IDBZ raises US$7,5m for two key projects
IDBZ says the funds will be used for the construction of the Bulawayo Students Accommodation Complex (BSAC) and Waneka Phase Three housing project in Graniteside, Harare
The Infrastructure Development Bank of Zimbabwe (IDBZ) says it raised US$7,55 million during the half-year period to June 30, 2022 to finance the implementation of two key infrastructure projects.
The two residential projects are part of the bank’s various projects being rolled out across the country aimed at providing decent accommodation at affordable rates.
Chief Executive Officer (CEO) Thomas Sakala indicated the funds would be used for the ongoing construction of the Bulawayo Students Accommodation Complex (BSAC) to the tune of US$3,8 million and the balance on the bank’s Waneka Phase Three housing project in Graniteside, Harare.
According to the bank, by end of the half-year period, the bank had also started work on raising funds for project implementation of the Rooiport Housing Project in Chivhu, which requires US$5,8 million as well as for Lupane Students Accommodation Complex Project (LUSAC), which will require US$17,9 million to complete.
Zimbabwe has a huge backlog of housing units with Harare alone in need of over half a million while accommodation at state universities and other institutions of higher learning is also limited for both students and staff members.
This has created scope for the developmental financial institutions to facilitate funding for such projects to narrow the deficit. Mr Sakala added the bank had a robust pipeline of projects, including US$26,3 million worth of new projects added during the six-month period under review. These projects are the US$7,2 million Tjindule Cluster Homes and solar system, the Selbourne Hostels worth US$0,25 million, Killarney Cluster Homes and Plumtree Plaza valued at US$4 million and US$4,85 million, respectively.
“The bank is working on a robust pipeline of projects, by continually adding new projects. Pursuant to that, projects with an estimated value US$26,3 million were committed to the bank’s project pipeline during the first half of 2022,” he said in an update for the period.
Despite the economic headwinds experienced during the period such as inflationary pressures, limited foreign currency, and global shocks emanating from the conflict in Ukraine, IDBZ managed to disburse US$0,21 million towards project preparation activities.
According to the bank, an equivalent of circa US$0,11 million was disbursed from the bank’s project preparation and development fund (PPDF) while the equivalent of US$0,1 million was also disbursed for irrigation projects.
Disbursements from the bank were for projects that include student accommodation at Chinhoyi University of Technology, Getjenge Housing in Plumtree, Spitzkop housing scheme in Gwanda, Marimba Flats in Harare, Kadoma cluster homes as well as Lupane and Kwekwe student accommodation.
The irrigation projects include the Lilstock, Manyuchi, Muzhwi and Tuwi Mukosi dams. In support of the players in the infrastructure value chain, the bank’s loan book reached $825 million by the end of the half year period.
“The loan book growth was constrained by the economy-wide liquidity challenges,” said Mr Sakala.-herald.clz.w
