WHAT MANY PEOPLE DON’T KNOW ABOUT NAPSA
REMEDYING THE IGNORANT DISCOURSE ON NAPSA PARTICIPATION IN PPP
1. Despite NAPSA being a public institution it manages private money through a pension fund on behalf of all citizens.We are all defacto shareholders in NAPSA.
1. NAPSA is financing the developer/concessionaire in managing the project. If you are against NAPSA investing in this project, you should be also be against NAPSA partnering with the Marcopolo tile company, Livingstone and many others.
2. NAPSA as a pension fund, is an institution investor that will try to diversify into several sectors including roads as a positive step to improve its portfolio..
3. You cannot assess the PPP project when you are ignorant of the traffic volumes, revenue projected, tax collected, risks avoided, jobs created, time saved, loans avoided, interest avoided and technology transfers. In other words don’t assess a PPP using emotions, show us your figures.
4. Road or bridge concessions depending on toll fees, capital costs or economy can range between 20 – 30 years, world wide. If you want a shorter concession period, get ready for higher toll fees.
5. This is the first proper PPP, an opportunity to learn from. it is better than sticking to the historical culture of begging government to repair roads like a broken record.
6. The maintenance contract attached to the PPP, distinguishes this deal from to traditional approach where fees were collected but Ndola road developed maize field ridges.
7. Government will generate revenue from commissions, taxes and other statutory fees.
8. If you are against this project, then tell us the alternative, like how a government that is in default, can raise $700m, pay low interest and complete project in 36 months.
9. NAPSA position means participation in the SPV and better Zambians supervision of projects.
10. If the developer decided to access finance from south african pension funds, the same people will complain for overlooking NAPSA. Mind you NAPSA might provide kwacha denominated finance that will avoid forex risk.
In a nutshell lets not discuss national issues without data, with political lenses and with bitterness.
PF MPs have been talking about PPPs for 10 years but failed to implement one because of the lack of stealing opportunities in PPPs. There was no private entity that was going to spend $1.2b and use tolling to recover money. That is why PF planned to borrow and inflate the contract. Let those against, watch and learn.
Richard Waga