Harare’s US$400mn road rehabilitation deal

Councillors in Zimbabwe’s capital Harare have approved final details of the council's joint venture agreement with South African company Neo Capital for major roads' maintenance and rehabilitation in the city. A special purpose vehicle (SPV) named Harare Roads Development Company will be established between Neo Capital and Harare. Neo Capital will own 49% of the SPV, while the remaining 51% will belong to Harare. The joint venture period is 30 years. A total of US$400 million will be provided by Neo Capit
March 13, 2014 Read time: 2 mins
Councillors in Zimbabwe’s capital Harare have approved final details of the council's joint venture agreement with South African company Neo Capital for major roads' maintenance and rehabilitation in the city.

A special purpose vehicle (SPV) named Harare Roads Development Company will be established between Neo Capital and Harare. Neo Capital will own 49% of the SPV, while the remaining 51% will belong to Harare.

The joint venture period is 30 years. A total of US$400 million will be provided by Neo Capital for the project. The company will raise financing for the project against a concession of 30 years at an annual repayment rate of $15 million.

The broader plan covers taxi, bus and light rail transport systems. Under phase II development, the e-TAG system that combines vehicle management systems such as a vehicle database, electronic monitoring and vehicle licence will be implemented. Harare has some 4,000km of tarred roads, with a significant proportion in a woeful condition because of the lack of maintenance.
Highway & Network Management

Related Content

  • EU noise levels rising
    July 31, 2012
    The EU funded SILENCE project maps the transport causes and possible solutions for reducing noise, reports Alan Peterson With Europe's ever-increasing population growth, the issue of noise for its 100 million citizens is becoming a pressing problem. Over 25% are exposed to critical transport-related noise, according to research by the EU funded SILENCE project, which reported its findings in Germany in May. The purpose of SILENCE is to develop an integrated methodology and technology for the improved contro
    Read More
  • Mumbai’s new coastal transport link
    July 6, 2022
    Mumbai’s new coastal road presents an ambitious and challenging project that will help improve the lives of the city’s inhabitants - Mike Woof writes
    Read More
  • Egypt’s massive transport infrastructure programme
    November 5, 2020
    Egypt’s massive transport infrastructure programme will see major road development works.
    Read More
  • Australian road maintenance needs an immediate $3.78 billion boost
    July 4, 2014
    The Australian National Road and Motorists Association (NRMA) has published a report highlighting a widening gap in national funds available for road maintenance, a gap which the motoring group says has already reached Aus $3.78 billion. The association is calling on the Federal Government to allocate more fuel excise revenue to road projects, saying up to half of the current 38.1 cents per litre is required to fund the ‘black hole’.
    Read More

Highlighted Content