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
Ba do or die Zambia……..
You don’t understand anything………
You are embarrassing yourself and your appointing authority…………
Let Napsa and workmen compensation trust
Team up with ZRA and pay the contractor
And recover that money in twenty five years.
Why should contractor collect for twenty five years?
How can this hypocrite Father Bwalya express concern since he was part of the govt that approved a $1.2 valuation of this very motorway and that was just from Lusaka to Ndola.
Frank Bwalya and his President must quickly address the serious allegations that have been made by Wynter Kabimba about their stance on LGBTQ. Wynter has even staked his finger. So it’s misplaced for Frank to talk about this topic before they respond to Wynter.
This government is a joke they cannot do anything right what could be the problem , any way everything starts from the head now we have to see what we were told by politicians that some one cannot be president is this what they were talking about , it is almost two years we haven’t seen mealie meal reduced to k50 and fuel to k12 and the dollar at k12 fertilizer k250 , these are the things Zambians want to see happen , to improve standard of living for our people.
This is James Hardly Chase,the company must be invesgated and find out also about the profile of this company.You will find out that this company does not even exisist but someone want to use this company to benefit.ACC can you please investigate and stop what you are doing pretending as if you dont know what is going on.Where on earth,such a deal, this is a hoax James Hadly Chase.
And dont cheated, PF wanted to do the road at a cost $1.2 and the BOQ was different opposed to that of UPND.For PF it included even infrastactures along the road,hotels,shopping malls etc but for this one it is just a road and the waste of all money will come from within given to this broke contractor who in return will make money out of this scandle.
SOME ENGINEERS CAN DO WONDERS ONLY THAT THEY DONT RESOURCES . SO SP, DONT THINK AND SINK SO NEGATIVELY . LET THE GOVERNMENT SUPPORT AND FACILITATE THEIR LOAN OPPORTUNITIES ; SOME UPCOMING ZAMBIAN GROUPS AND COMPANIES OF INTELLIGENT AND PRAGMATIC ENGINEERS CAN DO GREAT WONDERS AND CONTRIBUTE TO JOB CREATION ONLY THAT THEY CAN’T BE GIVEN LOANS AND CONTRACTS BECAUSE THEY DONT HAVE MATERIAL RESOURCES. HH PLZ KEEP IT AND FACILITATE LOANS AND CONTRACTS TO SEVERAL COMPANIES AS DONE OVER LUSAKA-NDOLA DUAL . YAAH NO MUCH EXTERNAL DEBTS