The Government has signed a Concession Agreement with Macro Ocean Investment Consortium (MOIC-LN) Limited for the upgrading to dual carriageway 327 kilometres of the Lusaka to Ndola Road under the Public Private Partnership (PPP) framework.
Also included in the scope of works is the rehabilitation of 45 kilometres of the Luanshya-Fisenge-Masangano roads, the construction of Kabwe and Kapiri Mposhi bypasses, the construction of two weighbridges and the expansion of existing bridges.
The Concession period will be twenty-five years. Three years will be for construction and twenty-two years operations and maintenance.
Infrastructure, Housing and Urban Development Minister, Hon. Eng. Charles Lubasi Milupi said the transportation sector is critical to the economic growth of any nation as it facilitates commerce and trade of goods and services.
He said the Government is desirous of promoting investment and participation by the private sector in the development and maintenance of the transportation and logistics infrastructure in the country.
“The demand for road infrastructure development in Zambia remains high while the resource envelope is not adequate to bridge the financing gap for road construction, rehabilitation and maintenance works.
“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 (PPP) financing model,” he said.
The event which was held at Protea Hotel in Ndola was also attended by Finance and National Planning Minister, Hon. Dr. Situmbeko Musokotwane, Commerce, Trade and Industry Minister, Hon. Chipoka Mulenga, Transport and Logistics Minister, Hon. Frank Tayali, Information and Media Minister, Hon. Chushi Kasanda, Copperbelt Minister Hon. Elisha Matambo and Central Province Minister, Hon. Credo Nanjuwa.
He said the project will cost US$ 649, 976,167 and the breakdown was US$ 577,383,758 total cost of construction, US$ 1 million working capital, US$1,849,500 finance cost and US$69,742,909 interest during the construction period.
Hon. Eng. Milupi said this model is intended to provide relief fiscally 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 called the ‘Concession period’.
Hon. Eng. Milupi said the project for the upgrading to dual carriageway of the Lusaka to Ndola road was scheduled for execution using the PPP mode of financing and the solicited mode was adopted in order to enhance competition, transparency, fairness, equity and cost-effectiveness.
He said the PPP procurement process was premised on principles of competition, transparency, fairness, equity and cost-effectiveness.
He said line with the principle of transparency a government negotiation team was set up to conduct negotiations.
Hon. Eng. Milupi said the Government this year had plans to have critical road projects implemented under the PPP model.

Minister of Infrastructure, Housing and Urban Development, Hon. Eng. Charles Lubasi Milupi delivering his remarks during the signing of the Concession Agreement for Lusaka- Ndola dual carriageway project.

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