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

  • Tackling the UK's traffic congestion
    February 28, 2012
    The biggest problem on UK roads is congestion, and there is no shortage of ideas as to how it should be tackled. Patrick Smith reports. Congestion (and how to relieve it), along with safety, are among the top priorities facing those responsible for looking after the UK's roads. Road pricing, car-share lanes, greener vehicle initiatives and alternative methods of transport such as buses, trams and rail are all part of the approach, but prior to the current economic climate the nation's love affair with the c
    Read More
  • Amey installing LED luminaires in a 3-year contract in Manchester
    February 8, 2018
    Amey has begun work in the UK city of Manchester replacing traditional discharge lamps with 56,000 LED luminaires in street lights under a three-year contract. Amey said that the LED lights will deliver significant energy and carbon emissions reductions, being around 60% more energy efficient. They provide more robust in-light service and improved colour recognition qualities with significantly reduced maintenance activities and running costs. Amey estimates that the upgrade will cut more than 7,000tonne
    Read More
  • Kiribati sees road infrastructure upgrade
    March 2, 2016
    Kiribati is benefiting from major improvements to its road infrastructure. Funding for the road development programme has been provided jointly by the World Bank, the Asian Development Bank (ADB), and the Australian Government. The improved road network on South Tarawa will help boost safety and economic development. The road is a vital shared communal asset for 50,000 people, the entire population of South Tarawa, as it is the lone vehicular transport route on the atoll. The project is seeing the upgrade o
    Read More
  • Software innovations aid road design
    February 24, 2012
    As an aid to design, construction software continues to be a foundation stone in new project development. Autodesk is working with the Incheon Free Economic Zone (IFEZ) and the Incheon Urban Development Corporation (IUDC) to cooperate in the creation of Asia's first Digital City for Incheon.
    Read More

Highlighted Content