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

  • IRD wins $5 million Oklahoma contract
    April 26, 2012
    International Road Dynamics (IRD) has been awarded a contract by Oklahoma Department of Transportation (ODOT) to build, implement, and maintain new and innovative port-of-entry (POE) electronic (E)-screening systems (EES) and virtual weigh stations (VWS) for commercial vehicles within the State of Oklahoma. The initial phase of the contract includes installations valued at US$5,036,500.00 on Interstate-35 North, Interstate-40 East, and Interstate-40 West. The initial contract period is one year with options
    Read More
  • Seal of approval
    August 2, 2012
    Timely maintenance using proven cost-effective methods can extend the life of a highway by many years as Patrick smith reports Highways are expensive assets to construct, and the wear and tear of modern traffic means that regular maintenance will delay costly repairs or in extreme cases reconstruction. There are a number of methods of carrying out such maintenance, and these include the use of slurry seals and micro-surfacing, which are cold mixed asphalt which is a mixture of graded aggregate, asphalt emul
    Read More
  • A rough ride for Denmark’s National Road Directorate
    November 1, 2019
    Denmark’s National Audit Office has criticised the Danish National Road Directorate for consistently miscalculating the level of investment required for road projects. The Road Directorate – Vejdirektoratet - used 33% less than budgeted for road projects from 2007-2017. The audit office said that "budget calculations by the transport ministry, including the Road Directorate, have not been accurate enough". Jens Holmboe, head of the Road Directorate, rejected the criticism, saying that the Audit Office
    Read More
  • Taking the coast road on Reunion Island
    April 4, 2017
    An ambitious project on Reunion Island will improve transport
    Read More

Highlighted Content