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Minister Joram Gumbo

Felex Share Senior Reporter—
Government has granted national project status to the $1 billion Beitbridge-Harare Highway dualisation project, setting the stage for the contractor to start bringing equipment into the country duty free. Transport and Infrastructural Development Minister Dr Joram Gumbo yesterday said the national project status was one of the conditions which Government had to fulfil before actual construction of the road could begin.

As such, he said, the contractor, Geiger International of Austria, would be on the ground beginning next month.

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“The company has sent an advance team of engineers which I met this week,” Dr Gumbo said. “They feared that if their machinery comes in, it would be affected in terms of paying duty, but we told them that Government had sorted that already.

“The project has been granted national status and there is a Statutory Instrument supporting that. To us, the question was when actual construction would start and they told us that they would be on the ground beginning August.”

Projects awarded national status are given preferential treatment, including exemptions from paying import duty and other taxes.

“Government acknowledges the importance of the project and tax concessions have been granted,” said Dr Gumbo. “The national project status will enable duty free importation of eligible products, which include components and materials that form a permanent part of the finished product.

“There is also exemption from non-residents’ tax on fees payable in respect of any services of a technical, managerial, administrative or consultative nature.”

Geiger International will work with Zhejiang Bayong Highway Engineering Company of China.

The firm was contracted by Government to carry out the project under a 25-year build-operate-transfer (BOT) model at a cost of $998 million.

Dr Gumbo said the engineers were on the ground doing preliminary works.

“They are working on the realignment of the road and setting up administration offices and camps,” he said. “On realignment, they had challenges in Chivhu and Masvingo, but everything has been ironed out with the local authorities.

“The main camp will be in Masvingo for distribution of equipment going south and coming to Harare. They are also at the moment engaging locals whom they would work with, fulfilling the 40 percent threshold.”

Government has negotiated that 40 percent of the dualisation project benefits locals as part of empowering indigenous people.

The project, which fits into the Zim-Asset infrastructure and utilities cluster, is expected to stimulate economic development.

Thousands of jobs will be created, with skilled and non-skilled personnel being hired, while there would be business opportunities for local firms and citizens.

The dualisation of the highway is expected to reduce carnage and increase the flow of goods and tourists in and outside the country.

The project will be done in phases and the first phase includes the Beitbridge-Harare Highway, while the second phase will be on the Harare-Chirundu stretch.