US$500m for city ventures

City Council, town clerk Dr Tendai Mahachi has confirmed.
The city has nine working joint ventures with local and international investors and if implemented will transform Harare into a modern city.
Local authorities are supposed to be the engines of development and should complement central Government in employment creation.
Dr Mahachi yesterday said council had engaged the private sector on a win-win basis with the city using its land and assets as equity.
“Our partners bring in financial investment as equity.
“Shareholding is on the basis of capital contribution. We have formed special purposes vehicles as the operating companies,” he said.
Ningbo Baitai of China has committed US$200 million to establish a textile manufacturing, oil processing and stock feed business.
Land for the project has already been allocated near High Glen Shopping Centre.
Dr Mahachi said construction begins next month.
The Chinese have also agreed to invest another US$60 million towards the refurbishment and upgrading of Mbare Musika.
The city wants the terminus upgraded to international standards.
The project has been on the cards for several years often failing to take off because of funding challenges.
All the projects are expected to be complete by December 2013.
The city’s equity in all the ventures is the land, local expertise and resources while the investors bring in the cash.
Augur Investments of Ukraine has started additional projects in Harare.
The company whose investment with the city is US$80 million is now constructing a truck inn and a shopping centre at the Mbudzi Roundabout.
Earthmoving equipment is now on site with work underway.
The company is already engaged in the construction of Airport Road and would soon embark on an upmarket housing development at Warren Hills Golf Course.
Harare and Augur Investments have formed a joint venture company Sunshine Properties to manage the investments.
Council and African Sun have formed Harare Sun Mall to build a shopping mall and conference centre at the Parklane parking lot.
The investment is worth US$70 million and will come with a parkade to accommodate more vehicles as compared to the present carrying capacity.
Dr Mahachi said together with The Facts from Botswana, Harare formed Harare Wave Waste with an initial capital of US$120 million.
The company will be responsible for waste management and recycling.
The Facts is into another deal for the construction of tourist facilities, a golf estate and lodges at Cleveland Dam.
The deal is worth US$15 million. The managing company is The Cleveland Resort.
An additional US$7 million is available from the Botswana company to be invested in Harare Quarry.
Harare Mabvazuva, a joint venture deal between the city and Mubaiwa Hotel has completed the refurbishment and construction of additional lodges at Coronation Park.
Dawn Properties has committed US$20 million in a deal with Harare for the construction of an African model resort at Harava Dam through a joint venture company Harare Kumvura.
Dr Mahachi recently presented the ventures to councillors at a workshop.
Some of the city’s joint ventures have courted a lot of bad publicity because the councillors felt some information was hidden from them.