Work starts on Harare-Beitbridge dualization

The long-awaited dualisation of the Harare-Beitbridge highway is expected to start in earnest next month as everything appears set for the mega project to take-off.

This comes despite claims that Geiger International, the Austrian firm that won the tender to develop the key highway, is facing financial constraints.

Transport and Infrastructure Development Minister Dr Jorum Gumbo conceded to that funding challenges were dogging the project.

Dr Gumbo told Business Weekly in Addis Ababa, Ethiopia, on the sidelines of the 30th African Union summit that while funding constraints remained a challenge, it was imprudent to cancel Geiger's tender as any new firm that wins the tender would still flounder in terms of accessing funds.

"The highway will go ahead although the country risk is still there. "Even if we were to cancel Geiger's tender the new company will still face problems raising funds," said Dr Gumbo.

Geiger's representative in Zimbabwe Cuthbert Mashanda, who was in Davos, Switzerland for the World Economic Forum that was also attended by President Emmerson Mnangagwa last week, said the road project remains on track and work is set to begin in March.

"As Geiger International, our commitment to invest in Zimbabwe is there, that's why we participated in the closed door session with His Excellency (President Mnangagwa) to show our commitment.

"We have so far gone as far as to raise performance grades for the contact using the consortium of local insurance industry. They have had to reinsure the difference which they couldn't take for the road here in Switzerland.

"The funding for that project is based here in Switzerland, which is why we came to give that commitment. As Geiger International we are getting ready to commence the bulk of the work or the most critical part of the work in March…so there will be work within March," said Mashanda.

Mashanda's remarks come at a time when speculation is rife that the 582 kilometre road project may suffer a stillbirth allegedly due to serious financial challenges.

It is understood that financial institutions which had promised to avail funds to Geiger are now dragging their feet citing political risk.

While political risk has dramatically reduced following the coming into office of President Mnangagwa, some lenders are thought to be still skeptical to extend funds that would be used in Zimbabwe.

But Mashanda insisted that funds for the project were now in place but that moving money from Switzerland to Zimbabwe cannot occur overnight, as due processes have to be followed.

"When we talk about money coming in, there are due processes to get money into the country," said Mashanda.

As the processes to start physical work on the ground, Geiger intends to look for an independent engineer, who is critical for all the construction costs.

The independent engineer is responsible for reviewing the designs and work that would be undertaken in the execution of project. Mashanda said without the independent engineer, they cannot start work. So we are at that stage of procuring the independent engineer."

Mashanda added that the procurement process rests with both the Ministry of Transport and Infrastructure Development, and Geiger.

The Ministry of Transport is expected to advertise for the procurement process, which may take around 21 days or so.

Geiger was contracted to undertake the project under a 25-year Buidl Operate and Transfer (BOT) model.

The Austrian firm will work with Zhejiang Bayong Highway Engineering Company of China.

About $1 billion is set to be gobbled in the project, which will be extended to Chirundu. Geiger is supposed to raise 15 percent of the funds while the balance is expected to come from a financial institution in China.

The project is expected to be concluded in three years.

Once dualised, the Beitbridge-Harare-Chirundu highway is expected to stimulate economic development the country as it is by far the busiest road in Southern Africa linking Beitbridge – the busiest border post in Sub-Saharan Africa – and the rest of the continent.

The highway links South Africa and numerous Southern African countries such as Zambia, Malawi, the DRC and Mozambique. It also links Southern Africa with East African countries such as Tanzania, Uganda, Kenya and Rwanda.