adminPrince Mukuna Herald Reporter
Harare City Council has finalised a joint venture agreement with Olshevik Investments for the redevelopment and modernisation of Mbare Musika and Civic Centre. According to recent council minutes, the Business Committee approved the joint venture unit established in terms of Section 3 of the Joint Ventures Act (chapter 22:22) to redevelop the areas.
The committee felt that the matter had taken too long to be conducted and requested the acting town clerk Engineer Hosiah Chisango to urgently finalise it.
Despite the suspension of the Infrastructure Development Bank of Zimbabwe (IDBZ) as the financial advisor of council, it allowed the bank to carry out the feasibility study.
The council then considered the Olshevik Investments proposal.
“In October 2016, the Committee had recommended that independent consultants be engaged to evaluate the project wherein Brentview Property were engaged to conduct the project evaluation,” read the minutes.
“The consultant’s report was positive that the project was bankable and viable.
“The Mbare Musika precinct consisted of the development of fresh produce markets with refrigeration facilities, modern regional bus interchange and taxi rank. The Madokero Harare Civic Centre Area precinct consisted of a shopping mall, commercial park and design of the civic centre.
“Joint venture contribution by City of Harare would be to provide the land, on site services and professional services, whilst Olshevik Investments would provide funding.
“The shareholding structure would be determined form each party’s contribution to the project derived from an independent valuation.”
The total cost of the project, the report read, was expected to be $260 million.
Online Reporter