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

  • Set the ALARM for repairs in England and Wales
    January 10, 2019
    More than 3,900km of roads in England and Wales will need essential maintenance within the next year, according to the annual ALARM survey* Cash-strapped local governments are reporting that the gap between the funds they received and the amount they needed for repairs and maintenance was almost €639 million. This equated to an average shortfall of €3.75 million for every authority. It would take 14 years to get local roads back into a reasonable steady state, but only if adequate funds and resources wer
    Read More
  • Europe’s road safety picture slanted wrong way?
    May 24, 2016
    The European Commission’s latest figures for road safety reveal some cause for concern across the EU. While the EU has the world’s safest roads overall, the road fatality rate has slipped during 2015. And this is for the second consecutive year also as EU road deaths in 2014 also showed an increase over 2013. By comparison, there were decreases in the European road death rate of 8% in 2012 and 2013.
    Read More
  • Odebrecht wins Brazilian highway concession
    November 29, 2013
    Odebrecht has been awarded a concession for Brazil’s important BR-163 federal highway route. The 851km section of highway runs through Mato Grosso state and the deal is worth some US$2 billion, according to a report by Business News Americas. As part of its contract, Odebrecht will have to widen a 454km stretch of the route within five years and is also required to build nine new toll booths.
    Read More
  • Central Ring Road to become one of most important projects in modern history of road-building in Russia
    December 16, 2014
    Moscow’s new ring road will provide a major economic boost and tackle congestion - Eugene Gerdner writes The Russian Government has officially started building of the Central Ring Road (CRR), one of the largest infrastructural projects in the modern history of the country. Total volume of investments in the project is estimated at more than US$7.2 billion (300 billion RUB). Building of the road should be completed by the World Cup 2018 and will be carried out as part of the existing state program ‘The de
    Read More

Highlighted Content