Companies

Geogenix BV

According to the concession agreement, Geogenix BV is a limited liability company involved in the business of waste recycling. The company, previously known as Integrated Energy BV, expressed interest in partnering the City of Harare in a Waste-to-Energy Project at Pomona Dumpsite and desired to develop a waste to energy plant at the dumpsite. Geogenix BV’s principal offices are located at Keizersgracht, 520 H, 1017, EK, Amsterdam in the Netherlands. The Transfirm website claim that Geogenix BV is registered with the Chamber of Commerce in the Netherlands and its main activity is classified under ‘treatment of non-hazardous waste,’ (Transfirm, 2022). Miliad Lopa represented the company in the signing of the agreement with the City of Harare’s Engineer Phakamile Mabhena Moyo in his capacity as the Acting Town Clerk. ^[3]

Investigations showed that GeoGenix B.V, formerly known as Integrated Energy B.V is linked to Mirel Mertiri. Mertiri is a controversial recipient of dozens of state contracts in Albania because of his proximity to the political leaders.

Mertiri is also closely linked to Ilir Dedjar, the owner of Drax Consult Sagl (Drax International LLC) which was accused of syphoning billions of dollars in Zimbabwe in what became to be known as Covidgate. Mertiri and Dedjar are co-directors in a company called 3DDD Swiss Trading and have collaborated in several contracts.

Events

A scandal, named “wastegate”, unfolded in May 2022 in Harare. GeoGenix B.V, signed a controversial contract that would cost the City of Harare ratepayers US$300 million to dump at the City’s Pomona Dump over the next 30 years as GeoGenix B.V, builds a waste management facility and waste-to-energy plant that will generate between 16-22 MW plant at Pomona in Harare.

Markham

In Case Number HC2766/2022, Allan Norman Markham, the Member of Parliament for Harare North, filed a lawsuit in the High Court seeking an order reviewing and setting aside the council resolution of 28 February 2022 approving the Acting Town Clerk and Acting Mayor to sign a contract with Geogenix BV. Markham wants the High Court to declare that the contract by and between the City of Harare and Geogenix BV is a nullity and of no force or effect (Markham, 2022). Civil society organisations like the Zimbabwe Coalition on Debt and Development (ZIMCODD), Combined Harare Residents’ Association (CHRA), Harare Residents’ Trust (HRT), Community Water Alliance (CWA) and Transparency International in Zimbabwe (TIZ) have been at the forefront of mobilizing communities to raise their voices in protest against the signing of the Waste-to-Energy Project by the City of Harare and Geogenix BV. Harare North Member of Parliament approaches the High Court on Pomona Deal with Geogenix BV. ^[3]

Geo Pomona Waste Management Private Limited commenced clearing the ground at the Pomona dumpsite and will run the waste management site for 30 years while charging Harare City Council US$40 000 per day. The contract was signed by Acting Harare Town Clerk Engineer Phakamile Moyo without consulting the Mayor and other city fathers while the sole representative of the Netherlands based company in Zimbabwe is Delish Nguwaya of the Draxgate firm. ^[4]

In May 2022, it is reported that the Local Government Minister July Moyo instructed the City of Harare (COH) to appoint Grant Thornton, a South African based audit company, to conduct a feasibility study on the project without going through the proper procurement procedures. Geogenix BV, the waste to energy contractor, is allegedly chaperoned by Delish Nguwaya and Collins Mnangagwa. The expected contract cost is reportedly at least US$22 000 a day and US$14 600 000 a year. Which is more than US$300 million after 30 years.

Mayor Jacob Mafume/Jacob Mapfume described the deal as “atrocious”. ^[5] How can the Landlord (Harare City council) pay the tenant (GeoGenix), it is absurd. The company should, instead pay rentals for its factory or still buy the refuse from us, Jacob Mafume fumed.

Special Council Meeting

On 2 June 2022, a Special Council Meeting was held. Harare City Councilors resolved to suspend the Pomona Waste to Enenrgy Deal and set up a Special Committee to look into the deal, to be announced within 24 hours. It emerged during the meeting that a Bankable Feasibility Study was not conducted for the Pomona Waste to Energy project. The deal would have meant the City of Harare would pay US40 per day for dumping 1 tonne of waste which is equivalent to US40 000 for dumping 1 000 tonnes of waste per day at Pomona Dumpsite.

At this meeting, despite Cabinet of Zimbabwe approved the Waste to Energy project on 18 February 2022, this meeting reversed the resolution made on 28 February 2022 during the 1909th council meeting held at Town House by some of the councillors, mostly those who were not recalled when others were recalled (COH, 2022). The February meeting was chaired by then Acting Mayor Councillor Stewart Mutizwa. Councillors Jacob Mafume and Makone had applied for leave of absence and did not participate in that full council meeting.

