EKUSILENI Medical Centre in Bulawayo, which has been idle for more than a decade, is set to reopen amid reports that the Development Bank of Southern Africa (DBSA) is keen to inject $80 million to revive the project.
By Nqobile Bhebhe, Chief Reporter
However, DBSA has attached conditions to the funds, requiring a government guarantee to secure its loan, which will be released in two tranches, $50 million and $30 million.
DBSA expressed interest in funding the debt portion, subject to equity participation by strategic investors, including an operator for the facility.
The bank is already involved in the rehabilitation of the Plumtree-Mutare Highway in which it has committed $206 million.
The hospital’s executive director Daud Dube told Southern Eye, that all necessary preparatory ground work had been completed. “This is the closest we have been in re-opening the hospital,” he said. “We have virtually done all the ground work.”
Local promoters of the project are in talks with South African medical services operators and Medi-Clinic has been identified as a potential operator for the medical facility.
The late Vice-President John Nkomo, two years ago, wrote to the Malaysian government to court investors from there to take up equity in the project.
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Ekusileni is one of the projects meant to honour the late Vice-President Joshua Nkomo, and its planned reopening comes amid accusations that there was lack of political will in completing projects meant to honour the nationalist.
Last December, chairperson of the Joshua Nkomo Foundation, Francis Nhema, said the Finance ministry had agreed in principle to provide funding for the hospital to start operating.
He said Cabinet, and Zanu PF had agreed to open the medical institution.
Insiders said Zanu PF is keen to have the facility reopened to form part of its campaign drive to woe votes in the region.
Zanu PF national chairman Simon Khaya Moyo, a trustee of the hospital, confirmed to Southern Eye yesterday that “there is some movement”.
“Something is happening, there is some movement, but speak with Dr Dube, he has the details on that,” he said.
According to documents seen by Southern Eye, in early 2010, Tri-African Advisory Services was mandated to secure funding of the order of $80 million for Ekusileni.
“EMC (Ekusileni Medical Centre) is requesting for an immediate long-term concessionary loan amounting to $26 500 000 at 6% per annum interest rate,” part of the document reads.
“$18 million will be for medical equipment and $2,6 million for refurbishing the existing facility. The additional $5,9 million being requested is meant for working capital and related fees.”
The letter promises that the institution will reopen within six weeks of the disbursement of funds.
The second phase would be for the completion of existing infrastructure and satellite facilities.
“The completion of the existing infrastructure will commence concurrently with the opening of Phase 1 EMC,” the letter continues.
“A total amount of $51,5 million will be required over an estimated 18 month period. Of this amount, $24,8 million will be for medical equipment and $26,7 for expansion of the existing facility.”
An additional $2 million required is for contingencies, states the document.
With the government committing itself to the sovereign guarantee, DBSA will provide a medical operator, possibly Medi-Clinic of South Africa.
“It is envisaged that Medi-Clinic will not exceed Zimbabwe Health Care Trust equity contribution in EMC,” a separate document reads.
“EMC would thus seek from DBSA up to $80 million, being 20% equity in EMC, which would be acquired by the Indigenous group, an empowerment vehicle for Zimbabwean healthcare professionals working at EMC at defined periods, after repayment of facility, possibility of funding 10% equity for Indigenous Group, which will eventually be 30%, and credit facility for the balance of required funding.”
Ekusileni briefly opened its doors to the public in 2004 before it was closed after it was discovered that equipment was obsolete.
The upmarket hospital was built in honour of Joshua Nkomo, with funding from the National Social Security Authority.
On completion, the medical centre was expected to provide facilities for a medical school, specialising in physiotherapy and pathology.
