Zinara makes progress in clearing DBSA debt

Harare, (New Ziana) – The Zimbabwe National Road Administration (Zinara) said on Monday it had made headway in clearing its US$200 million debt to the Development Bank of South Africa (DBSA).

The loan was secured to finance the rehabilitation of the 860km Plumtree- Harare- Mutare highway.

Under the deal, the money for repayment should come from toll fee collections, but the parastatal had defaulted due to foreign currency shortages.

Appearing before the Public Accounts Committee to give an update on the progress Zinara had made in resolving issues that were raised in the Grant Thornton forensic audit report of 2019, Zinara board chair George Manyaya said the authority now owes DBSA US$59 million.

“Through the recommendation of the government and Parliament, we owed US$200 million to DBSA, and as of this morning (Monday), we are only left with US$59 million,” he said.

Manyaya said clearing the DBSA loan facility is expected to further putthe roads administrator in a firm financial position to be able to further finance national road infrastructure.

“Once we pay off the debt, it then unlocks some of the funding for some infrastructural development,” he said.

Meanwhile, Zinara chief executive officer, Nkosinathi Ncube said funds raised from revised toll fees are being channelled to Treasury for road construction.

“Treasury revised toll fees upwards for major road construction works and since the beginning of the year we have raised funds and the Government is receiving the funds which are going towards the major road works you are seeing currently taking place,” he said.

He said Zinara had so far availed US$18 million and ZIG59 million for road reconstruction to the new Parliament.

New Ziana