BCC seeks greenlight to borrow $50 million

THE Bulawayo City Council (BCC) is seeking permission from Government to borrow $50 million through municipal bonds to service and develop Upper and Lower Rangemore.

The local authourity intends to apply to Government in terms of Section 290 (3) of the Urban Councils’ Act (Chapter 29:15) and Chapter 22:19 of the Public Finance Management Act for the borrowing powers.

According to the latest council minutes, BCC plans to provide water, sewerage and solid waste management services to 66 000 residential properties in Mbundane and Mthunzini in partnership with Umguza Rural District Council.

The development follows an agreement the city council entered into with the Umguza Rural District Council.

“A number of capital projects are lined up for implementation in the 2018 financial year and beyond. In 2017 council signed a Memorandum of Understanding with Umguza Rural District Council to work together for the harmonious development in the planning, servicing and development of Upper and Lower Rangemore.

“In the agreement, the Bulawayo City Council will provide water, sewerage and solid waste management services to 66 000 residential properties of Mbundane and Mthunzini. A total of 12 683 properties in Cowdray Park Hlalani Kuhle also need to be serviced with water, sewerage and roads,” read the minutes.

BCC said it last applied for borrowing powers in 2014.

“Council therefore intends to apply for borrowing powers from the Ministry of Local Government and National Housing amounting to $50 065 000. The last borrowing powers had been applied for in 2014 amounting to $13 261 600 for the refurbishment of waste Water treatment stations and sewer infrastructure.

“Work on the sewerage projects is still in progress. Expenditure on these projects stood at $7 968 400 as at 28 February 2018,” reads the minutes.

The minutes indicate that the Town Clerk, Mr Christopher Dube, expressed concern that council was expected to carry out capital projects but there were no funds to undertake such projects.

“In view of this, there is a need to apply for borrowing powers from the parent Ministry. Basically, council is prepared to borrow money as and when cheap funds become available in the market,” the minutes read. “With regards to costs of the funds, local authorities normally get money from Government at the rate of 5 percent per annum. Council will not borrow money with interest above five percent per annum,” read the minutes.—@pamelashumba1