A LOOK INTO THE NDOLA – LUSAKA PPP ROAD PROJECT FROM THE VIEW POINT OF A NON ENTITY
We have Government signing a contract with Macro Ocean Investments a Consortium
Members of the Consortium are
- Avic international
- Zhenjiang communication
- China Railways
But the consortium won’t do the job because they have contracted Avic international (Ironically which is part of the consortium)
So Government has no Contract with the Contractor because the Contract is held by the Consortium Ocean investment
As if this is not bad enough
The Contractor AVIC INTERNATIONAL goes to Borrow Our money money from Pension Scheme and uses it to build our road where they have 25 years to collect fees and make a Super profit here
Now Financiers can not hold Government for anything going wrong because NAPSA will have Financial contract with Avic international who is not contracted by Government
Government has washed it self out of any Liability into this project but the question is who brought NAPSA into this?
Why is NAPSA interested to invest into this project?
So we are investing in Avic as a people through our Pension contribution but we are told not to worry because we will make a Profit when we could have made the investment directly and localize All the Projects earnings
Morally and ethically this is wrong and day light stealing because us the People will Contribute Twice
First though our Pension contribution then again when paying Toll fees
The Losers in this model are the people of Zambia who will pay for this project at a very high price for a life of a man whose life expectancy is 40s so from birth to the Grave Zambians being born now will carry this Debt
Ocean investment are not investing any thing into this but have probably negotiated a lower Rate with Avic and then they make their money where they did not invest a single coin but we are told they will do a Guarantee for the loan
But this is a Road that doesn’t need a Guarantee because the project can be a Guarantee itself as money will be collected through Toll fees
Zambia already has assurence of Toll fees collection because we had them since 2017 and records show smooth collection and figures would show
So the rist is low or nill
so why ask for a Guarantee?
Let the project and the Collection of toll fees be the Guarantee
Our Proposed model is ;
Let Napsa be the Concessionaire using an SPV in Partnership with RDA and contract a contractor and pay him the Contract Sum
The issue of the risky that The contractor may not do a good job and the Loss will be on The Financier NAPSA if the project won’t stand the test and low Revenue will be collected can be and should be clearly Spelt out in the Contract with a Performance Bond
The period of care and maintanance can be half the period of the recovery of investment
The Retention amount Also should be good enough to cover any immediate damage and wear of the road
The third backfall is Appointing a Project Manager who will do very good job on supervision of the day to day activities and the Project Manager should carry the Risky of failure for an agreed period after commissioning
Then we have RDA who will also be supervising the Project
The above will Add a few Millions but the lose on us the people won’t be as heavy as it is now because the recovery and Profit will be Localized and NAPSA will get more than what they will get in the Ocean lending arrangement
©️ Chief Non Entity
Wanalu wa Moola