Govt okays US$110m Old Gwanda Road upgrade

Freeman Razemba

Senior Reporter

THE Government has signed a concession agreement with a local contractor, Zwane Enterprises (Pvt) Ltd, which was selected for the reconstruction of the 120km Old Gwanda Road.

The development comes after Cabinet last year approved the US$110 million Public-Private-Partnership investment for the construction and upgrading of the road.

Zwane Enterprises expressed interest in the construction of the gravel road in 2023 and has a US$150 million budget for the project.

In the past few months, the investor has been conducting feasibility studies and a total of 43 homesteads are expected to be relocated to make way for the project.

 Government recently revealed that it will be engaging the private sector in the construction of major roads in the country under the Built-Operate and Transfer model.

Two toll gates are expected to be placed along Old Gwanda Road.

Yesterday, the Permanent Secretary in the Ministry of Transport and Infrastructural Development, Engineer Joey Makumbe, signed the agreement on behalf of the Government while Zwane Enterprises chief executive officer, Engineer Bekithemba Mbambo, signed for his company.

 In an interview, Eng Makumbe said: “What we witnessed today was a signing of the concession agreement between the government of Zimbabwe and Zwane Enterprises, the project being reconstruction, rehabilitation, design and also funding of the old Gwanda Road.

“So for this concession, the period is 25 years and because of the period, I think you heard Engineer Mbambo saying that there has been a period where there have been discussions between the financiers, between the engineers and the ministry because at the end of the day, we also want a deal that is good for government and a deal that is also good for Zwane Enterprises”.

She said following the signing of the agreement, work should start in earnest.

“So today, finally, we have signed the concession and we are expecting as a Government that work should start.

“We have a 90-day period where we expect financial closure to be done.

“Once the 90 days elapse and financial closure is not done, then the concession lapses.

“This is done so that we protect our government projects because, at the end of the day, we also need this drive by the government to have Triple Ps, that is private-public partnerships, but we also want people with capacity.

“We don’t want people who are going to come in and lock down government projects and they don’t have the capacity,” Eng Makumbe said.

To protect the government, she said, they have a five-year concession where they will continue monitoring that the project was on track and meets their expectations.

Zwane Enterprises chief executive officer Eng Mbambo said the project would enable many developments along the corridor.

“The corridor boasts of a lot of industry, different industries, economic enablers, tourism, mining, agriculture. We are looking forward to doing the road soon,” he said.

Eng Mbambo said they would start with relocating the homesteads this week while the actual construction of the road will wait for drier times.

In terms of expertise and equipment, Eng Mbambo said they have lined up very competent contractors who already have their equipment and are ready to hit the ground running.

While the project was initially estimated to cost US$110 million, Eng Mbambo recently revealed that the figure may be closer to US$150 million, with US$40 million assigned to enhance the road’s elements and cultural storytelling.

Our Bulawayo Bureau recently obtained exclusive access to these architectural designs, which show how the road aims to promote the diverse tourism offerings of Matabeleland South, with prominent tourism facilities and cultural sites integrated into the design.

The innovative approach aligns with the Government’s recognition of the essential role accessible roads play in tourism development, fostering smoother connections between travel enthusiasts and their dream destinations.

The Ministry of Transport and Infrastructural Development, together with the Ministry of Tourism and Hospitality Industry, have already forged partnerships to revitalise the country’s roads and                     airports.