adminyear, with Rural District Councils professing ignorance of its existence.
The money was allocated to RDCs by the Finance Ministry in the 2011 National Budget. Chairman of the Chief Executive officers Forum of RDCs under the Association of Rural District Councils, Mr Albert Mbedzi, said on Thursday that they were not aware of such a facility.
“That is news to me. We are not aware of that facility. Can the Ministry of Finance show us proof that it communicated to us about the fund and the necessary steps we should have taken to access it?” challenged Mr Mbedzi.
On Tuesday next week Finance Minister Tendai Biti is expected to announce the budget and RDCs will again receive more funds under the facility. Recently, the Secretary for Finance Mr Willard Manungo, said the uptake on the US$500 million fund was slow and most of the cash would be carried over into 2012. Mr Manungo said this was because the beneficiaries had failed to come up with bankable projects.
“City and rural district councils and State enterprises are failing to come up with bankable projects, hence they are not taking up the funding set aside in the budget,” claimed Mr Manungo.
He said there was a slow uptake on the US$70 Zimbabwe Economic Trade Revival Facility, a private sector loan revolving fund organised by the Government and the Africa Export and Import Bank.
Mr Mbedzi questioned how all these funds could not been taken when there is a thirst for finance in the local government sector
“This is a very painful situation to us as local authorities when 60 percent of boreholes in rural areas need urgent rehabilitation.
“The clinics are in a bad state, growth points need water reticulation systems and gravel roads need grading after every rain season,” said Mr Mbedzi – who is also the CEO of Beitbridge South RDC.
He said when the budget was presented last year, the Ministry of Finance pledged funds for road rehabilitation in rural areas, but up to now not a single cent has been disbursed.
Mr Mbedzi stated that some of their road rehabilitation equipment had been used for more than 10 years and now virtually worn out.
“The mechanisation programme benefited newly resettled farmers, but local authorities were overlooked.
“Yet the farmers need to transport their produce, which some are failing to do because of the dilapidated state of roads,” said Mr Mbedzi.
As an urgent measure to address the situation, Mr Mbedzi called on the Government to provide RDCs with road rehabilitation machinery on a yearly basis, either through grants or as loan facilities.
“They could start by providing each RDC a grader during the first year, then two tipper trucks for each the following year, followed by other relevant equipment in subsequent years,” said Mr Mbedzi.
Rural development analysts have urged RDCs to consider public-private sector partnerships to raise capital.
RDCs unique infrastructure requires large capital outlays and long gestation periods, which affect their credit worthiness.
There is need to look for alternative sources of funding to build new infrastructure, rehabilitate existing ones and to replace aging asserts by the 60 RDCs in Zimbabwe.
Online Reporter