Traffic tender is self financing – Minister

Sun, 15 Oct 2017 10:24:57 +0000

By AARON CHIYANZO

THE contract that government has awarded to an Austrian based firm, Kapsch TrafficCom to increase road safety and traffic management across the country will be self-financing and government will not be expected to put in any money, minister of Transport and Communication, Brian Mushimba has said.

And Mr Mushimba said that the company would pump in about US$ 500 million for the design, installation and operation of systems and solutions for traffic surveillance, vehicle speed enforcement, vehicle inspection and vehicle registration.

He also explained that Kapsch had been given a 17 year concession in which to recoup its money from value added services where government currently was not collecting anything and thereafter hand over everything to government.

Mr Mushimba however emphasized in an interview with the Sunday Nation that the Road Transport and Safety Agency (RTSA) would continue operating as usual and that government would continue collecting revenue as always.

He pointed out that in as much as the Austrian firm would construct new infrastructure, install advanced equipment and upgrade systems for traffic management, it would only recoup its money from added services were RTSA is currently not reaping anything.

Mr Mushimba said that the current traffic management system in the country was pathetic and that it was the reason government had to think of a smart way of sorting out the problem without spending money it did not have.

“We were looking for a smarter way to manage our traffic, as you it has been very bad. Kapsch approached us that it can upgrade our traffic management system, install advanced equipment and everything all at a cost of US$500 million.

“So we gave them a 17 year contract to do all this, recoup their money and then hand over everything to us. Its government which is pumping in the money,” he said.

Meanwhile, Mr Mushimba said that the contract would be run on a joint venture basis with a Zambian firm, Lamise Trading Limited.