Africa-Press – Zambia. The government of Zambia has been under fire from the Socialist Party (SP) over its handling of the Lusaka-Ndola Dual Carriage Way project. Despite the party’s spokesperson Frank Bwalya stating that they are not against the project, he expressed his displeasure with the manner in which the government has decided to build the road.
“We wonder why a company with literally nothing would come to Zambia, say they will build a road for us and they will use our money, and after building the road for us after using our money, they are going to own that road, collect toll fees, in other words pay themselves for 25 years,” Bwalya said. “There is a component of maintenance in that 25 years, but that road will not be what it would have been 25 years before.”
Bwalya expressed concern that the contracted company will be collecting toll fees for 25 years, a duration he believes is too long. He also questioned why a company with no resources would be given such a contract. He warned Zambians that this is how capitalists operate, “They come with nothing, they only register a company, they use your money, money for all the workers, money that you sweated for, you suffered for, that is the money that they want to use. At the end of the day, after using that money in that manner, they are the ones who are going to go away smiling and laughing.”
Bwalya emphasized that the project is being funded by money belonging to Zambian workers held by NAPSA, and questioned why the government has decided to take this route. He further warned that this is how middlemen operate.
“When that road is given back to us, depending on when the project will start, I think I will be 85. Zambia will require, perhaps 10 times or 20 times or even 50 times more, the money that will be spent to build that road, to rehabilitate it, or build it afresh,” he added.
However, the Minister of Infrastructure, Housing & Urban Development, Charles Milupi, has defended the project, stating that the government envisions to get over US$1.1 billion monetary benefits from the Lusaka-Ndola Dual-Carriage Way project during the PPP concession period.
“For the sake of transparency, under the concession agreement to finance, construct, operate, and maintain 327 kilometres of the Lusaka-Ndola Dual Carriageway project, and rehabilitation of 45 kilometres of the Luanshya-Fisenge-Masangano, via Public Private Partnership (PPP) procurement model, the government shall have the right to audit all accounts and examine all books, records, papers, reports and other documents relating to this agreement,” Milupi said.
Milupi further stated that the government and concessionaire have agreed to a revenue-sharing mechanism based on gross revenue. The percentage share to the government shall range from 1.5% to 15% of the gross revenues over the concession period. The government envisions accruing US$1,172,157,616.00 in monetary benefits from the project over the concession period, broken down as follows: government share of total gross revenues – US$432,064,717.00, income/corporation tax – US$660,344,643.00, and withholding tax on dividends – US$79,748,256.00.
Despite the government’s assurances, the Socialist Party remains skeptical about the project’s viability, especially in light of the lengthy concession period. It remains to be seen how the project will progress and whether it will meet the expectations of both the government
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