Mako Jerera
In a major infrastructure boost, the Cabinet has approved a Public-Private Partnership (PPP) between the Ministry of Transport and Infrastructural Development and a private company, for the upgrading, construction and toling of the Harare-Nyamapanda road and Nyamapanda boarder post.
The proposed public private partnership project was presented by the Minister of Finance, Economic Development, and Investment Promotion, Honourable Professor Mthuli Ncube, before Cabinet this Tuesday.
In a post-Cabinet briefing, Information, Publicity and Broadcasting Services Minister, Dr Jenfan Muswere said ;
“In terms of the Agreement, the Special Purpose Vehicle (SPV), will hold equity in the project and facilitate the flow of funds between the various stakeholders. The Harare-Nyamapanda Construction SPV, based in Zimbabwe, will be responsible for the design, construction and maintenance of the road and border post infrastructure.
“The Harare-Nyamapanda Tolling SPV, based in Zimbabwe, will be tasked with the collection of toll charges from road users, which will be used to service the project’s debt and generate returns for equity investors. The Project will be fully funded by the investor.”
Government reiterated that beyond infrastructure, the project is anticipated to boost trade efficiency between Zimbabwe and Mozambique by reducing congestion and delays. The streamlined movement of goods will foster business growth and attract further investment. Additionally, the initiative promises substantial employment opportunities in the region, helping to reduce local unemployment rates.
Further, the upgrade will improve revenue collection for the Government which can be reinvested into local infrastructure and services.
Dr Muswere explained that project will improve the quality of life for local residents by reducing the time and cost associated with cross-border travel and trade. The project is also expected to enhance regional integration and cooperation, fostering a sense of community and shared economic goals.
“Furthermore, the reduction in congestion and improved infrastructure will likely lead to better safety and security at the border benefitting both travelers and residents. The economic benefits from increased trade and investment will trickle down to various sectors of the economy, including transportation, hospitality and retail,” he said.
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