Gweru City Council has set up a capital development fund to assist in
financing its capital projects particularly water and sanitation, a
senior council official has said.
In July last year council announced plans to establish the fund, meant
to move away from over reliance on rates and services fees to finance
its projects, but its implementation has been hindered by low revenue
Acting finance director Owen Masimba however said the local authority
decided to take the “bold move” to serve from the little income to
come up with the fund.
“Council has deliberately created a capital development fund where the
collected meagre resources are ring-fenced for rehabilitation of water
and sanitation infrastructure in an attempt to ease perennial water
challenges in Mkoba, Habern Park and Ridgement areas,”Masimba said
recently at the first quarter budget review meeting.
“Council has also availed resources to drill additional boreholes as a
stop gap measure for alleviating water challenges in troubled areas
while mobilising funding for capacitation of Gwenoro and Amapongokwe
water works.” he added
When initial plans to come up with the fund were announced last year, it
raised heated debate in the chambers, with some councillors
questioning the source of such funds given council’s bankruptcy.
Over the years council has been failing to finance infrastructure
projects among them water and sanitation, servicing new residential
stands and maintaining its road networks
Last year, the local authority revealed the city was collecting $1,2
million monthly against a wage bill of $1,3 million.