Zimbabwe signs $2b housing contract with Chinese firm

Chinese government-owned construction company, China Civil Engineering Construction Corporation (CCECC) has announced that it has signed a nearly $2 billion contract for a housing project with the government.

In an announcement to the Shanghai Stock Exchange yesterday, CCECC said it had signed the agreement for Magamba 2015 Housing Project with the Ministry of Local Government, Public Works and National Housing on behalf of its subsidiary, China Railway Construction Corporation (CRCC).

“China Civil Engineering Construction Corporation … entered into a commercial contract for Magamba 2015 Housing Project with Ministry of Local Government, Public works and National Housing of Zimbabwe, with a contract value of amounting approximately $1 929 million,” said the company.

The value of the contract represented nearly two percent of its operating revenue, it added without giving details of where the project will be located and the length of the contract.

“Upon execution of the commercial contract of the project, the owner will implement the financing for the project,” adding that the parties will enter into phased construction contracts separately according to the financing of the project.

No comment could be obtained from ministry officials but Zimbabwe has a national housing backlog of 1. 25 million, with half of that estimated to be in Harare.

CCECC’s portfolio include construction of railway, light rail, expressways, bridges, housings, and buildings and municipal works in Asia, Africa, the Americas, Europe, and the Oceania.- The Source

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