THE Infrastructure Development Bank of Zimbabwe (IDBZ) will this year spend over $200 million on key infrastructure projects beyond the capacity of the domestic capital market, it has been learnt.
Report by Tarisai Mandizha
In an interview with NewsDay, IDBZ chief executive officer Charles Chikaura said the list of projects requiring funding was long, but due to financial limitations, the bank had shortlisted only six major projects.
“The pipeline of projects waiting funding is long. In cognisance of these limitations, the Bank has shortlisted only six big projects valued at over $200 million for possible financing on a best endeavour basis,” Chikaura said without giving detail on the specific projects.
The country is in desperate need of investment in areas such as water, road and rail infrastructure.
A report complied by the African Development Bank in 2011 showed that Zimbabwe required in excess of $14 billion to rehabilitate infrastructure and create new capacity to meet growing demand as the economy recovers from a decade-long recession.
Chikaura said IDBZ would raise the funds from both the domestic and international capital markets, adding that the bank would continue to offer project management services to government on national projects in the various infrastructure sectors.
Infrastructure development across all key economic sectors, according to Chikaura, were long term projects by nature but the liquidity crunch that prevailed in 2012 hampered the bank’s efforts to extend the required funding for most deserving schemes.
He said despite these challenges, last year the bank successfully issued its maiden Infrastructure Development Bond and raised $17,8 million for the prepaid metering project being implemented by ZESA.
“The Bank is committed to fulfil its mandate to mobilise financial resources for infrastructure development from all possible sources, including the domestic private sector.
“To this end, the bank intends to go to the market again this year, the extent of which will be determined by our assessment of appetite in the market for long term investment and availability of viable, bankable projects,” Chikaura said.
He also said the bank was actively involved in the management of public sector projects under mandate from government.
Chikaura said to date, the bank had managed to secure $241 million and $158 million has been disbursed to the implementing agencies.