(NEWZIMBABWE) Old Mutual approaches Biti over Beitbridge project

Old Mutual approaches Biti over Beitbridge project
23/12/2011 00:00:00
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OLD Mutual has approached Finance Minister Tendai Biti in an effort to resolve an impasse between the government and the $97 million Beitbridge Border Post Project, Old Mutual’s infrastructure and development impact funds head Jurie Swart has said.
The post is among the busiest in Africa and work on the upgrade was due to start several months ago.

Swart said the final closure of the project, equity-funded by Old Mutual and debt-funded by Standard Bank, had been withheld by the Zimbabwean government, which was "discontented with the late start".

Initial speculation blamed squabbles in the unity government for delays. But Swart said the project was delayed due to the complexity of its multi-disciplinary nature and the need to adjust the designs from those specified in the concession agreement to meet additional special requirements, including those of the different organs of the Zimbabwean government.

"The funds for the project have been available for more than three months and the project could proceed at short notice. However, this can only be done if there is the political will of the government of Zimbabwe and the minister of finance (Tendai Biti) to proceed as planned," Swart said.

"Due to the immense efforts made to date and the significant funds already invested in the project, Old Mutual has approached the minister of finance with the hope of finding resolution to the current impasse."

The upgrade would see traffic diverted into three streams, one each for light vehicles, pedestrians and buses and trucks, old buildings razed and a new one erected, 5km of road laid and 250 free-standing houses built for staff.

Standard Bank spokesman Eric Larsen said the bank had had no formal confirmation that the deal was off. It believed it was still awaiting final approval from the Zimbabwean government.

Zimbabwean media reported this week that Biti had indicated that the deal, which he said had been concluded in August with what he called a company from SA, had fallen through.

"On 18 August we entered into an agreement with some company to transform the border post, but nothing has happened and we only realised in September they had failed to deliver," Biti was quoted by Newsday as saying.

The Chronicle quoted him as saying another firm had been contracted and would start work next year. He did not name the company.

Biti apparently made the comments while on an official visit to the border post with Co-Home Affairs Minister Kembo Mohadi.

He blamed long waits at the border post (which can last up to eight hours) on staff shortages. The post had 141 technical staff, but needed 247, according to local media. It needed up to 80 immigration staff, but had 55.