Zimbabwe’s Harare City Council to partner with Neo Capital for US$400 million roads project

harare 2 optThe Harare City Council in Zimbabwe has announced that it is partnering with South Africa’s Neo Capital and investing US$400mn in rehabilitating and maintaining roads in the capital

According to the Herald, the broader infrastructure plan includes mass light rail, bus and taxi transport systems. Harare has about 4,000km of tarred roads.

Town Clerk Dr Tendai Mahachi is presently negotiating with the South African company to conclude the transaction. A special purpose vehicle is expected to be set up to manage the project.

Some councillors have proposed the formation of the Harare Roads Development Company, in which the council would hold a 51 per cent stake in the project and Neo Capital will own the remaining shares, the newspaper reported.

Harare City Council said Neo Capital will raise funds for the project against a 30-year concession, with a repayment of US$15mn each year.

The second phase of development of the Harare City roads project includes implementing the e-TAG system, which integrates vehicle management systems including licences, electronic monitoring and a vehicle database.

The council also plans to invest US$50mn for road maintenance and repair through 2014, according to the chairperson ofr the finance and development committee, Allan Markham.

The Harare City Council is currently working towards making the capital a ‘Sunshine City’ with world class infrastructure by 2025.

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