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Project management for PPP projects

6th September 2013

  

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As postelection Zimbabwe moves for- ward, there is a pressing need to address the infrastructure deficits in the health, water reticulation and treatment, power, education and communication sectors, with particular need for rehabilitation of the country’s major road networks, which are no longer able to cope with increased traffic demands, says indigenous Zimbabwe construction and project management company Sesani.

The road networks are crucial to the Zimbabwe mining industry since more than 80% of raw material, plant and equipment imports into the country are through its road network. Exports of mineral ore are also heavily reliant on road and rail transportation.

Further, Sesani says that the Southern African Development Community mining industry is also dependent on the road links through Zimbabwe to the coasts of Mozambique and South Africa.

A knock-on effect of the poor road conditions in Zimbabwe is increased accidents, which have, in turn, led to loss of life, dam- age of property, increased costs and lengthened lead times for shipments, says Sesani.

The company says these deficits can best be managed by the adoption of public–private partnerships (PPPs) to deliver the projects.

“This PPP approach alleviates funding pressure, which has, over the years, hampered efforts to rehabilitate and develop key infrastructure,” it adds.

One such PPP venture is the $250-million Road Rehabilitation project, aimed at rehabilitating the Plumtree–Mutare highway, which started in 2012, using a facility secured from the Development Bank of Southern Africa.

This PPP is being delivered on a variation of the build, own, operate and transfer model, with partners JSE-listed South African construction company Group Five and the Zimbabwe National Road Administration sharing the revenue stream.

This major project covers 800 km of State highways and the construction of nine state-of-the-art toll plazas along various highways in Zimbabwe.

“The completed road rehabilitation will boost trade between Zimbabwe, Botswana, Namibia, South Africa, Mozambique, Malawi and Tanzania,” Sesani says.

This Zimbabwe roads project has also been significant in that it has given a much-needed boost to the local construction industry.

“It has created employment for more than 1 600 Zimbabweans and has engaged local construction suppliers, contractors and subcontractors,” says Sesani.

Group Five also parcelled out 50% of the roadworks to local companies and the company claims that more than 90% of its workforce is Zimbabwean.

Sesani is working as a consultant for Group Five on the Plumtree–Mutare road toll plaza project, providing a total project management solution encompassing project management, civil engineering, quantity surveying and commercial services.

The Sesani team includes skilled and experi- enced project managers, engineers, commercial managers, quantity surveyors and health, safety, environment and quality personnel on site, who have delivered similar projects in the region and further afield in Europe and the UK.

Sesani is adding value to this project by managing all contract and subcontractor administration. The company has also managed changes to the scope of works and variations that have arisen from unforeseen situations.

“In a project such as this, all stakeholders need to keep up-to-date records and report all developments on a regular basis. Sesani is responsible for critical path programme management of all the stages of the project,” notes the company.

The Zimbabwe expertise that Sesani is bringing to the project has also been beneficial for Group Five because of its long-standing familiarity with Zimbabwe’s culture and geopolitical landscape.

“With the tight delivery schedule on this project, meticulous project management is necessary to ensure the project is delivered on time, to the right standards and within budget, which we have been instrumental in achieving,” Sesani says.

PPPs need the right legal and financial framework to be put in place to make it attractive to the private sector and to encourage investment in major infrastructure development projects – Zimbabwe is no exception. The road rehabilitation project is providing a learning curve for all stakeholders and will provide guidance for future policy and legislative frameworks for PPPs in Zimbabwe, the company says.

Edited by Megan van Wyngaardt
Creamer Media Contributing Editor Online

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