CAAZ seeks to raise $11m

Tinashe Makichi Business Reporter
The Civil Aviation Authority of Zimbabwe is in negotiations with local financial institutions to raise $11 million required to complete outstanding upgrades at the Harare International Airport.

The authority plans to expand Harare International Airport in anticipation of increased traffic due to growing interest from foreign airlines, most of which exited the Zimbabwe route between 1999 and 2003 citing a decline in traffic volumes.

Appearing before the Parliamentary Portfolio Committee on Transport and Infrastructure Development, CAAZ general manager Mr David Chawota said negotiations were ongoing on with local banks to secure funding for the projects.

“We consider the upgrade of our runway and taxiway and Harare International Airport as a high risk project as it has started deteriorating in some parts. However, we have been in negotiations with local financial institutions to raise the required capital for the project and judging with the meetings we hope we will be able to secure some funding in the next three months,” said Mr Chawota.

He said the upgrade of the runway is done in phases while the taxiway upgrade has already been completed.

CAAZ, in conjunction with Government, will look at different ways to raise additional funding for other key airport projects. CAAZ is targeting to have at least 40 airlines flying into the country by 2018 and this will require increased capacity.

“We are going to pursue the airport’s original design and the (planned) associated expansion. This will involve expansion of the international terminal building and the upgrading of the domestic terminal. As a matter of urgency we will be upgrading our runway because we consider it high risk,” he said.

He said a cargo village would be constructed to cater for the handling of freight. Mr Chawota said CAAZ was struggling to stay afloat as some of its flight equipment was obsolete. Its capacity utilisation has fallen to an all time low of around 22 percent.

The authority is grossing about $32 million in revenue annually, but is battling to settle debts amounting to about $240 million.