Home » Governance » Green Fuel, Zinwa Seal Deal

Macdom Investments, a sister company to Green Fuel, has signed a Memorandum of Understanding with the Zimbabwe National Water Authority to ensure consistent raw water supply for sugarcane production in Chisumbanje.

The sugar is for the Chisumbanje ethanol plant and Zinwa agreed to a five-year water supply contract.

This followed the disconnection of water supplies at the sugar plantation by Zinwa in March and the MoU would see the restoration and the crafting of a payment plan for the bill.

In March, Zinwa disconnected water supplies over a US$7,3 million debt which accrued since Macdom and Green Fuel started farming in Middle Sabi and Chisumbanje, according to Zinwa public relations manager Mrs Marjory Munyonga.

“We started billing them for raw water soon after they took over Arda Estates,” she said.

Green Fuel’s public relations manager Ms Lilian Muungani said the MoU would benefit both ethanol production and thousands of families serving as community irrigation farmers.

Ms Muungani said this was a giant step towards reliable water supplies and it also cemented the company’s relations with Zinwa, which she described as a key stakeholder in the business.

“Numerous discussions regarding payments were held with the customers and several verbal and written payment plans were agreed upon, none of which was honoured by the customer.

“The customer would agree on a payment plan which they would after a month or two start to default on.

“We have a payment plan which should have been honoured by the end of February 2014 and which was not honoured.

“On March 11, we cut our supplies at Middle Sabi as a measure to force them to pay. The outstanding bills are as follows: Macdom Chisumbanje owes US$4 357 056,32 and Ratings Chisumbanje US$2 952 145,18. The total is US$7 309 201,50.”

Part of the MOU that was signed by the two parties recently reads: “The parties agreed to negotiate and enter into a legally binding five-year water supply agreement, which shall include, among other issues, the determination of the amount payable by Macdom to Zinwa for current water consumption over the life of the contract.

“To determine the outstanding amount owed by Macdom to Zinwa and, if necessary, determine a payment plan for the settlement of the amount owed by Macdom.

“Zinwa shall immediately restore water supply to Macdom for irrigation purposes on the date of the signing of this MoU.”

Green Fuel’s public relations manager Ms Lilian Muungani said the MoU would benefit both ethanol production and thousands of families serving as community irrigation farmers.

Ms Muungani said this was a giant step towards reliable water supplies and it also cemented the company’s relations with Zinwa, which she described as a key stakeholder in the business.

Source : The Herald

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