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The National Pension Scheme Authority (NAPSA) has moved to clarify misleading claims circulating in the public domain regarding its participation in the financing of the Lusaka–Ndola dual carriageway project.
NAPSA Head of Corporate Affairs, Cephas Sinyangwe, stated that the concessionaire approached the authority with a financing proposal as part of their broader financing structure for the project.
In a press statement issued in Lusaka on Thursday, Sinyangwe addressed allegations that the authority was directed by the Government to finance the project.
He said NAPSA considered the proposal in line with its investment guidelines and approved participation only after satisfying itself with the loan recovery mechanisms and collateral arrangements that would be put in place.
“Firstly, NAPSA was not directed by Government to finance this project as alleged. The concessionaire approached NAPSA with a financing proposal as part of their broader financing structure for the project,” Sinyangwe said.
He further addressed assertions that NAPSA should have been given the toll gates to recover its investment, describing them as inaccurate and misrepresenting how the financing arrangement was structured.
“Under the agreed security framework, all revenues collected from allocated toll gates and revenue sources are deposited into an escrow account, from which lenders are paid according to a predetermined hierarchy. As a senior lender, NAPSA enjoys first right of repayment,” Sinyangwe stated.
He disclosed that NAPSA committed US$300 million to the project out of a total financing package of US$650 million, as announced during the signing of the financing agreement on March 26, 2024.
Sinyangwe added that the facility was approved at an interest rate of 9.5 percent per annum over 13 years.
“To date, NAPSA has already received US$5.9 million interest on loan disbursements made during the first year of the facility,” he said.
Sinyangwe reaffairmed NAPSA’s commitment to safeguarding members’ funds, delivering sustainable returns and supporting investments that create long-term value for members and for Zambia.
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