eBusiness Weekly
Africa Moyo
Government has relaxed its previous position to have the entire 585km Harare-Beitbridge Highway dualised, amid indications that it is open to having contractors partially dualise and widen the major road.
This comes as construction experts told Business Weekly that full dualisation of the highway was uneconomic due to the required capital outlay and “low volumes of traffic”.
It is understood that between 2 500 and 3 000 vehicles pay at tollgates along the Harare-Beitbridge Highway per day, making little business sense to dualise the road as it will take “forever” to recoup the estimated $1,7 billion investment under a self-financing model where debts is repaid from toll fees.
Assuming all the vehicles pass through the four tollgates (Skyline, Mushagashi, Chivi and Lutumba) along the Harare-Beitbridge Highway and pay a minimum of $2 each, the country can collect $744 000 per month.
In a year, the country pockets almost $9 million, which is thought to be too “little” to settle the estimated $1,7 billion loan required to undertake the mammoth project.
Earlier feasibility studies have suggested that dualisation of the Harare-Beitbridge Highway would cost $998 million while the Harare ring-road was pegged at $300 million.
The Harare-Chirundu Road section was estimated to cost $665 million, to make a combined $1,7 billion. The $998 million loan for the Harare-Beitbridge section was set to be repaid over 20 years from toll fees.
But given changed circumstances since the last feasibility studies were done, the cost for the road project might rise, implying the repayment period would correspondingly jump if some funds are sourced elsewhere.
Road experts have proposed the dualisation of the Harare-Chivhu stretch, and in areas where the road approaches towns and steep gradients, with the rest of the highway being widened.
Such a structure of the road is thought to be less costly, although the exact figures can only be established after another feasibility study.
Deputy Minister of Transport and Infrastructural Development, Advocate Fortune Chasi, told Business Weekly that Government is open to various structures of the highway, as long as the work is done satisfactorily.
“We have not insisted that it must be dualised all the way,” said Adv Chasi in a telephone interview.
Road experts say if Zimbabwe dualised the Harare-Beitbridge Highway, it would be a first considering that even South Africa’s N1 Highway (from Beitbridge to Johannesburg), is only dualised as it approaches cities.
Even the Chirundu-Lusaka highway in neighbouring Zambia is not dualised.
Govt wants works done soon
Government says it is keen to have works on the Harare-Beitbridge Highway started as soon as possible.
Preliminary works started by Austrian firm, Geiger International, were stopped around May this year following Government’s decision to cancel the tender.
Geiger International had won the tender to dualise the Harare-Beitbridge Highway in 2015 and commissioned the project in May 2016, but the works could not start immediately reportedly due to failure to secure the required funds.
This saw negotiations being opened up with Anhui Foreign Economic Construction
Corporation (AFECC), a top Chinese construction firm whose bid had come second to Geiger International.
Business Weekly understands that the new Cabinet has since directed Ministry of Transport officials to engage AFECC and establish if the company can undertake the project. Sources say the first meeting has been scheduled for today.
Adv Chasi said since being sworn into office, they have not held meetings with any potential contractors but insinuated that lines of communication would be opened soon to get the work done.
“We are trying to understand the intricacies of existing arrangements and also to looking at other possible funding models that will give the country the best deal.
“Since we came into office, we haven’t spoken to any outsiders concerning that project. We engaged in a process of extracting information from our staff concerning the way forward. But our non-negotiable position is that we want works to begin yesterday; that is what we are working on.
“Our major concern is that works must start as soon as is reasonably practicable. We cannot just continue to wait and watch when nothing is happening,” said Adv Chasi.
He could not be drawn into revealing the identity of the contractor likely to be engaged.
Said Adv Chasi: “I can’t have an idea as to who might win (the contract) because we haven’t gotten to that point at all.”
The Harare-Beitbridge-Chirundu Highway is Zimbabwe’s busiest trunk road that links Zimbabwe, South Africa and many other countries in the north.
Currently, the highway has become a narrow and rugged strip resulting in loss of human life due to accidents.
AFECC no stranger to Zim
AFECC, a large-scale multi-operational entity established in 1992, has been one of the top investors in Zimbabwe since the turn of the millennium. The company was one of the few that moved to invest in Zimbabwe after the land reform programme, when many foreign firms were leaving enmasse.
Already, AFECC has constructed the Zimbabwe National Defence University and Longcheng Plaza, both in Harare.
It has also constructed the Golden Peacock Hotel in Mutare and owns another Golden Peacock Hotel in Harare’s leafy suburb of Borrowdale. The two hotels employ about 170 locals while hundreds more are work at Longcheng Plaza, making it arguably the biggest Chinese investor in the country. AFECC also constructed the imposing Chinese Embassy in Harare.
Sources say it also wants to put up a hotel and conference centre in Victoria Falls.
Across the continent, AFECC has constructed a five-star hotel in Madagascar, a stadium in Togo, a presidential centre in Mauritania, Maputo International Airport and ministerial office building in Mozambique, and a luxury hotel for MPs in Ivory Coast. AFECC holds a first grade general contracting qualification in housing construction and mechanical and electrical installation, and a second-grade general contracting qualification in road construction and real estate development.
The company has 20 branches across the world including in France, Belgium, Uganda and Zimbabwe.
