Business / Economy
$98.6 million broadband project approved
06 Apr 2016 at 01:36hrs | Views
THE National Assembly yesterday approved a $98,6 million loan facility for TelOne for backbone network and broadband access project that was negotiated between the government and the Export Import Bank of China in December last year.
Finance Minister Patrick Chinamasa told the House that the loan covered Phase Two of TelOne fibre project after the utility completed the first Phase to the tune of $18 million that was mobilised by the utility and government.
He said the tenure of the loan was 20 years while the loan had a grace period of five years with the interest rate pegged at two percent per annum.
"The project will transform TelOne and enhance its competitiveness and cash flow position," said Chinamasa.
He said the project would enhance data, voice and video service for the fixed telephone service provider.
Although legislators supported the loan, they expressed mixed views on the utilisation of the facility with some expressing reservations on its transparency while others said it would turnaround TelOne.
Tafara/Mabvuku MP James Maridadi (MDC-T), said given reports of misappropriation of a previous loan facility at NetOne, the project could be a feeding trough for management and government ministers superintending such state entities.
But Chinamasa said there was no relationship between allegations of corruption Maridadi was making against a government minister in respect of NetOne with the present loan.
Chegutu West MP Dexter Nduna (Zanu-PF) hailed the government for improving infrastructure but emphasised the need to take resources where the majority of the population was in the rural areas.
Binga South MP Gabbuza Joel Gabbuza (MDC-T) cautioned the government against allowing supply by foreign firms of outdated equipment.
Finance Minister Patrick Chinamasa told the House that the loan covered Phase Two of TelOne fibre project after the utility completed the first Phase to the tune of $18 million that was mobilised by the utility and government.
He said the tenure of the loan was 20 years while the loan had a grace period of five years with the interest rate pegged at two percent per annum.
"The project will transform TelOne and enhance its competitiveness and cash flow position," said Chinamasa.
He said the project would enhance data, voice and video service for the fixed telephone service provider.
Although legislators supported the loan, they expressed mixed views on the utilisation of the facility with some expressing reservations on its transparency while others said it would turnaround TelOne.
Tafara/Mabvuku MP James Maridadi (MDC-T), said given reports of misappropriation of a previous loan facility at NetOne, the project could be a feeding trough for management and government ministers superintending such state entities.
But Chinamasa said there was no relationship between allegations of corruption Maridadi was making against a government minister in respect of NetOne with the present loan.
Chegutu West MP Dexter Nduna (Zanu-PF) hailed the government for improving infrastructure but emphasised the need to take resources where the majority of the population was in the rural areas.
Binga South MP Gabbuza Joel Gabbuza (MDC-T) cautioned the government against allowing supply by foreign firms of outdated equipment.
Source - chronicle
