Zim News Blog -NEWS NETWORK

Vusumuzi Dube, Online News Editor 

TENDY Three Investments (TTI) has reportedly made moves to partner the Bulawayo City Council (BCC) in the procurement and operation of an Asphalt Batching plant and supporting equipment to expedite the rehabilitation of roads and parking bays in the city.

The multi-million-dollar project has however, raised eyebrows as the local authority has been given the go-ahead to negotiate with TTI without the matter going to tender, with council noting it has failed to fix and hand over all 7 200 parking bays agreed upon in the contract between the two parties. This comes amid revelations that according to the original contract between the two parties, BCC is expected to inject a bigger chunk of cash towards the project.

According to a council confidential report, TTI submitted an expression of interest to fix roads and parking bays in the Central Business District (CBD). The project is reportedly aimed at addressing the delayed fulfillment of the contractual obligations regarding the preparation and demarcation of parking bays through the procurement of a batching plant and supporting equipment to expedite the process.

The parking management project has 5 300 parking bays out of a planned 7 200 bays. Of the available 5 300 bays, 506 are disabled, taxi reserved and cycle bays and the difference of 4 794 bays is used as tolling bays. The batching plant will also be commercialised to neighbouring local authorities with anticipation that it will realise a net profit of US$4,3 million annually.

“An expression of interest letter was received from the counterparty (TTI) on July 26 2023. Council responded by requesting for further information, with TTI’s response received on December 6 2023. The response highlighted the slow roll out of the entire project area, thereby affecting the return on investment within the stipulated project period. 

“TTI proposed to procure and install the asphalt batching plant with supporting equipment to reduce the cost of pre-mix (asphalt concrete) production which is deemed to be the highest cost driver/input in the process of repairing the carriageway and parking bays. The counterparty is open to negotiating commercials around the batching plant package where the city council can be given major shareholding of the plant so that the plant can be jointly owned by TTI and the city council,” reads the report.

According to the negotiating party regarding the deal, it has been proposed that a Strategic Business Unit be formed, the plant to be managed by the engineering services department and also the possible formation of a Special Purpose Vehicle.

“The ownership ratio was also discussed, with the committee of the view that SBU and internal running be considered first. This was because council enjoys the greater goodwill of other road authorities and would create the clientele at the commercialisation of the plant. The sharing ratios were also to be interrogated and justified, as there was a feeling that council should have an even bigger stake due to this goodwill,” reads the report.

The negotiating party was last Wednesday given the greenlight to start negotiations on a possible shareholding model and contributions towards the US$2,1 million that will be required to purchase the plant.

“The machine can also be commercialised and used to produce premix for other neighbouring local authorities thereby being a new revenue stream to council. With the partnership currently running at 4 794 bays out of a possible 7 200 tolling bays, at current occupancy of 45 percent on parking bays, the city loses an estimated US$2,4 million annually due to the missing number of tolling bays. The batching plant is anticipated to generate another revenue stream. This avenue is also to be explored by the Special Purpose Vehicle and funds generated from the same will be shared between the two parties based on the ownership levels…a net profit of US$4,3 million can be realised annually by the commercialised use of the pant,” reads the report.

Meanwhile, TTI’s annual financial statement for 2022 has revealed that according to the original agreement between the two parties, the local authority is also expected to finance the project to the tune of US$3,6 million.

“The Company (counterparty) entered into a Public Private Partnership: Build, operate and transfer agreement with the City of Bulawayo (contracting authority). The company leases 7 200 parking bays in the City of Bulawayo with a lease contract for a fixed period of six years and an option of extension for a further four years. 

“Under the agreement, the counterparty shall finance the project from its own resources to a value of 

US$2  228 571, while the contracting authority shall contribute US$3 688 532 to the project financing. Revenue generating from services is shared as follows; parking fees: counterparty 70 percent; contracting authority 30 percent, clamping fees: counterparty 50 percent; contracting authority 50 percent,” reads the financial statement.

Revenue recognised from parking services in 2022 amounted to US$564 442, clamping services; US$108 141.

According to the financial statement, despite the company having made a loss of US$1.1 million and its current liabilities exceed its current assets by US$205 016, the directors said they were satisfied that the company had adequate financial resources to continue as a going concern.

