Harare seeks to borrow more than $2 billion

17 Mar, 2023 - 00:03 0 Views
Harare seeks to borrow more than $2 billion Town House

Suburban

Suburban Reporter 

THE City of Harare intends to borrow more than ZWL$2 billion to fund a number of capital projects ranging from the repair of bio-filters and sewer digesters and purchase of refuse compactors, cars for revenue collection and an incinerator.

According to a notice published last month, the City of Harare plans to borrow a total of ZWL$2 906 040 000.00 and is seeking the approval of ratepayers to borrow the money. 

Ratepayers have until March 17, 2023 to lodge objections, if they have any, to the city’s proposal to borrow the more than ZWL$2 billion.

Part of the money will also be used to fund waste management awareness campaigns, buy 1×24 tonne excavator, 4XNP 200 pick-up trucks for revenue collection, 1xone tonne pick-up truck, unspecified car for the town clerk’s office, build five new public toilets in the central business district, complete seven under construction, buy 10 portable toilets and five manhole shelters. 

The municipality also wants to buy a septic tanker, 4x one tonner trucks (for city health, mechanical automotive workshops, traffic control and signals), 1x3tonne truck (mechanical heavy plant), 2×3 tonner 12m hydraulic platform trucks (for traffic control and signals), 3x7tonner trucks (city health) and 2xhalf tonner trucks (ICT).

In the notice, the City of Harare said part of the money will be used to refurbish street light poles, buy one mobile clinic, fund ICT project implementation, build roads workshop in the Graniteside industrial area along Kelvin Road.  

“Notice hereby given that in terms of Section 290(3) (a) of the Urban Councils Act (Chapter29:15), council resolved to borrow a sum not exceeding ZWL2 906 040 000.00 for the purposes specified hereunder. 

Any objections which any ratepayer or voters wish to make must be lodged with the acting town clerk on or before 17 March 2023 at Town House,” read the notice undersigned by acting town clerk Engineer Phakamile Mabhena Moyo.

The notice was published twice in the media in February and most residents and ratepayers might have missed it.

Last year, the Ward 7 Residents and Ratepayers Association (W7RRA) opposed council’s plans to borrow ZWL$1,3 billion to fund service delivery because there was no indication of who the lender was or the loan terms and conditions. 

ZANU PF and Citizens Coalition for Change candidates in last year’s council by-elections also rejected the City of Harare’s plans to borrow ZWL$1,3 billion to fund service delivery.

Ward 7 residents urged other Harare ratepayers to reject the municipality plan to borrow ZWL$1,3 billion forcing the municipality to abort the move.

Highlands resident Mr Peter Morris, who also opposed the plan to borrow, argued that officials at the Highlands District Office failed to provide information about the proposed borrowing powers being sought by the municipality.

He said he submitted a letter dated March 30, 2022 requesting for details of the proposed projects to be funded using the loan such as analysis of how repayment of the loan would impact rates. Council officials promised to respond to Mr Morris by March 31, 2022 or April 1 2022 at the latest but had not done so by the stated dates.

“I refer to the advertisement regarding council’s resolution to borrow a sum of ZWL$1, 361, 080,800 and inviting any ratepayer having objections to submit these. The Highlands District Office was unable to provide information about the proposed borrowing powers.

“I submitted a letter addressed to you on 30 March 2022 requesting details of the proposed projects on which the money will be spent (the advertisement only gives the general purposes for which the moneys are to be borrowed), and analysis of the impact that repayment of the borrowed money will have on rates. I was informed by your representative in the Chamber Secretary’s Department that he would respond by 31 March or 1 April at the latest. To date I have no response.

“I hereby submit my objection to the proposed borrowing powers 2022 on the following grounds:

  • I object that there is no information about what the sum to be borrowed is to be spent on, only areas of expenditure. My requests for information have not been successful. This contravenes Sections 290 (3) (a)(iii) and 290 (3) (b) of the Urban Councils Act Chapter 29:15. Borrowing must comply with the requirements of Section 290 (1) of the Act, which lists the categories of project for which a council may borrow. It has not been possible to confirm that the borrowing complies with the allowable categories.
  • I object to the provision of ZWL$322 400 60 for public lighting. The lack of public lighting is trivial compared to other needs that must be addressed before any money is spent on street lighting. 
  • I object to the provision of ZWL$100 000 000 for water which is insufficient. More capital expenditure is required to replace older sections of the water network, much of which is past its expected lifespan of 50 years. Network replacement is essential to reduce technical water losses which are at unacceptable levels. If technical losses remain high, then increased water to be provided by the Kunzvi Scheme – which will be more expensive because of higher pumping costs – will be wasted.
  • I object to the provision of ZWL$16 800 000 for road infrastructure. While expenditure on re-building roads is essential, this should be financed by funds collected by the Zimbabwe National Roads Authority, not by municipal borrowing.
  • I object that there is no information about the impact of this borrowing on rates.

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