Zimbabwe to use PPPs for road deals

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Zimbabwe to use PPPs for road deals

The government of Zimbabwe is looking to raise about US$5 billion through new PPP projects to develop and upgrade the country's road network. 

The government has also plans for a new legislation, which is already underway.

According to Transport secretary Munesu Munodawafa, the government will collect US$102 million in toll fees this year. Mr. Munodawafa stated:

With the revised toll fees, we are anticipating that Zinara will be able to mobilise about $102 million for this year. But even then, when you look at $102 million compared to about $5 billion that you need for total intervention, it still leaves scope for PPPs. There is work in progress to put a legal framework for the PPPs

Munesu Munodawafa added that the government will hire a consultant to issue a new transport policy soon. The Transport secretary also added that more than US$460 million is needed to resuscitate the country's rail network and acquire new rolling stock for the state-owned rail company, the National Railways of Zimbabwe (NRZ).

76% of the revenue collected through tolls goes to the government payroll.

The government of Zimbabwe  announced in April this year that it has received bids for 12 out of the 15 road PPP projects which were tendered last year.

The Harare-Chirundu highway received 12 bids while eight investors expressed interest in the Harare-Nyamapanda highway. Other roads that received significant response were the Harare-Bindura highway and Harare Drive, which got five and three bidders respectively.

Bulawayo-Beitbridge and Kwekwe-Nkayi-Lupane roads received two bidders each while single bidders expressed interest in the Bulawayo-Victoria Falls and Mberengwa-West Nicholson roads.

Bulawayo-Nkayi, Bulawayo-Tsholotsho and Buchwa-Rutenga-Boli-Sango roads also received single bids.

Three roads did not get bidders:
  • Murambinda - Birchenough road,
  • Karoi-Binga-Dete road and
  • Golden Valley-Sanyati-Nembudziya Road.

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