UPND says PPP model protects Zambia from reckless road borrowing

LUSAKA – The Zambian government, through the United Party for National Development (UPND) administration, is strongly defending its strategic shift towards Public-Private Partnership (PPP) models for infrastructure development, particularly in the road sector. This approach, championed by key figures such as Mr. Noel Nkhoma, Chairperson of the National Road Fund Agency (NRFA) Board, is being lauded as a prudent measure to protect Zambia from the pitfalls of reckless borrowing that characterised past regimes. Mr. Nkhoma, speaking on the efficacy of the new strategy, emphasised that the PPP concession model is already demonstrating tangible value. He pointed out that this innovative financing mechanism is successfully delivering much-needed road infrastructure across the country, thereby enhancing connectivity and facilitating economic activity. Crucially, he noted, it achieves this without placing undue strain on the national treasury, a stark contrast to the previous reliance on sovereign guarantees and direct loans that often led to escalating public debt. The adoption of PPPs signifies a deliberate departure from the traditional government-funded infrastructure projects, which frequently resulted in significant financial burdens and, at times, stalled developments due to funding shortages. The current administration's stance is that by inviting private sector investment and expertise, Zambia can accelerate its infrastructure agenda while ensuring fiscal responsibility. This model transfers a portion of the financial risk and operational responsibility to private entities, aligning their interests with the successful and timely completion of projects. Furthermore, the NRFA Board Chairperson highlighted the broader economic benefits stemming from this approach. Beyond merely constructing roads, the PPP model is designed to foster new economic opportunities, including job creation, skills transfer, and the stimulation of local businesses through supply chains. Thi