By ZBC Reporter
THE Zimbabwe National Road Administration (ZINARA) is pursuing various options to settle the US$ 206 million Development Bank of Southern Africa (DBSA) loan, including renegotiating the deal and engaging local banks.
The loan secured from DBSA to fund the rehabilitation of the Plumtree-Bulawayo -Mutare Highway has remained an impediment on ZINARA‘s neck with the parastatal struggling to service the loan due to forex challenges.
ZINARA Board Chairperson Michael Madanha said the state-owned enterprise is still pursuing restructuring of the deal while at the same time engaging local banks to secure funds to offset the loan.
“Most of the revenue streams have been declining and our only revenue stream in foreign currency is the transit fees which is not sufficient to cover the obligations. We will continue to pursue renegotiations while also engaging domestic institutions for resources to offset the loan,” he said.
Portfolio Committee on Transport and Infrastructural Development Acting Chairperson Honourable Robson Nyathi said priority should be given to repayment of the DBSA principal loan.
“We cannot continue to be making the US$1.5 million monthly interest repayments. We need to just look for resources to pay off the principal loan and that should be our priority,” he said.
The DBSA loan agreement was backed by three revenue streams namely the fuel levy, abnormal and overload charges and transit fees, all of which have been declining to result on the road fund defaulting on payments.
So far a total of US$20 million has been repaid, with ZINARA currently making monthly interests payments of around US$1.5 million United States dollars.
By ZBC Reporter