The Zimbabwe National Road Administration (ZINARA) has borrowed $600 million from Nedbank for the Emergency Road Rehabilitation Programme 2 (ERRP2).
The Government gave a guarantee that the money will be repaid by the end of May.
The Herald reported that ZINARA has a substantial daily inflow of revenue from its toll gates and vehicle licence fees, but occasionally borrows to speed up progress or to finance a major set of roadworks.
The notice of the guarantee was gazetted by Finance and Economic Development Minister Mthuli Ncube as 131H of 2023. Said Ncube:
The guarantee is surety to Nedbank Zimbabwe Limited that Government will honour ZINARA’s obligations under the composite bridging facility for road rehabilitation works for the Emergency Road Rehabilitation Programme Phase 2 project in the event that ZINARA defaults on its contractual obligations.
The total amount covered by the guarantee is for $600 million including accrued interest.
The guarantee shall be applicable and become payable in so far as the funds were used by Zinara for the sole and authorised purpose of constructing the road rehabilitation works under the Emergency Road Rehabilitation Programme Phase 2 project.