CBZ Holdings has set its eyes on upgrading at least 22 toll gates across the country in an effort to decongest the country’s major routes and improve revenue collection through e-tolling.
The $55 million boost for tolling infrastructure is intended to be implemented through a Public Private Partnership (PPP) under the Tollgate Infrastructure Modernization Project.
According to the Ministry of Transport and Infrastructure Development (MoTID), the deal is still under consideration with CBZH yet to conduct a pre-feasibility study.
“CBZ Holdings proposed to finance the upgrading and modernization of 22 tollgates across the country at an estimated cost of US$55 million, through on-balance and off-balance financing options,” said an engineer from the MoTID.
The proposed interest rate is between 8-10% per anum, with each tollgate expected to cost US$2.5 million.
“The pre-feasibility study will then inform the nature of the PPP to be formulated so that a Bankable Feasibility Study is carried out before being tabled before cabinet for approval,” he added.
CBZH will be the main sponsor in partnership with private sector players, Fossil Contracting and Southern Regional Trading t/a Univern Enterprises, while Government will fund construction of new tollgates.
Fossil Contracting will be responsible for feasibility studies, engineering and architectural designs, construction and procurement, while Southern Regional Trading t/a Univern Enterprises (toll operator) will be responsible for integrated toll collection system, IT equipment, infrastructure support, maintenance, revenue collection, and operations.
CBZH said the proposal was necessitated by the huge traffic volumes with toll transactions significantly rising from 12.7 million in 2014 to 17.1 million in 2018.
“The envisaged constructed tollgates are to have increased lanes where two lanes are available, they will be increased to between four and eight while those with four will have between 10 and 12 lanes. The increased lanes will cater for e-tolling and express lanes,” said CBZH.
Earlier this year, Zimbabwe National Road Administration (Zinara) assured to pump in at least one billion through the underlying ministry towards upgrade of tollgates.