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Govt-private partnerships essential for infrastructure development

The new Beitbridge Border Post is set to transform trade and travel between Zimbabwe and its neighbours, featuring advanced technology, increased capacity and improved security. The $300 million project, developed through a public-private partnership with the Zimborders Consortium, aims to reduce congestion and wait times for cargo and travellers, facilitating smoother movement in the Sadc region. In this report, Beitbridge Bureau Chief Thupeyo Muleya (TM) speaks to Zimborders Consortium CEO Mr Francois Diedrechsen (FD) about the developments.

TM: What is your current impression of the completed Beitbridge Border Modernisation Project?

FD: Thank you. Now that the development phase is complete, I believe the modernised border post is a testament to what can be delivered when the Government and the private sector collaborate efficiently through a Private Public Partnership (PPP), creating both visually beautiful and operating efficient assets which the entire nation is proud of.

TM: What are the major highlights of this project?

FD: Some major highlights include the delivery of the project on budget and ahead of schedule, traffic crossing times have been reduced in many cases by over 70 percent (from 72 hours to three hours). There is also a major reduction in illicit trade activities through the border and improved tax collections for the Government of Zimbabwe.

TM: What were the key challenges you faced during the implementation of the project? How did you overcome them?

FD: We had many challenges, such as creating an effective collaboration between the Government agencies and our staff. In addition, we had challenges brought on by Covid-19 pandemic at the time and resistance to change from various parties amongst others. The Zimborders team being experts at PPP projects had to rely on all its past experience to overcome the various challenges to eventually deliver the project which we are today very proud of.

TM: What is the impact of this project on the community, economy and Zimbabweโ€™s ease of doing business plan?

FD: Among other things, the community benefits include, the creation of employment and skills transfer opportunities. There are also other benefits from the non-port works completed which include, a new fire station, a 11,4 mega litres water reservoir, a new sewer oxidation dam, a 220 staff village and an animal plant and quarantine centre. In addition, being part of one of the top border posts in Africa results in various small add-on business opportunities that get created as spill overs.

TM: Can you walk us through your project management approach and how you ensured the project was delivered on time, within budget and to the required quality standards?

FD: Quality standards are something that as an organisation working with the independent employersโ€™ representative firm monitored daily throughout the implementation process. We relied on our many years of experience in managing contractors, and also the selection of the correct contracting company was critical and ours being Raubex was a valuable asset in the process given their financial and delivery strength.

TM: How did you manage stakeholder expectations, including those of government agencies, local communities, travellers, importers/exporters, transporters and contractors?

FD: This is an ongoing process for us and we will continue throughout the concession period. It is a daily challenge to balance the expectancies of investors and lenders whose money was needed. There were a lot of expectations from various agencies and at times there is resistance to change, travellers also have to feel that they are getting value for money by the improved post. These processes are managed daily through interactions, but at the end of the day our major job is to constantly improve the efficiencies of the port of entry which then automatically satisfied most stakeholders.

TM: It is understood that as part of your agreement with the Government of Zimbabwe, your organisation will manage and maintain the Port of Entry for the duration of the 17 and half yearsโ€™ concession before handing it over. How has been your relationship with other border agencies as regards to operations at the port of entry post construction/completion of this project?

FD: That is correct. Relationships are always fluid and evolving, but generally these relationships are very strong and productive. There are moments at times when there is some resistance to changes needed in processes but like all stakeholder relationships, these matters are then constructively worked on to find the correct solution.

TM: What strategies did you employ to mitigate risks and address any issues that arose during the project among them pricing border user fees?

FD: There are too many matters to list that had and have to be managed daily. For instance, border post fees were determined by market studies combined, which relates of the need to pay back lenders and investors who funded the project as well as making sure that the improved efficiencies create savings for the users, thus creating value for money for all stakeholders.

TM: Can you provide an overview of the projectโ€™s financial performance, including any returns on investment or cost-benefit analyses?

FD: Returns have been totally market related for projects of this nature. However, the exact numbers are of a confidential nature.

TM: How will you ensure the long-term financial sustainability of the completed project?

FD: The project fundamentally is sustainable by constantly monitoring and driving operational efficiencies on site and by all stakeholders from both the private and public sectors.

TM: What systems and processes have you put in place to ensure the smooth operation and maintenance of the completed project?

FD: As is standard for PPP projects of this nature, the entire concession period maintenance is pre-planned and scheduled including unforeseen, routine and life-cycle maintenance for both the hard infrastructure as well as the Information Communication and Technology (ICT) systems so as to keep all up to date with technological changes and to ensure the infrastructure is good as new at all times.

TM: How will you measure the projectโ€™s performance and impact over time and what is your vision on this project in the next five years, or what plans do you have for future upgrades, expansions, or modifications to the project?

FD: Other than as required modifications to stay on top of any technological changes or if there are significant traffic increases (which would then require specific upgrades if that occurs but then there would be additional cash flow), PPP projects like these do not allow for (as not priced) for major infrastructure upgrades, ICT upgrades do get done on an annual and three-year cycle continuously.

TM: How did you engage with local communities, stakeholders, and end-users during the projectโ€™s planning, design, and construction phases?

FD: During the design phase all Government, local agencies and stakeholders were constantly consulted to receive their input and feedback on the problems they were facing and what suggestions they had. So, all this various information was then collated and combined in the eventual design of the upgrades required to both infrastructure and ICT systems

TM: Can you describe any community benefits or initiatives that were implemented as part of the project?

FD: These initiatives are ongoing but examples in the past was the creation of small brick manufacturing small businesses to supply during construction. Currently there are also other initiatives taking place to help local orphanages as well as cleaning of various non border areas of the town as examples.

TM. What opportunities did you provide for staff development and training during the project and is that bearing fruit?

FD: Staff training and development is an ongoing matter and will be for the duration of the concession. We are proud to see how many individuals have gained experience and developed at all levels on the project right up to our General Manager.

TM: What lessons can we draw from this project?

FD: There have been many lessons learnt which is valuable knowledge for us for the future. However, as I have mentioned, some of us have been doing this for over 25 years and each project always has its own unique challenges and lessons are always being learnt along the way.

TM: Are there any prospects of the Zimborders Consortium extending the same initiative to the other borders of the country?

FD: Zimborders is a Special Vehicle (SPV) entity created specifically for this project (Beitbridge Border Transformation) and the complete consortium is not currently involved in other projects in Zimbabwe and has not been selected to date. However, individual members of the consortium are entitled to do so.

TM: What legacy do you hope the completed project will leave for future generations?

FD: The legacy should be a testimony that when the Government and the private sector come together constructively and work together there are no limits to what can be achieved.

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