Financing model for Beitbridge-Harare and Chirundu Highway approved

22 Oct, 2016 - 00:10 0 Views
Financing model for Beitbridge-Harare and Chirundu Highway approved file pic

The Herald

Zvamaida Murwira Senior Reporter

An inter-ministerial committee has approved the financing model of the dualisation of the Beitbridge-Harare and Chirundu Highway, paving way for commencement of the construction of the billion dollar project, an official has said.Secretary for Transport and Infrastructural Development Mr Munesu Munodawafa said the agreement between financiers and the Government had been sent to the Attorney-General’s office.

Mr Munodawafa said this while addressing members of the parliamentary portfolio committee on Transport and Infrastructural Development and Thematic committee on Sustainable Development Goals during a pre-budget stakeholders consultative meeting attended by parastatals falling under the ministry.

“One of the achievements that we cite certainly, a big step that we took on infrastructure is to secure funding on the Beitbridge-Harere-Chirundu Highway.

“I must point out that I will resist putting a figure on the cost of the project on the table because the final figure awaits final determination because the moment those figure change, questions would also arise. The fact of the matter is that we are working on the final bill of funding, before that is done anything that comes is an estimate,” said Mr Munodawafa.

“As we are talking, we have received the draft financing agreement of both procurement and EPC (Engineering Procurement Construction) contracts and both have been reviewed by the Inter-ministerial team and we should be submitting to the Attorney-General’s office either today or on Monday.

“We are now doing the final touches. That will pave way for the signing of the second level of the agreement. Thereafter, we will be going to the actual construction, which begins with ground breaking, movement of material and procurement of material.”

EPC is when the engineering and construction contractor carry out the detailed engineering design of the project, procure all the equipment and materials necessary, and then construct to deliver a functioning facility or asset to their clients.

Mr Munodawafa said the project will be done in two phases.

“That project is being done in two sections, the first section from Beitbridge to Harare is being done on Public Private Partnership/Build Operate and Transfer (PPP/BOT) basis and it is full dualisation. The second section will be done through loan facility. So there are two funding models on that one road,” said Mr Munodawafa.

On the National Railways of Zimbabwe, Mr Munodawafa said they were in discussions with possible financiers but declined to identify them saying that might jeopardise discussions.

He said 31 wagons would soon be commissioned as part of efforts to resuscitate NRZ. Transport and Infrastructural Development committee chairperson Cde Dexter Nduna said there was need for stakeholders to provide concrete solutions.

“Indeed, we are not here simply to mourn over the inadequacy of the national cake without proffering solutions on how we can grow the same cake. Nor are we here to just decry the paucity of budgetary allocations without suggesting revenue generating measures,” said Cde Nduna.

“This seminar affords all of us a unique, dual opportunity to not only lobby for our financial resource requirements but also to proffer concrete solutions to the challenges that our country is facing in terms of revenue generation. We need to shift the paradigm from reactive behaviour to more proactive integrative solutions that deal with the variety and complexity of the challenges that are out there today.”

Newly appointed Air Zimbabwe chief executive, Mr Ripton Muzenda said they were preparing a comprehensive budget and turnaround proposal for the consideration of their parent Ministry.

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