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NewsDay

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Tokwe-Mukosi gets $20,3m boost

Business
Government has set aside $20,3 million for the completion of outstanding work at Tokwe-Mukosi Dam.

Government has set aside $20,3 million for the completion of outstanding work at Tokwe-Mukosi Dam.

BY BUSINESS REPORTER

In a statement yesterday, Infrastructure Development Bank of Zimbabwe (IDBZ) chief executive officer, Thomas Sakala said the $20,3m was in addition to the $75m Treasury Bills (TBs) government provided to clear outstanding arrears.

“The IDBZ is pleased to advise that the government of Zimbabwe recently released an amount of $20,3 million to the IDBZ to be applied towards completion of outstanding works at the Tokwe-Mukosi Dam,” he said.

Sakala said from proceeds of TBs raised earlier in the year, IDBZ recently disbursed $18,4m to the contractor, Salini Impregilo JV, in full payment of all the arrears and approved payment certificates.

“Following the payment of the outstanding dues to Salini, the contractor has engaged to fully re-mobilise and complete outstanding works before the onset of the rainy season. Tokwe-Mukosi Dam will, therefore, be able to impound water starting from the 2016/17 rainy season. Consequently, Zimbabwe will soon begin to derive substantial benefits from the huge investment in this important national asset,” the IDBZ boss said.

The dam has been under construction for over 15 years, with initial construction having started in 2001 and there were stops in between.

It has a capacity to provide water for 25 000 hectares of agricultural land.

Salini had indicated earlier this week its intentions to withdraw from the project due to arrears.

The contractor was also not willing to be paid in United States dollars, but in euros, as its arrears were in euro terms.