Also at this 2 June 2022 meeting, Makone was appointed as the chair of the investigations committee while Jacob Mafume chaired the special council meeting as the Mayor of Harare.

Bankable feasibility study and due diligence on Geogenix BV
At this meeting, Engineer Pakhamile Mabhena Moyo, the Acting Town Clerk, submitted a narrative report to the City of Harare’s special council meeting held by the Harare City Councillors at this 2 June 2022meeting at Town House. He stated that the City of Harare signed a Memorandum of Understanding (MOU) with Geogenix in July 2021 that required the two parties to further engage on a bankable feasibility study and a due diligence on Geogenix BV, then a potential partner. The due diligence on Geogenix BV was conducted in September 2021. This part also needs to be scrutinised to better understand what the due diligence entailed and to get the report for this. Unfortunately, council officials are reluctant to share more information concerning the report. In pursuit of the MOU, the City of Harare floated a tender between October and November 2021 to engage potential consultants to execute a bankable feasibility study through restricted bidding and it was unsuccessful.

Pakhamile Moyo suggests that the City of Harare wanted to conduct a bankable feasibility study on both Geogenix BV and Waste-to-Energy Project, but these were stopped by the Office of the President and Cabinet who directed the City of Harare to proceed to negotiate with Geogenix BV for the implementation of the Waste-to-Energy Project.

His report outlined the historical sequence and background to the Waste-to-Energy Project between the City of Harare and Geogenix BV. Engineer Moyo claimed that in producing the report submitted to the council for noting, he had consulted the Acting Finance Director Godfrey Kusangaya and the Acting Chamber Secretary, Warren Chiwawa. However, upon scrutiny of the report, there are more questions than answers. It would appear that what they considered as relevant information was well-managed to create the misleading impression that they were revealing the truth yet deliberately withholding critical details about how the council brought in the Ministry of Local Government and Public Works. For example, the report states that:

Council received several project proposals for the Pomona Waste-to-Energy Project. The proposals came through as unsolicited bids and responses to two (2) requests for expression of interests published by council. Two expressions of interests were published first in 2016 and another one in 2018. The 2016 process was cancelled in 2018 after bids became invalid before award. The 2019 processes were concluded and not awarded due to no successful bidders. In January/February 2019 Integrated Energy BV submitted a proposal to council and the joint Environmental Management, Business, Finance and Development committees at their meeting of 30 April 2019 resolved that the Town Clerk enters into negotiations with Integrated BV for the development of a Waste to Energy Plant. An agreement could not be reached due to an unacceptable proposed business/financial model.

Moyo’s narrative is corroborated by Engineer Hosiah Abraham Chisango, the Town Clerk of the City of Harare who flighted tender number COH/S.5/2018 on 2 December 2018 in the Government Gazette as an invitation to international tender for the establishment of a waste to energy plant at Pomona Landfill site through a public private partnership. In their advertisement requesting for proposals and expression of interest titled “establishment of a waste to energy plant for Pomona Landfill Site through a Public Private Partnership” referenced COH/EO/DOW/S1/2016 the closing date for submissions was 27 September 2016. Chisango stated in his background and information section to the expression of interest advertisement that the total investment shall be covered by the investor and in return the City of Harare shall “ensure the availability of waste and the purchase of power generated at an agreed upon rate to support the investment and the city shall provide the land for the plant.” Based on this background information to the Waste-to-Energy Project, one may conclude that the City of Harare was seeking an investor who would fit in with their criteria set in the Harare Master Plan which required the investor to detail the specific technology being offered. Geogenix BV does not meet any of the criteria, which explains why the company failed on two occasions to secure this deal. ^[3]

Minister's letter, 16 June 2022

The Minister of Local Government and Public Works in a letter dated 16 June 2022 addressed to Mayor Jacob Mafume, directed the City of Harare to rescind their council resolution directing the Engineer Moyo to withdraw the affidavits filed by the council with the court opposing the court case by the residents challenging the Pomona Energy Project.

According to Pakhamile Moyo, the City of Harare wrote to the Ministry of Local Government and Public Works in January 2021 updating the Permanent Secretary Zvinechimwe Churu on progress Council had made with regards to Waste-to-Energy Project in the City. As far as public accountability is concerned, there was no council resolution that made it necessary and compulsory for the Acting Town Clerk to write to the Ministry of Local Government and Public Works. If ever there was any communication or enquiries from the ministry, one may conclude that the ministry made either telephone calls or sent emissaries to the City of Harare demanding to know the status, otherwise, there is nothing to suggest that Pakhamile Moyo had a duty to provide the update to the Ministry. The question remains how he decided on his own to provide the update.

