Nyamapanda Road and Border Post are to be upgraded under a Build, Operate and Transfer (BOT) arrangement after the government entered into an agreement with a private contractor, a Cabinet Minister has said.
A BOT is a contractual arrangement where a private sector entity constructs, operates and maintains infrastructure for a given period of time after which the contractor transfers the facility to the government.
Recently the government entered into a BOT arrangement with local contractor Bitumen World for the reconstruction of the Beitbridge-Bulawayo-Victoria Falls road.
Briefing the media after the Tuesday Cabinet meeting, Information, Publicity and Broadcasting Services Minister Dr Jenfan Muswere said Cabinet had approved a proposed Private-Public Partnership (PPP) project between the Ministry of Transport and Infrastructural Development and a private company on the Upgrading, Construction and Tolling of the Harare-Nyamapanda Road, and Nyamapanda Border Post.
He said this followed a presentation by the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube.
“Cabinet advises that the joint venture is on the upgrading, construction and tolling of the Harare-Nyamapanda Road, and Nyamapanda Border Post through a Build, Operate and Transfer model. 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,” said Dr Muswere.
“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.”
The project is expected to enhance trade efficiency between Zimbabwe and Mozambique through reducing congestion and delays resulting in smoother and faster movement of goods, in the process boosting local businesses and attracting new investments.
In turn, the increased trade activity will create job opportunities, reduce unemployment rates in the region while the upgrade will improve revenue collection for the government to be reinvested into local infrastructure and services.
Dr Muswere said the project will improve the quality of life for local residents by reducing the time and cost associated with cross-border travel and trade and 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 travellers 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.
New Ziana
