Q FM Africa's Modern Radio
Housing and Infrastructure Development Minister Ronald Chitotela says the US$1.2 billion Lusaka-Ndola dual carriageway will generate gross revenue of approximately US$3.5 billion over a period of 17 years once operational.
And Mr Chitotela has clarified that China Jiangxi Corporation for international Economic and Technical Cooperation (CJIC) the contractor for the road will finance the road project under the public private initiative (PPI).
In a ministerial statement to parliament following the public debate that has been generated by the road project, Mr Chitotela says there has been a lot of misinformation pertaining to the road project by politicians and some sections of the media.
He says the importance of the road to the economy of the country in terms of direct revenue generation and support to local and regional economic activities and trade cannot be overemphasized.
Mr Chitotela states that the project’s selected financial module has a payback period of 17 years with internal rate of return of 15%.
He says it because of the professional determination, profitability, efficiency and yield of the investment as reflected by the high internal rate of return that government decided to change the implementation module.
And Mr Chitotela says contrary to assertions that a kilometer of the road will cost US$3.9 million, a kilometer of the road will cost US$1.2 million.
He has also justified the US$1.2 million cost per kilometer of the road project saying the road to be constructed which is an asphalt road will have specific technical requirements and will have a lifespan of 20 years.
Mr Chitotela has also explained that the cost of a kilometer in country ranges from US$300,000 to US$700,000 depending on the type of the road.
Asked by Roan Member of Parliament Chishimba Kambwili whether he would allow for a forensic audited of the road project, Mr Chitotela had this to say.