The Cowdray Park Hlalani Kuhle residential housing development has so far gobbled US$12,85 million which was contributed by various development partners through the Bulawayo City Council and government.
The project is expected to cost US$46 million.
The development is stated in the latest Bulawayo City Council minutes in which it was revealed that the housing development project, which is a self-financing scheme, seeks to service about 15 524 stands with roads, sewage and water reticulation systems at an estimated cost of US$46 million.
The council noted that at the time of handing over of the project by the government in 2012, the local authority met with Hlalani Kuhle residents and agreed on US$50 monthly contributions per individual that would go towards servicing the area.
“The US$50 contributions had been calculated with the assumption that if everyone was paying the project could be completed in five years, that is, by 2017.
“Over the years since 2012, residents had been struggling to meet the monthly US$50 contributions leading to council later meeting with residents and resolving to reduce the contributions to US$15 per month,” the minutes read.
“This resulted in low financial contributions towards the project, affecting projected cash flows. The new projected time to complete the works was now around 16 years from the initial five years on US$50 monthly instalments.”
The council noted that records showed that about 75% of the allocated beneficiaries failed to meet their agreed monthly obligations of US$50.
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The minutes also revealed that council had engaged donors and development partners to finance the completion of servicing of the the Hlalani Kuhle project.
“The Africa Development Bank (AfDB) under the Bulawayo Water and Sewage Services Improvement Project grant was funding the purchase of pipes to service some of the segments and (provide) approximately 4 600 water meters,” the minutes read.
Council said the Dutch government programme had provided 7 868 water meters complete with connection materials at a cost of US$322 168,61.
“Zimbabwe government (Finance ministry) — constructed 2,9km of road to the surfaced standard. To date, the total cost of work done could be summarised as follows: Water, Sewer and Roads US$7,6 million Australian Government Civil Society Organisation contribution (US$132 000,50), AfDB (US$4,8 million) Dutch funding US$322 168,61 [and] grand total to date is US$12,85 million," the minutes read.
Council noted that the project has recorded 97% water reticulation system, 33% sewer system, and 4% road development progress.
It also indicated that the inter-departmental committee will meet in April to discuss an appropriate financing model for the Hlalani Kuhle project.
“The financing model will involve engaging private companies to fund, execute and complete the outstanding works,” the minutes read.
