Mugabe: Time not ripe for water deal

Date: 31 July 2004

Source: The New Sunday Times (Malaysia)

Langkawi - Zimbabwean President Robert Mugabe said the time was not yet ripe to seal a deal on the RM2.28 billion venture between a Malaysian company and the Matabeleland Zambezi Water Authority. "The project requires much more discussion. Our Ministry of Water is also not here. The deal will be done in the future," he said yesterday. On Wednesday, Malaysian officials had announced that a shareholders' agreement between the two parties was scheduled to be signed at the close of the dialogue. Science, Technology and Innovation Minister Datuk Jamaluddin Jarjis said the two parties were still thrashing out several technical issues. It was reported that the project involves harnessing water from the Zambezi River to irrigate the drought-prone Matabeleland region. The Malaysian company involved in the project is said to hold an 80 per cent stake, while the rest would be held by Matabeleland-Zambezi Water Authority. Reports from Harare stated that a joint-venture company known as Mount Hope Services (Private) Limited would spearhead the project and hold a 30-year concession. The reports also said the Export-Import (Exim) Bank of Malaysia would invest RM190 million in the project to bankroll the piping of water from the Zambezi River and the construction of the Gwayi-Shangani Dam. The Matabeleland water project has been on the drawing board for years due to financial setbacks and other problems.