THE Zimbabwe National Road Administration borrowed $600 million from Nedbank for the Emergency Road Rehabilitation Programme 2 and the Government gave a guarantee that the money will be repaid by the end of May.
The notice of the guarantee was gazetted by Finance and Economic Development Minister Professor Mthuli Ncube as 131H of 2023. Under the Constitution and the Public Debt Management Act, all Government borrowings and guarantees have to be made public.
Zinara has a substantial daily inflow of revenue from its toll gates and vehicle licence fees, but occasionally borrows to speed up progress or to finance a major set of roadworks, such as the US$88 million Mbudzi interchange so it can spread the cost over a few years instead of paying everything at once.
“The guarantee is surety to Nedbank Zimbabwe Limited that Government will honour Zinara’s obligations under the composite bridging facility for road rehabilitation works for the Emergency Road Rehabilitation Programme Phase 2 project in the event that Zinara defaults on its contractual obligations.
“The total amount covered by the guarantee is for $600 million including accrued interest. The guarantee shall be applicable and become payable in so far as the funds were used by Zinara for the sole and authorised purpose of constructing the road rehabilitation works under the Emergency Road Rehabilitation Programme Phase 2 project,” Prof Ncube said.
President Mnangagwa launched the US$400 million ERRP2 project, a countrywide initiative meant to improve the country’s road network that had been damaged following heavy rains brought by Cyclone Idai in 2019.
More damage to roads was done by subsequent rains and the Government has been working to make the roads navigable.
Ongoing road projects include pothole patching, grading, re-gravelling, spot dumping, wash away repairs, culverts construction, reseals and rehabilitation.
ERRP2 has created several jobs as hundreds of people have been employed to work on the different projects.
Treasury has budgeted $44 billion for ERRP2, while Zinara has set aside $90 billion to complement the programme and fund the country’s four road authorities namely urban local authorities, rural district councils, the Department of Roads and the Rural Infrastructure Development Agency (RIDA), formerly the District Development Fund (DDF).
Over 10 000km of roads are expected to be rehabilitated. – The Herald
