News / Local
BCC seek funding from Mauritius
05 Mar 2015 at 09:51hrs | Views
BULAWAYO City Council has turned to an international finance institution - Loita Capital Partners International from Mauritius to borrow $26 million for its projects.
Council has authorised officials to kick start talks.
Based on the latest council March report, the money is for urgent water projects.
The Finance and Development Committee said "US$26 million was required in the very short term, in order to remedy priority problem areas."
"In view of the tenor of up to 20 years, authority was sought for the Council Officials to engage Loita Capital Partners International to raise capital of at least $26 million to finance water and water waste project and sign any enabling documents as well as incurring any necessary travelling expenses to Harare," the reports read in part.
The repayment period is 20 years and interests are said to be low.
However, the report did not mention the interest rates levels.
Council said it will channel $17,063,575 to water supply, operational and institutional management ($2,303,041) and $17,063,575 for wastewater.
Last year, council sought a $13,2 million loan from BancABC to fund the rehabilitation of its ageing sewer reticulation system and for the purchase of refuse removal trucks.
The local authority chose BancABC for its favourable borrowing terms compared to other financial institutions.
Council has authorised officials to kick start talks.
Based on the latest council March report, the money is for urgent water projects.
The Finance and Development Committee said "US$26 million was required in the very short term, in order to remedy priority problem areas."
"In view of the tenor of up to 20 years, authority was sought for the Council Officials to engage Loita Capital Partners International to raise capital of at least $26 million to finance water and water waste project and sign any enabling documents as well as incurring any necessary travelling expenses to Harare," the reports read in part.
The repayment period is 20 years and interests are said to be low.
However, the report did not mention the interest rates levels.
Council said it will channel $17,063,575 to water supply, operational and institutional management ($2,303,041) and $17,063,575 for wastewater.
Last year, council sought a $13,2 million loan from BancABC to fund the rehabilitation of its ageing sewer reticulation system and for the purchase of refuse removal trucks.
The local authority chose BancABC for its favourable borrowing terms compared to other financial institutions.
Source - Byo24News
