BUSINESS REPORTER
Zimbabwe is planning to build a second bridge across the Limpopo river to improve the flow of traffic at Beitbridge Border post, it has emerged.
Information minister Monica Mutsvangwa said on Tuesday that the Cabinet has approved the proposed partnership between the government and River Bridge consortium to build the new bridge.
“Cabinet approved the proposed partnership between the Ministry of Transport and Infrastructural Development and River Bridge Consortium on the design, build, operate and transfer of a new bridge at Beitbridge Border Post,” Mutsvangwa said at a post Cabinet briefing.
She added: “The construction of the new bridge will improve the flow of traffic at the border post as well as facilitate the implementation of separation of traffic at the point of crossing, in line with international best practice.”
Mutsvangwa also confirmed that the government will enter into a partnership with Forbes Border Consortium on the design, build, operate and transfer project for a modernised Forbes Border Post, on account of the consortium’s proven track record.
She also said two additional projects, namely Christmas Pass flyover road and construction of a Dry Port, will be implemented concurrently with the Border Post project, upon approval by Cabinet.
The infrastructural deals come at a time when the Transport and Infrastructural Development Minister, Felix Mhona has reached out to the business community to partner the ministry in the development of the country’s public infrastructure.
Mhona made the appeal to captains of industry attending the CEO Africa Roundtable meeting in the capital last week.
The development comes against the backdrop of efforts by the government to fix its long neglected growth enhancing infrastructure in the transport, air, power and water sectors, among many others.
Mhona said the government has limitations.
Consequently, he appealed to the private sector to partner the government through the Public Private Partnerships (PPPs).
There are several PPPs schemes that can be adopted, depending on the nature of the infrastructural project in question.
These include Build and Transfer (BT) scheme, Build Operate and Transfer (BOT) scheme, Build Own Operate and Transfer (BOOT) scheme, Build Lease and Transfer (BLT) scheme, Rehabilitate Operate and Transfer (ROT) scheme and Build Transfer and Operate (BTO) scheme, among many others.
Under a BT scheme, the private sector player sources the finance and constructs the infrastructure. Upon completion, the company hands the infrastructure to a government or responsible government agency, which then takes over all the roles including ownership and operation roles. In turn, the government would pay the company an agreed sum, together with reasonable returns negotiated beforehand while under a BOT model, a private sector player undertakes the construction of the infrastructure, financing the construction as well as the operation maintenance.
The company would then operate the facility for a fixed term, during which the private player would be allowed to impose on users of the infrastructure fees or rates, such as user fees, rentals and many others.
The charges to consumers would be expected to be exactly as captured in the contract and should enable the company to recover its costs as well as earn a reasonable return. At the end of the fixed term contract, the facility is transferred to the government agency or local government unit concerned.
Under BOOT model, the private sector company finances, constructs, owns and operates the infrastructure for a fixed term. Ownership implies that the company is allowed to make any decisions it sees fit during the ownership tenure, with minimal or no government interference. It also gets the opportunity to recover its total investment, operating costs, as well as a reasonable return. This would be done through collecting tolls for example for highways, fees, rentals or other charges. At the expiry of the fixed term, the infrastructure is handed over to the government, which would then take all responsibilities.
When the government and the private sector enter into a BLT model, the private sector constructs the infrastructure and once complete, it hands the operation issue to the government on a lease arrangement, where the government or government agency would be paying for the lease.
The lease payments would give the company an opportunity to recover its costs, and after an agreed term, the government stops paying the lease and assumes ownership and control over the facility.
On the other hand, a ROT model involves a system where the infrastructure that is already in existence but in a sorry state is handed over to the private sector player for refurbishing, maintenance and reconditioning.
The private player is allowed to operate the infrastructure for a period, recoup investment costs and get a reasonable return, following which the facility is handed back.
Under a BTO scheme, the private sector company builds the infrastructure and upon completion, transfers the infrastructure to the government.
However, despite not having ownership, the company is allowed to operate the infrastructure on behalf of the government, with proceeds being distributed as per contract agreement.
