Government Gives NRFA K300 million for Local Road Contractors

Thursday, 2 January 2020

I am pleased to announce that my ministry has given the National Road Fund Agency (NRFA) K300 million to facilitate dismantling of arrears owed to local contractors with respect to road sector projects and related activities.

The target beneficiaries are local road contractors and consultants under the Road Development Agency (RDA), and those under the Ministry of Local Government.

The release of these funds is not only a cash flow stimulus for the targeted recipients but a demonstration of the Government’s commitment to the domestic arrears dismantling strategy.

In addition, it supports the directive given by His Excellency, Mr. Edgar Chagwa Lungu, President of the Republic of Zambia, to fully implement the 20 per cent mandatory subcontracting policy to empower and improve quality and capacities of local contractors, the beneficiaries of this funding.

Going forward, my ministry, through the NRFA, will continue to strengthen its domestic resource mobilisation efforts for the road sector. I am glad to note that we closed the year 2019 with an increased road tolling footprint across the country from 16 at the beginning of the year, to 21 as of this month. We will also put in place a system that will ensure that the main road contractors are also paid, in due course.

I am also keen to see that strong internal systems and controls are maintained at NRFA in order to ensure that we remain on track with both ensuring that targeted road works are duly completed and that the debt dismantling strategy is not derailed.

Bwalya K. E. Ngandu, MP
MINISTER OF FINANCE