700

nrfa@zamnet.zm

08:00 - 17:00

Monday to Friday

Fairley Road

Plot No 33, Lusaka

REMARKS BY ENG. WALLECE MUMBA, DIRECTOR/CHIEF EXECUTIVE OFFICER, NATIONAL ROAD FUND AGENCY (NRFA) AT THE PRESS BRIEFING HELD ON 9TH FEBRUARY 2020, NRFA OFFICES, LUSAKA

______________________________________________

members of the press

ladies and gentlemen

all protocols observed

·        I WELCOME YOU ALL TO THE NATIONAL ROAD FUND AGENCY (NRFA) PRESS BRIEFING AND GLAD TO SEE YOU ALL AGAIN IN 2020.

THE PURPOSE OF THIS INTERACTION, IS TO APPRAISE YOU, MEMBERS OF THE PRESS, AND THROUGH YOU, THE ENTIRE NATION ON THE ACTIVITIES OF THE NRFA IN GENERAL, PARTICULARLY THE OVERALL IMPLEMENTATION OF THE NATIONAL ROAD TOLLING PROGRAMME A HOMEGROWN SOLUTION TO SUSTAINABLE ROAD MAINTENANCE. 

  • AS YOU ARE AWARE, THE FUNCTIONS OF THE NRFA AS PRESCRIBED IN THE NRFA ACT 13 OF 2002 ARE THREE KEY PILLARS OF RESOURCE MOBILISATION, FIDUCIARY MANAGEMENT OF RESOURCES AND VALUE FOR MONEY.
  • IN SUMMARY, WE ARE THE RESOURCE ENVELOP FOR ALL ROAD PROJECTS AND RELATED ACTIVITIES IN THE COUNTRY.

·        WE ARE GUIDED BY THE PUBLIC FINANCE MANAGEMENT ACT NUMBER 1 OF 2018 AS IT RELATES TO THE MANAGEMENT AND CONTROL OF PUBLIC FINANCES. WE HAVE A PROUD RECORD OF HAVING UNQUALIFIED AUDITED ACCOUNTS FROM THE TIME WE WERE CREATED IN 2006.

