THE Government has secured a US$360,5 million funding facility for the rehabilitation and upgrade of the 354km Harare-Kanyemba Road and a separate $5 billion loan for other road networks as the Second Republic embarks on massive infrastructure development projects under the Emergency Road Rehabilitation Programme Phase 2.
Construction of the Harare-Kanyemba Road is expected to boost connectivity and convenience as travellers to the Democratic Republic of Congo and Tanzania cut their journeys by close to 400km.
This dovetails with President Mnangagwa’s thrust of leaving no place and no one behind in the country’s development agenda and is consistent with the devolution policy espoused in the National Development Strategy 1 (NDS1).
Finance and Economic Development Minister Professor Mthuli Ncube announced the availability of the loan facilities in an Extraordinary Government Gazette published this week in terms of the Constitution of Zimbabwe.
“It is hereby notified, in terms of section 300 (3) of the Constitution of Zimbabwe, as read with section 18(2) of the Public Debt Management Act [Chapter 22:21], that the Minister of Finance and Economic Development signed a Loan Agreement for the Harare– Kanyemba Road Construction Project between Government of Zimbabwe and PIM Nominees (Private) Limited on June 6, 2022, under the terms specified in the Schedule,” reads the notice.
“The loan amount is US$360 500 000, loan to be disbursed through a revolving facility of US$60 000 000,00, at a time for 6 times. The borrower is Government of Zimbabwe. The lender is PIM Nominees (Private) Limited. The tenure of the facility will be a period of 6 years.
“The loan facility shall be utilised for the sole purpose of rehabilitation and upgrading of the Harare to Kanyemba road over five years.
“The drawdowns are subject to a deposit of 30 percent of the revolving facility being US$18 000 000, which will be paid for each and every drawdown of US$60 000 000, subsequent to the first drawdown until the facility is drawn down in full.”
The agreement provides for a grace period of nine months after signature of the loan agreement.
Prof Ncube also gazetted separate loan facilities of US$600 million and $4 billion where Government under the stewardship of Zinara will superintend infrastructure projects under ERRP Phase Two.
Section 300 (3) of the Constitution provides as follows: “Within 60 days after the Government has concluded a loan agreement or guarantee, the minister responsible for finance must cause its terms to be published in the Gazette.”
The loan facility also come as Government is spearheading construction of Mbudzi interchange meant to bring convenience to motorists under a US$88 million loan facility.
Commenting on the Harare Kanyemba loan facility, Secretary for Transport and Infrastructure Development, Engineer Theodius Chinyanga said the project will go a long way in bringing convenience.
“The Kanyemba road will shorten the distance for those going to DRC and Tanzania. So it will improve connectivity and ultimately trade in a huge way. We are excited as a ministry that funding is now in place and it means that the project will now proceed unhindered,” said Eng Chinyanga.
The project is being spearheaded by local contractor, Exodus Construction, who has been working on redesigning and the total construction of a 10km road that links Mahuhwe and Mushumbi.
For hundreds of people in Mashonaland Central province, the reconstruction and rehabilitation of the 354-kilometre Harare-Kanyemba Road under the Emergency Road Rehabilitation Programme (ERRP) over and above other infrastructure projects like dams is a game-changer.
The project is set to bring downstream benefits in terms of employment creation, demand for cement, and other related construction material.
The contractor is mobilising equipment and putting it at the border, which links Zimbabwe, Zambia and Mozambique.
Feasibility studies have also been conducted to ensure that a Y-Bridge linking the three countries is constructed.
Last year. Minister Mhona, and Government officials visited Mashonaland Central Province to assess progress and inform the people about the developments.
Some of the roads have been completed while others are still at the tendering stage.
Significant progress in the rehabilitation of a number of roads in different parts of the country has been made, to ensure traffic-ability. – The Herald
