Minster of Infrastructure Charles Milupi has an impossible job, at least for 2022 after revelations that his Ministry has been allocated a relatively paltry K4.9 billion (about $290 million) for the entire 2022 to work on and complete the vast number of outstanding infrastructure projects dotted across the country.
Milupi confirmed that his Ministry which used to be under the Ministry of Finance, was only allocated K4.9 billion but has big priority projects that it intends to do. As a result, the Ministry has opted to pursue the option of undertaking infrastructure projects under the Private Public Partnership – PPP.
The Infrastructure minister revealed that two years ago [2020], the funds allocated for infrastructure projects was about K10.55 billion, last year [2021], it was K6.5 billion and this year [2022], it is K4.9billion, hence it has had a three year reduction trend.
Milupi however added that his Ministry is hopeful to carry out the majority of projects under the PPP act. Analysts however say PPP can be costly if not well managed as private partners go in with a profit and short term motives.
In an an exclusive interview with the Zambian Business Times – ZBT, Milupi said that concessions for some of these projects are underway or awaiting for the concessionaires to reach financial closure for the projects to get started.
Among the projects the Minister mentioned to be done under PPP is the Lusaka-Ndola dual carriage-way, the Chingola – Chililabombwe – Kasumbalesa road, the Solwezi- Mutanda dual carriage way, the Kasempa , Luampa, and Kaoma roads among others.
He said that some of the projects have their concession already given and some are about to be given like the Lusaka -Ndola and the Chingola-chililabombwe-Kasumbalesa. Milupi further added that, the ministry does not have enough funds, and admitted that there are issues with funding because the budget is limited.
The infrastructure minister said that the economy produces money that is not sufficient.” Our locally generated revenues is K98.9 billion which is just about US$ 5 billion for the whole country”, he said.
Zambia has massive infrastructure needs that includes schools, roads, hospitals and others, but the country has struggled to leverage its extensive mineral wealth to generate more revenue for its treasury. Agriculture which is the one of the alternative sources for exports remains highly politicized with crop market prices which are not reflective of input costs.
