Zimpapers Logo

TENDAI MAHACHI

Innocent Ruwende Municipal Reporter
Harare City Council’s $400 million roads rehabilitation deal is under threat before it even takes off, with the Zimbabwe National Roads Authority refusing to commit itself to the arrangement because it was not consulted.
The city wants to sign Zinara up to pay $5 million annually to Neo Capital of South Africa.

Neo Capital will fund the project against a 30-year concession at a repayment rate of US$15 million annually. This means the city will pay back $450 million, translating to a US$50 million return to NEO Capital at about $1,67 million per annum.

The repayment was to be guaranteed by the Ministry of Transport and Infrastructural Development through the Zinara account, and the city’s billboards account.

The Zinara account will cover $5 million annually while the billboards account will cater for $10 million yearly. Yesterday, Zinara chief executive Mr Frank Chitukutuku said they were not consulted.

“We read about this deal in the Press. There is a lot of work which needs to be done in negotiating deals of this magnitude. We spent two years trying to negotiate the Infralink deal.

“When they (City of Harare) started their negotiations with the investor we were not part of the deal.

“They tried to contact us but we said no.

“We are a funder, we want to understand the nature of the deal because we do not have a full understanding of it,” he said.

Mr Chitukutuku said they had met Transport and Infrastructural Development and Local Government, Urban Works and National Housing ministries over the matter.

“We have very sketchy understanding of the deal. For example, we do not know the scope of the project.

“Does this scope compare with the $400 million? Where is that figure coming from? After that money how are they going to continue maintaining the road?” he asked.

He said Zinara was concentrating on finishing the Airport Road project, which was handed over to them by the city after the municipality had a fall-out with the original contractor, Augur Investments.

Harare town clerk Dr Tendai Mahachi said, “There is consultation now at the ministry level, and at Zinara level.”