FMP, City differ on US$50m project

TINASHE MAKICHI

The US$50m terminus and shopping mall project has stalled amid revelations First Mutual Properties (FMP) and Harare City Council (HCC) have differed on the proposed change in scope of its joint venture agreement.

The JV agreement signed in 2013 by FMP and HCC will result in the construction of an upmarket bus terminus, shopping mall, a parking lot and office blocks at Fourth Street bus rank project.

The project was expected to take two years from the date of starting.

But due to the prevailing macro-economic environment worsened by the global coronavirus pandemic has seen the property company proposing a change in scope for the project in a view to improve its commercial viability.

First Mutual Holdings Marketing and Strategy executive Farayi Mangwende said the project has stalled due to disagreements between the JV partners.

“Due to the changed macroeconomic environment in the country, we proposed a change of scope of work of the JV Agreement with the City of Harare with a view of improving commercial viability of the project.

City of Harare was not amenable to the proposed changes, hence the project could not proceed for lack of agreement between the JV parties,” Mangwende said.

Under the existing partnership agreement, the City Council is providing the land, technical and intellectual input while FMP would provide the finance.

The contributions by the two parties would then be turned into equity. The proposed bus interchange would be located on land bound by Fourth Street, Robert Mugabe, Fifth Street, and George Silundika Avenue.

The land measures 35,104.39 square metres and is used as a parking lot and as a commuter omnibus rank.

The project would be done in phases with the first phase having a capacity to hold 16 buses dropping and picking up passengers. It would also have an interchange to cater for 175 omnibuses.

The same facility would have the capacity to hold 80 conventional buses, according to the previous plan.

The City Council is also expected to begin the construction of a US$40m integrated bus interchange at Chinhoyi Street Bus Terminus, commonly known as Copa Cabana.

The Copa Cabana terminus will be transformed into a structure consisting of a commuter omnibus complex, shops, eateries, offices, and car parks.

Reports say the City Council has partnered Cost Ham Construction Company which has plowed in US$40m into the development.

Retail outlets comprising shops and food courts would be part of the project.

The first phase would see the construction of a pedestrian concourse for access into the complex that would have a car park with the capacity to hold 510 vehicles. The second phase involves the construction of office space.

In justifying the project the city notes it would reduce pressure in the central business district in terms of car parking space and that the city would receive a dividend from the investment “providing Harare City Council with financial resources for its own use”.

HCC spokesperson Michael Chideme referred all questions to FMP which is implementing the project saying the city was only providing land.