Republic of Zambia
Tuesday, 11 June, 2019
PAYMENT PRIORITISATION TO THE KAZUNGULA BRIDGE PROJECT
AND TO SMALL AND MEDIUM SCALE ROAD CONTRACTORS
My Ministry has released K136 million to the National Road Fund Agency to dismantle arrears related to road projects and other related activities.
With this funding, the National Road Fund Agency (NRFA) is expected to pay K28 million for the ongoing works at the Kazungula Bridge Project, a multi-million bilateral project on the North-South Corridor, on the border between Zambia and Botswana.
Once completed, the Kazungula Bridge will facilitate trade, commerce and investment through improved efficiency of transit traffic and reduction in the time that local and international freight takes to be cleared on either side of the border.
Part of this funding tranche has been earmarked for the local routine maintenance contractors under the Road Development Agency (RDA), and those under the Ministry of Local Government. The targeted group is in excess of 300 and employs more than 15,000 workers countrywide.
The release of these funds is not only a cash flow stimulus for the small scale contractors but also a demonstration of the Government’s commitment to the domestic arrears dismantling strategy. In this regard, we have put in place a system that will ensure that the main road contractors, sub-contractors, and consultants are also paid, in due course.
Zambia’s small and medium scale contractors employ close to 70 % of the personnel in road sector across all the ten provinces of the Country.
My Ministry wishes to see that the Government’s policy of building local contracting capacity by allocation of 20% of major contracts to this category is sustained in order to empower our own citizens.
Going forward, my Ministry through the NRFA will continue to strengthen its domestic resource mobilisation efforts for the road sector by increasing the road tolling footprint across the country from the current 16 to 28 by the end of 2019.
I am also keen to see that strong internal systems and controls are maintained at NRFA in order to ensure that we remain on track with both ensuring that targeted road works are duly completed and that the debt dismantling strategy is not derailed.
Margaret D. Mwanakatwe, MP
MINISTER OF FINANCE