Do­mes­tic fi­nanc­ing for Harare-Beit­bridge-Chirundu high­way

The Sunday Mail (Zimbabwe) - - BUSINESS -

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

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