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Mr Maligwa

Nyore Madzianike
THE shortage of foreign currency, which has been affecting the country’s economy over the past years is stalling progress towards the completion of the Dangamvura Pipeline Project. Mutare City Town Clerk Mr Joshua Maligwa revealed that a Bulawayo-based company, Farmco, which was awarded the tender for the completion of project, was facing foreign currency challenges.

Mr Maligwa told The Herald that officials from Farmco said suppliers of the materials to be used in the project were demanding foreign currency for the procurement of equipment needed in the construction process.

“We also need to seriously consider the issue of Dangamvura Pipeline. If you recall sometime early this year, I was very clear and I am still very talkative about Dangamvura pipeline. We have since done all the tenders and it was awarded to Farmco in Bulawayo to the tune of $1,3 million. The challenge, which is there is now issue of foreign currency,” he said.

Mr Maligwa said council had plans to approach Ministry of Local Government, Public Works and National Housing and the Reserve Bank of Zimbabwe to assist in accessing foreign currency.

“The supplier is saying we should pay directly to the South African company. We approached the RBZ and Ministry of Local Government. We are pursuing the matter and currently we have already disbursed about $50 000 for the initial or local procurement procedures within Zimbabwe. But for the bulk of the money, we need foreign currency,” he said.

Mr Maligwa said council has also approached the ZimFund to assist towards the completion of the pipeline project. He said ZimFund has since expressed willingness to assist in the project.

“ZimFund is willing to provide $280 000 towards the project. Dangamvura is the lifeline of about 10 000 properties and we are looking at around 45 000 people in Dangamvura, hence that is our priority.

“I know it cannot be finished within three months and that journey towards completion will add value and that is one of our biggest projects, which we feel as a city we should be vigorously pursuing,” he said.