Chinese Consortium Takes Over Lusaka-Ndola Toll Gates Amid Public-Private Partnership Deal

17

The Macro-Ocean Investment Consortium (MOIC) is set to assume full control of toll gates along the Lusaka-Ndola road, effective November 30, 2024, under a 25-year Public-Private Partnership (PPP) agreement. This significant move follows the signing of the Commercial Agreement on February 28, 2023, which outlines the financing, construction, and operation of the Lusaka-Ndola dual carriageway.

Toll Revenue to Fund Infrastructure Development

The Lusaka-Ndola road toll gates currently generate an annual revenue of $30 million. These funds will now be channeled into an escrow account jointly managed by the Zambian government and the Consortium. The revenue will support immediate repairs and the eventual completion of the dual carriageway, ensuring a functional and well-maintained road network.

Redundancy Packages and Staff Reallocations

To facilitate the transition, the Ministry of Finance and National Planning has allocated K70 million to the National Road Fund Agency (NRFA) for redundancy packages. Affected toll collectors at the Katuba, Manyumbi, and Kafulafuta toll gates have been offered options, including redeployment within the NRFA, employment under the Consortium, or separation with terminal benefits.

Out of 127 affected employees, 87 chose to join the Consortium, while 23 opted to pursue independent opportunities. The remaining 17 have been redeployed to other toll gates managed by the NRFA. Payment of redundancy packages is now underway for the 110 individuals who decided to separate from the Agency.

Transition Assurances

NRFA Public Relations Manager Alphonsius Hamachila assured motorists of a seamless transition, noting that the current toll tariff structure and electronic payment systems will remain unchanged. The Consortium has committed to maintaining the road and completing the dual carriageway while preserving the operational standards at the toll gates.

Public Reactions

The takeover has sparked mixed reactions from stakeholders and the public. While some view the PPP arrangement as a step toward infrastructure development and economic growth, others have raised concerns about the early handover of toll gate operations before the road’s completion. Questions about the funding model, which relies heavily on toll revenue, have also fueled debate.

The Road Ahead

The Lusaka-Ndola dual carriageway is a critical infrastructure project aimed at enhancing connectivity and boosting Zambia’s economic prospects. The PPP agreement reflects the government’s strategy to leverage private sector investments for national development. However, its success hinges on transparent execution, efficient management, and addressing public concerns.

As the Macro-Ocean Investment Consortium assumes control, all eyes will be on the progress of this ambitious project and its impact on Zambia’s road network.