Beitbridge-Harare-Chirundu Highway Project

Mr. Speaker Sir, the Government awarded ZimHighways the tender for the Beitbridge-Harare Highway in 2005. In 2013, ZimHighways instituted legal proceedings against the Ministry of Transport and Infrastructural Development. The process of which continued until the matter was withdrawn through negotiations done by the Minister of Finance and Economic Development on behalf of the Government.

Geiger International

The project was granted to Geiger International and China Harbour Engineering Company (CHEC) under Resolution PBR 1397E of 15th March, 2016 as one project. CHEC was to be the main contractor of the project while financing 20% of the Beitbridge-Harare section of the road.

Subsequently, the two parties re-engaged the Government through the Ministry of Transport and Infrastructural Development indicating that the Beitbridge-Harare section was a Public Private Partnership, while the Harare Chirundu section was to be financed through a loan – hence the project should be formally split. The request was submitted to the State Procurement Board which approved and reissued the project approval under PBR 1397F of 14 July, 2016.

The contract between Geiger International and the Ministry of Transport and Infrastructural Development was signed in November 2016 and to date the Government has not received any communication for the Financial Closure as required by the Engineering, Procurement and Construction (EPC) Contract. In turn, the Ministry, through its letter dated 15th March, 2018, has served a notice as provided for by the Concession Contract and such notice period is for 60 days within which the concessionaire may remedy the event by giving rise to the right of termination within the remedy period. Currently, the Government awaits a response from the concessionaire.

Mr. Speaker, this covers the request that was made for me to make a Ministerial Statement on those two projects by Hon. Maridadi on behalf of the Parliament of Zimbabwe.