THE controversial Egodini Mall project being developed by South Africa-based Terracotta Trading (Pvt) Ltd is facing another major setback with the developer requesting a review of its investment to US$10,5 million from US$60 million.
Terracotta has failed to complete the project since 2012.
Bulawayo City Council (BCC) contracted Terracotta to develop the mall in Bulawayo on October 11, 2012.
Terracotta has blamed local suppliers for the delay.
However, according to the latest minutes of a BCC full council meeting on the Egodini Redevelopment Project, the contractor recently asked to revise downwards the investment amount.
It is also revealed that on June 12 this year, the city’s department of works reported that it was engaging Terracotta on a notice to cancel the agreement signed between the two parties.
“The meeting was held on June 10, 2025, at 3:30pm, and the following were discussed: Contract Price Variation. In an earlier meeting, the developer, Terracotta, alluded to the desire to change the project investment from US$60 million to US$10,5 million in the redevelopment project,” the meeting heard.
According to the minutes, the city’s technical team advised Terracotta that such a variation could only be possible with a change in the scope of the project, entailing re-advertising it.
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“The developer was further advised that the bid price which it submitted at tender stage formed part of the contract and further advised that the submitted bids were as follows: Terracotta (Pvt) Ltd with estimated project cost of US$59 599 480,48, Company A with estimated project cost of US$30 million; and Company B (Pvt) Ltd with estimated project cost of US$3 million,” it said.
“On extension of the cancellation period, the request by the developer for the relaxation of the cancellation notice was discussed and the meeting resolved that the notice be extended by a further three months,” the minutes said.
The minutes further indicated that the notice will now be extended to September 12 this year to allow for further engagement on the contract price if Terracotta insisted on reducing the project scope, making it imperative to terminate the contract.
It was also reported during the meeting that the technical team emphasised the need for a performance bond of 10% of the cost of outstanding works.
The technical team further stressed that Terracotta had to prioritise work on anchor shops, food outlets, supermarkets and bus ranks to increase business attractiveness and passenger flow.
Councillor Roy Sekete reportedly argued that council should engage contractors with capacity for future projects. Sekete inquired whether an assessment had been made on the completed work, which cost US$3 million.
Councillor Alack Ndlovu called on council to terminate its contract with Terracotta.
“The biggest concern was how much council would have to pay in compensation? In response, the works department indicated that an assessment had been done.
“The amount used was, indeed, coming close to US$3 million. The chamber secretary expressed concern at the reduced investment figure from almost US$60 million to a mere US$10,5 million. There was doubt that the same quality and standard envisaged could be produced,” council heard.
Compensation in the event of cancellation, the meeting heard, could not go beyond the US$3 million Terracotta claimed to have invested in the project.
Town clerk Christopher Dube reportedly advised that Terracotta said it would meet the original contract’s expectations.
Terracotta constructed commuter omnibus loading bays and vending stalls, while the rest of the infrastructure remains incomplete.
