Austrian company wins Harare-Beitbridge road dualisation tender

The Austrian firm which won the tender to dualize the Harare-Beitbridge road will commence work early next year following the signing of an Engineering, Procurement and Construction (EPC) contract with the Zimbabwe government on Wednesday.

Geiger International will construct the Beitbridge-Harare segment of the Beitbridge-Harare-Chirundu highway at a cost of $984 million under a 25 year Build Operate and Transfer (BOT) model.

Transport and Infrastructural Development Minister Dr Joram Gumbo signed on behalf of the Government, while Mr Erik Geiger stood in for Geiger International.

The project is valued at US$984 184 592, 68 and the signing of the two agreements marks the beginning of practical work on the road which should be in full swing by March next year.

Minister Gumbo said the costing of the project was fair and that it was based on a feasibility study done by Stuart Scott International through an international tender funded by the Development Bank of South Africa, which pegged it at between US$900 million and US$1,2 billion.

Minister Gumbo told stakeholders who attended the signing ceremony in Harare that the project would be implemented under a Build Operate and Transfer arrangement running for 25 years.

Following the signing of the EPC and the concession agreement, Minister Gumbo said preliminary works would include mobilisation of materials and engagement of local sub-contractors and finalisation of road mapping.

He said 40 percent of the value of the project would be sub-contracted to local companies.

Minister Gumbo said the engagement of local sub-contractors would be done in a transparent manner by Geiger International.

The portion of the project, Minister Gumbo said, would be implemented under a loan facility and that necessitated separation of the two contracts.

He said Government's focus was now on the Beitbridge-Bulawayo-Victoria Falls and the Harare-Nyamapanda highways.

Minister Gumbo said the roads would open the north-south corridor and the trade route with Mozambique and Malawi.

He said given Zimbabwe's strategic location as a potential transport hub in the Sadc region, Government's strategy was to open the major regional trading corridors.

Mr Geiger expressed his company's readiness to start the project.