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Oliver Kazunga, Senior Business Reporter
THE Government has set aside $54,7 million to repay part of the $206 million Development Bank of Southern Africa (DBSA) loan that was extended to Zimbabwe for the rehabilitation of Plumtree-Mutare Highway.
The multi-million dollar rehabilitation project was managed by Infralink, a joint venture company of Group Five International and the Zimbabwe National Roads Administration (Zinara).
In the 2017 national budget, which was presented last week, Finance and Economic Development Minister Patrick Chinamasa said: “Resources amounting to $54,7 million have been earmarked for repayment of the Plumtree-Mutare loan facility from DBSA.”
He said the Government was mobilising $215.9 million in support of the transport sector, mainly road works during 2017.
“Resources to the roads sector amount to $188.1 million, with $145.2 million being mobilised through the Road Fund, fiscal resources of $29.4 million and development partner support of $5.7 million,” he said.
The minister said the balance of resources set aside by the Road Fund in 2017 would be for various roads related expenditures that include roads rehabilitation and maintenance by road authorities, emergency road projects, road construction equipment and construction of toll gates.
“The Government of Japan is also supporting road improvements in the country through a grant amounting to ¥600 million (approximately $5.7 million), for the procurement of bitumen, to be delivered in 2017. Furthermore, discussions are also underway with JICA, who have shown interest in financing the upgrading of 13 road sections between Karoi and Chirundu, through construction of climbing lanes and renovating sharp curves in order to improve traffic flow,” he said.
With regards to the Beitbridge-Chirundu road dualisation project, Minister Chinamasa said the Government and Geiger International signed the Engineering and Procurement Contract and Concession Agreements on the Beitbridge–Harare Road section on November 30, 2016.
“This project, estimated to cost $984 million, is being implemented under the Built Operate Transfer arrangement,” he said. — @okazunga
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