Roadsip

Overview of ROADSIP II 2004 - 2013
Introduction:
ROADSIP is a 15 year programme which, commenced in 1998 and will end in 2013 but divided into two phases, namely ROADSIP I and II. Phase I started in March 1998 and ended in 2003. The second phase started in 2004 and will end in 2013. The original estimated budget for ROADSIP II was US$860 million but due to the large network, the programme was extended to 10 years and costs also went up to US$1.6 billion. ROADSIP II would first concentrate on roads that were identified in ROADSIP I, but had no funding sources and as such, they could not be maintained.

Objectives of ROADSIP I
The main objectives of ROADSIP I are: (a) bringing the road core network to maintainable condition (b) improve road conditions (c) build capacity of road authorities (d) employment creation for poverty alleviation (e) improve road safety (f) improve environmental management (g) improve rural transport services and (h) management of community roads.

ROADSIP II
It is intended to implement ROADSIP II within the same economic, institutional and legal framework as outlined in ROADSIP I. The objectives have been improved after taking into account lessons learnt from ROADSIP I. ROADSIP II will address poverty in rural areas and gender imbalance through the use of labour based methods and packaging of contracts, maximum involvement of road users, transparency and accountability in tenders and needs based management and budgets.

Rationale for ROADSIP II

The Road sub-sector has been identified as a major factor in enhancing economic development and growth. Therefore, there is need to continuously maintain the Road network in Zambia on sustainable basis. There is a general consensus that the road network and bridges have reached their end of design life.
The draft programme of ROADSIP I only covered about 15% of the entire network of trunk, main and district roads. ROADSIP I considered roads that had higher priority based on economic selection criteria. Some roads were identified that had lower priority but were economically viable. These Roads were not committed under ROADSIP I.
There is need to upgrade some roads (including townships roads) as part of National development and economic empowerment.
We aim to further refine Government-donor Partnership, Public-Private Partnership, ownership, financing, community Initiative, responsibility and management.
ROADSIP I did not cover all the components in the Road Sector e.g.
Pontoons and bridges – these form part of the Zambian network. They breakdown very often and pollute marine life.
Their carrying capacity and slow movements retard national development. Hence, there is need to replace some of them with bridges. There are about 19 crossings at the moment.
Community roads and Intermediate means of transport – they receive no budgetary allocation but vital to mobility. 45% of the population is served by about 30,000 km of ungazetted tracks, trails, footpaths, bridges and culverts that are in deplorable conditions. Accessibility to schools, goods, markets, clinics continue to impact negatively on rural inhabitants.
Urban roads – the bulk of rehabilitated roads has been in Lusaka , Ndola and Kitwe . There is need to attend to provincial capitals again and rehabilitate township roads

Launching Of ROADSIP II Bankable Document
In view of the shortfalls in ROADSIP I, consultants were commissioned in 2003 to finalise the ROADSIP II Bankable Document and Financial Strategy. Government and Cooperating Partners approved these documents in 2003

ROADSIP II Main Objectives:

Rehabilitation/Periodic and routine maintenance of the Core Road Network (40,113 Km) through various funding agencies
improve road conditions for trunk, main, district, primary feeder roads, tourist roads and selected urban roads through full and accessibility improvements as per “need” and priorities
Institutional strengthening of the construction industry through appropriate approaches
Create employment opportunities through appropriate road interventions
Improve Road Safety as per Road Safety Action plan
Improve Environmental Management by building capacity
Improve Rural Transport Mobility through road improvements
Improve Management of Community Roads through the Road Development Agency
Address poverty and HIV/AIDS countrywide through PRSP and National Policy on HIV/AIDS

ROADSIP II cash inflows in US$ over a period of 10 years:

Internal Funding	Total first 5 years	Total in 10 yrs
1. Government Funding	113,793,750	259,431,250
2. Fuel Levy	162,387,305	272,973,158
3. Donation of Excise Duty 5%	40,698,573	77,560,524
4. License Fees	186,473,335	272,686,669
5. Road Haulier tariff	53,104,238	77,656,238
6. International Transit charges	14,364,202	27,374,302
Subtotal	570,821,408	987,682,151
External Funding
1. World Bank	53,900,000	130,900,000
2. NORAD Funding	17,500,000	42,500,000
3. European Union	80,500,000	195,500,000
4. JICA	21,000,000	51,000,000
5. BADEA/Kuwait	17,500,000	42,500,000
6. KfW Germany	17,500,000	42,500,000
7. DANIDA	38,080,000	106,480,000
8. ADB	25,000,000	35,000,000
Subtotal	270,980,000	646,380,000
Grand total	841,801,402	1,634,062,141
Internal contribution	67.81%	60.44%

Cooperating Partners have maintained that, any deviations from the agreed commitment will have an adverse effect on the whole programme. Therefore, it is now imperative to change the laws pertaining to internal funding so that funds could be earmarked to road maintenance and channel funds to the Road Fund account directly. Yearly contributions are detailed in the Financial Strategy Addendum.

When this programme was approved, it was agreed with Cooperating Partners that all funds earmarked for the road sector would be managed in a common “basket” - 'the Road Fund'.

ENGINEERING SERVICES
Technical Services for:

Feasibility studies
Engineering design and supervision of rehabilitation and maintenance works

PROJECT FINANCING

Local resources of US$158.2 million
Fuel Levy – US$115.0
Other road user charges – US$16.0
Government on-going works – US$14.5 million
Government counterpart funding – US$12.7 million
External financing – US$302 million

PROJECT IMPLEMENTATION

Committee of Ministers (8) with MCT Minister as the Chairman
NRFA has overriding responsibility for ROADSIP
MLGH provides support to local authorities
Road Development Agency for main, trunk and district roads and updating the Highway Management System

PROCUREMENT

Civil works to be carried out under contract
Upgrading and rehabilitation to be carried out under International Competitive Bidding for contracts in excess of US$1,000,000
Under the above amount, works will be procured through National Competitive Bidding
Procurement is the responsibility of the executing agencies with NRFA carrying out a review and support role

AUDITING AND ACCOUNTING
NRFA is responsible for: