Zim to reap spin-offs from 4 major projects . . . as Cabinet okays investments

Source: Zim to reap spin-offs from 4 major projects . . . as Cabinet okays investments | The Herald

Zim to reap spin-offs from 4 major projects . . . as Cabinet okays investments
Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa addresses journalists during a post Cabinet briefing at Munhumutapa offices in Harare yesterday

Elita Chikwati

Senior Reporter

Four major investment projects have been approved by Cabinet, including a deal for a second Beira pipeline and establishing Harare as a regional hub for petroleum products, a parking management deal for Bulawayo, a Belarus 100MW solar power station in Norton and redevelopment of the Angwa gold shaft and dumps.

The deals, part of the continuous process pressed by the Government to attract investors, are expected to boost development as well as provide needed infrastructure for that development, with new jobs and other benefits coming out of the approval.

Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa yesterday said Cabinet considered and approved all four proposed investments.

They include the partnership between National Infrastructure Oil Company of Zimbabwe (NOIC) and Coven Energy Ltd to develop a second petroleum products pipeline and establish Harare as a regional hub for refined petroleum fuel supplies to landlocked Sadc states and the proposed partnership between Bulawayo City Council and Tendy Three (Pvt) Ltd on the Bulawayo vehicle parking management system.

Cabinet also received the proposal for investment by a Belarusian independent power producer in a 100 megawatt solar energy plant and the partnership involving ZMDC, SIM SEA Pvt Ltd and Honghua International for the resuscitation of Angwa shaft and the processing of the dump at Chidzikwe.

The Bulawayo vehicle parking management system project was a 30:70 public-private partnership between Bulawayo City Council and Tendy Three (Pvt) Ltd.

“Tendy Three (Pvt) Ltd will invest US$2,2 million into the project, which will have a capacity of 7 200 parking bays.

“Some equipment worth US$700 000 has already been acquired for the project.

“The project will have an annual turnover of between US$1,1 million and US$1,8 million, and will create employment opportunities for 450 people. The partnership will run for a period of six years,” she said.

Minister Mutsvangwa said the project involved the installation and maintenance of a fully integrated parking management system to allow users to pay parking fees using their mobile phones and other payment methods.

The investment is expected to increase revenue generation to the Bulawayo City Council and improve service delivery.

The joint venture project between National Oil Company of Zimbabwe and Coven Energy Limited was for developing and operating a second pipeline from Beira to Harare.

This would establish Zimbabwe as the hub for the transportation of refined petroleum products to Zimbabwe, Botswana and Zambia.

“The project will result in the National Oil Infrastructure Company of Zimbabwe (Pvt) Ltd and Coven Energy Ltd entering into a 50:50 public-private partnership.

“The project will create employment opportunities and generate foreign currency for the country. It will also help reduce vehicular congestion and the smuggling of petroleum products.

“The pipeline will be built over four years, at an estimated cost of US$1,3 billion. The partnership will be for a period of 30 years.

“Cabinet resolved that the parties sign a memorandum of understanding for purposes of conducting a bankable feasibility study which they will fund,” she said.

On the Belarusian solar plant in Zimbabwe, Minister Mutsvangwa said the renewable energy project will be funded to the tune of US$125,5 million and implemented on a 25-year deal that will see the plant recognised as an independent power producer.

There will be a power purchase agreement with Zesa’s distribution arm, the Zimbabwe Electricity Transmission and Distribution Company.

“The power generated by the plant will be fed onto the national grid and complement power generated by the thermal power plants. Land for the project has since been identified in Norton.

“The implementation of the project will be subject to the signing of the Double Taxation and Bilateral Investment Protection and Promotion Agreements between the Governments of Zimbabwe and Belarus,” she said.

On the ZMDC, SIM SEA Pvt Ltd and Honghua International joint venture Minister Mutsvangwa said, SIM SEA Investments and Honghua International would inject USS$20,25 million dollars to cover procurement of plant and equipment for dump re-treatment and shaft resuscitation.

This is expected to create 500 jobs for locals, and Zimbabwe will benefit from technology transfer and US$200 million in foreign currency generation over 10 years.

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