Five new 60-bed district hospitals and a further 22 new health centres, each with 20 beds and all with staff accommodation will be built across all 10 provinces within the next three years using a loan from three South African banks totalling US$193,3 million secured by the Treasury, through the Zimbabwe Public Debt Management Office.
The new health facilities are part of Government efforts to accelerate progress towards universal health coverage of sufficient quality, consistent with an empowered upper middle-income economy by 2030 envisioned by President Mnangagwa.
Finance and Economic Development Minister Professor Mthuli Ncube made the announcement in Harare yesterday and advised that Standard Bank of South Africa, ABSA of South Africa) and Standard Bank Limited Zimbabwe with the sovereign loan facility backed by the Export Credit Insurance Corporation of South Africa.
Zimbabwe’s fiscal and monetary reforms have now made it possible to resume private sector funding.
The health facilities will be constructed under a 2019 contract agreement entered into by Government and a United Kingdom based company, NMS Infrastructure (NMSI) Limited.
Under the agreement, the NMS and the Government agreed to implement a US$210 million Zimbabwe’s healthcare facilities programme.
“Pursuant to this, Phase 3 of the programme is expected to commence in June 2023 after reaching full financial closure of the external sovereign loan facility, including finalisation of the legal and environmental and social due diligence by the lenders, and the project is expected to be completed within three years,” said Minister Ncube.
The programme is targeting fully equipped five new 60-bed district hospitals and 22 new 20-bed health centres. To date, Treasury has mobilised US$11,2 million for the successful construction and equipping of four 20-bed health centres.
The project is in phase two under which a further four of the 20-bed health centres are being constructed.
The new funding will thus see the rolling out of phase three which will entail the construction and equipping of five 60-bed district hospitals and 22 of the 20-bed health centres.
“In this regard, a term-sheet was signed by the Government of Zimbabwe, the lenders and the ECIC, at the Global Trade Review Conference in Cape Town, South Africa, on 17 March 2023.
“The Government of Zimbabwe is also pleased to announce that, on 17 March, the ECIC’s Project EXCO, which is a technical committee responsible for assessing ECIC’s backed transactions, approved and recommended the project to the ECIC’s Finance Investment and Insurance Committee to favourably consider and recommend the transaction to the ECIC Board for approval.
“Subsequently, on 24 March, the FIIC approved and recommended the transaction, for the ECIC board’s approval and we are delighted to announce that the ECIC board approved the external sovereign loan facility, yesterday, (28 March),” said Minister Ncube.
Deputy Minister in the Ministry of Health and Childcare Dr John Mangwiro who stood in for Vice President and Minister of Health and Child Care Dr Constantino Chiwenga, summed up the importance of a reliable healthcare of sufficient quality.
He said the populace’s healthcare needs cannot be postponed and by championing the guaranteeing of the best health service Government was staying true to its commitment of an improved life for the citizenry under the Second Republic.
“We cannot march towards vision 2030 with an unhealthy population. This financing of health facilities by the Ministry of Finance and Economic Developmen is one of the 100 percent ways of getting to 2030 and become an upper middle-income economy,” said Deputy Minister Mangwiro.
“The Vice President always says if you are building a building you can wait and then continue but when it comes to health you cannot say you are sick today and we will see you tomorrow. So, this is an urgent matter.
“We are very happy because the facilities are well equipped with modern equipment, there is accommodation constructed.
“This is the best way to go, we are definitely happy the buildings are there, the equipment is there. This programme is one of the best,” said Dr Mangwiro. – The Chronicle
