Tongaat Hulett released €6,05 million ($6,6 million) to Salini-Impreglio JV, the Italian company contracted to build Tokwe-Mukosi Dam in Masvingo Province for the resumption of works at the dam after the construction company had threatened to move off site over arrears. The deal was facilitated by Tongaat banking partners, Barclays Bank of Zimbabwe.
“We can confirm that Tongaat has export proceeds that come into the Barclays Nostro account which was then used to facilitate the payment,” THZ managing director Sydney Mtsambiwa said in written responses.
This in addition to the $20,3 million released by the Infrastructure Development Bank of Zimbabwe (IDBZ) to clear outstanding arrears. Works at the country’s largest inland dam, which is about 96 percent complete, had been threatened after Salini had given notice to move off site over arrears. Remaining works include roads, valve and steel works, grouting and dry works.
“Tongaat availed foreign currency from its export proceeds which was to effect some urgent payments to foreign suppliers and contractors to enable a critical stage of the dam construction to be completed,” said Mr. Mtsambiwa.
Tokwe-Mukosi Dam is at the confluence of Tokwe and Mukosi rivers in Chivi South district, Masvingo Province. The release of the resources towards Tokwe-Mukosi Dam construction is over and above other community development projects Tongaat is involved in.
Annually, Tongaat Hulett channels about $1 million in new socio-economic development community projects such as the partnership with the Department of Irrigation to resuscitate some irrigation schemes in Masvingo and the Lowveld region, including the Lauder Irrigation Scheme (Gutu), Tshovani Irrigation (Chiredzi), Chilonga (Chiredzi), Lapachi (Mwenezi) and St. Joseph in Gudo Chiredzi.
The company also supports a sorghum project through the provision of inputs, of 1 600 households in surrounding local communities who are expected to produce 2 600 tonnes of sorghum for Triangle Animal Feeds.
Tongaat is also in a Public Private Partnership with Malilangwe Trust and Civil Aviation Authority to renovate the Buffalo Range Airport at a cost of $220 000, PPP with the Cold Storage Commission where THZ partnered with CSC to lease Chivumburu Ranch.
Under the initiative 100 heifers were presented to CSC which were further distributed to CSC’s out-grower farmers. Also, Tongaat has a PPP with Government in which winter maize was grown on about 329 hectares at a cost of $564 000. The 1 169 tonnes of maize yield was distributed throughout Masvingo’s seven districts.
Across its two major operations, Tongaat has 22 schools with an enrolment of some 14 000 pupils and assists local communities with construction of school infrastructure, desks, chairs as well as text books.