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BCC taps into Estates Account to rescue service delivery
2 hrs ago |
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The Bulawayo City Council has approved an internal advance of US$930 000 from its Estates Account to purchase heavy-duty machinery, as the city grapples with ageing equipment, rising outsourcing costs, and deteriorating service delivery.
According to council minutes, the funds will be used to acquire a CAT 950GC wheel loader and a CAT D7 bulldozer, with repayment scheduled over 36 months at an annual interest rate of 5,1%.
The decision comes as the municipality continues to service earlier internal loans used to support operations, including US$760 000 borrowed in 2022 for road maintenance equipment and US$615 000 in 2025 for refuse compactors and motorbikes.
Council records indicate that despite these investments, operational challenges persist, with much of the existing fleet requiring refurbishment or replacement. As a result, the local authority has increasingly relied on hired machinery to maintain basic services.
Officials warned that outsourcing equipment has become financially burdensome, adding pressure to an already constrained budget. The council also noted difficulties accessing long-term financing on the open market due to high interest rates and restrictive lending conditions.
In its recommendation, council argued that purchasing new equipment would improve operational efficiency and reduce long-term costs associated with repairs and external hiring, ultimately strengthening service delivery capacity.
According to council minutes, the funds will be used to acquire a CAT 950GC wheel loader and a CAT D7 bulldozer, with repayment scheduled over 36 months at an annual interest rate of 5,1%.
The decision comes as the municipality continues to service earlier internal loans used to support operations, including US$760 000 borrowed in 2022 for road maintenance equipment and US$615 000 in 2025 for refuse compactors and motorbikes.
Council records indicate that despite these investments, operational challenges persist, with much of the existing fleet requiring refurbishment or replacement. As a result, the local authority has increasingly relied on hired machinery to maintain basic services.
Officials warned that outsourcing equipment has become financially burdensome, adding pressure to an already constrained budget. The council also noted difficulties accessing long-term financing on the open market due to high interest rates and restrictive lending conditions.
In its recommendation, council argued that purchasing new equipment would improve operational efficiency and reduce long-term costs associated with repairs and external hiring, ultimately strengthening service delivery capacity.
Source - Southern Eye
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