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Business Reporter
Finance and Economic Development permanent secretary Willard Manungo says the government is pursuing joint ventures among other options to fund key projects under the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim-Asset).Some of the projects to be carried out under joint ventures and public-private partnerships (PPP) are the Batoka Hydro Power Station that is estimated to cost $2.4 billion, road dualisation at a cost of $3.027 billion and dam construction and water treatment plants at $1.776 billion.
“In view of limitations on domestic resource mobilisation capacity, government is actively pursuing joint ventures or public-private partnerships arrangements. We have already identified projects that should be suitable for PPPs arrangements,” Manungo told a pensions forum last week.
“These projects are at various stages of implementation with significant progress having been made on some projects such as road dualisation, dam construction and water treatment plants feasibility studies having been done.
“Government is reviewing the existing 2004 policy guidelines on joint ventures with a view to give legal force and fine tuning to avoid uncertainties and delays in the processing of projects.”
He said the majority of the projects were also targeted for financing through external loans adding that it remained critical for the country to establish a track record of loan repayments in order to unlock new financing and external debt resolution.
Debt resolution, Manungo said, was hinged upon effective re-engagement with various creditors, including the International Monetary Fund, World Bank and African Development Bank.
He said the resolution of external debt and payment arrears also largely depended on the successful implementation of the IMF Staff Monitored Programme (SMP).
The essence of the SMP is to prepare and build the capacity of the country to sustainably manage any future borrowings for sustainable growth and development through embracing sound policies.
“As such, the successful implementation of the SMP should open the window for debt negotiations and debt relief, which are critical in triggering external lines of credit for the country’s industries, and also strengthens the policy formulation and implementation processes for the country,” he said.
In April, Finance Minister Patrick Chinamasa said government will adopt a multi-pronged approach to deal with the debt overhang that is stifling the country’s economic growth.
Zimbabwe owes Bretton Woods institutions and multi-lateral bodies $2.6 billion, the Paris Club $3.8 billion and other creditors $682 million.
derick.khumalo