Transport and storage development Zimbabwe, Makuti - Chirundu Road

Final special PES, prepared in 10/87, covers the period 7/82-7/84 and is based on document review, site visits, and interviews with Government of Zimbabwe (GOZ) personnel. The project - part of A.I.D."s Regional Transport Program, which aims at improving transport linkages among majority-ruled nations in Southern Africa - achieved its purpose of increasing commercial traffic between Zimbabwe and Zambia and exceeded its original production targets, which were to reconstruct 12 km and reseal and reshoulder 28 kms of roadway. In fact, 39 kms of reconstructed road and paved shoulders and an 12 additional kms of shoulder reconstruction and road drainage improvements were realized. This occurred because the GOZ increased the scope of work after a mid-project devaluation of the Zimbabwe dollar gave the GOZ a windfall of about Z$1 million under the project"s fixed amount reimbursement (FAR) payment procedures; also, the actual construction contract was for less than the original cost estimate. All construction was completed on schedule in 5/84. It is estimated that commercial traffic has almost doubled. The road is gradually assuming the status of a regional corridor, carrying about 20% of Zambia"s copper exports to, and about 7% of its total imports from, Zimbabwe. An 8/87 inspection indicates that the road has been maintained to reconstruction standards, The project teaches two lessons about the FAR procedure, which was used for the first time in Zimbabwe in this project and which is currently being applied to other projects in Southern Africa: FAR payments should be based upon actual contract prices and, if necessary, adjusted for devaluation or revaluation of the local currency.