Government concessions Katete-Chanida road for $79.8 million over 25-year period

Government has signed a 25 years concession agreement with Lutembwe Consulting Company for the construction of the 55 kilometer Katete to Chanida road at a cost of US$79.8 million.

Infrastructure Development and Housing Minister, Charles Milupi, said this was the first Public Private Partnership (PPP) road project by a local Zambian investor.

Speaking during the signing of the concession in Katete on Monday, Milupi said the concessionaire was a Zambian consortium domiciled in Eastern Province, with their headquarters being Sinda District.

He said it would be financed by local banks.

“It is expected that 300 direct jobs will be created during the construction phase alone and these must be reserved for the local community,” Milupi said.

He said the concession involved the reconstruction of 55 kilometres of the existing bituminous standard road from Katete to Chanida.

Milupi said this included the construction of a 2 kilometre divided dual carriageway within the Chanida border area with new border facilities.

“The project has a concession period of 25 years of which 2 years is for construction while the remaining 23 years is for operation and maintenance by the concessionaire,” he said.

Milupi said the signing ceremony had been witnessed by the people who are going to directly benefit from the PPP project.

“Lastly, it is the fourth PPP road project we have signed as the New Dawn since assuming national leadership two years ago,” he said.

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