PPPs critical in sustaining foreign investments: Zida

16 Jun, 2024 - 00:06 0 Views
PPPs critical in sustaining foreign investments: Zida

Judith Phiri, Business Reporter6

THE Zimbabwe Investment Development Agency (Zida) has said Public Private Partnerships (PPPs) play a pivotal role in sustaining foreign investments, driving economic growth and fostering sustainable development.

The adoption of PPPs in Zimbabwe is bearing fruits, especially on infrastructure development. Key examples of such projects include the Beitbridge Border Post upgrade, Plumtree-Bulawayo-Harare-Mutare Road and Beitbridge-Bulawayo Railway line among others.

Highlighting opportunities in Zimbabwe’s investment landscape at the Zimbabwe Capital Markets and Investment Promotion Conference in London on Wednesday, Zida chief executive officer (CEO), Mr Tafadzwa Chinamo said projects worth more than US$1 billion have been executed through PPPs in the country.

“There are various opportunities available to develop economic and social infrastructure using PPPs. Several of these projects, ranging from small and simple to large and complex are available to investors,” he said.

“Opportunities include the development of key infrastructure such as roads, railway lines, ports of entry, dams and water reticulation, roads, bridges, stadia, energy and power development among others.”

He said the advantages of PPPs to investors were the opportunity to partner with the Government where the security of investment was guaranteed, contributing directly to the development of the country and the Government support at all levels.

Mr Chinamo said the other advantages were a well-developed PPP framework with a good track record of success and reduced exposure to investment risk — project financing, high leverage and special-purpose vehicle (SPV) model protect equity investors in PPPs.

“Some of the projects in the pipeline include the Harare to Nyamapanda Road and Border Post with the contracting authority being the Ministry of Transport and Infrastructural Development.

“The project scope is the upgrade of the 238km Harare-Nyamapanda Road, and modernisation of the Border Post. A partner (Harare-Nyamapanda Consortium) for the project as a PPP has been identified. The partner will need to secure funding for the project.”

Mr Chinamo said the other project was the Thuli-Moswa Dam and pipeline to Limpopo Province in South Africa with the Zimbabwe National Water Authority (Zinwa) being the contracting authority.

He said the proposed project entails the construction of a 430 million cubic metre (m3) dam at the confluence of Thuli and Moswa rivers, 30km south-south west (SSW) of Gwanda and the construction of a 152 km pipeline from the dam to Limpopo Province in South Africa.

Mr Chinamo said a partner to develop the project as a PPP has been identified and the contracting authority was developing a Feasibility Study for the project, while the capital required was US$850 million.

On the rehabilitation of 832 km Beitbridge- Bulawayo-Victoria Falls Road, he said: “The contracting authority is the Ministry of Transport and Infrastructural Development. The project components are the rehabilitation and widening of the Beitbridge to Bulawayo City to Victoria Falls Road as well as construction of a new bridge linking Zambia and Zimbabwe across the Zambezi River. Project preparation is ongoing and the capital required is US$985 million.”
Mr Chinamo said the Chirundu Border Post project entails renovation and modernisation of border facilities and ICT systems at the border post.

He said the contracting authority was the Ministry of Transport and Infrastructural Development and a partner (Chirundu Border Consortium) to implement the project as a PPP has been identified, while the partner will need to raise capital to finance the project, with the capital required being US$300 million.

On rail infrastructure, he said the National Railways of Zimbabwe (NRZ) operates a rail network stretching 2 760km and due to wear and tear, the infrastructure was now run-down, with most beyond its useful life.

Mr Chinamo said opportunities were available on the rehabilitation of existing track infrastructure, establishment of new routes, installation of new signaling equipment, stabilisation of trains communication and yard lighting.

In terms of the power generation opportunities, he said Zimbabwe’s current power requirement was more than 4 000MW and the installed capacity by 2023 stood at 2  640MW with an average production level of 1 500MW.

Mr Chinamo said 250 000 square kilometres were available suitable for solar power generation, with potential also available to generate 39 000MW from wind.

He said hydropower generation potential was also available of 10,000 gigawatts (GW) along Zambezi River and mini-hydropower plants using inland water bodies of 150MW and geothermal 50MW, while the solar irradiation in Zimbabwe was high with a capacity to generate 109GW.

 

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