The Concession Agreement for the Public Private Partnership (PPP) Project for upgrading to Dual-Carriage- Way of 327 km of T2/T3 from Lusaka to Ndola, including rehabilitation of 45km of Luanshya-Fisenge- Masangano Road was signed on 28th February, 2023 in Ndola.
To overcome constraints imposed by limited financial resources, the new dawn Government will build or rehabilitate high traffic roads using the Public Private Partnership (PPP) financing model.
The PPP procurement process is premised on principles of competition, transparency, fairness, equity and cost-effectiveness, through a Government negotiation team.
For the Lusaka-Ndola and Luanshya-Fisenge-Masangano Roads, the solicited PPP mode was adopted to enhance competition, transparency, fairness, equity and cost-effectiveness.
The call for Expression of Interest (EOI) was published in the PRINT MEDIA on 16th February, 2022.
Following 3 above, seven (7) proposals from interested firms were received by March 11, 2022.
The received proposals were evaluated from 4th March to 21st March, 2022.
Two (2) firms were responsive to stipulated evaluation criteria and were thus shortlisted after evaluation.
In line with the Public Private Partnership Act, the requests for proposals (RFP) were issued to the shortlisted firms on 5th May, 2022 for submission by 1st July, 2022.
A second stage of evaluation was conducted by the contracting authority (GRZ/Ministry of Infrastructure and Urban Development), within July 2022.
Following evaluation of proposals and negotiations in line with provisions of the Public Private Partnership (PPP) Act no. 14 of 2009 (as amended), the Government agreed to enter into a CONCESSION AGREEMENT with the successful bidder for project execution on design, finance, build, maintain, operate and transfer basis.
After establishing the technical, financial and legal capacity of the preferred bidder, the Government awarded the concession agreement to MACRO OCEAN INVESTMENT CONSORTIUM (AVIC International Project Engineering Company, Zhenjiang Communications Construction Group Limited, and China Railway Seventh Group Limited).
The concession period will be twenty-five (25) years split into (a) three (3) years construction; and, (b) twenty-two (22) years operation and maintenance.
The Government will not spend any ngwee or provide any sovereign guarantee for the project. And for the WHOLE CONCESSIONAL PERIOD, the Government will not spend any money on maintenance of the road.
Scope of the project shall mean and include, during the concession period: performance and execution by the concessionaire of all design, engineering, financing, procurement, construction, completion, operation and maintenance of the project infrastructure as follows:
Construction of a 327 km DUAL CARRIAGE-WAY from Lusaka to Ndola;
Construction of Kabwe and Kapiri Mposhi BY-PASSES;
Rehabilitation of 45 Km Masangano-Fisenge Luanshya road;