adminThe debt clearance facility only works when Zimbabwe implements an appropriate microeconomic framework and policies.
In its 10-year development forecast for Zimbabwe, the bank said the country required US$14,2 billion to rehabilitate its water, sewer, power and road infrastructure.
If the funds are not taken up by next year, the bank will allocate the money to other countries. This was revealed during a recent two-day workshop to discuss the policy and regulatory environment for water and power in Zimbabwe.
AfDB director for Southern Africa, Mr Ibrahima Faal, said the bank was ready to assist Zimbabwe.
“We stand ready and indeed we are working with the authorities and other parties on this matter.
“We have in the context of our new soft window replenishment cycle, set aside resources to clear the arrears that are outstanding to the bank and look forward to an overall agreement on an arrears clearance plan reached with all creditors, multinational, bilateral and commercial,” he said.
His presentation was premised on a report compiled by the bank detailing Zimbabwe’s infrastructure and growth headlined “An Action Plan for Sustained Strong Economic Growth.”
He said of the country’s total road network of 90 000 km, the proportion in fair to good condition, had declined from 73 percent in 1995 to 60 percent.
“An additional 12 800 km was reclassified to poor condition requiring rehabilitation at a cost of US$1,1 billion.”
He said Zimbabwe’s water and sanitation coverage had declined from 68 percent to 41 percent of the population since 2000.
Speaking at the same workshop, Water Resources Development and Management Minister Sipepa Nkomo, said all future dam constructions in Zimbabwe should have hydro-power component as a way of boosting power generation capacity.
Kariba is the only dam in Zimbabwe that has power generation capacity. The country has plans to establish mini-hydro power stations to augment existing power supplies.
Minister Nkomo said a water regulatory body was needed to guide operations of the sector. He said Zimbabwe had poor surface and groundwater resources due to unpredictable rainfall and unfavourable geology and increased competition for water across the sectors due to population expansion, industrial, mining and farming activities.
He said the country’s 22 water projects such as Marovanyati, Kunzvi, Wenimbi pipeline, Mutange dam, Zhove canal required US$2 billion. Some of the projects are partially implemented and required funds to complete them.
“If the required funds are availed and the projects implemented, there will be considerable improvement to water supply, leading to better health and increased productivity by both industry and agriculture in the respective areas and ultimately the much needed economic recovery will be realised,” he said.
The workshop was attended by Government Ministers, permanent secretaries, development partners and senior Government officials.
Key recommendations of the two-day workshop centred on the regulatory, legal and institutional framework for water and power.
It was agreed that regulatory frameworks for water and power need revamp to guard against interference.
derick.khumalo