Govt signs US$700m MoU with Chinese firm

Innocent Ruwende Municipal Reporter
GOVERNMENT has signed a US$700 million Memorandum of Understanding with a Chinese company for construction of houses, upgrading of water and sewage treatment, works and other infrastructure projects. The MoU, signed by Local Government, Public Works and National Housing Acting Secretary Retired Colonel Joseph Mhakayakora, City of Harare officials and State-owned Shanghai Construction Group Company Limited’s Mr Pei Hailiang, is expected to go a long way in addressing the national housing backlog.

Local Government Minister Dr Ignatius Chombo, Harare mayor Mr Bernard Manyenyeni and town clerk Dr Tendai Mahachi were part of the deliberations before the signing of the MoU on Tuesday.

Under the MoU, the Chinese company will apply for a US$472,5 million loan from its government to fund and implement the project. Zimbabwe will then be given a time frame to re-pay.

Immediate plans are construction of public transport terminals and purchase of buses at a cost of US$320 million.

Other plans include construction of a clean water processing plant for Chitungwiza (US$33 million), sewerage treatment plant for Chitungwiza (US$129 million), solid waste treatment plant for Chitungwiza (US$77 million), a bridge crossing over Nyatsime River at Chitungwiza (US$7 million), the Nyatsime Housing Project, and construction of Chitungwiza council head offices (US$226,5 million).

“The Shanghai Construction Group Company Limited, has construction qualifications for this project with rich experiences in contracting construction projects in Africa especially in Zambia, Tanzania, Malawi and Ethiopia among others.

“The Zimbabwe side invites Shanghai Construction Group Company Limited as a general contractor responsible for the implementation of this project with its site inspection/investigation, design and construction skills in association with local professional and technical skills,” reads part of the MoU.

The two parties agreed to act in good faith in the agreed areas of implementation to ensure smooth and efficient implementation of projects.