The deal, which was signed in Harare, is a culmination of extensive collaboration between Zimbabwe and South Africa which has seen the formation of a joint venture between ZINARA and Group Five International, a South African firm with the former owning 75% while the later has 30%.
Transport, Communication and Infrastructural Development Minister, Cde Nicholas Goche says government has more road maintenance and dualisation projects that require funding and is willing to work with progressive local and regional financiers.
â€œAs the government of Zimbabwe, we are happy to partner regional financiers in such projects. There are various projects in Harare, Bulawayo and other towns and cities that have been stalled by lack of funds,â€ said Minister Goche.
Development Bank of Southern Africa Executive Vice President, Mr. Adamassu Tadesse said the deal signed this Wednesday is one of the fruits of public private sector partnerships that are critical in infrastructural development.
â€œWe expect more deals to be signed this year as this is the first one. ZINARA applied for funds to fund the rehabilitation of roads and this was approved. We expect to cooperate fully in other areas,â€ said Mr. Tadesse.
The availed funds will be channelled towards the rebuilding of the existing road networks in Plumtree and Harare-Mutare with ten toll gates expected to be constructed.
The joint venture between the two firms will result in technological transfer with Zimbabwe benefitting from the latest equipment used in road construction.
The project will commence in June following various background programmes that have already been carried out.