Poor conditions cost road users almost N$4 billion
Poor conditions of the road network cost road users an additional N$3.9 billion annually in the form of increased wear and tear on their vehicles, vehicle accidents and damage to tyres. This is according to the Road Fund Administration (RFA) business plan stakeholder discussion for April 2021 to March 2026 which was held on Tuesday.
Chief Executive Officer of RFA, Ali Ipinge, said a more intensive re- gravelling programme is required to rebuild the country’s gravel road network.
“Intensifying the re-gravelling programme will restore the gravel roads to the original design specifications, improve drivability and reduce vehicle maintenance costs. Consequently, the number of gravelling maintenance units (GRUs) will increase, thereby creating much needed economic and employment opportunities in our rural communities, whilst preserving our N$101 billion road network,” explained Ipinge.
According to him, the paved road network also needs attention in the form of increased resealing to restore the roads that are presently in an unacceptable condition. He stated that the Karibib/Omaruru is one such road, which was built in 1974 and has only seen one section rehabilitated over its 46-year lifespan. He said after 15 years, the bitumen surface becomes brittle and permeable allowing water to infiltrate the sub-base and form potholes.
Ipinge further indicated that during the April 2021 to March 2026 business plan the resealing programme needs to be increased from the current 351km per annum to 660km per annum, whilst the re-gravelling programme needs to be increased from the current 236km per annum to 1 610km.
Based on 2019-unit costs, the periodic maintenance costs are expected to increase by N$915 million annually, thus resulting in a 42% increase in road user charges (RUCs).
However, the RFA understands that a 42% increase is unaffordable to road users under the current economic climate. Therefore a 5.3% RUCs increase is seen as the absolute minimum for the RFA to reduce the rate of deterioration on the national road network and minimise road asset erosion.
Comparative studies continue to show that Namibian fuel levies remain regionally competitive at N$1.41/l versus N$3.77 in Lesotho and R3.61/l in South Africa.
Based on the economic backdrop, disposable income has been severely affected, resulting in reduced consumer demand and transport demand as people adjust to working from home. These factors have eroded revenues derived from RUCs.
Accordingly, the RFA revised its revenue forecasts downwards by 5.2% in June 2020 and projects further 4% decline in RUCs in the financial year ending 2022.
“These revenue pressures have limited road maintenance funding and as a result, maintenance projects funded under the current business plan have been severely constrained, and therefore the most urgent maintenance projects can be funded under the current economic climate,” reads the RFA business plan.
Due to persistent underfunding over the years, the quality of Namibia’s road network is deteriorating due to suboptimal maintenance work. According to the road management system, the absolute minimum road maintenance under constrained economic climate is N$3.9 billion for routine maintenance, which includes resealing, rehabilitating, re-gravelling and upgrading the national road network.
However, the RFA was only able to fund N$2.6 billion under the current business plan. This resulted in a funding shortfall of N$1.3 billion in the current financial year. As a result, 43% of the gravel road network is in an unacceptable condition, whilst 10% of the paved road network is in an unacceptable condition.