US$85 Million Loan Deal For Mbudzi Flyover Sealed1 year ago
The government on Wednesday signed a US$85 million loan facility with Fossil Holdings, a local company, for funding the Mbudzi interchange flyover in southern Harare.
Transport and Infrastructural Development Minister, Felix Mhona signed the framework deal with Fossil Holdings chief executive Obey Chimuka at his offices in Harare.
Mhona indicated that Cabinet has approved the construction and that negotiations will be carried out for the loan facility.
He said the tender had been awarded to TEFOMA consortium consisting of Tensor Construction, Fossil Contracting and Masimba Holdings, all local companies. Said Mhona:
As part of the loan facility, the financier will offer technical and construction facilities, hence a contractor, TEFOMA joint venture, will be appointed the engineering procurement and construction contractor for the project.
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As part of financial inclusion, other local contractors will be subcontracted to perform certain works. The loan facility is indicatively US$85 million.
Mhona said his ministry was finalising the technical issues that include design reviews of the interchange and identification of diversion routes to be used by motorists during the construction of the interchange.
He said all legal property owners forced to move during the construction of the interchange flyover will be compensated.
Mhona said diversion routes will be required to carry traffic during the construction of the Mbudzi interchange as the site will be closed to traffic. He said:
The primary diversion route will be through Stoneridge road from Boka Tobacco Sales floor, through Hopley residential area, crossing Chitungwiza Road into Forbes Avenue in Waterfalls and Malvern Road into Simon Mazorodze Road.
Another leg of the diversion route, part of the Mbudzi Interchange permanent works, will run to the existing Simon Mazorodze Road, on the western side and cater for northbound and local traffic.