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

  • Tanzania road development projects being planned
    March 24, 2017
    A series of major road projects are now being planned in Tanzania, with funding sources for much of the work having been identified and secured. The largest of these is being delivered with a World Bank loan worth US$425 million, which will help pay for transport improvements in Tanzania’s capital, Dar es Salaam.
    Read More
  • Bridge of international accord from Russia-China
    May 29, 2018
    A new bridge project joining China and Russia is a sign of international accord between the two nations – Mike Woof writes A new bridge spanning what China calls the Heilongjiang River and which is known as the Amur River in Russia, is a clear sign of an important international accord between the two countries. Discussions over the bridge project were first started between China and Russia in the 1980s, with both nations seeing many changes in leadership since that time. But while the political discussion
    Read More
  • Bangkok plans to spend US$3.5bn to build mega underground tunnels
    May 24, 2013
    Thailand could emulate Malaysia's twin smart-tunnel project through its own proposed Thailand Underground Tunnelling Group (TUTG) project, with an estimated investment of US$3.5 billion. Under the TUTG propsal, two large tunnels are to be constructed in Bangkok's underground to channel the city's rainwater surplus during heavy monsoons to refill its underground reserves whose water levels are now decreasing. When there is no major flood in Bangkok, the tunnels would be transformed into an underground roadwa
    Read More
  • New Zealand’s Waterview project is moving closer to completion
    December 13, 2016
    New Zealand’s biggest road project is less than a year away from completion, and a lot of progress has been made since World Highways last looked at the project two years ago - Mary Searle Bell reports New Zealand’s Waterview project is moving closer to completion and will be the largest road project in the country. The NZ$2 billion Western Ring Route will see the creation of an alternative motorway to State Highway 1, which runs through the centre of Auckland. The 47km-long motorway will allow a large p
    Read More

Highlighted Content