Govt signs US$53m grant agreements

Business Reporter
GOVERNMENT yesterday signed grant agreements for six infrastructural rehabilitation projects and capacity development amounting to US$53 million to be funded by the Africa Development Bank and the Zimbabwe Multi-Donor Trust Fund.
Zimbabwe has a huge infrastructural backlog that requires US$14 billion.
Of the six projects, three would be funded by the Zim-Fund to the tune of US$39,9 million, AfDB resident representative Mr Mateus Magala told journalists yesterday.

The other three projects would be funded by the AfDB to the tune of US$13,5 million.
The Zim-Fund was established in 2010 to contribute towards early recovery and development efforts in Zimbabwe by mobilising donor resources and promoting donor co-ordination to channel financial assistance to such efforts.

The thematic scope of the Zim-Fund focuses on infrastructure investments in water and sanitation and energy.
About US$4,6 million would be channelled towards supplementary grant for emergency power infrastructure phase one, about US$15 million for emergency power infrastructure rehabilitation phase one and stage two.

Close to US$20 million would be for urgent water supply and sanitation rehabilitation project, phase two, stage one. The other grants are for governance and institutional strengthening projects (US$8 million), youth and tourism enhancement projects (US$4,1 million) and transport master plans study (US$1,3 million).

“These projects are aligned with the Zimbabwe Agenda for Sustainable Socio-Economic Transformation,” said Mr Magala.
“They are also consistent with the bank’s group 10 year strategy which aims to place the bank at the centre on Africa’s transformation.
“They will support the country’s recovery efforts and its quest to address the critical challenges of promoting strong and inclusive growth that promotes a prosperous and equitable society.”

The approved projects will increase the total commitment of AfDB’s active portfolio in Zimbabwe from US$113,5 million to about US$166 million, Mr Magala said.

Finance Minister and Economic Development Patrick Chinamasa said the approved grants would go a long way in meeting some of the requirements of the Zim-Asset.

“In this regard, I urge our development partners to scale up their contributions to the fund, and also call upon non participating partners to come on board,” said the minister.