“The financial statements have been prepared on a going concern basis, which assumes that the company will continue in existence for the foreseeable future. Although the company has made a loss of US$1 294 678 and its current liabilities exceed its current assets by US$205 016, the directors have assessed the ability of the company to continue operating as a going concern and have concluded that the preparation of these financial statements on a going concern basis is still appropriate.

“The company entered into a build, operate and transfer arrangement with the City of Bulawayo and the contract term being six years with an extension of four years. The contract can be terminated upon a breach by any party,” reads part of the financial statement.

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Judith Phiri, Business Reporter

THE Hippo Valley Estates Limited has appointed Mr Tendai Masawi as the new chief executive officer (CEO) of the company effective 1 April 2024, following the early retirement of the current CEO, Mr Aiden Mhere on 31 March 2024.

In a statement, the company board chairman, Advocate Canaan Dube said Mr Mhere has worked for the company for over 24 years.

“Aiden Mhere (ACIS, AMP, MBA) the current CEO of the company, has elected to proceed on early retirement on 31 March 2024, to allow him to focus on the next phase of his career, following a sterling contribution to the Group over 24 years.

“Over the last 30 years Aiden contributed to executive roles in the maize meal, flour, cooking oil, sugar and ethanol sectors, having joined TA Holdings Ltd in 1995 and before crossing over to Anglo American Zimbabwe Corporation on 1 November 1999, to provide transformational leadership support to the CEO of the company,” he said.

“The company was later integrated into Tongaat Hulett Limited, and Aiden served in several roles before he was appointed as CEO of the company on 1 December 2019. Over the years, he served on several local and regional boards.”

He said a highlight of Mr Mhere’s career was his guidance in the conception, development and roll out of the iconic 4 000 hectares Kilimanjaro Sugarcane Project, officially launched by President Mnangagwa, in November 2019.

“An excellent example of a post-independence private sector led, broad based economic empowerment programme. The board is delighted that Aiden has agreed to stay on as an independent consultant to the group for a period of 12 months, further allowing access to his counsel on issues of strategic importance to the company and the sugar industry,” he added.

Adv Dube said Mr Masawi who has been appointed as the new CEO of the company effective 1 April 2024, holds a Master of Science (M Sc.) Chemical Engineering (sugar technology) degree and is a seasoned sugar technologist with 35 years of regional industrial and corporate management experience.

He said he (Mr Masawi) has held various roles within the sugar value chain and his depth and breadth of sugar experience will no doubt be a significant asset to lead the implementation of a fit for future organisation.

“Tendai is no stranger to the Zimbabwean operations, which he joined after fulfilling various roles at ZSR Corporation Limited, where he started his career in the sugar industry in 1988 as a chemist at Harare Refinery.”

Adv Dube said Mr Masawi has served in a number of positions that include being managing director (MD) for Tongaat Hulett Mozambique, where he and his team successfully implemented the turnaround of the Mozambican operations.

He said today Xinavane is one of the best-performing mills within the industry, while Mr Masawi as also worked as the chief technical officer of Tongaat Hulett Group where he also successfully contributed to the turnaround and improved performance and efficiencies of South African mills.

Meanwhile, Mr Daniel Leseja Marokane a member of the company’s board and the interim CEO of Tongaat Hulett Limited, has resigned from the board and the group effective 29 February 2024.

He joins Electricity Supply Corporation of Malawi (ESCOM) as the CEO from the beginning of March 2024.

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Vusumuzi Dube, Online News Editor 

PRESIDENT Mnangagwa has reaffirmed the Government’s commitment to work towards the completion of Lake Gwayi-Shangani which he said was one of the top priority developmental projects for this year. 

The President made the  declaration while outlining the national development priority areas during Cabinet’s first session in 2024 at State House last week.

The commitment by the Second Republic to complete the dam is expected to bring unparalleled development and prosperity to the Matabeleland region, heralding a new era of growth and transformation. The Gwayi-Shangani Dam has long been anticipated as a beacon of hope for the region’s development. Once complete, it will address the perennial water scarcity issues that have plagued Bulawayo for decades. It will also create a green belt in Matabeleland North and ease pressure from water sources that supply Bulawayo which are located in Matabeleland South province.

