{"id":41982,"date":"2023-03-10T23:36:22","date_gmt":"2023-03-10T23:36:22","guid":{"rendered":"https:\/\/www.africa-press.net\/zambia\/all-news\/new-lusaka-ndola-dual-carriage-way-a-ppp-or-a-scam-emmanuel-mwamba-weighs-in"},"modified":"2023-03-10T23:44:25","modified_gmt":"2023-03-10T23:44:25","slug":"new-lusaka-ndola-dual-carriage-way-a-ppp-or-a-scam-emmanuel-mwamba-weighs-in","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/zambia\/all-news\/new-lusaka-ndola-dual-carriage-way-a-ppp-or-a-scam-emmanuel-mwamba-weighs-in","title":{"rendered":"New Lusaka-Ndola Dual Carriage Way: A PPP or a Scam? Emmanuel Mwamba Weighs In"},"content":{"rendered":"

Africa-Press – Zambia. <\/strong><\/span>The New Dawn Government of Zambia has signed 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. The deal has sparked a debate on whether it is a Public-Private Partnership (PPP) or a scam.<\/p>\n

At the Launch Ceremony held at Protea Hotel in Ndola, Ministers went to a great extent to demonstrate that Government \u201cwould not spend any money on the project\u201d as this was a PPP. \u201cThe Concession Agreement has secured a revenue-sharing mechanism during the concession period. The road will have toll gates and upgrade of two weigh bridges being fully funded by the concessionaire from construction to maintenance,\u201d said Minister of Infrastructure and Housing, Hon. Charles Milupi.<\/p>\n

Public-Private Partnership (PPP) is a partnership between the public sector and the private sector, forged for the purpose of delivering a project or a service traditionally provided by the public sector. \u201cIn the road sector, whilst toll concessions are one form of PPP, tolls should not be considered synonymous with PPP, as there are many instances of publicly financed roads carrying tolls,\u201d explained Amb. Emmanuel Mwamba in his article.<\/p>\n

\u201cIt is for this reason that Zambia High Ways now carry toll plazas and the roads remain publicly funded and does not have a private partner,\u201d he added.<\/p>\n

The financing structure of the Lusaka-Ndola Dual Carriage Way is another issue of concern. \u201cLet us be clear, both NAPSA and Workers Fund Compensation Board are public pension schemes and are public institutions. This is a publicly funded project with $200million proposed to be sourced as a loan contracted from a private bank by Government!\u201d exclaimed Mwamba.<\/p>\n

He further highlighted that \u201cNAPSA was formed through an Act of Parliament to provide income security against the risk arising from retirement (old age), death and invalidity with a focus on adequacy of benefits while the WCFCB is a social security scheme responsible for compensating workers in respect of accidents suffered and diseases contracted during the course of their duty.\u201d Thus, the use of public pension schemes to finance a PPP has raised questions about the government\u2019s intentions and the accountability of such partnerships.<\/p>\n

There are different models of PPPs, as Mwamba noted in his post. \u201cThe purpose of entering into a PPP project is to free Government resources and provide for other urgent social needs but use the opportunity to access private-sector financing to build public infrastructure.\u201d<\/p>\n

He also explained that \u201cthe private sector then recovers their money through tolls or user charges of the road or Government takes the burden and picks up the tab as a public debt and pays the private partner through taxes.\u201d<\/p>\n

Another well-known model is where the private sector finds the investment to finance, build, and operate the project. But Government or the Public partner then retains ownership of the assets after the expiry of the lease or concession period.<\/p>\n

As the debate on the Lusaka-Ndola Dual Carriage Way deal continues, it is important for the government to address the concerns raised by the public and provide transparency in the partnership. As Mwamba stated, \u201cthe success of PPPs is dependent on transparency, accountability, and mutual respect between the public and private sectors.\u201d<\/p>\n

For More News And Analysis About Zambia<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Zambia. The New Dawn Government of Zambia has signed 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. The deal has sparked a debate on whether it is a Public-Private Partnership (PPP) or a scam. At the […]<\/p>\n","protected":false},"author":84,"featured_media":41981,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,7,12],"tags":[234,235,233],"class_list":["post-41982","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-head-lines","category-policy","tag-africa-press","tag-africa-press-zambia","tag-zambia"],"yoast_head":"\nNew Lusaka-Ndola Dual Carriage Way: A PPP or a Scam? 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