Bulawayo, (New Ziana) – The Bulawayo City Council has stepped up its drive towards renewable energy and smart urban development after approving plans to seek borrowing powers for over US$13 million loan to finance solar projects and critical infrastructure upgrades in water and sanitation, roads, information technology and municipal equipment.
The local authority this week resolved to apply to the Ministry of Local Government and Public Works for authority to borrow the funds, which officials say are essential for addressing ageing infrastructure and improving service delivery.
Presenting the proposal on Thursday, finance director Tennyson Mpunzi said the municipality intends to invest US$600,000 in solar-powered infrastructure as part of its vision of becoming a smart and sustainable city.
The solar program will focus on the installation of solar-powered street lights and traffic control systems to reduce electricity costs, improve energy security and enhance public safety.
“The projects are expected to improve energy efficiency, reduce long-term electricity expenditure, enhance public safety through improved street lighting, reduce dependence on conventional energy sources and support the council’s environmental sustainability objectives,” said Mpunzi.
He said the solar initiative forms part of a broader infrastructure renewal programme aimed at overcoming years of underinvestment that have left key municipal assets operating beyond their intended lifespan.
Mpunzi noted that local authorities continue to face significant financing challenges despite a relatively stable macro-economic environment.
“The council is currently facing critical infrastructure deficiencies affecting roads, water supply systems, sanitation infrastructure, ICT systems, public buildings and operational equipment.
“Most of the infrastructure has exceeded its economic lifespan, leading to higher maintenance costs, service interruptions, operational inefficiencies and declining service delivery standards,” the finance director said.
The largest allocation under the proposed borrowing program, amounting to US$3.03 million, will be directed towards Information and Communication Technology (ICT) infrastructure to modernise municipal operations and support the city’s smart city ambitions.
According to Mpunzi, the investment will improve revenue administration systems, billing efficiency, revenue collection, cybersecurity and customer service delivery while strengthening internal controls and financial management.
“Water infrastructure upgrades will receive approximately US$2.5 million to address persistent challenges including pipe bursts, leakages and ageing distribution networks that continue to contribute to high levels of non-revenue water,” he said.
A further US$2 million has been earmarked for rehabilitating sanitation infrastructure, rehabilitation, targeting collapsed sewer lines, ageing sewer networks and treatment facilities that are operating below optimum capacity.
Mpunzi said the interventions are expected to reduce sewer blockages and spillages, improve environmental management and enhance public health outcomes.
Road rehabilitation projects will also receive US$2 million, with priority works identified on Basch Street and other strategic roads.
“Deteriorating road conditions characterised by widespread potholes and surface failures have negatively affected mobility, public safety and economic activity. The proposed road works are expected to improve accessibility, reduce vehicle operating costs and facilitate smoother traffic flow,” Mpunzi said.
He said another US$2.6 million will be used to procure vehicles, road construction machinery, water bowsers, tipper trucks and earthmoving equipment.
Mpunzi said the acquisition of equipment would reduce the municipality’s reliance on hired machinery, lower operational costs and strengthen its capacity to maintain infrastructure.
Meanwhile, US$340 000 has been set aside for the rehabilitation of key municipal buildings, including the Revenue Hall and Tower Block, which require urgent refurbishment after years of deferred maintenance.
The city expects the investment program to generate efficiencies that will support repayment of the loan through improved revenue collection, lower non-revenue water losses and reduced equipment hiring costs.
Council also plans to strengthen expenditure controls and financial management systems to ensure sustainable debt servicing.
The meeting was informed that, in line with the Reserve Bank of Zimbabwe regulations, any foreign currency-denominated loan would remain repayable in the currency in which it was contracted, meaning a US dollar loan would continue to be serviced in US dollars throughout its tenure.
New Ziana