Then, Acting Town Clerk reported to the council that on 12 March 2021, “the Permanent Secretary of the Ministry of Local Government and Public Works (MLGPW) responded to the City acknowledging receipt and recommending guidance by engagement of ZIDA. A meeting was then held at the City and was attended by Officials from the City of Harare, Zimbabwe Investment and Development Agency (ZIDA), Ministry of Finance and Ministry of Local Government and Public Works that deliberated on the proposal. Recommendations from the meeting were documented and consolidated by ZIDA and submitted to Cabinet Committee on Joint Ventures. On 9 June 2021, the MLGPW wrote to the City of Harare bringing to the attention of the Acting Town Clerk decisions of the Seventh Cabinet Meeting of 2021.”

Moyo’s report further explains that during the course of trying to engage the consultants to do the bankable feasibility study, a meeting was held at the OPC, chaired by Deputy Chief Secretary responsible for Special Infrastructure Projects, Amos Marawa who was appointed by Cabinet to chair the Waste-to-Energy Project. In attendance was the Office of the President and Cabinet (OPC), City of Harare and ZIDA officials. He highlighted that from the meeting, the City of Harare was advised that there was no need for a bankable feasibility study.

However, ZIDA’s letter signed off by J. Mushayi dated 23 October 2020 to Samuel Z. Alemayehu, the managing director of Cambridge Industries advised that the promoters of the project, City of Harare was in the process of conducting a prefeasibility study for the Pomona project, “Subsequent to this, the expectation is that the project will proceed to a full bankable feasibility study,” Mushayi wrote. “The project will be floated to a public tender in line with the requirements of the ZIDA Act in as far as it governs public private partnerships. We expect that at that stage your company should be able to bid for the project.”

The Acting Town Clerk’s report brings to the fore the role played by the Ministry of Local Government and Public Works, the Office of the President and Cabinet and ZIDA in the marshalling of the City of Harare to accept Geogenix BV as the only investor in the waste to energy plant project at Pomona Dumpsite. There is evidence in this procurement process that brought in Geogenix that the national government imposed this project on the City of Harare in total contempt of Section 5 and Chapter 14 of the Constitution of Zimbabwe Amendment (Number 20) Act of 2013 which states that devolution of governmental powers and authority should take place. However, council minutes have revealed that City of Harare engineers Mabhena Moyo, Norman Karidza and Calvin Chigariro and Acting Chamber Secretary Warren Chiwawa travelled to Italy and Albania at the expense of Geogenix BV from 13 to 21 September 2021 where they received executive treatment. Upon their return they all supported the implementation of the project. The role of councillors remains peripheral, and in most instances endorsing what would have been already decided elsewhere. Where devolution takes place, the national government can no longer impose itself on lower tiers of government but a cooperative working relationship has to be built among the three tiers of government.

^[3]

Temba Mliswa

In July 2022, Norton MP (independent), Temba Mliswa, claimed that Local Government and Public Works Minister, July Moyo, collected a 10% commission on the Pomona Waste to Energy deal. The US$344 million which required Harare to pay US$22 000 per day was signed between Harare City Council and Geogenix BV, a Netherlands company fronted in Zimbabwe by Dilesh Nguwaya who is said to have close links with the first family. ^[6]

In July 2022, Citizens Coalition for Change MP for Kuwadzana East Charlton Hwende was ejected from the house after insisting that more time should be allocated to debate the US$344 million Pomona Waste to Energy deal. Hwende and his colleagues in the CCC were demanding to know why the minister was acting like a debt collector on behalf of a private company. ^[7]

Citizen participation minimal in the Pomona Waste to Energy Project

From the evidence on the project, there was never any consultations done by the government, City of Harare or Geogenix BV before the implementation of the project. Dr Trust Nhubu, a water and waste management expert weighed in saying that a waste management system that is planned, designed and implemented without the involvement of the stakeholders especially the residents who are to be served by such a system is bound to fail. The deliberate exclusion of the residents from the whole process demonstrates that the investor, government and the local authority are insincere about their intentions on waste management. Citizen participation is provided for in the Constitution of Zimbabwe Amendment (No.20) Act of 2013. In the preamble to Chapter 14 of the Constitution, the desirability of the democratic participation in government by all citizens and communities of Zimbabwe and the equitable allocation of national resources and the participation of local communities in the determination of development priorities within their areas is provided. To ensure this happens, the Constitution states that there, “must be devolution of power and responsibilities to lower tiers of government in Zimbabwe.” ^[3]

Waste Collection

The City of Harare has been unable to regularly collect garbage from residential and industrial areas as well as from the central business district. Muswere and Rodic-Wiersma (2004) ^[1] bemoaned the unsustainable vehicle maintenance system where the refuse collection vehicles are operated until they finally breakdown, at which point costly repairs are required. The 2004 findings still obtain in 2022 when the City of Harare is supposed to be focused on achieving a World Class City status by 2025. Consequently, heaps of uncollected garbage are visible in communities, especially street corners, open spaces and shopping centres with no indication that the City of Harare will be able to overcome this challenge.

