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Walter Mswazie, Masvingo Correspondent
Masvingo City Council’s ambitious $120 million water and sewer Phase 2 project may stall for a while amid reports that the local authority is yet to come up with a financial feasibility report and sovereignty guarantee.
Outgoing town clerk Mr Adolf Gusha said progress on the two projects, to cost $60 million each, was also being stalled by failure to access foreign currency to pay consultants doing the financial feasibility report.
He said a Chinese bank, China’s Import and Export Bank availed $120 million to Masvingo Council for the ambitious projects but a lot of paper-work was involved before the deal was sealed
“I am leaving council at the end of the month but there are ongoing capital projects on the ground,” said Mr Gusha.
“We have a water and sewage project which I think the management should take on board and I know it is aware of what should be done. The water project cost us $60 million while the sewage project will cost council about the same figure. We expect the combined projects to cost at least $120 million,” said Mr Gusha.
He said the commencement of projects was dependant on the release of the promised funds from a Chinese bank but this was a Government to Government arrangement between Zimbabwe and China.
“The financial feasibility report that the Chinese bank wants is done by a South African consultant who we should also pay in foreign currency.
“All along we have not been getting the needed foreign currency from the Reserve Bank of Zimbabwe. However, we have made headway in our engagement with the bank over the issue.
“Once we secure that money which is however, not much, we would pay the consultant and have our financial feasibility report,” he said.
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