The ManicaPost
Samuel Kadungure
Senior Reporter
RUSAPE Town Council is poised for a $60 million grant from Government under the Public Sector Investment Programme (PSIP) to finance capital projects for 2021, in a move that will enhance service delivery and increase its suitability for municipality status.
Rusape is among a few local authorities selected by the Ministry of Local Government and Public Works to benefit from PSIP following a thorough assessment of its capacity to repay, the need and impact of intended projects.
Acting town secretary, Engineer Charles Chindenga on Tuesday, said the grant will finance acquisition of a motorised grader ($25.6 million), vibratory roller compactor ($9.6m), refuse compactor ($9.6m), two utility vehicles ($4.4m) and a tractor, loader and bucket (TLB) ($10.8m).
The equipment will ameliorate service delivery against a background of roads in state of disrepair and refuse collection system in dire straits due to constant breakdowns of aging machinery and non-availability of spares.
“We selected projects with the interests of residents at heart. It is difficult for anyone to question the suitability of these projects because we desperately need them to develop a smart town. There is no better investment in the public sector than investing in equipment that drives service delivery. The purpose of our existence as a local authority is to provide efficient service and to do that we need efficient tools,” said Eng Chindenga.
He said they have commenced the process of applying for borrowing powers to the Local Government and Public Works Minister, July Moyo in line with Section 290 of the Urban Councils Act (Chapter 29:15), to access the grant.
These funds cannot be accessed without the blessings of the parent ministry.
To access the fund, local authorities will have to resolve to borrow (resolution), widely consult residents, advertise the notice for borrowing powers in two issues of the newspaper and give residents and ratepayers 21 days to scrutinise, endorse or object, following which an application will be made to the minister.
“We have issued a public notice to residents, ratepayers and other stakeholders to the effect that council resolved, in terms of Section 290 of the Urban Councils Act (Chapter 29:15) to apply for borrowing powers to fund (a component of budgeted) capital projects to the tune of $60 million (US$730 000) from Central Government under the PSIP. Those who feel otherwise can lodge their objections within 21 days because thereafter an application shall be made to Minister July Moyo,” said Eng Chindenga.
Government gives various grants to local authorities, among them PSIP, devolution and Zinara funds.
“The PSIP grant is a fund given to local authorities by Government to use after assessing the need and capacity to repay. The funds are coupled with flexible repayment modalities and Rusape has received a confirmation of an allocation of $60m from the treasury, hence the formalisation of the process to apply for borrowing powers. It is not like we are borrowing from banks, lest people start fighting the process.
‘‘It is Government that is saying we are giving you so much to achieve your objectives and you repay us later. The grant cannot be accessed without being granted borrowing powers or authority to borrow by the parent ministry,” said Eng Chindenga.
He allayed fears by some residents who felt that council should have prioritised provision of water ahead of purchasing road and refuse equipment.
Eng Chindenga said water projects will be funded using the devolution grant.
“All these projects were budgeted for, but the difference is in the funding model. What they should appreciate is that water projects are being funded using devolution funds,” said Eng Chindenga.
