Source: Glassblock Dam project hits snag – herald
Vusumuzi Dube, Deputy Radar Editor
NEGOTIATIONS between Bulawayo City Council (BCC) and the consortium responsible for the US$100 million Bopoma Glassblock Dam project in Matabeleland South Province have been stalled as the two entities fail to agree on the Water
Purchase Agreement model.
The proposed construction of Bopoma Glassblock Dam in Matabeleland South Province at an estimated cost of US$100 million through a public-private partnership (PPP) is expected to help address Bulawayo’s water challenges in the short term.
The dam has become the city council’s top priority as a medium-term strategy to secure a reliable water supply for Bulawayo in the coming years.
Bulawayo has been on continuous water shedding for the past couple of years due to the water challenges faced by the city.
Residents are experiencing a water crisis, with the City Council implementing a 130-hour water shedding schedule.
This means residents have access to water for less than two days a week.
Recently, the city’s Town Clerk, Mr Christopher Dube, was granted authority to negotiate and sign the Water Purchase Agreement with the Glassblock consortium, on the understanding that the use or pay clause will be negotiated so that the Council only pays for water consumed and the supplier can guarantee water quality to an acceptable standard of raw water.
According to the latest council report, the local authority is refusing to accept the use or pay clause, arguing they cannot pay for goods not received.
“While we appreciate the rationale provided by the supplier regarding the ‘take or pay’ provision, there is a need to emphasise that, as a public institution, council has a responsibility to exercise sound financial management and avoid wasteful expenditure.
We recognise the importance of ensuring the bankability of the contract, but we are unable to commit to payments for goods not received, as this would contravene our policy and the Public Finance Management Act.
“This is more so in this case, where these future financial obligations, the terms and conditions of which are not known now and the City would not be party to the same, consequently would not be able to negotiate favourable,” reads the report.
The local authority further noted the requirement for them to take more than their needs to the limits set has the potential to create a serious legacy debt, which the City is not able to assume.
BCC, according to the report, also raised concerns about the potential risks of water supply disruption and contamination.
“While we understand that the supplier will make best efforts to ensure the continuity of supply, we believe that proactive measures should be taken to protect the dam from contamination.
“As the supplier, securing the dam against potential pollution sources is crucial to maintaining the safety and reliability of the water supply.
Therefore, we suggest including explicit clauses in the agreement to establish responsibility for securing the dam,” reads the report.
In responding to the concerns raised by the local authority, the consortium dismissed the issue of the “or pay clause” as merely academic.
“We believe that the concern of the City of Bulawayo of having to pay for water not required from the Glassblock Dam is academic and that the requirement for water by the City of Bulawayo is such that there is no risk of an oversupply of water once the Glassblock Dam and Pipeline have been commissioned and commence supply of water to the Lower Ncema Water Works.
“This is why we are prepared to engage the services of Atchison Actuarial Services Company (Private) Limited in Harare to undertake an actuarial assessment of how the water supplied by the Glassblock Dam will impact on the current supplies and usage of water within Bulawayo to be able to demonstrate to the Bulawayo City Council that there will not be an oversupply of water once water is supplied by the dam upon its completion,” reads the report.
The consortium revealed that a Water Purchase Agreement with the guarantee of the purchase of water is fundamental to the investors and lenders providing finance for the project.
In the absence of such assurance, funding will not be secured.
“Lastly, please be advised that we are finalising plans for Standard Bank and the African Development Bank to travel to Zimbabwe to meet with various entities, including the City of Bulawayo as part of their final due diligence.
It would be hugely beneficial to the Project if we could have the Water Purchase Agreement concluded by the time of that visit,” reads the report.
In debating the matter, Bulawayo councillors noted the need to urgently conclude the negotiations with the consortium so that the project progresses.
“His Worship the Mayor (Councillor David Coltart) emphasised the urgency of the matter and the need for a prompt response. He noted that council was yet to respond to the consortium’s letter 4th July 2025.
He further recalled that in the previous meeting, the consortium had indicated that it would only be able to deliver water that would be paid for.
“In the same meeting, the need to come up with a resolution similar to that of Mtshabezi with regards to water quality had been raised.
There was also the issue of payments in US dollars, which was a concern to Council.
“However, he mentioned that this requirement had since been removed from the contract.
He proposed that the Committee approve the matter, subject to an independent study confirming the volume of water which would be required by the City,” reads the report.
Once complete, the dam will have a holding capacity of 130 million cubic metres and is strategically located at the intersection of Gwanda, Umzingwane and Filabusi districts.
Its construction is expected to be completed within two years. Plans for the dam date back to 1988 but were delayed due to funding and logistical challenges.
The Government is now pushing for its implementation as part of efforts to alleviate Bulawayo’s water shortages.
A 32-kilometre pipeline will connect the dam to the Ncema Dam pump station, facilitating water delivery to Bulawayo.
The post Glassblock Dam project hits snag appeared first on Zimbabwe Situation.