BULAWAYO, September 21 (The Source) – Zimbabwe’s infrastructure bank has secured funding commitments from three institutional investors for its $12 million student accommodation development in Bulawayo, an official has said.
The project, which is designed to house 1,480 students will be delivered through a Special Purpose Vehicle which was registered early this year and is wholly owned by the Infrastructure Development Bank of Zimbabwe (IDBZ).
Government has not been able to adequately fund public infrastructure due to budgetary constraints.
According to the Ministry of Higher and Tertiary Education, the country has a combined student population of 152,529 and staff population of 18,153 requiring at least 562 student hostels and 10,836 staff houses.
“Funding is being raised through a private placement of Perpetual, Non-Cumulative, convertible participating preference shares with a fixed dividend of 5 percent. The Preference Shareholders shall share in the residual income of the project,” said Finance minister Patrick Chinamasa at a groundbreaking ceremony for the project on Thursday.
“IDBZ has managed to secure funding commitments from three institutional investors who are partnering the Bank to implement the project, with the Bank contributing the land (project site) which it bought from a private owner.”
The IDBZ has planned similar projects across the country, targeted at Lupane State University, the Chinhoyi University of Technology, Bindura University of Science Education, the Catholic University and the University of Zimbabwe
In April, government appointed CBZ Holdings as lead financial advisor to structure and issue a $2 billion bond to finance the construction of student hostels and other infrastructure in higher and tertiary institutions.
Zimbabwe has 20 universities, 14 teachers colleges, eight polytechnics and five industrial training centres.