The dam’s capacity to store millions of cubic meters of water will provide a stable and sustainable water supply, ensuring that communities, farms and industries can thrive even in the face of drought and arid conditions. 

President Mnangagwa in his address to Cabinet Ministers revealed that infrastructure development was a key attribute of the Second Republic. 

“Infrastructure development continues to be a priority for the Second Republic. Greater focus will be made on key projects including the Forbes border post modernisation, the Harare-Chirundu highway, the Harare-Kanyemba road, the Tugwi-Mukosi control tunnel and the recapitalisation of the National Railways of Zimbabwe. The completion of the Mbudzi interchange, Lake Gwayi-Shangani and other strategic dams across our provinces will be expedited,” he said. 

The President’s remarks buttress the government’s commitment to completing the project. Presenting the 2024 national budget in December, Minister of Finance, Economic Development and Investment Promotion Prof Mthuli Ncube said the absence of reliable water supplies for industrial use was also putting a premium on economic activities given the resultant increased cost from alternative options. 

He said Treasury was scaling up investments in the provision of water for domestic, industrial and agricultural use with the Lake Gwayi-Shangani and pipeline construction being one of the priority projects in the allocation of funds from the 2024 national budget. 

Prof Ncube said to fully maximise on investments in the sector, the integrated approach to water development had been embraced by Government, which ensured that dam construction, conveyancing and complementary investments such as irrigation development were undertaken simultaneously. 

“Under the 2024 national budget, overall support towards dam construction projects amounts to $389 billion with priority being on the completion of Gwayi-Shangani Dam and pipeline with the dam now at the advanced stage of completion. Other targeted dams include Kunzvi Dam with the associated treatment plant and conveyancing pipeline, Ziminya, Tuli-Manyange, Bindura, Semwa, Silverstroom, and Vungu dams. Government will also support provision of requisite infrastructure for new impactful investments, such as Manhize project (iron and steel plant in Midlands province),” said Prof Ncube. 

Once completed, the dam project is expected to stimulate economic growth and attract investments to the Matabeleland region. The availability of water resources will create opportunities for the establishment of new industries, particularly in sectors such as tourism, manufacturing, and agribusiness. The increased economic activity will generate employment opportunities, boost local businesses, and improve the overall standard of living for the people of Bulawayo and Matabeleland provinces. 

Beyond its immediate impact on water supply and agriculture, the Gwayi-Shangani Dam holds the promise of transforming the region’s social fabric. Access to clean water for domestic use, sanitation, and hygiene will improve the health and well-being of communities, particularly in rural areas. 

Schools and healthcare facilities will have a reliable water supply, enhancing the quality of education and medical services. The dam will also provide recreational opportunities, with plans for the development of resorts and recreational facilities around its shores, attracting tourists and boosting the local economy even further. 

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Sunday Mail Reporter

THE Standards Association of Zimbabwe (SAZ) has given 25 companies the green light to instal speed-limiting devices on public service vehicles, as Government steps up efforts to reduce road carnage.

Statutory Instrument (SI) 118 of 2023, which was promulgated in June 2023, makes it mandatory for all public service vehicles to be fitted with speed limiting and monitoring devices with effect from January 1 this year.

The legal instrument came after a multi-stakeholder national road safety indaba last year resolved to set the maximum speed for this class of vehicles at 100 kilometres per hour.

In a statement last week, the Ministry of Transport and Infrastructural Development said the devices had been tested and approved by SAZ and will be fitted by authorised installers.

“An analysis by the Traffic Safety Council of Zimbabwe on the cause of road traffic accidents showed that the main cause of fatalities was speeding, which accounted for 37 percent of the fatalities. About 92 percent of the established causes were human error, especially speeding,” said the ministry in the statement.

“Since the 1st of January 2024, it is now mandatory for public service vehicles to be installed with speed limiting and monitoring devices. This is meant to protect ordinary citizens, commuters and all road users.”

The new regulations prohibit the issuance of a certificate of fitness or road service permit for any passenger public service vehicle registered in Zimbabwe or a heavy vehicle with a net mass of 4 600 kilogrammes that is not fitted with the devices.

