Minister Mthuli Ncube Reveals How Much Trabablas Interchange Really Cost
Minister of Finance, Economic Development and Investment Promotion Mthuli Ncube has revealed that the Trabablas Interchange project cost the government a total of US$114 million.
This figure is significantly higher than the widely reported US$88 million.
Minister Ncube Discloses True Cost and Funding Details of Trabablas Interchange
Minister Ncube made the disclosure during a recent Question and Answer session in the National Assembly.
Emakhandeni–Luveve constituency MP Discent Collins Bajila (CCC) asked the minister to confirm the final cost of the project and to clarify whether the funding came from a private sector loan or the International Monetary Fund’s Special Drawing Rights (SDR) facility.
In response, Minister Ncube explained that the government blended both sources.
“The cost of Trabablas Interchange was driven by our initial loan arrangement of USD88 million, which was provided by the Consortium of Contractors.”
“We were required to pay a deposit of USD26 million from the Special Drawing Rights to access that loan facility, so the total cost was US$114 million,” he said.
Also Read: Truck Impounded After Damaging Trabablas Interchange
Lawmakers Demand Accountability for Extra US$26 Million
Bajila pressed the minister to clarify if the US$26 million was part of the US$88 million or an addition to it.
Ncube confirmed it was in addition, describing the arrangement as necessary to complete the project.
“The USD26 million is in addition, but it was a requirement for accessing the USD88 million. We think that was a very good arrangement indeed because we have been able to complete the piece of infrastructure.”
Relocation Costs Blamed for Budget Overruns
Dangamvura–Chikanga MP Prosper Mutseyami (CCC) also challenged the minister to explain why the cost increased despite the original budget.
Ncube attributed the extra expenditure mainly to relocation expenses and unforeseen cost escalations.
“The cost of relocating some of the residents to create space for the infrastructure was quite onerous.
There were unexpected escalations of that cost, which then pushed us towards increasing the budget by another USD26 million. It is normal for projects to overrun, but the key is negotiating with contractors so costs remain affordable,” Minister Ncube revealed.
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