Nguwaya’s interview avoided the most pressing demands of the residents for his company to collect the garbage and reduce the cost of implementing the project. His responses revealed that their company is the one that did the feasibility studies, unfortunately without consulting the residents. ^[8]

An enquiry ends with a conclusion which found that the while the Waste to Energy technology is considered most efficient and cost-effective, the cost of the project being undertaken by the Geo Pomona Waste Management company is highly inflated and does not offer the best options to the City of Harare and ultimately to the residents of Harare. ^[3]

Deal Not Transparent

Churu in his capacity as the Permanent Secretary in the Ministry of Local Government and Public Works wrote to the Acting Town Clerk of the City of Harare on 16 June 2022 on the need for the payment of Geo Pomona Waste Management Invoice.

It is strange that the government is the one now demanding payment of money on behalf of an investor who has been rejected by both ratepayers and council. According to Churu, the City of Harare is obligated to pay an amount of US$780 890-00 to Geo Pomona Waste Management for the month of May 2022. He was responding to a letter by the City of Harare dated 10 June 2022 reminding them their decision not to pay the amount had serious consequences, not only on the City of Harare but on the government, who are the guarantor’s of the project. Churu stated that failure to pay will cause “the debt to accumulate through interests, arrears, penalties and fees due and payable.

The final contract agreement between the City of Harare and Geogenix BV remains unknown to the ratepayers. However, based on a notice of default letter written by Delish Nguwaya to the Office of the Town Clerk of the City of Harare dated 4 July 2022, Geogenix BV and the City of Harare signed the Concession Agreement on 9 March 2022. As at 1 July 2022, Geo Pomona Waste Management invoked Section 30.1 of their Joint Venture Concession Agreement and informed the City of Harare that it was in default of its obligations to pay the fees to them. The City of Harare and government are both not sharing the contract. Therefore, the demands coming from the government for payment of the money might be a good indicator of who actually is behind the project.

Council resolves to cancel deal, August 2022

In August 2022, Harare City Council resolved to cancel the Pomona waste management deal. They also disregarded Local Government minister July Moyo’s order that council pay a US$1,5 million bill due to Geogenix BV for services rendered in May and June at the Pomona waste management energy plant. Mayor Jacob Mafume confirmed that the local authority had cancelled the Pomona deal, saying Moyo must go to court if he was unhappy.

A week before, Combined Harare Residents Association (CHRA) filed an urgent High Court application seeking an order to set aside a resolution to use the city’s devolution funds to pay Georgenix. CHRA was represented by Archford Rutanhira and Evans Moyo of the Zimbabwe Lawyers for Human Rights (ZLHR). ^[9]

ZITA Award

In December 2022, the Zimbabwe Integrated Traders Association (ZITA) gave controversial businessman Delish Nguwaya with a special Innovative Business Award in recognition of his leading role in the Pomona Waste Management project. Under the deal, City of Harare was to pay US$22 000 per day or an estimated US$1 million a month to Gegenix BV fronted by Dilesh Nguwaya for the next 30 years. ^[10]

2023 Councillors Report

A CoH Councillors investigation into the Pomona (Dump) Deal, has revealed that it would cost the City of Harare over US$1 billion while the city would derive revenue of US$60.39 million from the sale of electricity. The total cost of the project to City of Harare over the period of 30 years period will be US$1,002,202,001.65.

The report showed that the City of Harare was not allowed full involvement in the deal which was imposed on Harare by the Local Government ministry. The contract was evaluated by the Public Private Partnership (PPP) unit in the Finance ministry. And due diligence was not followed in awarding Geogenix BV, formerly Integrated Energy BV, the contract to operate the Pomona dumpsite. The PPP unit was established in the Ministry of Finance and Economic Development by section 34 of the Zimbabwe Investment Development Agency Act [Chapter 14:37]. ^[11]

Further Reading

Paper Unpacking the Pomona Waste to Energy Project, Precious Shumba - Harare Residents Trust, 14 July 2022. File:Paper on Pomona Dumpsite waste to energy project- 14 July 2022.pdf