37June 1-7 2017

President Mugabe launches Harare-Beitbridge highway dualisation project

Cyril Zenda

PRESIDENT Robert Mugabe, on May 18, launched the US$984 mil-lion Harare-Beitbridge highway du-alisation project in Chirumhanzu, the Midlands province.

The project falls under the infra-structure development cluster of the government’s Zimbabwe Agen-da for Economic Transformation (ZimAsset) economic blueprint.

The President officiated at the groundbreaking ceremony that was held at Chaka business cen-tre, where he called the highway project “an economic game chang-er” with a multiplier effect for the economy.

President Mugabe told thou-sands of people at the ceremony who included the two Vice Pres-idents Emmerson Mnangagwa and Phelekezela Mphoko that the highway project was a major breakthrough as Zimbabwe forges ahead with the implementation of Zim-Asset.

“The ground-breaking is a major breakthrough, as Zimbabwe forges ahead with the implementation of Zim-Asset, our economic blueprint since 2013,” President Mugabe said.

He said the project was coming at a time when the country’s in-frastructure had been negatively affected by the illegal sanctions im-posed by some western countries.

“Because our country has been under sanctions for more than a decade and a half, our infrastruc-ture has deteriorated. We face sev-eral challenges in our attempts to secure lines of credit. Thus when funding such as that for this project has been secured, we cannot ever afford to maintain a business as usual approach to work,” he said.

The Harare-Beitbridge highway is the busiest and most economi-cally significant in the country as it is part of the north-south corridor that directly links landlocked Zim-babwe and Zambia with access to the Indian Ocean ports of Durban

and Richards Bay in South Africa.President Mugabe added that

the dualisation of the highway would stimulate development for the country and the region at large. The road, he said, must meet in-ternational standards, in order for it to maintain traffic volumes and the government expects the deliv-ery of a modern high quality high-way similar to those found in other parts of the world.

Austrian contractor, Geiger In-ternational, was last year award-ed the tender for the 580km road, which will be built under the build-operate and transfer model. Construction is expected to com-mence after three months as the concessionaire is getting the final plans approved.

The project that will be complet-ed in three years will create thou-sands of jobs directly and more others downstream. President Mugabe urged local companies to form joint ventures and consorti-ums to do the work more efficient-

ly. He said it is sad that many hor-

rific accidents, some fatal, have for a long time been witnessed on this road mainly due to increased pres-sure on the narrow road.

“The latest such accident which regrettably took 30 lives recently occurred just a few kilometres from here. It was therefore with a sense of relief that following protracted negotiations with various potential financiers, the government finally resolved to engage Geiger Interna-tional, an internationally reputable company to undertake the project,” he said.

President Mugabe said the gov-ernment made it a pre-condition to the award of this contract that a minimum of 40 percent of the project’s value be reserved for local contractors in line with the coun-try’s indigenisation and economic empowerment drive.

He urged local companies that will be sub-contracted to produce high standard work.

“Further I also urge suppliers of various inputs into this project not to out-price themselves out of busi-ness. The focus should be not on short-term benefits but long-term benefits,” he said.

Speaking at the same event, Transport and Infrastructural De-velopment Minister, Joram Gum-bo said the first part of the project, which covers the Beitbridge-Harare highway, would take three years to complete.

He said government signed a Memorandum of Understanding for the contract with Geiger Inter-national in 2012 but the absence of a legal framework until 2016 de-layed the deal.

Erik Geiger, the vice president of Geiger International, said they were happy to undertake the pro-ject after six years of negotiations that were characterised by court cases at some stages.

“Actual work on the road will start after three months if the de-signs are approved,” he said.

38 June 1-7 2017beitbridge-chirundu highway dualisation suPPleMent

GEIGER International, the international company that won the concession to dualise the Harare-Beitbridge portion of the Beitbridge-Harare-Chirundu high-way, says it will honour part of the agree-ment that sets aside 40 percent of the project’s value to local players.

