JOINT PRESS STATEMENT BY THE NATIONAL ROAD FUND AGENCY (NRFA) AND THE ROAD DEVELOPMENT AGENCY (RDA) ON THE RECORDED PROGRESS AND TRANSITION PLAN ON THE LUSAKA-NDOLA DUAL CARRIAGEWAY PPP PROJECT
The Government of the Republic of Zambia embarked on the upgrade and reconstruction of key infrastructure facilities across the country. One of the key projects is the upgrading of the Lusaka to Ndola Road to dual carriageway using the Public-Private Partnership (PPP) financing model.
The Concession Agreement for this project was signed on 28th February 2023 with Messrs. MOIC-LN, the Concessionaire, at a cost of US$ 649,976,167.00 through the Road Development Agency (RDA). The Concession period is for twenty-five (25) years with three (3) years as a construction phase and twenty-two (22) years for operations and maintenance.
The project also involves the rehabilitation of 45 kilometres of the Masangano-Fisenge-Luanshya Road and the construction of approximately 30 kilometres of bypasses in Kabwe and Kapiri-Mposhi. In addition, a new bridge has been designed and will be constructed at Kafubu Bridge in Ndola replacing the current existing one.
The Concessionaire is undertaking works simultaneously from four sections of the project, namely from Lusaka to Chibombo (1), Chibombo to Kapiri Mposhi (2), Kapiri Mposhi to Ndola (3) and Masangano-Fisenge-Luanshya Road (4).
The project has recorded tremendous progress from the time the Head of State, His Excellency President Hakainde Hichilema officiated at a Groundbreaking Ceremony in Kapiri Mposhi District on 21st May 2024.
The current overall progress on the Lusaka-Ndola stretch is at thirteen percent (13%) while seventy percent (70%) has been attained on the Masangano-Fisenge-Luanshya Road.
The Concession Agreement also involves the running of the three Toll Plazas namely Katuba between Lusaka and Kabwe, Manyumbi between Kabwe and Kapiri Mposhi and Kafulafuta between Kapiri Mposhi and Ndola.
In addition, two new Toll Plazas will be constructed, one on the Masangano-Fisenge-Luanshya Road, and the other between Chibombo and Kabwe. A new weighbridge will be also be constructed at Kafulafuta with the existing one at Kapiri Mposhi being upgraded.
In line with the Concession Agreement, the National Road Fund Agency (NRFA) which operates all Toll Gates in the country as a Lead Tolls Agent on behalf of the RDA will hand over the existing three Toll Gates (Katuba, Manyumbi and Kafulafuta) to the Concessionaire on 30th November 2024.
All the toll fees collected from these three Toll Gates, will be channeled into an ESCROW Account controlled jointly by the Government and the Concessionaire for the maintenance of the existing road until the Concessionaire completes the construction of the project and takes over the full operations and maintenance of the new road.
The NRFA has since initiated a multi-stakeholder engagement process involving key Government Ministries, the RDA, the Concessionaire, and the workers representatives (Unions) to ensure that a smooth transition process is undertaken within existing provisions of the law.
The NRFA has been undertaking a number of activities to actualize the implementation of the PPP programme and has developed a transition plan to ensure a smooth and incident free transition. Motorists have been assured that there will be no disruption to tolling operations at the three Toll Gates and all key toll features including the electronic card payment platform will still be in use.
In line with Government Policy of economic transformation and job creation, the NRFA, has put necessary measures to avoid job losses for the affected 127 staff at the three Toll Gates and has offered the employees the option of continuing in the employment of the Agency and be redeployed to other Toll Stations and those under construction by the RDA.
Further, the affected staff have the option of separating with the Agency and be employed by the Concessionaire under new conditions of service or pursue their own interests outside the NRFA and the Concessionaire.
The NRFA will proceed to settle terminal packages for all employees who will opt to separate from the Agency in line with the Applicable Laws and Contracts.
The Road Sector Agencies will continue to consult all stakeholders during this transition process and ensure the successful implementation of the PPP financing model which allows Government to free up public resources for other national priorities and needy areas whilst still enabling the development of the much-needed road infrastructure.
ALPHONSIUS HAMACHILA ANTHONY MULOWA
_______________________ _________________________
MANAGER PUBLIC RELATIONS CHIEF COMMUNICATIONS AND
NATIONAL ROAD FUND AGENCY CORPORATE AFFAIRS MANAGER
ROAD DEVELOPMENT AGENCY