Gov’t challenged to publish full Lusaka-Ndola concession report

By BARNABAS ZULU GOVERNMENT has been challenged to publish the full concession agreement for the Lusaka-Ndola dual carriageway project after Makebi Zulu, the Tonse Pamodzi Alliance presidential running mate raised several questions on the cost of the project, which have not been answered. Brian Matambo, the Patriotic Front (PF) Pamodzi Alliance media director says former Finance and National Planning Minister Dr Situmbeko Musokotwane has failed to address concerns regarding the financing structure, transparency and accountability surrounding the multi-million-dollar road project. Mr Matambo disputed Dr Musokotwane’s assertion that there was no Chinese loan attached to the previous Lusaka-Ndola road project undertaken during the Patriotic Front administration. He cited findings contained in the Auditor-General’s report, which indicate that a US$187 million credit facility was agreed with Jiangxi Bank in May 2019 to finance 15 percent of the contract, with more than US$30 million subsequently disbursed. “The Auditor-General records that a US$187 million credit facility was agreed with Jiangxi Bank in May 2019 to finance 15 percent of the contract. From that facility, US$30, 000, 000.70 was disbursed in October 2019,” Mr Matambo said in a statement yesterday. Mr Matambo maintained that while the disbursement remained a serious irregularity under the PF administration, the current government had a duty to explain what steps had been taken to recover the funds and prosecute those responsible. “After almost five years in government, where are the court proceedings? Where is the advance-payment guarantee? Who has been prosecuted? How much has been recovered?” he asked. Mr Matambo also argued that Government had presented differing figures regarding the cost of the current Lusaka-Ndola dual carriageway project. He noted that when the concession agreement was announced in February 2023, Government publicly described it as a US$577 million project, but Parliament was later informed that the total cost stood at nearly US$650 million after factoring in working capital, finance costs and construction-period interest. “Government itself introduced the US$577 million figure to the public before later revealing the fuller cost of nearly US$650 million,” he said. Mr Matambo also questioned the financing model of the project, particularly the role being played by the National Pension Scheme Authority (NAPSA) and the Workers’ Compensation Fund Control Board. He said NAPSA’s US$300 million facility, carrying an interest rate of 9.5 percent over 13 years, was expected to generate more than US$220 million in interest. According to Mr Matambo, once all financing costs are taken into account, the project’s total cash obligations could exceed US$850 million. “Government must publish the complete financing model instead of focusing only on the construction price,” he said. Mr Matambo challenged Government’s portrayal of the arrangement as being primarily financed by private capital. He observed that at least US$350 million was being provided by NAPSA and the Workers’ Compensation Fund Control Board, both of which are public institutions managing workers’ resources. “What remains undisclosed is the consortium’s actual equity contribution and how much genuine private capital has been placed at risk,” he said. Mr Matambo also dismissed comparisons between the current concession arrangement and the PF administration’s abandoned US$1.245 billion road contract, arguing that shortcomings in the previous deal should not shield the present project from public scrutiny. He called on Government to release the full concession agreement, including details of the financing structure, consortium equity contributions, projected toll revenues, tariff escalation mechanisms, termination clauses and all recovery efforts concerning the disputed US$30 million. Ends.

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