HARARE – National Social Security Authority (Nssa) says it will soon be handing over the completed Beitbridge Hotel to Rainbow Tourism Group (RTG).
Phillion Chereni, Nssa’s public relations manager, said the project is currently at the stage of “substantial completion” which means that all major construction work on the project has been completed and the project is able to be occupied to perform its intended use.
“In spite of this, there is still a small amount of work that remains to be completed on the project, the vast majority of which is corrective in nature,” he said.
Chereni noted that a certificate of occupation from Beitbridge Town Council was being obtained and would coincide with Nssa’s handover of the hotel to hospitality group RTG for them to begin their fit-out of the facility in preparation for the commencement of operations.
This comes as RTG was awarded a management contract to run the hotel while the authority also extended a $4,4 million loan to equip Beitbridge Hotel.
Nssa is the majority shareholder in RTG and holds over 50 percent shareholding directly and indirectly through investment vehicles in the tourism group.
The pension fund has two options to recover the $4,4 million loan from RTG, either through payments or rental fees.
This is the second time that Nssa had injected capital in the group after $10 million was extended to the hospitality company last year at 10 percent interest over a five-year period.
The three star hotel was constructed to the tune of $32 million and boasts of 135 rooms, a casino, a restaurant, three bars and a banking hall.
This development comes as the deep pocketed pensions administrator recently said that there were planning to demolish the infamous Ximex Shopping Mall in the Harare Central Business District and construct an 11-storey building.
James Matiza, Nssa’s general manager, told businessdaily that the authority’s board approved a proposed plan or structure of the new property with quantity surveyors finalising the list of materials required to kick start the project.
He said the new multi-purpose building will comprise of offices and a plaza.
While he could not disclose how much Nssa was investing in the ambitious project, the venture is reportedly within a $10 million to $15 million budget.