Public-private Partnerships To Fix Infrastructure

Road, rail and border infrastructure is being upgraded through a series of public-private partnerships, which have been a Zambian government priority since 2009. Zambia utilises various PPP models, including build-operate- transfer BOT, affermage and lease contracts, and joint ventures JVs. Affermage is where a private operator is responsible for the operation and maintenance of a public service like water or sanitation but not for financing or owning the infrastructure. In his 2024 budget address, Finance and National Planning Minister Situmbeko Musokotwane said: Our country is vast and, therefore, requires huge sums of money to build and maintain roads. Unfortunately, we dont have the money for all the roads at once, more so given the debt left behind by the previous administration. The government has therefore partnered with the private sector through PPPs. In this regard, I am happy to report that the upgrading of the Lusaka-Ndola road to a dual carriageway has commenced. The project will include the rehabilitation of Masangano- Fisenge-Luanshya roads. The PPP follows the rehabilitation of the 35km Chingola- Kasumbalesa road and building of the Konkola Toll Plaza at a cost of 35.6 million in partnership with the Turbo Ka-chin Consortium TKC. There has been some criticism of the toll fees, which range from the equivalent of R293 for a medium-heavy vehicle with two to three axles, to R1 195 for a heavy vehicle with four axles and R2 391 for an abnormal load, according to a TKC notice. PPPs are also supporting rail upgrades. China Civil Engineering Construction Corporation CCECC has been granted a 30-year concession to revitalise the Tazara railway infrastructure and operations at a cost of 1.4 billion. This concession will mark the beginning of a new era for Tazara. The investment from CCECC will not only restore our railway infrastructure but also position Tazara as a key enabler of trade and economic growth between Tanzania and Zambia, said managing director and CEO of the Tanzania- Zambia Railway Authority Tazara, Bruno Chingandu, at the announcement of the concession agreement. Through this strategic partnership, we are ensuring that Tazara remains a competitive and sustainable transport solution for the region, he added. Partners are also being sought for the connection between the Zambian Copperbelt and the Lobito Corridor. The PPP or PPPs will include the greenfield construction of the Zambia-Angola railway, and rehabilitation of the DRC rail link between Kolwezi and Dilolo on the Angolan border. The private sector partner will also be expected to facilitate smoother transit and local economic development through sustainable agricultural value chains, access to renewable energy and climate adaptation, education and job creation. ER