  • OUR LOCAL REVENUE STREAMS INCLUDE FUEL LEVY, OTHER ROAD USERS CHARGES SUCH AS ROAD TAX, WEIGHNBRIDGE FEES AND FINES, TOLLS AND GOVERNMENT DIRECT APPROPRIATIONS. 
  • EXTERNALLY, WE GET LOANS AND GRANTS FROM COOPERATING PARTNERS.
  • WE ALLOCATE THESE FINANCIAL RESOURCES TO IMPLEMENTING AGENCIES ROAD DEVELOPMENT AGENCY (RDA) ROAD TRANSPORT AND SAFETY AGENCY (RTSA) MINISTRY OF LOCAL GOVERNMENT FOR ROAD CONSTRUCTION, REHABILITATION, MAINTENANCE, ROAD SAFETY, EDUCATION AND REGULATION, AND TO THE NATIONAL COUNCIL FOR CONSTRUCTION (NCC) FOR CAPACITY BUILDING PROGRAMMES.
  • THE ROAD SECTOR BUDGET FOR THE FINANCIAL YEAR 1ST JANUARY – 31ST DECEMBER 2019 WAS K6.45 BILLION WITH LOCAL RESOURCES CONTRIBUTING K2 BILLION, WHILE EXTERNAL RESOURCES CONTRIBUTED K4.4 BILLION.
  • WE ARE PLEASED TO ANNOUNCE THAT WE RECEIVED K2.7 BILLION OF THE LOCAL RESOURCES WAY ABOVE THE BUDGETED AMOUNT OF K2 BILLION, AND GOT K3.4 BILLION UNDER EXTERNAL RESOURCES.
  • WE ALSO LEVERAGED ON THE ROAD TOLLING PROGRAMME AND OBTAINED AN ADDITIONAL FACILITY FROM THE NATIONAL PENSION SCHEME AUTHORITY (NAPSA) IN THE AMOUNT OF K1.8 BILLION FOR SELECTED ROAD PROJECTS AND COMPLETION OF TOLL INFRASTRUCTURE FOR REVENUE GENERATION.
  • WE PROCESSED A TOTAL OF 5, 958 INTERIM PAYMENT CERTIFICATES (IPCS) OR INVOICES FROM VARIOUS ROAD CONTRACTORS AND CONSULTANTS VALUED AT K2.7 BILLION WHICH IS THE LOCAL COMPONENT OF THE MOBILISED RESOURCES AND SAVED K29.56 MILLION ON PROCESSED IPCS, AS A RESULT OF COMPUTATIONAL ERRORS, OVER CERTIFICATION, AND UNSUBSTANTIATED CERTIFICATION.
  • DURING 2019, WE CONTINUED WITH THE IMPLEMENTATION OF THE NATIONAL ROAD TOLLING PROGRAM THROUGH THE ADMINISTRATION AND MANAGEMENT OF ROAD TOLLING FACILITIES AT INLAND TOLL GATES AND THROUGH OVERSIGHT OF COLLECTED ROAD TOLLS AT PORTS OF ENTRY.
  • THE IMPLEMENTATION OF THE ROAD TOLLING PROGRAM IS IN CONFORMITY WITH THE AGENCY’S MANDATE OF RESOURCE MOBILISATION AS STATED IN THE ROAD FUND ACT NO. 12 OF 2002 AND IS ALSO IN KEEPING WITH THE AGENCY’S MISSION “TO PROACTIVELY MOBILISE RESOURCES AND EFFECTIVELY MANAGE AND ADMINISTER THE ROAD FUND IN A TRANSPARENT AND SUSTAINABLE WAY TO ENSURE VALUE FOR MONEY AND STIMULATE SOCIO-ECONOMIC DEVELOPMENT.
  • WE ARE PLEASED TO ANNOUNCE THAT A TOTAL OF K1.212 BILLION WAS COLLECTED FROM BOTH INLAND TOLL GATES AND PORTS OF ENTRY AGAINST PROJECTED COLLECTIONS OF K1.046 BILLION GIVING AN OVERALL COLLECTIONS PERFORMANCE OF 116%.
  • SIMILARLY, AN INCREASE OF 31% WAS RECORDED OVER 2018 ROAD TOLLING REVENUE COLLECTIONS OF K926.6 MILLION. THE COLLECTED ROAD TOLL REVENUE IN 2019 REPRESENTED 60% CONTRIBUTION OF THE 2019 BUDGETED ROAD SECTOR LOCAL RESOURCE COMPONENT.
  • A TOTAL OF 14, 125, 277 VEHICLE PASSAGES WERE PROCESSED IN 2019 AGAINST 8, 502,797 IN 2018 REPRESENTING AN INCREASE OF 66%. OF THE 14, 125, 277 VEHICLE PASSAGES 2,431,542 WERE PROCESSED UNDER THE LOCAL USER AND FREQUENT USER DISCOUNT SCHEMES COMPARED TO 1,083,000 PASSAGES IN 2018.
  • THE TOLLS REVENUE WAS PREDOMINANTLY COLLECTED ON CAS BASIS WITH ONLY 1,039,627 VEHICLE PASSAGES PAYING THROUGH THE ELECTRONIC CARD SYSTEM GENERATING K116, 595, 055. WE ARE DETERMINED TO GROW THE TRANSACTION VOLUME UNDER THE ELECTRONIC PAYMENT SYSTEM TO MORE THAN 50% OF THE TOTAL INLAND ROAD TOLL COLLECTIONS AS THIS WILL ULTIMATELY REDUCE ROAD TOLL COLLECTION COSTS AND MINIMISE THE RISK ASSOCIATED WITH CASH HANDLING.

·        THE INCREASE IN VEHICLE PASSAGES AND REVENUES IN 2019 AS COMPARED TO 2018 CAN BE ATTRIBUTED TO THE EIGHT ADDITIONAL TOLL STATIONS WHICH WERE OPERATIONALISED WITHIN THE YEAR IN SOUTHERN, COPPERBELT, LUAPULA, MUCHINGA AND WESTERN PROVINCES OF ZAMBIA BRINGING THE TOTAL NUMBER OF INLAND TOLL STATIONS TO 24 AS OPPOSED TO 16 TOLL STATIONS AS AT DECEMBER 2018.

  • THE ADDITIONAL TOLL GATES INCLUDED THE WILSON MOFYA CHAKULA BETWEEN KITWE AND CHINGOLA, CHILONGA BETWEEN SERENJE AND MPIKA, DANIEL MUNKOMBWE BETWEEN BATOKA AND CHOMA, ENOCH KAVINDELE BETWEEN CHINGOLA AND SOLWEZI, MPONGWE BETWEEN LUANSOBE AND MPONGWE, NTOPOSHI BETWEEN MANSA AND CHIPILI AND IN WESTERN PROVINCE WE HAD LUI, TAPO AND MWEKE. THE AGENCY ALSO MANAGED TO MIGRATE TOLL OPERATIONS FROM THE TEMPORARY TOLL FACILITIES TO THE NEW PERMANENT TOLL STATIONS AT KAFULAFUTA AND MANYUMBI.
  • CURRENTLY, WE ARE COLLECTING ROAD TOLLS FROM 24 INLAND TOLLING POINTS AND 10 PORTS OF ENTRY.
  • I WISH TO ASSURE ALL STAKEHOLDERS THAT TOLL COLLECTIONS AND DISBURSEMENTS IS DONE IN AN OPEN AND TRANSPARENT MANNER WITH CONTINUOUS MONITORING OF THE TOLLING SYSTEM TO ENSURE THAT ANY BOTTLENECKS ARE IDENTIFIED AND ADDRESSED IMMEDIATELY.
  • THIS IS DONE THROUGH A CONTROL CENTRE WHICH HAS BEEN ESTABLISHED AT HEAD OFFICE TO PROVIDE REAL-TIME OPERATIONS OVERSIGHT AT TOLL STATIONS AND IN ALL THE BOOTHS. FURTHER, WE HAVE VIDEO RECORDINGS FOR EACH AND EVERY TRANSACTION WITH CUMULATIVE TOTALS OF THE COLLECTED REVENUE FROM EACH OF THE INTERCONNECTED TOLL STATION.