Failure to comply with the requirements will result in a heavy fine or imprisonment.

“The ministry has instructed all VID (Vehicle Inspectorate Department) depots across the country to enforce SI 118 of 2023 on all PSVs (public service vehicles) and heavy vehicles with a net mass of 4 600kgs and above,” added the statement.

“A certificate of fitness will not be issued unless the vehicle has been fitted with a speed limiting and monitoring device. Similarly, vehicles without these devices will not be issued with road service permits.

“SI 118 of 2023 will thus go a long way in controlling speeding by PSV drivers. The ministry has also engaged the Zimbabwe Republic Police for enforcement of the requirements . . .”

The bulk of the installers — 22 — are in Harare and they are: Butrack Security; Jendie Automobiles; Kensrin Company; Systech Africa; Latrom System ICT Services; Fanset International; MapMeOut; Sater Rwanda; Track-It; ITrack; Ecocash Holdings; Scantech IoT; Monitrack T/A Securetrack; Sendem Transport Tech; Ezytrack; Guard Alert T/A Pinpoint; Sadie Motors; Eurem Power; Wacmat Investments; Gabe Remote Asset; Tracking T/A Cartrack; and Bantu Track Vehicle Tracking.

The other three are in Bulawayo (Highveld Security Services), Chiredzi (Fleetrack) and Masvingo (Identity Pictures).

According to the Traffic Safety Council of Zimbabwe, a road accident occurs in Zimbabwe every 15 minutes.

Most of the accidents are attributed to reckless driving, inadequate enforcement of traffic laws and use of defective vehicles, among other factors.

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Emmanuel Kafe

THE country’s major referral hospitals are set to undergo significant upgrades, including construction of helipads, in preparation for the operationalisation of air ambulances by mid-year.

The air ambulances were purchased from Russia last year.

A team of personnel and technicians will this week travel to Russia to be trained on air ambulance operations and emergency case management as part of laying the groundwork for use of the planes.

The Government has also started procuring new ground ambulances to complement air services.

Last year, 20 senior doctors, nurses and ambulance staff were equipped with skills to handle emergency medical cases through an intensive training programme conducted by Russian flight paramedic instructors at Parirenyatwa Group of Hospitals.

To date, 12 helicopters have been delivered, with the last batch expected later this year.

This procurement is part of a public-private sector partnership agreement involving the Government and Russia’s Rostec.

In an interview with The Sunday Mail, Health and Child Care Minister Dr Douglas Mombeshora said the Government is completing the final logistics before the air ambulances begin to operate.

“One of the key requirements is the establishment of helipads at major referral hospitals to facilitate smooth take-off and landing. Additionally, there is need for an adequate fleet of ground ambulances that will complement the air ambulances once they are operational,” he said.

“Next week (this week), we are sending a team to Russia to go and have an appreciation of how the air ambulance services work.

“Already, more than 20 experts have since been trained by Russian paramedics at Parirenyatwa Group of Hospitals.”

Public health expert and University of Zimbabwe lecturer Dr Johannes Marisa said the use of air ambulances in Zimbabwe is a significant milestone in the country’s healthcare system.

“It will enhance emergency medical services and expedite the transportation of critically ill patients to specialised medical facilities.

“The upcoming training in Russia for local air ambulance personnel and technicians marks another step forward in realising this crucial objective,” he said.

A local anaesthetist and former flight medic Dr Alfred Pindai, who has extensive experience in critical care medicine, said the country’s air ambulance service promises to be a game changer in emergency response.

“It promises to enhance the response time and accessibility of critical care for those in need, particularly in remote or hard-to-reach areas.

“I believe, for those already trained, it was a crucial step in ensuring that the country’s air ambulance service operates at a high standard and meets the needs of the population,” he said.

In May last year, Zimbabwe took delivery of 18 brand-new helicopters from Russia designated for both emergency air medical services and law-enforcement purposes.

Speaking after the first batch of helicopters were delivered last year, President Mnangagwa said the planes had been custom-made to suit local conditions.

“When I discussed with my brother (Russian) President (Vladimir) Putin, he recommended that their company, Russian State Corporation (Rostec), produce the type of equipment we want and we have ordered these 18,” he said.

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