Government is considering revisiting the $600 million Chisumbanje Ethanol Project deal between Macdon, Rating Investments and ARDA with a view of changing it from a Build Operate and Transfer agreement into a joint venture.As part of governmentâ€™s efforts to restructure under-performing state enterprises and parastatals, the Chisumbanje Ethanol Project deal signed by Macdon, Rating Investments and ARDA has come under the spotlight.
Under the agreement signed by the three parties, Macdon and Rating Investments would provide the funding then operate the project for 25 years before handing it over to ARDA.
Briefing the Parliamentary Portfolio Committee on State Enterprises and Parastatals on progress on the privatisation plans, State Enterprises and Restructuring Agency Executive Director, Mr. Edgar Nyoni said government is considering transforming the deal into a joint venture project.
Mr Nyoni revealed that engagement with relevant stakeholders is currently underway with the Ministry of Agriculture, Mechanisation and Irrigation Development looking at the deal together with an inter-ministerial committee to come up with a proper shareholding structure.
The decision by government comes after realising that the Chisumbanje Ethanol Project is key to the transformation of the countryâ€™s economy hence its national status.
The project has the capacity to reduce the countryâ€™s fuel import bill by 10%.