Nakobile Bhebe, Senior Business Reporter
The Infrastructure Development Bank of Zimbabwe (IDBZ) is in the market to raise a billion Zimbabwean dollars to fund the implementation of the Wilsgrove Housing Project in Bulawayo.
Last year, the bank expressed interest in realizing the Wilsgrove Park Phase 2 housing project through a joint venture with Whitepear Farming Company (Pvt) Ltd.
The land belongs to the company that grows white pears. The project is located 11 km south of the Bulawayo Central Business District along Old Gwanda Road (12th Avenue Extension).
The notice states that under the partnership, WFC’s shareholding will be determined by the value of the land contributed to the project, while IDBZ will raise the funds necessary for development, including conducting procurement activities, for the project.
In an update, the bank said it wants to raise one billion Zimbabwean dollars to carry out the project.
“The bank is currently in the market to raise ZWL1,000,000,000 (one billion Zimbabwean dollars) to fund the implementation of the Wilsgrove Housing Project in Bulawayo.”
In 2020, the Infrastructure Development Institution indicated that it had received authorization from the National Treasury on behalf of the government to launch an infrastructure bond program of up to ZWL 2,000,000,000 (two billion Zimbabwean dollars) to finance priority infrastructure projects.
The program amount has been increased to ZWL 5,000,000,000 (Zimbabwe dollars five billion) to meet the growing demand for project financing.
The bank has now signed an addendum to the trust deed to implement an increase in the program amount from ZWL 2 billion to ZWL 5 billion.
“To date, the bank has raised ZWL 1,034,576,000 under the bond program. The funds raised will be used for the Sumben Housing Project (Phase I is 99% complete), Vaneka Phase III (42% complete) and the Elizabeth Park Housing Project (fully) in progress.
“A total of ZWL 330 million has been paid for the Elizabeth Park and Sumben housing projects.”
The institution indicated that it is currently in the market to raise ZWL1,000,000,000 (one billion Zimbabwean dollars) to fund the implementation of the Wilsgrove Housing Project in Bulawayo.
In September, IDBZ said it had raised US$3.8 million for the ongoing construction of the Bulawayo Students Housing Complex Project (BSAC) near the National University of Science and Technology (NUST).
The construction of the three-flat multi-purpose building called “Bulawayo Students City” is nearing completion and will have 516 rooms and is expected to accommodate 1 023 students. Upon completion, the campus is expected to greatly contribute to alleviating housing challenges for tertiary students in the city and is expected to open in the first quarter of next year.
The facility is self-contained as there will be fast food restaurants, shops, salons and sports facilities. Officials say construction costs are estimated at less than $17 million. The government has launched several major infrastructure development projects across the country, including housing, roads, dams, schools, health centers and irrigation systems, and these fall within the economic blueprint of the National Development Strategy NDS1 (2021-2025).
Enrollment in universities has increased over the last two decades and the current number is estimated at over 70,000, of which only about 11,000 are hosted by the institutions.
The government has called for more investment in learning space, housing, entertainment and other support facilities.
The bank was established through the IDBZ Act (Chapter 24:14) to develop sustainable infrastructure in Zimbabwe through resource mobilization, capacity building, knowledge creation and sharing in support of national efforts for inclusive socio-economic development.