RFA In Toll Roads U-turn

By:Staff writer
The Road Fund Administration (RFA) has iced its plans for a nation-wide toll road system, the parastatal announced on Tuesday.
The TFA previously said it conducted a feasibility study in which it had found that 21 roads could fund N$5.8 billion in capital and maintenance expenditure over five years, possibly generating N$7.5 billion in additional revenue to subsidise roadworks across the entire network.
However, “As a result of the prevailing economic climate, coupled with high-interest rates and inflation, the RFA has decided to defer the planned stakeholder and public consultations on the implementation of the tolling of roads in Namibia until further notice,” the Fund said.
As a result of a funding gap of 22% from the current allocated budget, the RFA was on the hunt for additional revenue streams, of which toll roads were set to be the chief source to fill the deficit.
This funding was meant to maintain the country’s road network which is valued at N$101 billion, of which about 83% is unpaved.
The Administration had also argued that, according to additional econometric analysis, tolling would add N$1.7 billion to the Namibian economy, increasing GDP growth by 0.4% annually.
“Road authorities and agencies worldwide are under financial pressure to maintain ageing road networks with rapidly diminishing resources. As road conditions deteriorate, vehicle operating costs rise due to faster vehicle wear and tear (damage to tyres, suspension, shocks, etc.) and increased travel time. These hidden costs raise vehicle maintenance and overall transportation costs for the economy, costing the road user time and money,” the RFA said.
The idea to introduce toll roads were not well received generally by motorists and the public, with the Namibian Bus and Taxi Association’s (Nabta) Secretary General Pendapala Nakathingo stating that the RFA should not only think about money.
“It will be a serious burden for the motorists. Namibia is a small country and putting up toll gates on top of the levies that the government is charging already, it would be a burn over the shoulders of the motorisst”s he previously told The Villager.
However, economist Robert McGregor saw reason in the move, arguing that motorists should have a financial responsibility in the upkeep of roads.
“There is a need for RFA to at least ensure that it does have sufficient revenue to not only maintain Namibia’s current roads but to expand the road infrastructure in the country to better standards,” he said.