Thursday, July 18, 2024

Government clinches a $577 million concession agreement deal for the Ndola-Lusaka Dual Carriage Way

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The New Dawn Government has clinched a USD 577 Million concession agreement deal with Macro-Ocean Investment Consortium for the financing, construction, operation and maintenance of 327 Kilometers Ndola-Lusaka Dual Carriage Way

Besides the 327 Kilometers Ndola-Lusaka dual carriageway project, the 25-year deal will also see the rehabilitation of the 45 Kilometers Luanshya-Fisenge Masangano Road.

Minister of Finance and National Planning Dr. Situmbeko Musokotwane signed the concession agreement for the Public Private Partnership Project for the upgrading of the Ndola Lusaka Road into a dual carriage way on behalf of the Government with E Shangfa signing on behalf of the consortium.

Speaking after the signing ceremony at Protea Hotel in Ndola, Dr Musokotwane said there is a need to manage roads profitably and further highlighted the advantages of the project.

“This is our road. It is not a road for the concessionaires. So the responsibility is to make sure that we use this road responsibly so that we minimise the costs. If the cost rises, the tolls will go up. If we misuse the road and the maintenance costs go up, the tolls rise. It means that when we are given limits, generously we are saying don’t overload your trucks. It is in our interest as road users to ensure that we don’t overload because if we overload we are going to pay the cost. So it is our responsibility as citizens if you see somebody overloading the truck it is actually your citizen’s duty to call RDA or police. If the road gets damaged we are all affected. In the construction phase jobs will be created. Those of you who are subcontractors prepare yourself but deliver quality. Along the road there will be so many businesses coming. The congestion that we will see today will disappear. There is everything good about this project,” Dr. Musokotwane said.

Macro Oceans Investment Director Consultant E Shangfa assured that the firm will put up quality works within the timeframe of three years (36 months).

“This project with a direct investment of USD 577 Million shall see the new Lusaka Ndola road be upgraded to a 327 Km dual carriage way all the way from Lusaka and the rehabilitation of 45 Kms of the Luanshya -Mafinge Road. This is a very big milestone in the history of the country as the road remained a single carriage-way from independence. The new dual carriage way shall not only ensure road safety for motorists and passengers following the many accidents that have claimed many lives on the road but it shall also provide better driving experience to motorists thereby reducing travel time and cost between the many cities along the road,” Shangfa said.

“We are confident that through efficiencies to be created by the new road there shall be exploitation of many export opportunities for Zambian goods and products and shall reduce the cost of doing business as compared to the current situation. We would like to assure the government of our commitment to build a high quality road within 36 months of commencement of works. It is our hope that the financial negotiations shall be concluded within the next six months so that project construction can commence. It is also our pledge that we shall ensure smooth operation of the road while construction works are underway and provide good operation and maintenance service after the project is completed,” he said.

“We further wish to assure the government of our commitment to involving local participants with opportunities for investment, construction, and maintenance, to ensure the local people and businesses also benefit from this project through its lifespan. Our company shall employ many experts and qualified staff and non skilled labor during the construction phase of the project and a further more after construction is completed during operation and maintenance period. These jobs shall translate into stable incomes to over 500 households in Zambia thereby reducing the levels of poverty which is one of the major objectives of your government,” Shangfa said.

Minister of Infrastructure Charles Milupi said the launched deal of constructing the Ndola Lusaka Road is now cheaper compared to the contract signed by the previous PF Government.

Dr. Situmbeko Musokotwane led a delegation of Ministers, chiefs, senior Government officials, UPND officials, private sector partners and other stakeholders during the event at Protea Hotel in Ndola.

31 COMMENTS

  1. A contract signed in Zambia to which the government itself is a party has been signed and priced in the currency of another country. This really saddens me. What signal are we sending about the legal tender status of the Zambian currency, the good old kwacha? Who’s to defend the kwacha if the government itself will not?

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  2. They should work fast and ensure the project is completed on time. In the meantime they should put up overtaking lanes at strategic places like 10 miles where congestion is the order of the day which takes you 5 hours just to get from kabwe to lusaka and vice versa.

    • Razor – This is a financing, construction, operation and maintenance or a
      Design build operate maintain DBOM contract ..you can forget about overtaking and flooring it like autobann the contractor will charge you toll fees and if they dont meet their target. The contractor is paid fees by the employer who is GRZ in the form of availability payments or shadow tolls.
      One plus is that this is by far more reasonable that what PF’s $1.2 billion valuations.

