Cabinet approves BOT joint venture
CLOUDINE MATOLA
Cabinet has approved a build-operate and transfer (BOT) joint venture between the Ministry of Transport and Infrastructural Development and a private company to rehabilitate the Harare-Nyamapanda Road and the Nyamapanda Border Post, Business Times can report.
Information Minister, Dr Jenfan Muswere, revealed that the project will be managed by a Special Purpose Vehicle (SPV) , which is also responsible for the design, construction and maintenance of the project.
“Cabinet considered and approved the proposed Public Private Partnership Project between the Ministry of Transport and Infrastructural Development and a private company on the upgrading, construction and tolling of the Harare-Nyamapanda Road, and Nyamapanda Border Post as presented by the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube.
“Cabinet advises that the joint venture is on the upgrading, construction and tolling of the Harare Nyamapanda Road, and Nyamapanda Border Post through a build, operate and transfer model. In terms of the Agreement, the Special Purpose Vehicle (SPV), will hold equity in the project and facilitate the flow of funds between the various stakeholders. The Harare-Nyamapanda Construction SPV, based in Zimbabwe, will be responsible for the design, construction and maintenance of the road and border post infrastructure. The Harare-Nyamapanda Tolling SPV, based in Zimbabwe, will be tasked with the collection of toll charges from road users, which will be used to service the project’s debt and generate returns for equity investors. The Project will be fully funded by the investor,” Dr Muswere said.
In addition, Muswere said this infrastructure development will boost trade efficiency between Zimbabwe and Mozambique and it will also improve movement of traffic.
“The project will enhance trade efficiency between Zimbabwe and Mozambique, reducing congestion and delays. This improvement will facilitate smoother and faster movement of goods, which will boost local businesses and attract new investments,” Dr Muswere said.
He added that this project will increase economic growth, promote regional collaboration, and generate jobs in the country.
“The increased trade activity will create job opportunities, reduce unemployment rates in the region. Additionally, the upgrade will improve revenue collection for the Government which can be reinvested into local infrastructure and services. The project will improve the quality of life for local residents by reducing the time and cost associated with cross-border travel and trade.
“The project is also expected to enhance regional integration and cooperation, fostering a sense of community and shared economic goals. Furthermore, the reduction in congestion and improved infrastructure will likely lead to better safety and security at the border benefiting both travellers and residents. The economic benefits from increased trade and investment will trickle down to various sectors of the economy, including transportation, hospitality and retail,” Dr Muswere said.
