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Harare Served With Default Notice After Failing To Pay Geo Pomona Waste May 2022 Service Fee

Harare Served With Default Notice After Failing To Pay Geo Pomona Waste May 2022 Service Fee

Harare City Council has been served with a default notice after failing to pay Geo Pomona Waste the May 2022 Service fee. According to a deal between Geo Pomona and the local government authority, Harare is supposed to pay a monthly fee of US$22 000 a day for waste deliveries to the Netherlands-based company, a figure considered exorbitant by government critics. In a notice seen by Pindula News, Dylish Nguwaya who is Geo Pomona’s Zimbabwe representative says attempts by Harare to cancel the agreement had no basis. 

NOTICE OF DEFAULT

In accordance with article 30.1 of the JOINT VENTURE CONCESSION AGREEMENT TO DESIGN, BUILD, OPERATE AND TRANSFER OF THE HARARE POMONA WARE MANAGEMENT FACILITY AND WASTE TO ENERGY PLANT, entered into between the City of Harare and GeoGenix B.V. on 9 March 2022 (the “Concession Agreement”), we hereby invoke our right to notify you that as of 1 July 2022, the City of Harare is in default of its obligation to pay the fees to Geo Pomona Waste Management (PVT) Limited (the “Company”) within the prescribed term.

On 2 June 2022 the City of Harare received an invoice dated 1 June 2022, issued by the Company for waste management services performed over the month of May 2022 (the “May 2022 Service Fee”). Pursuant to article 22.2.4 of the Concession Agreement, the City of Harare had 30 days to pay the May 2022 Service Fee. Having failed to do so, and in accordance with article 22.4 of the Concession Agreement, the City of Harare is liable for late payment interest. Consequently, the Company is charging the prescribed interest rate of 12% as provided for by, the Central Bank of Zimbabwe over the outstanding May 2022 Service Fee from 1 July 2022 per annum, applied pro rata for each day this invoice remains unsettled.

Article 29.2 (b) of the Concession Agreement provides that a “failure to pay invoices for a period of more than (30) thirty days form the moment that they become due and payable”, warrants a Contracting Authority Event of Default. In addition thereto, we note that the City of Harare’s official actions thus far leads us to reasonably believe it does not intend to meet its contractual obligation to pay the May 2022 Service Fee in the short term either. This in itself warrants an additional Contracting Authority Event of Default, pursuant to article 29.2 (a) of the Concession Agreement.

We remind you that when the Contracting Authority Event of Default is in effect, the Concession Agreement accords us the following remedial rights to be taken within 90 days of this Notice:

a. Extend the construction period and thus delay the project handover delivery date (article 21. 1);

b. Cease all services to the City of Harare (article 21.1); and/or

c. Terminate the Concession Agreement resulting in Early Termination Compensation Amounts immediately due and payable by the City of Harare (article 32.2 jo. article 33.1 (I)).

As a final point, we once again reiterate that your letter dated 10 June 2022, in which you attempt to notify us of a suspension of the Concession Agreement has no basis, as the legal relationship between us and the City of Harare is regulated by the terms of the Concession Agreement. Consequently, it strictly provides for certain procedures to be followed, of which a ‘suspension of the Concession Agreement’ is not a remedy provided for.

We trust that you will remediate this Event of Default by settling the May 2022 Service Fee as soon as possible. Yours faithfully, Mr. Dilesh. Nguwaya Executive Chairman of GEO POMONA WASTE MANAGEMENT (PVT) LIMITED Country Representative of GeoGenix B.V.

CC GeoGenix B.V. Ministry of Finance and Economic Development, Hon Prof.M. Ncube Ministry of Local Government and Public works, Hon. J.Moyo Chief Secretary to the President and the Cabinet, Dr. M.J.M Sibanda Deputy Chief Secretary to the President and Cabinet, Eng. A. Marawa Minister of State for Provincial Affairs, Harare Metropolitan Province, Hon. O. Chidawo Secretary for Provincial Affairs and Devolution, Harare Metropolitan Province, Mr. T. Muguti

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11 Comments

Ratepayer 1 month ago

Pomonagate


Jack Bauer 1 month ago

This deal was definitely designed to fail.....HCC is now suffering the consequences


sekuru waBona 1 month ago

vazukuru it pains me chokwadi and it beats me. what is it that zanu intends to achieve like really ?
these people are so so powerhungry and greed to the extent of wanting to loot everything in this country

the natural resources has been given to foreigners we are modern day slaves
doesn't Ed has a conscience ?
the army that supported the coup are they happy with the open looting and luxurious lifestyles of a few at the expense of the masses ?

mukuwasha wangu Robert akataura kuti munhu uyu achakuonesai chakati tende
zvoreva kuti kutambura kwose uye looting yaive na Ed pamberi Robert ndiye aitodzoreredza
nhaka vazukuru handione 2023 achisvika pasina kudeuka ropa

povo yaramba zvemadhisinyongoro

ndikurwadziwa vazukuru vangu 😭😭😭😭😭


Mukadota 1 month ago

ZANU yeMbavha


MuPfungwe Chaiye 1 month ago

Makanga mawirirana here deal renyu neHCC yacho?


XXX 1 month ago

This deal is a Day light robbery of ED and associates. Kurovera kurovapasi . Your days are numbered.


Blue 💙 1 month ago

JULY SUSPEND MAFUME AND MWONZORA FIRED MDC COUNCILLORS AND INSTALL HIS PUPPETS WHO HELPED TO SPEARHEAD THE SIGNING OF THIS CONTRACT, NOW RECALLED COUNCILLORS ARE BACK AND REJECT THIS FAKE CONTRACT


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Nkust 1 month ago

Ko ini ndisiri mu voter's roll re Harare zec inonditendera ku comment nyaya iyi here, kana ndichitendegwa ko iyo city of Harare zvainoti has run out of space and ideas to dispose of their waste vadii vangopa nguwaya basa racho ndiye anoziva kwaachaenda nazvo imwi wedzerai kukanda ma pamper neane madodhi anoziva zvaachaiita nawo kusvika ati eke


Rasun Muingadzikwe 1 month ago

pomona deal is an evil that was tabled n created to bring city of harare down. makambozvionawo kupi, investor anoti ndivakire pekigara free, handibhadhare rent, hunza mabin ane **** dziri graded at yo cost then ndotangira ipapo, pamwedzi ndoda $22000 US$ kubva musi wekuwirirana even ndisati ndatanga kushanda. its a sure evil to the citizens.

Gafa 1 month ago

Handiti vakati gvnt is the guarantor iye gvnt ndiye achabhadhara vawane kuba.



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