Complaint
- Complaint number
-
NTB-000-960
- NTB Type
-
6.6. Border taxes
- Complaint
-
Zimbabwe has promulgated a new legislation S.I 127 of 2020 which proposes to charge amounts up to USD300 per entry of Beit Border Border Customs Yard meant for payment of the border post modernization and upgrade project. This charge is over and above the Bridge Toll of USD23 per entry and the ZINARA road tolls fees. The proposed charges are just too high and unsustainable, thus we seek their immediate suspension to allow for stakeholder engagement for their input.
- Status note
-
The relevant authorities in Zimbabwe submitted report as follows :
As a way of addressing challenges at Beitbridge Border Post Government made a decision to upgrade and modernise Beitbridge Border Post through a concession to Zimborders for a period of 17,5 years. Zimborders will invest US$296.7 million dollars into the project and will recoup their investment by collecting border user fees. This project will bring about the much sought efficiency at the border post by providing modern infrastructure and equipment such as terminal buildings, warehouses, weighbridges and scanners. There will also be automation of most processes and the introduction of a single window payment system bringing about convenience to transporters and the travelling public.
The financing model used in this project (Built Operate Transfer), is a universal mode of project financing which can be applied to projects that are bankable where users are expected to pay for the product or service used. In this case, it is Government’s view that the charges are fair relative to the amount invested and the efficiency brought about by the investment. Removing the fee is asking the country to default on the Concession Agreement. Defaulting on agreements leads to country reputational risk and reduction in credit worthiness.
The figure quoted of USD300 applies only for abnormal load vehicles. The fees are as follows.
Type of vehicle USD
Heavy vehicle 100,00
Goods vehicle 175,00
Abnormal (load) vehicle 300,00
Minibus 35,00
Coach 70,00
- Progress update note
-
The relevant authorities in Zimbabwe submitted report as follows :
As a way of addressing challenges at Beitbridge Border Post Government made a decision to upgrade and modernise Beitbridge Border Post through a concession to Zimborders for a period of 17,5 years. Zimborders will invest US$296.7 million dollars into the project and will recoup their investment by collecting border user fees. This project will bring about the much sought efficiency at the border post by providing modern infrastructure and equipment such as terminal buildings, warehouses, weighbridges and scanners. There will also be automation of most processes and the introduction of a single window payment system bringing about convenience to transporters and the travelling public.
The financing model used in this project (Built Operate Transfer), is a universal mode of project financing which can be applied to projects that are bankable where users are expected to pay for the product or service used. In this case, it is Government’s view that the charges are fair relative to the amount invested and the efficiency brought about by the investment. Removing the fee is asking the country to default on the Concession Agreement. Defaulting on agreements leads to country reputational risk and reduction in credit worthiness.
The figure quoted of USD300 applies only for abnormal load vehicles. The fees are as follows.
Type of vehicle USD
Heavy vehicle 100,00
Goods vehicle 175,00
Abnormal (load) vehicle 300,00
Minibus 35,00
Coach 70,00
- Policy or regulatory NTB
- No
- Location
-
Zimbabwe: Beitbridge (Border post)
- Reporting Country or Region
-
- Country specific trade issue
-
No
- Date of incident
-
2020-06-05
- Status
-
Resolved
- Date of resolution
-
2022-10-20
- Product Description
-
- Total value
-
300.00
- Date reported
-
2020-06-05 12:32
- Modified
-
2022-10-20 09:05
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