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From George Maponga in Masvingo
Masvingo City Council has approved a $27 million capital budget whose funding will be sourced from China’s Exim Bank and National Social Security Authority (NSSA) among other sources.

Projects to be undertaken include phase two of the water augmentation project that will see the construction of a duplicate water pipeline from Bushmead Waterworks plant near Lake Mutirikwi to storage tanks in the city.

Finance Committee chairperson Councillor Barbington Beta said the second phase of the water augmentation project would chew the bulk of the capital budget with $20 million being earmarked for the exercise.

At least $2,6 million will be used to complete the stalled Mucheke Trunk Sewer that will create room for the development of thousands of new residential stands in Runyararo suburb and Victoria Ranch.

Clr Beta said part of the money would be used to install a dedicated power supply sub-station to power the sewage plant.

“Work on the Mucheke Trunk sewer had stopped due to cost escalation but will commence soon after an offer of additional funding by NSSA. The initial expected cost was $2,1 million and an additional $900,000 has been borrowed from NSSA and another $1,7 million has been pledged by the same organisation subject to approval by the government,’’ said Clr Beta in the budget statement.

Masvingo City hopes to finance the capital projects through a $20 million loan from China’s Exim Bank with negotiations for the financial package said to be already at an advanced stage.

Council also expects to receive at least $600,000 from the government under the Public Sector Investment Programme (PSIP).

About $1,5 million will be generated from internal borrowing while council expects to raise nearly $5 million for the capital projects to be generated from the city’s own revenue streams.