News / National
Bulawayo raises over US$21 million for Glassblock dam construction
08 Dec 2024 at 10:09hrs | Views
Bulawayo City Council has successfully raised over US$21 million toward the construction of the Glassblock Bopoma Dam, a critical infrastructure project aimed at addressing the city's water crisis and promoting rural industrialization through irrigation. The total cost of the dam project is estimated at US$100 million, with the remaining funds still to be secured.
The update on the funding and progress of the project was shared during the 2024 Africa Investment Forum (AIF) Market Days in Rabat, Morocco, last week. The event, hosted by the African Development Bank (AfDB), brought together a range of stakeholders including investment institutions and development banks.
Genesis Global Finance (Pty) Limited, the project's financial advisor, presented a financing request to the AfDB-led transaction platform. The request includes US$54 million in debt financing, US$4.8 million in equity, and US$10 million in grant funding. This will complement the locally raised US$21 million and further close the gap towards the total required funding for the dam's construction.
The project's partners include prominent institutions such as the African Export–Import Bank, Africa50, Africa Finance Corporation, the Development Bank of Southern Africa, the European Investment Bank, the Islamic Development Bank, and the Trade and Development Bank.
In terms of construction, the Zimbabwean government has awarded the engineering, procurement, and construction contract to J R Goddard Contracting. The project's expected timeline is ambitious, with the concession agreement slated to be signed in January 2025, followed by financial closure by March 2025. Construction of the dam and associated infrastructure will begin soon thereafter, with completion and commissioning targeted for May 2027.
Felix Kumirai, managing director of Genesis, highlighted the multifaceted benefits of the project during the forum. In addition to addressing water and sanitation issues, the Glassblock Bopoma Dam is expected to create opportunities for irrigation over 1,800 hectares of land upstream. This initiative aims to transform rural communities, providing a much-needed boost to local agriculture.
Kumirai also mentioned the inclusion of a 6.4-megawatt solar power generation project, which will supply energy to small towns in the area. Additional opportunities exist in sectors such as fisheries, tourism, and biodiversity, with potential investments in bio-credits.
Strategically located at the intersection of Gwanda, Umzingwane, and Insiza districts, the Glassblock Bopoma Dam will have a holding capacity of 130 million cubic meters, offering a long-term solution to Bulawayo's chronic water shortages.
The city has been grappling with its worst water crisis in years, following the decommissioning of the Umzingwane and Upper Ncema dams. There are also concerns that the Lower Ncema dam could be decommissioned in the coming weeks if significant inflows are not received.
The Glassblock Bopoma Dam is expected to play a pivotal role in alleviating these challenges, ensuring a reliable water supply for Bulawayo while fostering rural industrialization.
The update on the funding and progress of the project was shared during the 2024 Africa Investment Forum (AIF) Market Days in Rabat, Morocco, last week. The event, hosted by the African Development Bank (AfDB), brought together a range of stakeholders including investment institutions and development banks.
Genesis Global Finance (Pty) Limited, the project's financial advisor, presented a financing request to the AfDB-led transaction platform. The request includes US$54 million in debt financing, US$4.8 million in equity, and US$10 million in grant funding. This will complement the locally raised US$21 million and further close the gap towards the total required funding for the dam's construction.
The project's partners include prominent institutions such as the African Export–Import Bank, Africa50, Africa Finance Corporation, the Development Bank of Southern Africa, the European Investment Bank, the Islamic Development Bank, and the Trade and Development Bank.
In terms of construction, the Zimbabwean government has awarded the engineering, procurement, and construction contract to J R Goddard Contracting. The project's expected timeline is ambitious, with the concession agreement slated to be signed in January 2025, followed by financial closure by March 2025. Construction of the dam and associated infrastructure will begin soon thereafter, with completion and commissioning targeted for May 2027.
Felix Kumirai, managing director of Genesis, highlighted the multifaceted benefits of the project during the forum. In addition to addressing water and sanitation issues, the Glassblock Bopoma Dam is expected to create opportunities for irrigation over 1,800 hectares of land upstream. This initiative aims to transform rural communities, providing a much-needed boost to local agriculture.
Kumirai also mentioned the inclusion of a 6.4-megawatt solar power generation project, which will supply energy to small towns in the area. Additional opportunities exist in sectors such as fisheries, tourism, and biodiversity, with potential investments in bio-credits.
Strategically located at the intersection of Gwanda, Umzingwane, and Insiza districts, the Glassblock Bopoma Dam will have a holding capacity of 130 million cubic meters, offering a long-term solution to Bulawayo's chronic water shortages.
The city has been grappling with its worst water crisis in years, following the decommissioning of the Umzingwane and Upper Ncema dams. There are also concerns that the Lower Ncema dam could be decommissioned in the coming weeks if significant inflows are not received.
The Glassblock Bopoma Dam is expected to play a pivotal role in alleviating these challenges, ensuring a reliable water supply for Bulawayo while fostering rural industrialization.
Source - online
