dbsa 30-08-10.jpgThe Development Bank of Southern Africa (DBSA) is mobilising US$1 billion to fund local infrastructure projects.

The US$1 billion loan facility being arranged by the DBSA has been earmarked for key projects in the transport and energy sectors such as the Beitbridge-Chirundu highway and the Kariba South Bank Hydro Power Project.

The arrangement is one of the public private partnerships aimed at enhancing economic activity in the country.

The expansion of Kariba Power Station, which has been on hold for a long time, is estimated to cost US$400 million and will see the addition of two generating units each with a 150 megawatts generation capacity.

In his 2012 National Budget statement, Finance Minister, Mr Tendai Biti said the DBSA is one of the institutions that have been willing to assist government in rehabilitating local infrastructure.

To date, DBSA has availed US$260 million for upgrading the Plumtree-Mutare highway, while Hwange Colliery Company announced on Monday that it was finalising a US$100 million recapitalisation deal with the bank.