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  3. What of the $1.2 billion PF govt signed for this project what happened to that? Why you fail to mention that it was cancelled for being overpriced awarded to China Jiangxi Corporation for International Economic and Technical Cooperation (CJIC) in 2017 by PF. Who is behind this Macro-Ocean Investment Consortium? Where is the transparency we were promised?

  4. In Zambia its cheaper to travel by bus because all these contracts just mean one thing – toll fees on public roads…why pay road tax..its better people only pay their respective councils road tax instead of being charged twice when they travel to another city.

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  5. The contractor to collect toll fees for 25 years. F00lish upnd. Alot of corruption. Hh has interests in this deal.

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  6. Nigerians looked at zambia and saw the madness that happens when you vote in lying opposition. They have decided to make the safe choice and re-elect the experienced ruling party. Nigerians have sense. Congratulations APC. Pf will be back as Zambians have regretted their f00Iishnessn

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  7. Let’s open and read together from our political diary. Not a long time ago we we’re excited to sing and beat the drum chanting that we don’t eat roads we need food on the table. Will this song die and be buried ?

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  8. I would like to read the concession agreement. can we have the document available for public scrutiny. Government officials have the habit of not reading and scrutinising contracts!

  9. This is good development. It has been long overdue. I hope the quality hasn’t compromised to cut the cost. This is a very important road so quality should be of high standard. Let’s hope it will have street light all the way…

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  10. What’s the total cost of the project? It’s been announced that NAPSA will pump in US$750M into this project as well. Is the US$570M from NAPSA ‘s investment or it’s counterpart funding from the concession holder? If we add the 2 figures it goes beyond the US$1.2BN. We may be dealing with expert criminals here

  11. Information missing in the current contract: the PF road was 11 metres wide but this has been reduced to 9. PF road included township roads at Kabwe and Kapiri, this doesn’t. PF included infrastructure at Chibombo and Kafulafuta, this doesn’t. It therefore follows that the cost can’t be the same. So what’s the UPND trying to tell us?

  12. Please stop this contract it is all rubbish you cannot privatise our roads stop it, stop it 25 years giving away our toll fees to yourself and your friends do you know how much money is collected in toll fees in a month .
    Please think before you agree to anything do you think Zambians are so dull to know what you are hiding and you are saying you are cheaper than your predecessors.
    I can say you are worse than them.
    Lusaka Ndola highway is the busiest highway and toll fees come in billions per month and that is what you want to be giving away for 25years that madness .

  13. kkkkkkk again we sailing our birth right,stop lying the BOQ for PF and that of UPND is totally different.PF had a good BOQ that is why it was expensive because it included constructions of hotels along the same road.UPND denonuced the infrastructure built by Isreal at the boader which is also on concession,they dispased that,but this is what they are doing to Lusaka/Ndola Road.StOP LYING you the ones in control.Why 25 years are sure this is the right way to go.The minster said 10,000 cars passes through Lusaka/Ndola road per day,excluding Trucks.How much is that and how many tall gates from Lusaka to Ndola.kkkkkkk and 25 years concession mmmmmm be serious.

  14. Being cheap does not always mean cost effectiveness…..CHEAP CAN BE COSTLY IN THE LONG RUN if all you do is concentrate on money-figure than the quality of the project/Infrastructure itself.

    • Continue…

      Yes, this amount may be lower than what the PF vision was for the project, but what is not clear is whether this project will accomplish everything that was included in the PF plan. So, it is hard to say if this is even cheaper than the PF’s proposal.

    • Continue…

      All I see is an additional 45 km of another road. Does this mean the other additional infrastructure included in the PF plan has been Jetsoned from the UPND plan? The Finance Minister has to give more details to Zambians so that there are no unfounded speculations and innuendos.

    • Continue…

      Zambia is growing, and growing fast, so projects should reflect that reality so that we don’t find ourselves facing the same problems (capacity wise) right after the concession period is over. Let us imagine big for ourselves and for future generations of Zambians. That’s how serious leaders and govts think and operate. By the way, where are the plans for the project? PF put their plans on display for everyone to see and critique.

  15. Will Zambians lament over this project as they lamented over the sale of the Zccm mines and the many parastatal companies? Is it scary and unsafe to let a contractor collect toll fees for 25 years?

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