Online Reporter
Nqobile Bhebhe, Senior Business Reporter
The Government has cleared approximately US$30 million in arrears owed to contractors in the transport and infrastructure development sectors, with US$15 million specifically allocated to five companies working on the Harare-Masvingo-Beitbridge Road, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has said.
Five local companies were contracted to undertake the work: Tensor Systems, Masimba Holdings, Fossil Contracting, Exodus & Company and Bitumen World.
The scope of the project involves dualisation, upgrading and tolling of the highway.
Addressing Parliament last week, Prof Ncube acknowledged the delayed payments but emphasised the positive relationship between the Government and the contractors, many of whom have been nurtured through state-led development initiatives.
“As Government, we acknowledge, of course, that we have been in arrears in terms of payments to contractors, particularly those in the transport, infrastructure development, and water sectors,” said Prof Ncube.
“This is due to cash flow constraints that we have faced. I must say that generally, we have a good relationship with these contractors. Most of them have been empowered.”
Despite the challenges, the Minister reassured legislators that the arrears are being addressed and contractors are being encouraged to continue taking up new projects.
“I can confirm that, for example, over the last couple of weeks we settled something like US$30 million for the Harare-Masvingo-Beitbridge Road. Within this US$30 million, about US$15 million went to the five contractors working on that road,” said Prof Ncube.
Prof Ncube added that the remaining US$15 million was directed towards road works in the Greater Harare area, particularly in Mt Hampden, under the Emergency Road Rehabilitation Programme (ERRP).