·        ALL THE TRANSACTIONS IN THE SYSTEM HAVE AN AUDIT TRAIL WHICH ENABLES VERIFICATION OF ALL TRANSACTIONS INCLUDING RECEIPTING, AND WE HAVE OPENED UP ALL OUR TOLLING FACILITIES TO VARIOUS INTEREST GROUPS TO APPRECIATE THE INTERNAL CONTROLS AND GENERAL OPERATIONS OF THE ROAD TOLLING SYSTEM.

  • THROUGH THE CCTV INSTALLED IN TOLL BOOTHS, WE ARE ABLE TO DETECT ANY FRAUDULENT ACTIVITIES INVOLVING THOSE OF OUR STAFF MANDATED TO COLLECT TOLLS AND WHENEVER WE HAVE SUCH CASES, THEY HAVE BEEN DEALT WITH IN ACCORDANCE WITH OUR DISCIPLINARY CODE AND GRIEVANCE PROCEDURES.
  • WITH RESPECT TO UTILISATION OF THE TOLLS REVENUE, WE ARE GUIDED BY SECTION 11 OF THE TOLLS ACT NO. 14 OF 2011 WHICH STATES THAT THE TOLL OR OTHER CHARGES IMPOSED FOR THE USE OF A TOLL ROAD AND COLLECTED BY THE AGENCY SHALL FORM PART OF THE ROAD FUND AND SHALL BE USED EXCLUSIVELY FOR THE CONSTRUCTION, MAINTENANCE AND REHABILITATION OF PUBLIC ROADS.
  • WE WISH TO STATE HERE THAT WHEN COLLECTED, ROAD TOLLS ARE PUT TOGETHER WITH OTHER REVENUES FROM FUEL LEVY AND OTHER ROAD USER CHARGES AND DISBURSED FOR ALL ROAD PROJECTS AND RELATED ACTIVITIES.
  • KEY AMONG THESE ROAD ACTIVITIES ARE ROUTINE MAINTENANCE WORKS OF OUR ROAD NETWORK ON WHICH WE FINANCE OVER 500 SMALL SCALE CONTRACTORS FOR VARIOUS ROAD WORKS ACROSS THE COUNTRY AND WE SPENT K336 MILLION ON THIS COMPONENT OF ROAD WORKS.
  • OTHER ROAD INTERVENTIONS WE FINANCED DURING THE YEAR 2019 INCLUDE K303 MILLION FOR THE KAZUNGULA BRIDGE PROJECT, K206 MILLION FOR PERIODIC MAINTENANCE, K375 MILLION FOR ROAD REHABILITATION, K62 MILLION FOR CONSULTANCY SERVICES, AND K26 MILLION FOR EMERGENCY WORKS AMONG MANY OTHER DISBURSEMENTS.
  • A TOTAL OF K590 MILLION WAS RECEIVED BETWEEN DECEMBER 2019 AND JANUARY 2020 FROM WHICH WE PAID OUT K452 MILLION REPRESENTING 77 PERCENT TO LOCAL ROAD CONTRACTORS AND CONSULTANTS AND ONLY K73 MILLION WAS PAID TO FOREIGN CONTRACTORS.
  • WE HOPE TO CONTINUE ON THE SAME GROWTH TRAJECTORY IN TERMS OF TOLL REVENUE COLLECTION. THE GENERAL OUTLOOK FOR THE YEAR 2020 IS POSITIVE AND PROMISING.
  • WE HAVE INLAND TOLL STATIONS AT VARIOUS LEVELS OF CONSTRUCTION AND THESE ARE EXPECTED TO BE COMMISSIONED IN 2020 WHICH WILL BRING THE TOTAL NUMBER OF TOLL COLLECTION POINTS TO 40 COUNTRYWIDE AND THE AGENCY IS EXPECTED TO COLLECT K1.6 BILLION IN TOLLS REVENUE THIS YEAR.
  • IN CONCLUSION, WE WISH TO SINCERELY THANK OUR PARENT MINISTRY, THE MINISTRY OF FINANCE FOR ITS CONTINUED GUIDANCE AND SUPPORT AND ALL STAKEHOLDERS FOR THE COOPERATION RENDERED TO THE AGENCY AS WE STRIVE TO BECOME A SUSTAINABLE ROAD FUND.

members of the press

ladies and gentlemen

I thank you

_______________________________________________________