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Sukulwenkosi Dube-Matutu, Online reporter

CABINET has approved three major investment projects that will be implemented through Public Private Partnerships (PPPs) with a capital injection of $1,4 billion.

Cabinet also approved the Bulawayo Vehicle Parking Management System Project which is a 30:70 public private partnership between the Bulawayo City Council and Tendy Three (Pvt) Limited.

In her post Cabinet briefing on Wednesday, Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa said the projects included a proposed partnership between National Oil Company of Zimbabwe and COVEN Energy Limited to develop a second petroleum products pipeline and establish Harare as a Regional Hub for refined petroleum fuel supplies to the land-locked SADC States, proposal for investment by a Belarusian independent power producer in a 100 MW solar energy plant and proposed partnership involving Zimbabwe Mining Development Corporation (ZMDC),  SIM SEA Pvt Ltd and Honghua International for the resuscitation of Angwa Shaft and the processing of the dump in Chidzikwe.

“The joint venture project between the National Oil Infrastructure Company of Zimbabwe (Pvt.) Ltd and Coven Energy Limited is for purposes of developing and operating a second pipeline from Beira to Harare. The objective is to establish Zimbabwe as the hub for the transportation of refined petroleum products to countries in the SADC region, namely: Zimbabwe, Botswana, and South Africa. The Project will result in the National Oil Infrastructure Company of Zimbabwe (Pvt.) Ltd and Coven Energy Ltd entering into a 50:50 Public-Private Partnership. The project will create employment opportunities as well as generate foreign currency for the country.

“It will also help reduce vehicular congestion and the smuggling of petroleum products. The pipeline will be built over 4 years at an estimated cost of US$1.3 billion. The partnership will be for a period of 30 years. Cabinet resolved that the parties sign a Memorandum of Understanding for purposes of conducting a bankable feasibility study which they will fund. The feasibility study would subsequently inform Government on the way forward,” she said.

Minister Mutsvangwa said under the 100-Megawatt solar energy plant investment the Belarusian Investors will invest US$125.5 million towards the project. She said the project will be implemented on a 25-year independent power producer basis, and will involve a power purchase agreement with the Zimbabwe Electricity Transmission and Distribution Company (ZEDTC). Minister Mutsvangwa said power generated by the plant will feed into the national grid and complement power generated by the thermal power plants.

“Land for the project has since been identified in Norton. The implementation of the project will be subject to the signing of the double taxation and bilateral investment protection and promotion agreements between the Governments of Zimbabwe and Belarus. The project is part of Government’s engagement and re-engagement efforts.

“Cabinet noted the joint venture partnership between Zimbabwe Mining Development Corporation (ZMDC), SIM SEA Pvt Ltd and Honghua International on the resuscitation of operations at Angwa Shaft Mine and the processing of the dump at Chidzikwe.   SIM SEA Investments and Honghua International will inject capital amounting to US$20.25 million dollars which will cover the procurement of plant and equipment for dump re-treatment and shaft resuscitation. The project will create 500 jobs for locals and Zimbabwe will benefit from technology transfer and US$200 million in foreign currency generation over 10 years,” she said.

@DubeMatutu