Cabinet has reported that the joint venture between Cold Storage Company (CSC) and Boulstead Beef Pvt Limited to resuscitate the CSC through a Concession Agreement is progressing well.
The two companies are partnering under Rehabilitate, Operate and Transfer terms.
The Cabinet report divulges that, under the agreement, Boustead will raise and invest a minimum of US$130 million into CSC over 5 years. The money shall be for both capital expenditure and working capital for the business and for paying off CSC debts totaling US$ 42 530 597, as well as pay rentals during the first 5 years.
In return, Boulstead will take over the management of CSC seven ranches for an initial period of 25 years. It will also be in charge of abattoirs in Bulawayo, Chinhoyi, Masvingo, Marondera, and Kadoma.
The deal is expected to increase capacity utilisation at CSC ranches and abattoir plants, restore CSC’s viability and also contribute to the growth of the local livestock and beef industry.