Govt approves three joint ventures
tHE Government has approved three proposed joint ventures that were assessed and recommended for approval by the Zimbabwe Investment and Development Agency (Zida), Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa, said on Tuesday.
Speaking during a post-Cabinet briefing on Tuesday, Minister Mutsvangwa said the proposed joint ventures were presented by the Minister of Finance and Economic Development Professor Mthuli Ncube.
“The partnership agreements, which were assessed and recommended for approval by the Zimbabwe Investment and Development Agency (Zida) are as follows: the proposed feasibility study financing agreement in connection with the development of the Victoria Falls Special Economic Zone (Sez); proposed joint venture between the Zimbabwe Parks and Wildlife Management Authority (Zimparks) and Zambezi Crescent (Pvt) Ltd; and a proposal by the Zimbabwe Mining Development Corporation (ZMDC) to engage Zhi Jui Mining Resource (Pvt) Ltd under a contract mining arrangement for the treatment of dumps at Mhangura,” she said.
Minister Mutsvangwa said the joint ventures fall under the purview of the Ministries of Environment, Climate, Tourism and Hospitality Industry and Mines and Mining Development.
She said Cabinet approved the proposed feasibility study financing agreement in respect of the development of bulk infrastructure in the Masuwe area of the Victoria Falls Special Economic Zone.
“Cabinet was advised that Mosi Oa Tunya Development Company (MOTDC), a parastatal under the Ministry of Environment, Climate, Tourism and Hospitality Industry, procured Old Mutual Life Assurance Company Zimbabwe (OMLAC) to finance and undertake the feasibility study for the development of bulk infrastructure at a cost of US$430 948.
“In lieu of payment for the feasibility study cost, MOTDC will grant OMLAC a lease over 55 hectares of land for construction of a four-star hotel with a 5 000-seater conference centre; a hospital facility; a golf course; and a shopping mall on land to be allocated by Government,” said the Minister.
OMLAC will then have to pay rentals after recovery of the cost of the feasibility study.
The proposed arrangement is part of the whole process of unlocking value in the Victoria Falls SEZ in the sense that the feasibility study will inform the viability of proposed economic activities and infrastructure needs.
On the proposed joint venture between the Zimparks and Zambezi Crescent (Pvt) Ltd, Minister Mutsvangwa said the two entities were in partnership for the revamping and upgrading of all of Zimparks’ lodges at Zambezi Camp in Victoria Falls to an agreed market-related status at a total cost of US$3 009 000.
“This amount will be contributed by the investor, while Zimparks will provide exclusive rights to the use of the lodges at the camp and their surroundings.
“The project will be implemented as a joint venture over 25 years with the parties sharing profits on a 50/50 basis. The joint venture is set to significantly improve the performance of the Zambezi Camp Lodges, which are strategically located along the banks of the Zambezi, but have been performing poorly over the years.”
Concerning the proposal by ZMDC to engage Zhi Jui Mining Resource (Pvt) Ltd under a contract mining arrangement for the treatment of dumps at Mhangura, Minister Mutsvangwa advised that ZMDC procured Zhi Jiu Mining Resources for purposes of entering into a five-year contract mining agreement for the treatment of a total of 26 million metric tonnes of mining dump at Mhangura Mine.
“Zhi Jui will inject the US$10 million required as capital for the processing of the dump, while ZMDC provides mineral resources, the mining title and existing mine infrastructure in a product-sharing ratio of 65:35 between Zhi Jui and ZMDC, respectively. The project presents a win-win scenario, in which ZMDC will get substantial returns on their idle dump site,” she said.