The government will pay the Netherlands-based company, Geogenix BV, for garbage dumped by the City of Harare at the Pomona waste management energy plant.
This comes after Harare City Council refused to pay a US$1.5 million bill due to Geogenix BV for services rendered in May and June.
Local Government and Public Works Minister July Moyo recently ordered the local authority to pay the money to Geogenix BV, represented by its executive chairperson Delish Nguwaya.
The City of Harare refused to pay the bill after resolving to suspend the 30-year agreement arguing it had no capacity to do so.
Council representatives, who include Harare mayor Jacob Mafume, met Moyo on Wednesday morning to map a way forward on the Pomona deal. Said Mafume:
We met at the ministry’s office and Moyo said the government will take over payments, but we made it very clear that they will not touch council funds or devolution funds. We also demanded our dumpsite back.
On Tuesday, the Harare Residents Trust (HRT) also condemned the waste management deal as too costly for Harare City Council.
HRT pleaded with the government to cancel the deal without prejudice to ratepayers.