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Business Reporter
THE Infrastructure Development Bank will be recapitalised to the tune of $20 million in 2016 as part of Government’s efforts to enhance the bank’s capacity to play a role in infrastructure development.

Presenting the 2016 National Budget last Thursday, Finance and Economic Development Minister Patrick Chinamasa said Government cleaned up its balance sheet in an endeavour to facilitate IDBZ’s role in infrastructure development.

The major sectors to be covered include energy, transport, housing, water, aviation and information and communications technology.

“Government cleaned up its balance sheet in an endeavour to facilitate the bank’s role in partnering Government in delivering infrastructure development in the country.

“Pursuant to this, Government will be further recapitalising the Infrastructure Development Bank to the tune of $20 million during 2016,” said Minister Chinamasa.

“I have always alluded to the need for us to invest more towards infrastructure in order to unlock our economic growth potential and social progress.”

Minister Chinamasa said in line with capacity, Government has been able to implement a number of projects in various sectors with a positive impact on the economy.

He said a lot still needs to be done to meet the high demand for public infrastructure provision.

“For this, as already alluded to in the Zim-Asset, combined efforts of Government and private sector players are required.

“The proposals for financing of infrastructure for the 2016 National Budget, entail Government funding, supported by loan and development partner financing, as well as public entities’ own resources,” said Minister Chinamasa.

He said overall requirements for infrastructural development for 2016 amount to $2,7 billion.

Minister Chinamasa also stressed the need for investments in the power generation sectors.

He said severe load shedding regime facing the country challenges Government’s efforts to create necessary policy environment for scaling up investments in power supply infrastructure, taking account funding constraints, construction lead times, as well as operational requirements.

Minister Chinamasa said there should be an inclusion of incentives for private sector participation through cost-reflective tariffs, effective revenue collection systems and measures to address operational efficiencies within utilities.

In his Budget, Minister Chinamasa also proposed $299,3 million for ICT backbone infrastructure and $133,8 million for transport infrastructure.

Addressing delegates who attended the Herald Business Post-Budget Business breakfast yesterday Minister Chinamasa said that there is need to invest in infrastructure to stimulate economic growth.