Government has given the national road fund agency K300 million to facilitate dismantling of arrears owed to local contractors with respect to road sector projects and related activities.

In a statement issued to Money News Finance Minister Dr Bwalya Ng’andu said target beneficiaries are local road contractors and consultants under the road development agency as well as those under the ministry of local government.

“The released funds are not only a cash flow stimulus for the targeted recipients but a demonstration of government’s commitment to domestic arrears dismantling strategy” Dr Ng’andu said.
He adds that going forward, the ministry, through the National Road Fund Agency, will continue to strengthen its domestic resource mobilization efforts for the road sector.

“The funds supports the directive given by  president Edgar Lungu, to fully implement the 20 percent mandatory subcontracting policy to empower and improve quality and capacities of local contractors; the beneficiaries of this funding” Dr Ng’andu added.
The Minster noted that the year has closed with an increased road tolling footprint across the country from sixteen 16 at the beginning of the year, to 21 as of December 2019.

He furthers says government is also put in place a system that will ensure that the main road contractors, are also paid, in due course.
“I am also keen to see that strong internal systems and controls are maintained at NRFA in order to ensure that we remain on track with both ensuring that targeted road works are duly completed and that the debt dismantling strategy is not derailed” He said.