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

  • Contracts are about to be signed for the Fehmarnbelt Fixed Link
    March 13, 2015
    Nearly eight years after Denmark and Germany agreed to construct a major undersea road and rail tunnel, the first contracts are about to be signed. David Arminas reports. Construction is due to start later this year on one of Europe’s most ambitious, as well as the world’s longest, road and rail tunnels, the 17.6km Fehmarnbelt Fixed Link between Germany and Denmark. Fehmarnbelt is expected to cost around US$7.5 billion and be five times the length of the Øresund tunnel between the Danish capital Copenhagen
    Read More
  • Contracts are about to be signed for the Fehmarnbelt Fixed Link
    March 13, 2015
    Nearly eight years after Denmark and Germany agreed to construct a major undersea road and rail tunnel, the first contracts are about to be signed. David Arminas reports. Construction is due to start later this year on one of Europe’s most ambitious, as well as the world’s longest, road and rail tunnels, the 17.6km Fehmarnbelt Fixed Link between Germany and Denmark. Fehmarnbelt is expected to cost around US$7.5 billion and be five times the length of the Øresund tunnel between the Danish capital Copenhagen
    Read More
  • Tackling India’s road safety will reduce crash rate
    February 19, 2013
    India’s road safety record is the world’s worst but there are plans to tackle the problems. Patrick Smith reports from New Delhi. A speeded up video of a short section of road in the Indian capital Delhi was followed by a question. “How many infringements did you count in that 25-second clip on a typical day in Delhi,” asked Dr Rohit Baluja, a question that brought understandable silence. It equated to hundreds of millions of infringements each year, said Dr Baluja, president, Institute of Road Traffic Educ
    Read More
  • Rainforest road repair and rehabilitation with stabilisation
    May 23, 2014
    A limited amount of aggregate and resources, including fuel, in the Riau province of Indonesia can challenge roadbuilders, but Indonesian contractor PT Harap Panjang overcame the obstacles on a recent project. The province rests in a tropical rainforest. The 2600mm of annual rainfall take a toll on the area’s roads, particularly those developed by oil company Chevron Pacific Indonesia. The remote roads were built to service Chevron operations, crucial to the economies of the city, region and country. The r
    Read More

Highlighted Content