Addressing thousands of guests at the ground-breaking ceremony at Chaka business centre in Chirumhanzu, Geiger International vice president, Erik Geiger, assured local players that they would be engaged as suppliers and sub-contrac-tors on the US$984 million project.

“Zimbabwean local contractors, local engineers and material suppliers with capacity will participate in the project to the total of 40 percent of the project value. It is therefore envisioned that the local population will not only benefit through employment, sub-contracting and other associated direct services provision, but also through downstream economic activities, all attributable to this project. We strongly believe in the principle of corporate social responsibil-ity.”

Geiger, whose Austrian–based com-pany decided to go against the trend by investing in Zimbabwe when other Euro-peans countries have maintained sanc-tions on Zimbabwe, said they saw Zim-babwe as a safe investment destination. He said his company decided to carry the risk because they believed in the government and people of Zimbabwe.

“We bring greetings and well wishes from GI despite all difficulties, negative publicity, insinuations and innuendoes we kept our belief and faith in the project and your proven leadership qualities. Today that faith has been repaid and we are witnessing the ground-breaking ceremony for the project. There is neg-ative publicity around Zimbabwe but we are here because we have seen that we can invest because conditions for invest-ment are good,” Geiger said.

Geiger said his company was happy to partner Zimbabwe in infrastructure development.

“We have seen for ourselves that Zim-babwe is a beautiful and great country

and we are thrilled by the warmth of the people, the available skills and economic potential that needs to be unleashed for the benefit of Zimbabweans.

GI is happy to join hands with you on the ambitious but achievable journey,” he said. Geiger hailed President Mugabe for taking his time to grace the occasion.

“Mr President, thank you for grac-ing this occasion. This gesture is a clear indication that assures GI of the impor-tance your government attaches to this programme. We wish to reciprocate the same sentiments by assuring you the GI will do whatever it takes to see the com-pletion of this project and contribute meaningfully to the economic growth of the country,” he said.

Geiger International was last year awarded the tender for the 580 kilo-metres road, which will be built under a Build-Operate-Transfer model.

Geiger said the negotiations for the deal took six years due to tender and legal issues.

“Geiger International has mobilised resources for the design and construc-tion of the road and will be responsible for collecting toll fees and maintaining the toll gates during the concession pe-riod, through a company in which Gov-ernment will have shasres,” said Geiger.

“Proceeds from toll operations will be used to meet operating costs, loan re-payments, interest, dividend payments to investors, and shareholders including the government.

“At the end of the concession period, Geiger will hand over the road to gov-ernment, which would have to be re-sponsible for its maintenance.”

He said this would be his company’s contribution to the continent’s infra-structural development.

“According to a study carried out by the United Nations Economic Commis-sion for Africa only about 30 percent of the continent’s roads are paved and more than 50 percent remain in a poor condition, those statistics are about to be revised through the construction of this road, which is a key to enhancing trade in southern Africa.”

We will honour our 40 percent

pledge — Geiger

with some very competent and very powerful companies as joint part-ners in the following sectors:•Roads and bridge construction; •Electric power and energy sup-

ply ;•Municipal infrastructure civil

engineering; •Raw material feed supply (ce-

ment, steel etc.)Geiger international promises:Elaborate design;High, efficient performance;High quality architecture;Best possible service;Ranges of construction:•Municipal engineering: Water

supply system, sewage engineering;•Settlement Engineering: Con-

struct, build and finance of whole settlements from A-Z;•Electric power and energy sup-

ply: Power station construction; Power transmission and distribu-tion, Electronic measurement in-struments and electronic manage-ment system, Solar Power Station,

Wind Power Station, Tide Power Station•Port construction and water-

craft:•Infrastructure•Port Machinery•Communication and navigation•Cargo inspection system•All kind of ships (Cargo, fishing,

passenger, etc.)•Airport engineering construc-

tion•Construction and engineering•Ground support equipment•System engineering projects•Environment engineering

•Garbage disposal•Sewage disposal•Exhaust gas disposal•Railway engineering•Completely mechanised railway

construction and renewal•Building and maintenance of

railway and road facilities. •Building and reconstruction of

railway stations. •Building and reconstruction of

streetcar and bus lines.•Electrification of new and exist-

ing lines. •Railway signalling and telecom-

munication systems.

