Minister of Infrastructure, Housing and Urban Development Hon. Charles Milupi has provided more details regarding what he termed as the unsolicited proposal from the Southern Africa Business Development Forum (SABDF) for the establishment of the resettlement infrastructure investment and enterprise support (ARIISE) programme to promote infrastructure development.
In a media post on his Facebook page Mr Milupi said that even if this project was started by the former government, the New Dawn government decided to proceed with it because it has vast benefits, ranging from improved road infrastructure to providing connectivity, which is a catalyst for economic activity and trade, resulting in economic growth and reduced poverty.
Below is the full post
30% OF CIVIL WORKS ON THE NEW DAWN GOVT APPROVED WESTERN CORRIDOR TRADE FACILITATION ROUTES PPP PROJECT TO BE SUBCONTRACTED TO LOCAL COMPANIES
Good morning fellow Zambians, be informed that the New Dawn administration having reviewed the terms and conditions, as well as the associated benefits of the concession agreement for the development of the Western Corridor Trade Facilitation Routes, has given a ‘no objection’ to the Public Private Partnership (PPP) project.
However, this ‘no objection’ is premised on a condition that the project is done at the correct price, completed within the agreed time and delivered at the right quality. Thus, the Road Development Agency (RDA) has been tasked to review the cost for each road link and ensure that cost reasonableness analysis is conducted to bring the estimated project costs to acceptable values.
Engineers from RDA and the Ministry of Infrastructure, Housing and Urban Development are, therefore, currently in the field carrying out assessments that will inform the expected cost of the project. Following the approval to proceed by the New Dawn administration, the RDA, by law, issued a legal notice which has since been published in the public media.
Admittedly, even if this project was started by the former government, the New Dawn government decided to proceed with it because it has vast benefits, ranging from improved road infrastructure to providing connectivity, which is a catalyst for economic activity and trade, resulting in economic growth and reduced poverty.
Other benefits include, providing off-take of the domestic produce to be sourced from all existing 93 and new resettlement schemes under the Office of the Vice-President, and exported to Namibia, Angola and the Democratic Republic of Congo. Yet other benefits include, job creation, empowerment of local contractors through subcontracting of 30 percent of the total value of civil works to citizen-owned firms, reduced travel time and reduced vehicle operating costs.
Finally, fellow citizens, the background to this is that, the former PF-led government through the Office of the Vice-President, received an unsolicited proposal from the Southern Africa Business Development Forum (SABDF) for the establishment of the resettlement infrastructure investment and enterprise support (ARIISE) programme to promote infrastructure development.
This was transmitted through their proposal letter dated December 5, 2018. The delegation of the SABDF was facilitated to engage the Zambian government by then High Commissioner to the Republic of South Africa, Mr. Emmanuel Mwamba. The Office of the Vice – President sent an acknowledgment to the High Commission through the Ministry of Foreign Affairs, for facilitation.
Now, arising from a meeting held between the Government of the Republic of Zambia and the investor, a Memorandum of Understanding (MoU) was signed on October 16, 2019 and the Public Private Partnership (PPP) Council at its 21st Ordinary meeting held on May 7, 2021 considered and approved the unsolicited proposal on the ARIISE programme. To this end, the concessionaire, SABDF, incorporated a special purpose vehicle for the concession, Messrs. Nkhulu Zambia Limited.
Following the approval, the Government of the Republic of Zambia (GRZ) under the PF, signed a concession agreement with the concessionaire on August 10, 2021. Under the concession agreement, total project cost means the lowest of the following:
A sum of United States (US) dollars three billion, two hundred and thirty million (ZMW3.230 billion), actual capital cost of the project upon completion of the project infrastructure as certified by the auditors, or total project cost as set forth in the financing documents. But the financing documents are yet to be concluded and when this is done, it shall constitute financial closure on this matter.
Note also that the concessionaire has proposed a concession period of 25 years, which will be firmed up once the final project has been determined. The scope of the project, once more, includes design, build and rehabilitation, operate and transfer of approximately 1,400 kilometres of roads to international bituminous standards, approximately 500 kilometers of resettlement roads to bituminous standards, one major bridge (Shangombo bridge spanning 8.5 kilometres), trade and border facilities at Sikongo and Shangombo borders with Angola as well as Katima Mulilo border with Namibia.
The specific road segments under consideration include:
Tapo-Kalabo-Sikongo-Angola border road (125 km), Sioma-Shangombo road (175km), Lufwanyama-Kankolokolo-Kasempa road (255km), Kasempa-Kaoma road-Luampa junction road (280km) and Luampa Junction-Machile-Simungoma road (340km).
Others are Kazungula-Katima Mulilo road ( 145 km), resettlement roads (approximately 500km, Shangombo bridge, Sikongo border post and trade hub, Shangombo border post and trade hub, Katima Mulilo border post and trade hub.
I submit to you fellow citizens.
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