The Sunday Mail
Rtd Col. Christian Katsande
In early December 2015, China’s President Xi Jinping was in Zimbabwe on a State visit and, with President Mugabe, oversaw signing of co-operation agreements in various economic sectors. Last week, The Sunday Mail News Editor Morris Mkwate engaged Deputy Chief Secretary to the President and Cabinet Colonel (Retired) Christian Katsande on the implementation of those agreements. We publish Col Katsande in his own words.
The following are projects/agreements and memoranda of understanding signed in the presence of the two Heads of State:
(a) Agreement on Economic and Technical Co-operation between the Government of Zimbabwe and the People’s Republic of China. Signed between the Ministry of Finance and Economic Development of the Republic of Zimbabwe and the Ministry of Commerce of the People’s Republic of China.
(b) Exchange of notes on the construction of a New Parliament Building Project. Signed between the Ministry of Local Government, Public Works and National Housing of the Republic of Zimbabwe and the Ministry of Commerce of the People’s Republic of China.
(c) MoU between the Ministry of Transport and Infrastructure Development of Zimbabwe and Ministry of Commerce of the People’s Republic of Ohina on Aviation Co-operation.
(d) Exchange of notes on the National Pharmaceutical Warehouse (Natpharm). Signed between the Ministry of Health and Child Care of the Republic of Zimbabwe and Ministry of Commerce of the People’s Republic of China.
(e) Handover and Acceptance Certificate on the Donation of Equipment for Wildlife Protection from the Government of China to the Government of Zimbabwe. Signed between the Ministry of Environment, Water and Climate of the Republic of Zimbabwe and Ministry of Commerce of the People’s Republic of China.
(f) Framework Agreement on Enhancing Production Capacity and Investment Co-operation. Signed between the National Development Reform Commission and the Office of the President and Cabinet.
(g) Agreement between the Government of the People’s Republic of China, and the Government of Zimbabwe for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income. Signed between the Ministry of Finance and Economic Development of the Republic of Zimbabwe and State Administration of Taxation of the People’s Republic of China.
(h) Concessional Loan Agreement on Hwange Thermal Power Station Units 7 and 8 Expansion Project. Signed between the Ministry of Finance and Economic Development and the Eximbank of China.
(i) Concessional Loan Agreement on Tel*One Fibre Optic Broadband Backbone Project. Signed between the Ministry of Finance and Economic Development of the Republic of Zimbabwe and Eximbank of China.
(j) Investment Agreement between Zimbabwe Power Company (Private) Limited and Sinohydro Corporation Limited on Co-operation for Development of Hwange Power Station Expansion Project. Signed between Zimbabwe Power Company and Sinohydro.
Projects/agreements signed but not witnessed by the two Heads of State
(k) Gwayi Coal-Electricity Integrated Project in Zimbabwe (Private sector driven). EPC contract signed between China-Africa Sunlight Energy (Private) Limited (CASECO) and Power Construction Corporation of China Ltd, Sinohydro Bureau 3 Co. Ltd. Northwest Engineering Corporation Limited.
(l) Memorandum of Understanding between Musanhi AVM and Beijing Auto assembling of vehicles (private sector driven). Signed between Musanhi AVM and Beijing Auto.
The values of these projects run into billions of United States dollars, and the finer details are being worked on.
Out of these 12 signed agreements, five projects are already under implementation. These projects are:
– Kariba South Expansion Project. Project is on course and is expected to be commissioned in 2017 as planned. The total project cost is US$536 million;
– Hwange Thermal Power Station Units 7 and 8. Project is nearing financial closure. The total project cost is US$1,47 billion;
– TelOne Fibre Optic Broad band Backbone Project. Project is on course. The total project cost is US$98 million;
– National Pharmaceutical Warehouse (Natpharm). Project is about to be launched soon. A US$51 million agreement was signed between the two Parties last month; and
– New Parliarnent Building Project. Project designs are now available. The total project cost is US$100 million.
In addition, Chinese company Sinohydro has recently expressed interest in new areas such as Kunzvi-Musami Harare Water Project and an agreement worth US$600 million was signed with the company in July 2016, in China.
Huawei and NetOne also signed a commercial contract of US$500 000 for the upgrading of NetOne infrastructure.
The other projects are at various planning stages.
Each project has its own implementation matrix. As alluded to above, some projects are at planning stages while others are at implementation stage, suffice to say all projects are on course.
(This information) clearly demonstrates that these projects are not hanging in the balance as evidenced by progress so far achieved. It is important to remember that big projects take time to be planned and designed let alone reach financial closure.
The project implementers just have to remain focussed and not derailed by ill-informed comments (from critics).
Chinese officials who visited Zimbabwe in 2016 following President XI Jinping’s visit included Vice-Minister of Foreign Affairs Honourable Ming Zhang; the Vice-Minister of Health; a delegation from China Eximbank; a delegation from the China Export and Credit Insurance Corporation (Sinosure), and members of the National Development and Reform Commission.
Zimbabwe dignitaries at ministerial level and senior Government officials also visited China during the same period. During the visits, the two sides reviewed progress on the implementation of projects of which China has expressed interest in cooperating with Zimbabwe.
These projects include:
– Construction of the new Parliament House;
– National Pharmaceutical warehouse;
– Hwange Thermal Power Station Units 7 and 8 Expansion Project;
– TelOne Fibre Optic and Backbone Project; and
– The Beitbridge-Harare-Chirundu Road Dualisation Project.
Silk Road Economic Belt
The “Silk Road Economic Belt” Policy and “21st Century Maritime Silk Road” are initiatives first introduced by President Xi in 2013.
He has made the initiative a centrepiece of both foreign policy and domestic economic strategy.
These policies feature prominently in China’s 13th Five-Year Plan (2016 to 2020), and guide national investment strategy throughout that period.
The policies are often referred to jointly as the “One Belt, One Road” (OBOR) where the “Belt” is a planned network of overland road and rail routes, oil and natural gas pipelines, and other infrastructure projects that will stretch from western and central China, pass through Central Asia and ultimately reach Europe.
The “Road” is its maritime network of planned port and other coastal infrastructure projects that connect the map from South and Southeast Asia to East Africa and the Northern Mediterranean Sea.
The scope of OBOR has continued to expand and now includes promotion of enhanced policy co-ordination across the Asian continent, financial integration, trade liberalisation and people-to-people connectivity across the globe.
On the foreign policy front, OBOR focuses on improving diplomacy with neighbouring states and more strategic use of economics as part of China’s overall diplomatic toolkit.
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Over the medium to long term, successful implementation of the initiative could help deepen regional economic integration, boost cross-border trade and financial flows between Eurasian countries and the outside world including Zimbabwe.
Further, it will entrench Sino-centric patterns of trade, investment and infrastructure.
This would strengthen China’s importance as an economic partner for its neighbours and potentially enhance China’s diplomatic leverage in the region and beyond.
Last month, China organised this forum to enhance its strategic links with relevant countries (Zimbabwe included) and seek to establish closer, reciprocal partnerships with them.
During the Forum, the Ministry of Macro-Economic Planning and Investment Promotion of Zimbabwe and Gansu Construction and Investment (holding) Group of China signed a Strategic Cooperation Agreement.
The purpose of the co-operation involves China and Zimbabwe jointly taking part in the “One, Belt, One Road” economic development initiative put forward by the Chinese Government.
The company has interests in investing in Sunway City Special Economic Zone and the construction of Parliament House.
Gansu Construction and Investment (Holding) Group will send a delegation to Zimbabwe to further discuss the
implementation of the Strategic Cooperation agreement.
The company is willing to transfer innovation and technology to Zimbabwe.
