CONCESSION AGREEMENT UNDER PPP SIGNED
The Government of the Republic of Zambia on 31st October, 2022 signed the Concession Agreement for the Design, Financing, Building, Operation, Maintenance and Transfer of 35km of the mining transportation channel of the Chingola-Kasumbalesa using the Public-Private Partnership (PPP) financing model.
Finance and National Planning Minister Hon. Dr. Situmbeko Musokotwane signed on behalf of the Government and Road Development Agency (RDA) Acting Director and Chief Executive Officer Eng. Grace Mutembo signed as head of the implementing Agency.
Director and Chief Executive Officer for Turbo-Ka-Chin Investment Consortium E. Shangfa was also part of the signatories.
The Concession Agreement has been signed with Messrs. Turbo-Ka-Chin Investment Consortium who have been conferred with the status of Concessionaire for the Chingola to Kasumbalesa road.
The event was witnessed by Infrastructure, Housing and Urban Development Hon. Eng. Charles L. Miliupi, Transport and Logistics Minister Hon. Frank Tayali, Technology and Science Minister Hon. Felix Mutati and Mines and Minerals Development Minister Hon. Paul Kabuswe.
In his remarks, Hon. Eng. Charles Milupi said the transportation sector was critical to economic growth as it facilitated commerce and trade in goods and services, as well as people movement.
“In this regard, the Government has prioritized the development and maintenance of transportation and logistics infrastructure. As a result, in order to overcome the constraints imposed by limited financial resources, the new dawn Government intends to build or rehabilitate these high-traffic roads using the Public-Private Partnership financing model,” Hon. Eng. Milupi said.
He said this model is intended to relieve fiscal pressure by allowing the private sector to collaborate with the Government by investing in public infrastructure and receiving compensation in the form of toll fees for a set period of time.
“This financing model would in turn, improve the delivery of sustainable Public-Private Partnership projects for improved infrastructure development and service delivery. Furthermore, the development of a project like this will serve as a springboard for various youths on the Copperbelt, as it will result in the creation of many jobs in the project area during the construction period as well as the operation and maintenance phase,” he said.
Hon. Eng. Milupi said the goal of the project was to make it easier for traffic to move between Zambia and the Democratic Republic of the Congo (DRC).
Among the notable features of the project would include the widening of the road from Chingola to Kasumbalesa, with the last 3km being finished off with a concrete paved dual carriageway. A toll plaza, two truck parks, and a type 2 weighbridge are other features.
Hon. Eng. Milupi reiterated Government’s commitment to constructing cutting-edge public infrastructure at the right price, quality, and timeline.
Finance and National Planning Minister Hon. Dr. Situmbeko Musokotwane exchanges signed contracts with the Director and Chief Executive Officer for Turbo-Ka-Chin Investment Consortium E. Shangfa. Looking on is Infrastructure, Housing and Urban Development Hon. Eng. Charles L. Miliupi and Permanent Secretary at the Ministry of Finance and National Planning Mr. Mukuli Chikuba.