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Martin Kadzere Senior Business Reporter
THE Infrastructure Development Bank of Zimbabwe will float two bonds worth $65 million to fund power generation and the completion of the electricity prepaid metering system.
The bank also intends to issue similar instruments in the next 12 months to fund the completion of the Tokwe Mukosi Dam, rehabilitation of railway systems and construction of student houses at State universities, executive director Mr Desmond Matete said.

On the energy bonds, Mr Matete said $15 million would be for Zimbabwe Electricity Transmission and Distribution Company to finance the completion of prepaid metering project, $38,2 million for the refurbishment of Kariba Power Station and $11,2 million for modernisation of Harare Power Station. Both offers open tomorrow but the $15 million issue will close on December 5 while the $50 million offer will close on December 17.

They will be issued at an interest rate of 8 percent per annum and they all carry Government guarantees.
“In the next 12 months, we intend to issue a $25 million bond for railways and $50 million bond for the completion of Tokwe Mukosi,” Mr Matete told analysts, investors and funds managers while appraising them on the two instruments yesterday.

In 2012, IDBZ successfully raised $30 million for ZETDC’s prepaid metering project which is just under 90 percent complete. The ZEDTC has already installed about 467 000 meters and is targeting to install about 520 000 metres.

The installation of prepaid meters has resulted in reduction in electricity consumption by an average 21,5 percent for domestic users and average 16,6 percent for commercial customers.

The Kariba South Power project entails the construction of two additional power projects of 150 megawatts each at a total cost of $540 million the contract was awarded to Sino Hydro.
Jaguar Overseas, an Indian company, was awarded the contract to repower the Harare Power Station.
The total cost of the projects would be $70,2 million.

Jaguar Overseas will provide $59 million towards the projects while the Zimbabwe Power Company will chip in with $11,2 million. The $11,2 million will enable Jaguar access to a concessional loan from India Eximbank.

Riding on the success of the $30 million maiden bond, the bank said it had identified and appraised a number of infrastructure- related projects it intends to finance.
The Finance and Economic Development Ministry recently approved some tax-free debt instruments and housing bonds for the Infrastructure Development Bank of Zimbabwe to raise $100 million for the construction of low-cost housing units across the country.