Domestic financing for Harare-Beitbridge-Chirundu highway
THE total cost of implementing the project is estimated at $1,2 billion. It is expected that the use of local funding will create jobs and business opportunities.
It is also expected to boost the local capital markets with plans afoot for the issuance of an Infrastructure Bond next year.
“The funding will be sourced domestically at least 70 percent — because we are crowding in the private sector to fund our own infrastructure, and that’s a good thing because we create jobs, we create opportunities and we deepen capital markets and we would like to see an Infrastructure Bond being launched in the domestic market during 2019 to support the building of this road,” said Minister Ncube.
The Harare-Beitbridge-Chirundu highway facilitates regional trade and the movement of millions of people between Southern, Central and East Africa.
Road works for the Harare-Beitbridge-Chirundu Highway consist of a phased dualisation, rehabilitation and widening of the existing road from the current 7 meter width to Southern Africa Transport and Communications Commission (SATTC) standards of 12,5 meter width, and adding climbing lanes where necessary. 0To address the traffic build-up around major cities and towns along the route, dualisation of at least 10 kilometres towards towns and cities will be undertaken.
According to the ‘2019 Infrastructure Plan’ released by Treasury this month, the rehabilitation of the road through private-public-partnerships (PPPs) has been difficult, hence the switch to seek financing from the domestic market.
“Upgrading the road network through a PPP arrangement has remained a challenge, notwithstanding