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Cabinet approves three joint ventures

Cabinet yesterday approved three joint venture agreements (JVAs) that were recommended by the Zimbabwe Investment and Development Agency (ZIDA), as more private firms partner Government in mutually beneficial investment projects.

The three proposed joint ventures were presented to Cabinet yesterday by the Minister of Finance and Economic Development, Professor Mthuli Ncube.

They are the proposed Feasibility Study Financing Agreement in connection with the development of bulk infrastructure in the Masuwe area of the Victoria Falls Special Economic Zone; the proposed joint venture between the Zimbabwe Parks and Wildlife Management Authority (ZimParks) and Zambezi Crescent Private Limited and a proposal by the Zimbabwe Mining Development Corporation (ZMDC) to engage Zhi Jui Mining Resource Private Limited under a contract mining arrangement for the treatment of dumps at Mhangura.

The joint ventures fall under the purview of the Ministries of Environment, Climate, Tourism and Hospitality Industry; and Mines and Mining Development.

Information, Publicity and Broadcasting Services Minister, Monica Mutsvangwa confirmed the approval while addressing the 17th post-Cabinet briefing yesterday.

On the proposed Feasibility Study Financing Agreement, Cabinet was advised that Mosi-Oa-Tunya Development Company (MOTDC), a parastatal under the Ministry of Environment, Climate, Tourism and Hospitality Industry, secured Old Mutual Life Assurance Company Zimbabwe (OMLAC), to finance and undertake the feasibility study for the development of bulk infrastructure at a cost of US$430 948,29.

“In lieu of payment for the feasibility study cost, MOTDC will grant OMLAC a lease over 55 hectares of land for construction of a 4-star hotel with a 5 000-seater conference centre; a hospital facility; a golf course; and a shopping mall on land to be allocated by Government.

OMLAC will then have to pay rentals after recovery of the cost of the feasibility study.

“The proposed arrangement is part of the whole process of unlocking value in the Victoria Falls Special Economic Zone in that the feasibility study will inform the viability of proposed economic activities and infrastructure needs,” Minister Mutsvangwa said.

On the proposed joint venture between ZimParks and Zambezi Crescent (Pvt) Ltd, she said the two would be in partnership for the revamping and upgrading of all of ZimParks’ lodges at Zambezi Camp in Victoria Falls to an agreed market-related status at a cost of US$3 009 000.

Zambezi Crescent will contribute the money while ZimParks will provide exclusive rights to the use of the lodges at the camp and their surroundings. The project will be implemented as a joint venture over 25 years with the parties sharing profits on a 50/50 basis.

The joint venture is set to improve the performance of the Zambezi Camp lodges, which are strategically located along the banks of the Zambezi, but have been performing poorly over the years.

ZMDC and Zhi Jui Mining Resource will enter into a five-year contract mining arrangement for the treatment of 26 million tonnes of dumps at Mhangura.

“Zhi Jui will inject the US$10 million required as capital for the processing of the dump, while ZMDC provides mineral resources, the mining title and existing mine infrastructure in a product-sharing ratio of 65:35 between Zhi Jui and ZMDC, respectively.

The project presents a win-win scenario, in which ZMDC will get substantial returns on their idle dump site,” she said. Herald

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