adminInnocent Ruwende Senior Reporter
The Central Mechanical and Equipment Department (CMED) is undergoing a recapitalisation programme, which has seen it procure vehicles and road equipment worth millions of dollars in support of Government’s infrastructural development thrust.
Transport and Infrastructural Development Minister Jorum Gumbo last week commissioned 70 single cab Mahindra vehicles and 30 FAW 7-tonne trucks that CMED recently acquired.
FAW Group Corporation, which is one of the world’s leading automotive manufacturing companies, got the tender last month and is expected to supply 50 more trucks in the coming weeks as CMED ordered 80 from the company.
Speaking at the event, Minister Gumbo said CMED had gone into overdrive mode in terms of recapitalisation.
“Over and above these vehicles, CMED has also procured the following pieces of equipment in support of Government’s infrastructural development thrust; one road reclaimer, three interlink tippers and two rigid tippers,” he said.
“CMED used to be the traditional supplier of equipment to the Department of Roads, but had slackened on this role in the past two decades due to undercapitalisation challenges. However, the good news is that recent developments point to the awakening of a sleeping giant.”
Minister Gumbo said CMED was a commercialised entity, which survived on its own without receiving support or subsidies from Treasury and was one of the few whose operations are profitable.
Turning to the vehicles, Minister Gumbo said the 70 single cab vehicles were procured taking cognizance that the country was due to hold harmonised elections.
“The elections have come and gone, but that does not render the single cab vehicles idle,” Minister Gumbo said.
“They will be deployed to the Department of Roads as project supervision vehicles.”
This is against the background where Government has launched a massive road reconstruction programme aimed at rehabilitating and modernising the country’s road network.
“I have realised that CMED has gone beyond hiring out equipment and is opening new horizons by venturing into the rehabilitation of rural roads,” said Minister Gumbo.
“In that respect it has won a number of tenders for road construction or re-gravelling works floated by Rural District Councils.”
Minister Gumbo advised CMED to set up a proper construction unit that will pursue the business in a more focused way.
He said this should be accompanied by the acquisition of necessary technical skills required for the road construction and maintenance business.
“My Ministry acknowledges your contribution as one of Government’s State-owned enterprises which should facilitate economic development for the benefit of our people,” Minister Gumbo said.
“I urge you not to relent on your recapitalisation thrust in respect of both vehicles and equipment.
“We want to go back to a situation where CMED on its own is in a position to service all Government programmes without subcontracting from individuals.”
Online Reporter