The Sunday Mail
Sunday Mail Reporter
Government has raised a cumulative $117 million from the market and will funnel the resources to major road infrastructure projects that are primed to quicken the country’s economic growth.
The funds are being raised through two separate bonds.
A $150 million Infrastructure Bond, which was recently floated by ZB Bank, will be ring-fenced for the Harare-Masvingo-Beitbridge highway.
Already $62 million has been raised.
Treasury will weigh in with an additional $50 million for the same project.
However, another $150 million bond, which was floated by Cabs/Old Mutual, has since raised $55 million, which will be sunk in other road projects.
Zimbabwe National Road Administration (Zinara) corporate communications manager Mr Augustine Moyo said last week the market has been responding positively to the bonds as the road management fund has successfully repaid its maiden one-year bond.
“Government’s Roads Reclamation and Development Programme, which is already underway, seeks to reclaim and transform our roads into a world-class network.
“It is against this background that Zinara has mobilised $62 million from the $150 million Infrastructure Bond for 2019,” said Mr Moyo.
“The $62 million has already been disbursed to the Department of Roads for the Harare-Masvingo-Beitbridge highway. “We also currently have another approved bond for roads with CABS/Old Mutual of $150 million, of which we have raised $55 million on a private-placement basis. These are two-year bonds.”
It is believed that Government – which faced challenges engaging a foreign contractor for the Harare-Masvingo- Beitbridge highway owing to the quoted cost of the project – will leverage on Zinara cash flows to raise additional funds for the project.
About $1,2 billion is needed for the project, which is considered a major backbone for the North-South corridor.
The Ministry of Finance and Economic Development will also play its part.
Last year, Zinara, which is currently exploring financial instruments to augment its traditional road-user charges and levies, successfully raised $110 million, which was disbursed to various road authorities.
Mr Moyo said: “You will agree with me that 2017/18 has seen a surge in road rehabilitation activities never seen before in this country and I am sure the public can testify to that.
“Zinara has lobbied Treasury to increase investment in roads through the Inter-Ministerial Economic Roads Rehabilitation Programme, which is chaired by permanent secretary in the Ministry of Finance and Economic Development Mr George Guvamatanga.”
Treasury, through its Public Sector Investment Programme, has significantly increased its funding for road works, especially through the Department of Roads, which falls under the Ministry of Transport and Infrastructure Development.
Government is presently undertaking nationwide tours to inspect and assess the quality of current ongoing road projects.
Meanwhile, the Zimbabwe National Road Administration (Zinara) board chair Engineer Michael Madanha says the recent audit findings will help restore sanity at the organisation, which is critical in spearheading crucial projects to grow the local economy.
The audit, which was carried out by Grant Thornton, allegedly unearthed massive corrupt activities and flagrant disregard of good corporate governance by some senior managers.
Among the litany of charges identified by auditors include flouting tender procedures and contracting companies that never delivered for the works that they were paid to do.
Eng Madanha told The Sunday Mail that the board will act on the audit findings.
“All those found on the wrong side of the law will be dealt with by law-enforcement agents.
“As a body corporate, Zinara will institute civil proceedings to recover the looted funds,” he said.
“Disciplinary action will be taken against those who abused their positions. New recruitments will then follow and will be conducted by a reputable human resource consultant.
“All acting positions will be filled substantively and the CEO’s position will be advertised.”
The systems, he added, will be rejigged to make the statutory body fit for purpose.
“We are going to tighten our revenue collection systems, outsource some key activities like systems management, monitoring and evaluation,” said Eng Madanha.
There will also be a drive to ensure that the revenue management body sticks to its mandate and core business.
He also said roads are key to Government’s aspirations of achieving an upper middle income-economy by 2030.
