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Harare residents face US$144m Chinese loan burden

The Community Water Alliance has expressed dissatisfaction with the City of Harare's handling of water, sanitation, and hygiene (WASH) issues, particularly the imposition of policy decisions without consultation with the stakeholders.

HARARE, Apr.5 (NewsDayLive) - Harare City Council's recent proposal to levy a water tariff on residents to repay a US$144 million loan from China Exim Bank has raised concerns among residents who feel shortchanged as its disbursement was marred by controversy. 

The loan, secured in 2013, was meant to rehabilitate the Morton Jaffray Waterworks  treatment plant, but there were reports that only US$77 million was released, with the balance withheld under unclear circumstances. 

The Community Water Alliance has expressed dissatisfaction with the City of Harare's handling of water, sanitation, and hygiene (WASH) issues, particularly the imposition of policy decisions without consultation with the stakeholders.

"As it stands, we cannot allow residents to be burdened with the repayment of a loan that was not transparently utilized," said Hardlife Mudzingwa, coordinator of the Community Water Alliance. 

"We demand an audit of the loan, publication of its terms in the Government Gazette, and engagement with residents before any repayment measures are taken."

The controversy surrounding the loan repayment has sparked concerns about the city's financial management and the burden placed on residents.

As one resident noted, "We cannot continue to bear the brunt of the city's financial mismanagement. We demand transparency and accountability in the use of our resources."

The issue has also raised questions about Zimbabwe's debt obligations to China, now at a staggering US$2.7 billion, according to Finance minister Mthuli Ncube.

Meanwhile, the Zimbabwe Multi-donor Trust Fund (ZIMFUND) provided an additional US$29.65 million for water and wastewater infrastructure improvements in Harare and other cities.

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