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Concessionaire was selected in line with PPP Act – RDA

• The selection was done in the spirit of fairness, equity and cost-effectiveness.
• Macro Ocean Investment Consortium was conferred with the preferred bidder status in line with PPP Act no. 14 of 2009.
• The call for Expression of Interest was published in the print media on 16th February 2022.

Road Development Agency (RDA) says the due process of the law was followed in selecting the Concessionaire to undertake works on the upgrade of the 327 kilometres Lusaka-Ndola dual carriage way, and rehabilitation of 45 kilometres of the Masangano-Fisenge-Luanshya road.
Agency Acting Director-Communications and Corporate Affairs, Anthony Mulowa said the selection was done in the spirit of fairness, equity and cost-effectiveness, adding that Macro Ocean Investment Consortium was conferred with the preferred bidder status in line with the Public Private Partnership (PPP) Act no. 14 of 2009.
Mr. Mulowa explained that the call for Expression of Interest was published in the print media on 16th February 2022 and seven proposals from interested firms were received on 11th March 2022.
“These proposals were evaluated from 4th March 2022 to 21st March 2022 and two firms were responsive to the stipulated evaluation criteria and were consequently shortlisted. These are: Macro Ocean Investment Consortium represented by AVIC International Project Engineering Company, Zhejiang Communications Construction Group Limited and China Railway Seventh Group Limited; and Yamene Financial Services represented by Velos Enterprises Limited, Graduare Property Development Limited, Yamene Financial Services Limited and Hillary Construction Pty Limited.”
“In line with the provisions of the PPP Act no. 14 of 2009, the Request For Proposals (RFP) were issued to the two shortlisted firms on 5th May 2022 with the proposal submission deadline being 1st July 2022. The second stage of evaluation was conducted in July 2022. On 24th July 2022, the PPP Council considered the request for approval of the due diligence exercise that involved visiting the bidders’ past project sites both local and outside the country, and the Bid Evaluation Reports for the current project,” Mr. Mulowa explained.

He reiterated that National Pension Scheme Authority (NAPSA) might be part of the lenders as the financing agreements have not been finalized and signed, adding that the concession period is twenty-five years and three years involves the construction Phase, while twenty-two years is for operations and maintenance.

“Further, prior to the signing of the Concession Agreement, the Road Development Agency (RDA) as the Contracting Authority issued the Request for Proposals (RFP) and related documents to the shortlisted bidders in accordance with Articles 27 and 28 of the amended PPP Act no. 14 of 2009.”
“Lenders were defined as financial Institutions, Banks, Multilateral Lending Agencies, Trusts, Funds and Agents or Trustees of debenture holders, including their successors and assignees, who have agreed to guarantee or provide finance to the Concessionaire under any of the financing agreements for meeting all or any part of the total project cost.”
The scope of the Lusaka-Ndola Dual Carriage way during the concession period includes the performance and execution by the Concessionaire of all design, engineering, financing, procurement, construction, completion, operation and maintenance of the project infrastructure as follows :
“Construction of a 327 km of dual carriageway from Lusaka to Ndola; Construction of Kabwe and Kapiri Mposhi bypasses; Rehabilitation of 45 kilometres of the Masangano-Fisenge-Luanshya road; Construction of two new toll plazas; Construction of two weighbridges; and Expansion and improvement of existing bridges.”
“Several critical road links, therefore, have been identified and processes to have them constructed and rehabilitated under the PPP Model have commenced. The procurement processes on these identified roads will also be done in a highly transparent manner and strictly within the confines of the provisions in the PPP Act No. 14 of 2009,” he added.
On 28th February 2023 in Ndola, Government entered into a Concession Agreement with Macro Ocean Investment Consortium at a total cost of US$ 649,976,167 for the execution of the project on design, finance, build, maintain, operate and transfer basis in line with the provisions of the PPP Act.

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