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Innocent Ruwende Senior Reporter
Harare City Council has agreed to a proposal by property developer Sunway City Private Limited to offset part of the $6 million it owes in unpaid rates through land and water infrastructure.
The company owns land in Ventersburg (Sunway City).
According to the recent minutes of the Finance and Development Committee, city officials reported that Sunway City owed City of Harare rates amounting to $6 496 880 and the company had offered the city land and water infrastructure to settle part of the debt.
The company offered a piece of land known as 510 Ventersburg Township measuring 10 173 square metres valued at $50 865 and stand 511 in the same area measuring 6 373 square metres and valued at $31 865.
Sunway City also offered the city water infrastructure comprising the Letombo Pump Station and water main, which was developed by the company and was functional.
The water infrastructure is valued at $2 835 885.
“The total value for the pieces of land agreed upon by the parties was $82 730,” read part of the minutes.
“The acting chamber secretary was now requesting authority to offset part of the rates and charges bill the company owed to City of Harare with the value of land and water infrastructure.”
Following discussions, the committee resolved that council approves the debt swap between City of Harare and Sunway City outstanding rates and charges for land known as number 510 ventersburg Township and 511 Ventersburg Township (Sunway City).
Council also authorised Acting Town Clerk Eng Hosiah Chisango to sign the debt land swap agreement with Sunway City.
The company had also offered another piece of land measuring 28ha, which was currently awaiting subdivision and had no description, but council was of the view that it could not proceed to make a decision on the portion since it had no description.
Sunway City valued the land in question at $2 520 000.
Sunway City (Pvt) Ltd is a subsidiary of the Industrial Development Corporation of Zimbabwe Limited (IDC), which was given the mandate to develop world class integrated residential, commercial, industrial, institutional and recreational parks.
The company seeks to provide relevant infrastructural development to facilitate industrialisation and economic growth of Zimbabwe as well as regional integration and trade.
Online Reporter