Zim prepares for China loans

Business Reporter
THE Ministry of Finance and Economic Development is conducting feasibility studies on several key infrastructure development projects earmarked for funding by the Chinese government after Zimbabwe signed a number of deals with Beijing recently. Finance Minister Patrick Chinamasa, who joined President Mugabe in the week-long visit to China two weeks ago, said on Sunday the mega economic deals with the Asian giant were a reality that would unlock the country’s economic development potential and create jobs for thousands of people in line with the Zim-Asset goals.

“During our visit we tabled a number of infrastructure development projects for funding. At all levels of engagement the Chinese assured us of support for infrastructure projects.

“The problem is that we had not done feasibility studies for these projects and that is what we are grappling with now,” said Minister Chinamasa.
“The bottom line is that the Chinese require submission of bankable projects.”

The infrastructure projects running into billions of dollars are set to boost power generation, steer massive road rehabilitation and dualisation and rail upgrading.

Among the targeted projects, viewed as long term economic enablers, is rehabilitation of Hwange number seven and eight power plants, Batoka project, solar projects in Gwanda and Plumtree, coal bed methane gas exploration in Lupane, irrigation projects, ICT infrastructure and development of social infrastructure in resettlement areas.

Minister Chinamasa said the feasibility studies on the targeted projects were critical towards unlocking the funding in line with the Chinese terms for bankable ventures.

He scoffed at pessimists who see Chinese deals as a pie in the sky saying such views were prompted by lack of understanding of Chinese systems.
“I’m confident about power generation and roads but I’m worried about funding for production. We’ve to work hard to mobilise lines of credit for manufacturing,” said the minister.

He said the government had started discussions with a Chinese insurance firm aimed at gaining access to lending from that country.