Minister insists on disputed Chinese road toll deal
GOVERNMENT has been challenged to publicly justify why a Chinese company involved in plastics should be awarded a 17-year road tolling contract when Zambians have shown total competence in road tolling.
Under the contract, the government is to share 50-50 toll earnings with the Chinese company that has partnered with an Austrian computer firm.
People’s Alliance for Change (PAC) president, Andyford Banda said that 17 years was too long to give to any foreign company in which to recoup money, especially that the Road Development Agency and local companies could handle.
Mr Banda insisted that there was need to review the pro cess in which the said Chinese- Austrian firm was awarded the contract as Zambians were not given a chance to compete for it.
“That contract was not advertised, so we need to review the process in which that contract was given. A lot of Zambians can handle that contract and the recouping of the funds, 17 years is just too long,” he said.
Minister of Transport and Communication, Brian Mushimba however said the contract would go ahead in spite of public disquiet because the foreign firm approached government with an idea to upgrade RTSA systems on public private partnership basis.
The minister said that the project would require about US$500 million, but that Government currently did not have such an account to spare.
Mr Mushimba explained that the foreign company had proposed to fund the whole project and that Government would not be expected to pump in anything.
He pointed out that Kapsch also explained how it would recoup its investments over 17 years without disturbing the financial flows of RTSA, by tapping from value added services were the agency was currently not utilising.
The minister however reiterated that any company, whether local or foreign, or an individual had a right to come up with such a progressive idea.
Mr Mushimba said that the contract would however be rolled out on a joint 50-50 venture with a Zambian company, Lamise Trading Limited.
He said that RTSA had already entered into an agreement with Intelligent Mobility Solutions, a Zambian registered company co-owned by Lamise and Kapsch.
Mr Mushimba emphasised that the contract would continue as was announced and that the investors would still be given a 17-year concession to recoup the money.