IDBZ raises $110m for students accommodation

HARARE - The Infrastructure Development Bank of Zimbabwe (IDBZ) has raised nearly $110 million earmarked for constructing residence for university students and employees.

The bank yesterday said $75 million will go towards construction of superstructures for student halls of residence at five State-owned universities while over $32 million will go towards the construction of houses in Kariba, Hwange and Sumben.

This comes as the infrastructure development institution recently indicated that it was going to structure deals valued at over $3 billion this year earmarked for various sectors of the economy.

IDBZ finance director Cassius Gambinga said the organisation, which was appointed the lead financial advisor on the $2,7 billion Beitbridge-Harare-Chirundu road upgrading and dualisation project, is looking for strategic investors who understand the long-term nature of infrastructure business.

“Foreign development finance institutions (DFIs) will also be targeted for equity or debt,” he said at the bank’s analysts briefing in the capital.

IDBZ is also expected to play a key role in the $271 million modernisation exercise of the Beitbridge Border Post as well as the $7,2 million construction of Chipinda Bridge on Runde River and Link Road.

Gambinga pointed out that the infrastructure development institution was also at advanced stages of energy projects such as Solgas (2,5 megawatts MW) and Osborne Dam — mini hydro (2,5MW) at a total cost of $14 million.

“We have already identified a preferred investor for Tokwe-Mukorsi mini hydro and civil works for Power house are currently underway,” he said.

Gambinga, however, noted that project implementation agreements for the $35 million scheme were still to be finalised.

Meanwhile, IDBZ has registered a 10 percent increase on its revenues to $7,43 million in 2016  driven by increased money market activity and growth in long-term infrastructure business.

Gambinga said the bank’s total expenses declined by 25 percent to $7,61 in the full year to December 2016.

“Expenses were higher in 2015 as a result of $2,3 million retrenchment costs. However, the bank is now reaping the benefits of the rationalisation,” he added.

In the period under review, the bank’s total assets grew to $160 million due to treasury bills received as capital injection from the government valued at $23 million and the takeover of $1,8 million non-performing loans by Zamco.

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