via Sadc moots development bank by Tarisai Mandizha for NewsDay October 1, 2013
THE Southern African Development Community (Sadc) plans to form a development bank with seed capital of $1,2 billion to provide financial support for regional infrastructure projects, it has been learnt.
Speaking at the Zimbabwe Mining and Infrastructure Indaba 2013 in Harare last week, Infrastructure Development Bank of Zimbabwe projects co-ordinator Nick Nyamambi said Sadc had crafted the Regional Infrastructure Development Master Plan (RIDMP), an infrastructure development blueprint up to year 2027.
Nyamambi said the RIDMP was divided into three phases with the first phase from 2013 to 2027 being the short-term action plan to consider projects in five key sectors: transport, energy, water, ICT and tourism.
“Discussions are going on around the formation of a Sadc Development Fund.
“This will later be turned into a regional development bank,” Nyamambi said.
Nyamambi said the fund would have an infrastructure window to provide financial support for the implementation of regional infrastructure projects.
“It is envisaged that the fund will start with seed capital of $1,2 billion, with the shareholding comprising member states 51%, private sector 32% and co-operating partners 12%,” Nyamambi said.
He said the short-term action plan was meant to cater for those projects ready for implementation and preparation for projects to be implemented in phases two and three.
Nyamambi said the financial requirements of the short-term action plan projects were estimated at $64 billion.
He, however, said because of its strategic geographical location, Zimbabwe was the natural home for most projects envisaged in the master plan and these include the Hwange Power Station 7 and 8 expansion projects, which are estimated to cost $1,1 billion; Gokwe North Power Station, a greenfield project estimated to cost $2,2 billion; and Zizabona Transmission, with an estimated cost of $223 million.
Other projects are the Beitbridge-Chirundu road estimated to cost at least $1 billion, the Beitbridge one-stop border post upgrade and expansion of infrastructure at an estimated $6 million, $206 million for the Plumtree-Bulawayo-Gweru-Harare-Mutare highway rehabilitation and $200 million for the revival of the National Railways of Zimbabwe.
Projects outside Zimbabwe include Inga III hydropower project in the Democratic Republic of Congo at a cost of $1,7 billion and Cahora Bassa North Bank power station in Mozambique at $800 million.