News / Regional
Govt to rake in over $100K/month from Limpopo Bridge
25 Jun 2014 at 07:05hrs | Views
THE government is set to rake in more than $100 000 a month toll fees revenue from the New Limpopo Bridge project, a Cabinet minister has said.
The government last week took over ownership and operations of the bridge following the expiry of a 20-year build operate and transfer agreement with the New Limpopo Bridge (Ltd), a company that constructed the bridge in 1994.
Transport and Infrastructural Development minister Obert Mpofu told a Zanu PF interprovincial meeting on Saturday that part of the proceeds would be channelled towards development of the precincts of the Beitbridge border post and town.
"On the 16th of June, the government through the ministry and jointly with the South African government took over ownership and management of the New Limpopo Bridge," Mpofu said.
"I am told that the New Limpopo Bridge (Ltd), a company that constructed the bridge made $400 million revenue yet it had only invested $5 million. We are waiting for South Africa to gazette the fees and we will follow suit. At the moment we are collecting $50 000 a day and we are targeting $100 000," he added.
"The two governments have agreed that part of the proceeds from tolling will be channelled towards the development of the precincts of the border town, Beitbridge and Beitbridge border post," Mpofu added.
"We envisage that this development will place Beitbridge and the greater parts of the province at a vantage point in terms of increased business due to increased traffic volumes."
Mpofu said the New Limpopo Bridge was the first major infrastructure project in Zimbabwe undertaken by the private sector in partnership with the government.
Beitbridge border post is one of the busiest ports of entry in Southern Africa where an average of 8 000 travellers pass through the per day and the number increases to around 20 000 during peak periods.
A total of 2 100 buses, 14 000 to 15 000 haulage trucks and 25 000 private cars pass through the border every month.
The government last week took over ownership and operations of the bridge following the expiry of a 20-year build operate and transfer agreement with the New Limpopo Bridge (Ltd), a company that constructed the bridge in 1994.
Transport and Infrastructural Development minister Obert Mpofu told a Zanu PF interprovincial meeting on Saturday that part of the proceeds would be channelled towards development of the precincts of the Beitbridge border post and town.
"On the 16th of June, the government through the ministry and jointly with the South African government took over ownership and management of the New Limpopo Bridge," Mpofu said.
"I am told that the New Limpopo Bridge (Ltd), a company that constructed the bridge made $400 million revenue yet it had only invested $5 million. We are waiting for South Africa to gazette the fees and we will follow suit. At the moment we are collecting $50 000 a day and we are targeting $100 000," he added.
"We envisage that this development will place Beitbridge and the greater parts of the province at a vantage point in terms of increased business due to increased traffic volumes."
Mpofu said the New Limpopo Bridge was the first major infrastructure project in Zimbabwe undertaken by the private sector in partnership with the government.
Beitbridge border post is one of the busiest ports of entry in Southern Africa where an average of 8 000 travellers pass through the per day and the number increases to around 20 000 during peak periods.
A total of 2 100 buses, 14 000 to 15 000 haulage trucks and 25 000 private cars pass through the border every month.
Source - Southern Eye
