LAYING THE GROUND WORK

Zambia 2015 | TRANSPORT | INTERVIEW

TBY talks to Dr. Anthony Mwanaumo, Director/CEO of the National Road Fund Agency (NRFA), on the NRFA's priorities, the need to improve efficiency within the network, and the importance of PPPs.

Dr. Anthony Mwanaumo
BIOGRAPHY
Dr. Anthony Mwanaumo is the Director and Chief Executive of the NRFA of Zambia. He holds a BA in Economics and Business Administration Degree from the University of Zambia as well as an MSc and a PhD in Agricultural Economics from Purdue University, US. Dr. Mwanaumo has served at senior levels in Government, Quasi Government, and Donor Projects for decades. A member of the United Nations Award Winning Team of Experts, he was the first Coordinator of Zambia’s First Sector Investment Program and a member of the Bank of Zambia Monetary Policy Advisory Committee (MPAC). He has been the Chairperson of the Southern African Focal Group of the Association of Road Maintenance Funds for Africa (ARMFA) and was a member of the Executive Bureau of ARMFA 2011-2013. He is currently the President of ARMFA for 2013-2015.

What priorities have been set for the NRFA for the next three to four years?

The main task of the NRFA is managing the road fund. Over the coming few years, we will work towards our vision of creating a sustainable road fund. Our key thematic areas are resource mobilization and fiduciary management, while ascertaining value for money. We source funds for the sector from our corporate partners in the form of loans and grants, and from the government through a fuel levy and tolls. Once these funds are accessed, we manage them prudently through accountability measures, transparency, and economic utilization. There is huge demand for roads, as they are the key to economic development. However, there is a gap between demand and supply. At NRFA, we are coming up with creative means of securing funds. Looking ahead, we envision a strengthened road fund based on the user-pay principle.

How will the Link Zambia 8000 project improve the efficiency of the road transport sector?

Link Zambia 8000 is one of several projects in the road sector. Link Zambia 8000 will operate like a river basin with tributaries and will enhance trade and reduce transaction costs. Nearly every industry can benefit from roads, especially agriculture and mining. These sectors drive the economy and are dependent on the efficiency of the transport system. Also, we can improve the living standards of people in rural areas by increasing access to more amenities.

How do you expect the conditions of the 67,000 km of Zambian road network to evolve in the future?

In general, our paved roads are relative to feeder roads and generally are in good condition. An integral aspect of good road condition is the development of a comprehensive maintenance system, which has since been developed and will be fully supported by NRFA. A stitch-in-time saves nine. Thus, the importance of maintenance cannot be over-emphasized.

What role can PPPs play in developing Zambia's transportation infrastructure?

There are several forms of PPPs being used in this country; Mongo-Kalabo, L-400, Mansa-Luwingu and Mbala-Nakonde were all funded by some form of PPP. We are not utilizing PPPs to our full potential, however. We need to do more to entice private companies to partner with the government to fund roads in form of PPPs.

What will be the impact of the Kazungula bridge project?

If you visit Kazungula today, you will observe a long queue of trucks on both the Botswanan and Zambian side that can occasionally stretch for kilometers. The bridge will reduce the time of border crossings thereby reducing costs for transporters. The bridge is a strategic link on the North-South Corridor, which, once completed, will enhance trade.

What are the main achievements of the NRFA?

The audited accounts have been unqualified since their inception in 2006. We have successfully coordinated the budgeting process through the road sector annual work plans, the basis for financing the sector. We have also had successful technical audits, have conducted investigations and field visits, and enhanced our internal controls. Additionally, we have created a strong corporate governance system through our code of ethics and we have a strong Integrity Committee, which recently won a Commitment Award from the Anti-Corruption Commission. We have facilitated capacity building of local contractors through support to the National Council for Construction. We have also initiated the Construction Finance Initiative, which is designed to enhance access to financial instruments such as bid bonds, payment guarantees, and performance guarantees by local contractors. More local contractors on board means increased competition and lower unit costs and can thus do more for the same amount of funding.

What are your expectations for the year ahead?

Our expectations for this year are good budgetary releases to the sector coupled with a break-through in complementary alternative funding sources to fully fund the road projects for the year.