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The Zimbabwe National Road Administration (ZINARA) has borrowed $600 million from Nedbank for the Emergency Road Rehabilitation Programme 2 (ERRP2).
The Government gave a guarantee that the money will be repaid by the end of May.
<a href="https://www.herald.co.zw/zinara-borrows-600m-for-errp/">The Herald</a> reported that ZINARA has a substantial daily inflow of revenue from its toll gates and vehicle licence fees, but occasionally borrows to speed up progress or to finance a major set of roadworks.
The notice of the guarantee was gazetted by Finance and Economic Development Minister Mthuli Ncube as 131H of 2023. Said Ncube:
<blockquote>
The guarantee is surety to Nedbank Zimbabwe Limited that Government will honour ZINARA’s obligations under the composite bridging facility for road rehabilitation works for the Emergency Road Rehabilitation Programme Phase 2 project in the event that ZINARA defaults on its contractual obligations.
The total amount covered by the guarantee is for $600 million including accrued interest.
The guarantee shall be applicable and become payable in so far as the funds were used by Zinara for the sole and authorised purpose of constructing the road rehabilitation works under the Emergency Road Rehabilitation Programme Phase 2 project.
</blockquote>

Pindula News

ZINARA Borrows $600 Million For Roads Rehabilitation

The Government of Zimbabwe has secured a US$360.5 million funding facility from PIM Nominees (Private) Limited for the rehabilitation and upgrade of the 354km Harare-<a href="https://www.pindula.co.zw/Kanyemba">Kanyemba</a> Road. 
Kanyemba is a border town on the <a href="https://www.pindula.co.zw/Zambezi_River" title="Zambezi River">Zambezi River</a> where <a href="https://www.pindula.co.zw/Zimbabwe" title="Zimbabwe">Zimbabwe</a>, Zambia and Mozambique meet just upstream of Lake Cabora Bassa.
A separate $5 billion loan was also secured for other road networks under the Emergency Road Rehabilitation Programme Phase 2.
Finance and Economic Development Minister Professor <a href="https://www.pindula.co.zw/Mthuli_Ncube">Mthuli Ncube</a> announced the availability of the loan facilities in an Extraordinary Government Gazette published this week. Reads the notice:
<blockquote>
It is hereby notified, in terms of section 300 (3) of the Constitution of Zimbabwe, as read with section 18(2) of the Public Debt Management Act [Chapter 22:21], that the Minister of Finance and Economic Development signed a Loan Agreement for the Harare– Kanyemba Road Construction Project between Government of Zimbabwe and PIM Nominees (Private) Limited on June 6, 2022, under the terms specified in the Schedule.
</blockquote>
<h2>TERMS OF LOAN AGREEMENT</h2>
<blockquote>
1. The loan amount is US$360 500 000,00, loan to be disbursed through a revolving facility of US$60 000 000,00, at a time for 6 times. 
2. The borrower is Government of Zimbabwe. 
3. The lender is PIM Nominees (Private) Limited. 
4. The tenure of the Facility will be a period of 6 years. 
5. The loan facility shall be utilised for the sole purpose of rehabilitation and upgrading of the Harare to Kanyemba road over 5 years. 
6. The loan interest rate shall be 1-month SOFR + 5% per annum. 
7. The drawdowns are subject to a deposit of 30% of the revolving facility being US$18 000 000,00, which will be paid for each and every drawdown of US$60 000 000,00, subsequent to the first drawdown until the facility is drawn down in full. 
8. The grace period is a period of nine (9) months after signature of the Loan Agreement. 
9. The penalty interest charge on unpaid due payments is 3% for the number of days in arrears.
</blockquote>
Prof Ncube also gazetted separate loan facilities of US$600 million and $4 billion where the Government under the stewardship of <a href="https://www.pindula.co.zw/ZINARA">ZINARA</a> will superintend infrastructure projects under ERRP Phase Two.
The construction of the Harare-Kanyemba Road is expected to boost connectivity and convenience as travellers to the Democratic Republic of Congo and Tanzania cut their journeys by close to 400km.
The project is being spearheaded by a local contractor, Exodus Construction, who has been working on redesigning and the total construction of a 10km road that links Mahuhwe and Mushumbi.
<h2><a href="https://news.pindula.co.zw/">More Pindula News</a></h2>

Govt Secures US$360.5 Million Loan Facility For Harare-Kanyemba Road Rehabilitation

The Ministry of Transport and Infrastructural Development has said the rehabilitation of the <a href="https://www.pindula.co.zw/Harare">Harare</a>–<a href="https://www.pindula.co.zw/Masvingo">Masvingo</a>–<a href="https://www.pindula.co.zw/Beitbridge">Beitbridge</a> highway has reached another milestone with 400km of the 580km stretch now completed and opened to traffic.
In a Twitter post seen by Pindula News, the ministry last Wednesday said: 
<blockquote>
Harare-Masvingo-Beitbridge Road update: 400km now opened to traffic. Increase in kilometres of good road network infrastructure.
</blockquote>
The rehabilitation of the <a href="https://www.pindula.co.zw/Chirundu">Chirundu</a>-Harare-Masvingo-Beitbridge highway had been on the cards for a long time as the work done in the 1960s was tearing away causing accidents.
The tender to refurbish the highway was given to an Austrian firm, Geiger International, with a ground-breaking ceremony held in May 2017 to mark the beginning of works at the cost of US$2.7 billion. 
However, nothing happened on the ground prompting the government to cancel the tender in 2018 and then engage local companies to rehabilitate the highway. 
Five local companies were contracted to undertake the work: Tensor Systems, Masimba Holdings, Fossil Contracting, Exodus &amp; Company, and Bitumen World.
The scope of the project involves dualisation, upgrading and tolling of the highway.
The works have been divided into three sections: 
<blockquote>
i). the 580km Harare-Masvingo-Beitbridge highway together with eight toll plazas, 
ii). the 342km Harare-Chirundu highway with six toll plazas, and 
iii). the 59km Harare Ring Road with three toll plazas. 
</blockquote>
The central government has also come up with the Emergency Road Rehabilitation Programme 2 (ERRP2) which also focuses on roads in suburbs of towns and cities.
Over 2 000km of roads have been re-gravelled, while 6 627.9km have been graded, with 701 drainage structures constructed or repaired and 184 wash-aways reclaimed.
<h2><a href="https://zero.pindula.co.zw/">More Pindula News</a></h2>

Harare-Masvingo-Beitbridge Highway Rehabilitation: 400km Of 580km Completed, Opened To Traffic

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