Zimbabwe capital Harare will sign a $400 million deal with a South African company to upgrade its road network while another SA company has offered to replace and upgrade the ageing Harare water distribution network at a cost of $100 million.

Upgrading road network

Harare will set up a joint venture firm, Harare Roads Development Company, with South African company Neo Capital to run the project for a 30 year period. Neo Capital will contribute $400 million (R4.3 billion) for the project while the Harare Roads Development Company will get its revenue from vehicle licences and billboard activities.

According to Zimbabwe’s Herald newspaper, the deal will be one of the largest infrastructure investments in a country shunned by Western governments and funding institutions such as the World Bank, because of its failure to repay billions of dollars of debt.

Fixing water woes

According to The Standard, Harare Mayor, Bernard Manyenyeni said Cressham Investments in South African is offering to replace and upgrade Harare’s water distribution network to the tune of $100 million (R1 billion), at no cost to the city. In return, the company would lay broadband fibre optic infrastructure alongside the newly laid water distribution pipes.

The city is currently seeking nearly $3 billion (R32 billion) to implement a comprehensive Water Services Delivery Plan aimed at providing a lasting solution to Harare’s water problems. The plan is to overhaul and expand the entire water services delivery system to provide constant supplies of water to at least 80% of residents by 2020.

The city loses approximately 220 mega litres of treated water and $114 000 (R1.2 million) in revenue per day and is failing to supply adequate water to residents. In addition, underground leaks and regular trenching to repair burst water-pipe have caused extensive damage to the road network.