Zimbabwe Finance minister disburses US$100 million from IMF
By SINIKIWE MPALA
Published on: 11th March, 2010
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ZIMBABWE – HARARE – THE Ministry of Finance yesterday allocated US$100 million from the US$510 million Special Drawing Rights from the International Monetary Fund to ministries, parastatals and local authorities for infrastructure development.
Finance Minister Tendai Biti said this was in line with efforts to stimulate real economic growth after Government managed to stabilise the economy in 2009.
Major beneficiaries are productive sectors (US$19,5 million), dualisation of roads (with Harare-Norton and Harare- Skyline getting US$10,2 million), rehabilitation of the Harare International Airport taxiways and construction of the Joshua Mqabuko Nkomo International Airport in Bulawayo (US$18,1 million).
Other significant beneficiaries are housing development (US$10 million), the Mtshabezi Water Augmentation Project (US$7 million), information communication technology infrastructure (US$6,2 million), Bulawayo water and sanitation (US$6,4 million) and the completion of the Central Registry building (US$3,5 million).
Marondera and Mutoko municipalities received US$2,9 million and US$180 000 respectively for rehabilitation of water systems, while US$800 000 has been earmarked for development of broadcast transmission network in Beitbridge.
Minister Biti yesterday signed contracts with the various ministries, parastatals and local authorities that benefited from the disbursement of the funds.
Speaking at the ceremony at his offices, Minister Biti said: “The beneficiary projects were selected on the basis of their ability to re-invigorate and hence the need for them to be completed within time and money.”
The Infrastructure Development Bank of Zimbabwe will administer funds set aside for infrastructure development, while money earmarked for productive sectors will be disbursed to other banks.
Minister Biti said the funds would be loaned out at a special rate of 5 percent per annum and would be repayable after 24 months.
“Given that this money is repaid at a later stage, it is critical that utilisation be targeted at projects that will generate economic activity and give returns to the country,” said Minister Biti.
The disbursement comes at a time it has become clear that donors will not extend finances to cover the projected US$810 million deficit in the 2010 National Budget, which was expected to be financed through votes of credit.
“If people think that there is anyone from outside who would give us money, that’s a dream. We are on our own, and all this money will have to come from Zimbabwe. We have to mobilise resources from our minerals such as from Chiadzwa,” he said.
He slammed local authorities that were paying senior staff salaries as high as US$13 000, saying Zimbabwe’s economy was not ready for such huge wages.
“Even the World Bank does not pay its staff that much,” he said.
Transport, Communications and Infrastructure Development Minister Nicholas Goche said construction work at the Harare and Joshua Nkomo airports as well as road work had already started.
“We need to complete what we started. If we complete the dualisation of Harare-Norton and Harare-Sklyline roads, the rest will belong to the public-private partnerships.
“If our roads, railways and our power systems remain as they are, I don’t think we will have any development in this country,” he said.
Media, Information and Publicity Minister Webster Shamu added: “This first step means we must perform and deliver. This economy will turn around on the strength of our efforts.”
Other ministers in attendance were Dr Ignatius Chombo (Local Government), Mr Sam Sipepa Nkomo (Water Resources) and Engineer Elias Mudzuri (Energy).
Senior Government officials and heads of parastatals and local authorities also attended.
Im glad these politicians are genuinely committed to work together despite their difference.thas maturity
Let’s all hope that enough money will be allocated towards repairing the roads in Zimbabwe. They are some of the worst roads in this part of the region and many people are dying in vehicle accidents due to the roads’ bad conditions as well as lousy careless drivers.