BCC doubles money it seeks to borrow

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Business Reporter
THE Bulawayo City Council is seeking $100 million to finance completion of several infrastructure upgrade projects.

While the local authority had initially applied for borrowing powers to secure a $50 million loan, it has since doubled the figure, taking advantage of the prevailing positive investor sentiment since the coming in of the new dispensation last November.

The city council said in its latest monthly report that developments in the market rates have prompted it to seek more funding to jumpstart robust infrastructure development.

“The financial director referred to the recommendation of the finance and development committee of Wednesday 28th March 2018 to apply for borrowing powers.

“The committee had recommended that borrowing powers of $50,065,000 be advertised in the press and applied for from the Minister of Local Government, Public Works and National Housing,” reads part of the report.

“In light of the anticipated developments in the market in terms of interest rates, tenure and availability of long term funding, council intended to take advantage of these positive developments and increase the application for borrowing powers from $50,065,000 to $100,065,000.”

Some of the earmarked projects that the local authority is targeting to embark on include servicing of Lower Rangemore, Mbundane and Mthunzini houses. The three suburbs fall under Umguza Rural District Council and have been without water, sewer and proper access roads for years. The two local authorities are however, in talks to harmonise operations and ensure improved service delivery.

The Bulawayo City Council also revealed that it intends to acquire land in Lower and Upper Rangemore at a cost of $12 million and servicing of Cowdray Park’s Hlalani Kuhle area at a projected fee of $34 million. Other projects include road rehabilitations, construction of schools, library, housing office and fire station in Cowdray Park. The total value of the projects adds up to over $100 million.

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