Lusaka-Ndola Dual Carriageway; A Criminal Contract
By Amb. Emmanuel Mwamba
On 28th February 2023, the Government Republic of Zambia (GRZ) signed a US$650m, 25-year Public Private Partnership (PPP) Concession Agreement with a newly formed entity called; Macro Oceans Investment Consortium (MOIC) to construct a 327km dual-carriageway between Lusaka and Ndola cities.
Macro-Ocean Investment Consortium claims it’s a group of Chinese Companies, headlined by Aviation Industry Corporation (AVIC International) and China Railways Seventh Group, which partnered with an unkown local entity.
The trouble with this contract was the project financing structure announced.
Before even approval was sought, Government announced that funding of the project will be met through loans from pension funds; NAPSA and Workers Compensation Fund Control Board.
Further, the contract stipulates that the Concessionaire will immediately take-over the operations of the toll gates and its revenues.
This meant that this contract was purporting to be a Public Private Partnership( PPPs) when infact its the public funded project through public pension funds and through toll fees paid by motorists before the road was even delivered.
This meant that the source of funding for the project is forced loans from public pension funds run and operated by Government, and free revenue to the Consortium.
If the Concessionaire believes in the project let it obtain its laons from private pension funds like AfLife and banks.
Clearly the Consortium will will not raise any money, but build the project from public funds, operate and mint billions of dollars for a period of 25years while purporting that this was a PPP.
Thieves.
Like the new Vedanta/ZCCM-IH contract, this is one of those contracts with crime and fraud, embedded at the heart of the contracts.
NRFA has just announced that it will handover the toll gates to the Concessionaire.
Below is their statement.
LUSAKA-NDOLA ROAD TOLLGATES TO BE HANDED OVER FOR UPGRADE
The National Road Fund Agency -NRFA- has started engaging stakeholders on the handover of three Tollgates on the Lusaka- Ndola road to the Concessionaire who will be upgrading the stretch into a dual carriageway.
NRFA Public Relations Manager ALPHONSIUS HAMACHILA says among the stakeholders being engaged are the Road Development Agency -RDA, the Concessionaire, and the workers unions.
Mr. HAMACHILA says this is to ensure that a smooth transition is undertaken within existing provisions of the law.
The Tollgates to be handed over are Katuba, between Lusaka and Kabwe, Manyumbi, between Kabwe and Kapiri Mposhi both in Central Province; and Kafulafuta, between Kapiri Mposhi and Ndola on the Copperbelt Province.
He says Government through the implementing Agencies will ensure that workers interests and rights are protected and jobs secured during the process.
ZNBC