The Sunday News
Sharon Chimenya, Masvingo Correspondent
MASVINGO City has resolved to borrow more than $200 million for the construction of an infectious diseases hospital and for the development of designs for water augmentation Phase 2.
According to the latest council minutes, consideration was given to the report of the acting finance director Mr Danister Jori during the Finance and General Purposes committee on the Public Sector Investment Programme (PSIP) allocation for the year 2022.
The minutes noted that Mr Jori reported that the Ministry of Local Government and Public Works had advised that $203 600 000 had been allocated to the city under the PSIP.
“The acting finance director reported that the funding would be utilised for the construction of an Infectious Diseases Hospital and Consultancy fees for the Water Augmentation Project Phase 2.
“It was noted that information regarding the interest charges was yet to be availed.
Authority to borrow $203 600 000 under the PSIP and application for borrowing powers for the construction of an Infectious Diseases Hospital and development of designs for the Water Augmentation Project Phase 2 was approved,” read part of the minutes.
Meanwhile, the local authority has hiked by 100 percent the rentals of its liquor outlets.
Council is leasing four of its liquor outlets to private operators following the engagement of valuation services.
Caravan Park had a previous valuation of US$1 800 and the current rental was US$400 while the new valuation rentals are now pegged at US$1 569.
For Farai beerhall, the previous valuation was US$3 000 and the current rentals are US$300 while the new valuation rentals are at US$3 550.
Manhede beerhall’s current rentals were pegged US$300 and the new valuation rentals are at US$1 500.
For Sarudzai beerhall previous valuation was US$1 000 and the current rentals are at US$250 while the new valuation rentals are pegged at US$1 419.
“The deputy director of housing and social services reported that the current rentals being charged were a variation from the valuation report after the tenants made representations to council to review same downwards.
“In this regard the current rental levels were not arrived at from a scientific approach.
Management had recommended that the valuation report be adopted.”
According to the minutes, council held the view that the lease rentals as per valuation report were unrealistic in light of the prevailing macro-economic conditions and that there was a high likelihood that the tenants would not be able to afford the proposed lease rentals.
However, the committee stood by its decision that the lease rentals be reviewed by 100 percent despite the advice of the Town Clerk Engineer Edward Mukaratirwa that it was not practical to justify why council had reviewed the lease rentals by 100 percent in the absence of a valuation to that effect.