39June 1-7 2017 BEITBRIDGE-CHIRUNDU HIGHWAY DUALISATION SUPPLEMENT

GEIGER International is an Austrian-based conglomerate with interests in various sectors, including construction, whose op-erations are mainly based in China. Geiger International has been trading and produc-ing in its own factories in China since 1990. It is a leading supplier of security products, vehicular equipment, textile and housing products – it lists the United Nations, in-dependent governments, and non-govern-mental organisations among its clients. Geiger International has successfully been manufacturing, under license, military goods in its own factories in mainland Chi-na for over two decades. It not only has its own production facilities in China, but also has forged links with sev-eral significant manufacturing interests, thus giving it an unparalleled capacity.

Construction projects:Geiger International has developed dur-

ing the years a force projection within the Chinese construction industry. Driven by a client-based demand, its core business sup-ported a highly successful diversification into the construction industry.

Its regional head offices in Shanghai, Chi-na, run significant construction projects

Who is Geiger International?

THE work that Geiger International will be doing under the US$984 million Harare-Masvingo-Be-itbridge road dualisation project was specified under General Notice 236, which was published in the Government Gazette of August of 2015. This work was listed as follows: “The full preliminary design for the dualisation of the road (including all bridges and drainage structures), covering technical, economic, environmental and social is-sues in order to provide the Department of Roads with sufficient information for decision-making on the preferred alignment and proposed dual-isation of the road;” and “preparation of detailed engineering designs, drawings, cost estimates for the dualisation (including bridges and drainage structures) of this regional trunk road.”

The road project is divided into four seg-ments. The sections are Harare-Chivhu (120km), Chivhu-Masvingo (147km), Masvingo-Rutenga (149km) and Rutenga-Beitbridge (135km).

The scope of the work covers the full dualis-ation of the 580 km road, including the rehabili-tation and widening of the existing road, the con-struction of 37 new two-lane bridges and eight toll plazas.

In December last year, the government of Zim-babwe signed a Concession Agreement and En-gineering Procurement and Construction (EPC) framework with Geiger Transport and Infrastruc-tural Development Minister Joram Gumbo signed on behalf of the government, while Erik Geiger stood in for Geiger International.

The project is valued at US$984 184 592, 68.Gumbo said the costing of the project was fair

and that it was based on a feasibility study done by Stuart Scott International through an interna-tional tender funded by the Development Bank of South Africa, which pegged it at between US$900 million and US$1,2 billion.

Gumbo told stakeholders who attended the signing ceremony that the project would be im-plemented under a Build Operate and Transfer arrangement running for 25 years.

“The project will be implemented at a cost of US$984 184 592, 68 and construction of the road will be undertaken over a three-year period,” said Gumbo.

“The scope of the work covered by this cost in-cludes full dualisation of the road, including the widening and rehabilitation of the existing road. Also included is the cost of the construction of 37 new two-lane bridges and eight tollgates,” he said.

Following the signing of the EPC and the con-cession agreement, Gumbo said preliminary works would include mobilisation of materials and engagement of local sub-contractors and fi-nalisation of road mapping.

At the signing ceremony, Geiger expressed his company’s readiness to start the project.

“We understand first of all the importance of this project. This project is one of the most impor-tant projects not only for Zimbabwe but also for the surrounding countries. We believe that with our cooperation with the ministry and with the implementation of the project, we will be able to help to create first of all thousands of jobs in the country,” said Geiger.

“We believe that the time is ripe now to start the project. We have done all our preparation in the background. We have been working with the ministry for a long time in order to finalise the project and the contract.

“Everything has been signed and we are look-ing forward to the start of the project which will happen shortly. We are making all the planning to start as soon as possible. This project is of na-tional importance and for our company it is a very high profile project.”

What the project entails