Highway dualisation costs balloon to $2,4bn

The cost of dualising the Beitbridge-Masvingo-Harare-Chirundu highway has almost trebled to $2,4 billion as it will have facilities for overnight truckers and plazas, an executive with Infrastructure Development Bank of Zimbabwe (IDBZ) has said.

BY FIDELITY MHLANGA

In 2003, the cost of dualising the 900km highway was pegged at $833 million and the latest figures have raised concerns from stakeholders who fear the project could have been overpriced.

But IDBZ executive director for infrastructure projects Desmond Matete said on Monday the amount tallied with the enormous work that would have to be done on the highway.

“The figure includes a lot of things. The amount of work to be done to produce a proper dualised road is too much. The road will have overnight facilities for truckers by the roadside and plazas among other facilities. The amount ($2,4 billion) represents the scale of work that will see us taking 5-10 years without touching that road again,” Matete told guests attending the Insurance Institute of Zimbabwe meeting in Victoria Falls.

He said Zimbabwe needed to spend $1,65 billion annually to keep abreast with its infrastructural requirements.

Matete said the financing options for the development of the country’s infrastructure were through debt, bank loans, bonds, equity, pension funds and internal funds by implementing agencies.

Other sources of finance include sovereign funds, securitisation of Diaspora remittances and public-private partnerships.
Matete said a $100 million investment on infrastructure had the capacity to generate up to 50 000 annualised direct and indirect jobs.

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The highway has deteriorated over the years with observers slamming government for its delay in announcing the winning bid.
“We sat with the Minister of Transport and that of Finance about two weeks ago. Up to now I am still receiving calls and emails from bidders. But I am told the issue is now with the Cabinet,” Matete said.

In 2003, government awarded ZimHighways — a consortium of 14 construction firms that included Murray & Roberts Zimbabwe (now Masimba Holdings), Costain Africa (now ZCL Holdings, which is under judicial management), Kuchi Building Construction, Tarcon, Bitumen Construction Services (Bitcon), Joina Development Company and I Southland Engineers — a contract to dualise the 900km highway at cost of $883 million.

The tender was, however, cancelled.

According to a 2012 World Bank report, Zimbabwe would require $33 billion to develop its infrastructure including transport, water, electricity and telecoms in the decade to 2022.

During the period, electricity requires $11,3 billion, transport $13,3 billion, water $1,81 billion and telecoms $6,75 billion.
The role of IDBZ is financier by way of providing debt, equity, technical assistance, resource mobilisation and partner into joint ventures with strategic partners.

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12 Comments

  1. What dfuq 3 million dollars a km you do realise that is high even in states. As usial somneone smells blood in the water and wants the taxpayer to pay for it.

  2. Vakoma macosts are always ballooning very soon they will be equivalent to the nation’s GDP. its only in Zimbabwe kkkkkk

  3. Have no worries – the British Government via the shameless Catriona Laing [the British ambassador] have allegedly undertaken to pay for it ALL (including all the bribes involved).

  4. the amount tallied with the enormous work that would have to be done on the highway.

    This should have been the same work which was initially priced, unless engineers had missed out almost 200% of the works.

  5. The total distance from Beitbridge to Chirundu is 933 km.According to the World Bank information available on http://www.worldbank.org/transport/costs/c&m_docs/kmcosts.pdf the general average cost of constructing and tarring a kilometre of road is USD$567 000.
    In our case if we multiply USD$567 000/km by 933 km we get USD$529 011 000(USD$0.5Bn) and this is the cost of a single carriageway from Beitbridge to Chirundu.For a dual carriageway we need to multiply this figure(USD$0.5Bn) by 2 and it gives us USD$1 058 022 000(USD$1.058Bn). This then means duallising the 933 km road from Beitbridge to Chirundu will cost roughly USD$1.058Bn.
    The difference between the new figure,USD$2.4Bn and our figure for dualising the same road is (USD$2.4BN minus USD$1.058BN) USD$1.342Bn and maybe this amount is for the construction of new bridges,resettlemnt of people along the new two lanes running parallel to the old road,cost of traffic circles,robots,flyovers,truck stops,new tollgates,digging the Zambezi escarpment(between Marongora and Mana Pools turn-off) to make room for two more lanes, etc etc.
    We can only know of the true cost for this project if we see breakdown of the road construction costs from independent consultants.

  6. AAh zve Zimbabwe zvine manenji. Please tipeyi road. Plazas what what makuda kuti wanzira manje.
    I want safe road to drive on. Zvimwe thats medium to long term. We don’t drive in overnight parking bays. Its the roads that are killing people.
    Chiiko ma Zimbabweans kurasika mumba yeround.

  7. I think its fairly priced, for a four lane highway it comes to about $650k per lane per km which is fair world wide.

  8. how does 883 million tender turn to 2.4billion. haasi ma im dollar ka aya!!

  9. When will this madness end, you cannot fix even potholes and dongas on the side of road but plan plazas along the road.

  10. They should just do the road and live the rest to private players end of.

  11. give us a breakdown of your costs please. Why include facilities for truckers on borrowed money? This is luxury and what is the cost of each toll plaza? Something fishy in this project.

  12. i am sure it includes underhand deals, finance costs etc, last i checked the Minister of transport had sent recmmendations to Ngwena to appoint!!! What nonsense.

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