BULAWAYO City Council is set to engage in talks with a Mauritius-based financial institution in a bid to raise $26 million for urgent water and waste projects.
The council says it has been attracted to Loita Capital Partners International due to a 20-year repayment period which has low interest.
It needs the capital to “resolve its perennial water challenges by implementing a water and waste master plan”.
Loita Capital Partners International Limited is said to be a banking and investment firm focused on Africa.
Its headquarters are in Mauritius with offices in South Africa, Zimbabwe, Uganda, Zambia and Kenya.
Council, in its latest report, said Loita had concluded transactions worth more than $3 billion across Africa.
“$26 million was required in the very short term in order to remedy priority problem areas,” a report from the finance and development committee reads.
“In view of the tenure of up to 20 years, authority was sought for council officials to engage Loita Capital Partners International to raise capital of at least $26 million to finance water and water waste projects and sign any enabling documents as well as incurring any necessary travelling expenses to Harare.
“Council was keen to resolve its perennial water challenges by implementing a water and waste master plan.”
The master plan, the city council said, had been developed in partnership with a South African consulting firm and was co-funded by the local authority, with grant funding provided by the Department of Trade and Industry South Africa, the Swedish International Development Corporation Agency through the Development Bank of Southern Africa.
It included planning for rehabilitation, renewal and upgrading of water and wastewater infrastructure, including associated operational and maintenance requirements as well as institutional aspects linked to cost recovery.
Of the $26 million sought, water supply would require $17 063 575, wastewater $6 107 219, while operational and institutional management would cost $2 303 041.
However, the council would not rush to commit itself to a firm agreement, but would seek to obtain more details.