Abort N$3,4 billion toll road plan – The Namibian

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The government’s plan for toll gates to be installed on the nation’s highways has been defeated.

Experts and stakeholders believe that a tolling system would increase the burden on Namibians already struggling with high fuel and food prices.

There are also fears that N$3,4-billion worth of goods could be transported by companies, which would then pass the system’s cost on to the consumer.

Namibia is currently struggling with high fuel prices.

Diesel now costs N$24.10 per litre, after a N$1,98 increase per litre was announced last week.

Yesterday, Ali Ipinge, chief executive officer of Road Fund Administration (RFA), stated that the Cabinet had in principle approved the introduction a tolling system.

RFA has identified more than 70 road sections in the country that can be toll, but only 23 of these roads are suitable for setting up toll gates.

The administration had requested N$4,2billion for the project, but has received N$3,4billion.

The sections were identified during a feasibility study two years ago. Ipinge stated that it was feasible to toll Namibia’s roads.

“The other sections will increase traffic, one can look at them five to seven years from now. But at least 23 sections we can already do now,” Ipinge said.

“FIND VIABLE SOLUTIONS”

However, many stakeholders have voiced their opposition to the installation of tollgates in Namibia.

Hidipo Hamata, spokesperson for the Popular Democratic Movement (PDM), has asked the Cabinet to halt the introduction of tollgates.

“We rather request the government to find viable solutions in funding and maintaining the road infrastructure in Namibia,” Hamata said in a statement this week.

Ipinge supported the tolling system, arguing that it would allow RFA to pay for road maintenance.

“If we implement it, we will be able to at least generate an additional third of where we are now,” he said.

Ipinge claimed that the RFA currently generates more N$2,7 trillion from road-user charges and that tolling would bring in N$750 million annually.

Hamata, however, said: “The toll gate dream will be vehemently rejected, just as we rejected the 2% solidarity tax.”

Jeremy Platt is the president of the Namibia Bus and Taxi Association. He has also rejected the tolling plan.

“I do not think the idea would be productive,” he said this week, adding it would be unaffordable for public transport operators.

STRESSED HOUSEHOLDS

Hebert Jauch, a social commentator and labour expert, warned that toll gates could increase transport costs.

“It would translate in households having to pay on their own transport costs, and would increase food prices even further,” he said.

Jauch stated that the majority of households are already severely affected by poverty.

“In my view, it’s an absurd idea, because it would really overburden households even further,” he said.

IMPACT ON TOURISM

Digu //Naobeb is the chief executive officer of Namibia Tourism Board (NTB). He stated this week that tolling would make destinations less competitive.

“We would be very expensive, and those who hire vehicles would be affected worse. They already pay for annual licenses.

“Tourists hiring these cars would now pay additional toll fees and that would be very expensive. We know in South Africa the tolls did not work, that’s why they are busy suspending them,” he said.

//Naobeb claimed that local tourists would also be negatively affected.

“The RFA is getting some of the percentages from the fuel whenever it increases, and it will be expensive for us as citizens to travel around our country,” he said.

ALTERNATIVES

Nico Smit, a PDM lawmaker, called upon the RFA for proper taxation of foreign-owned heavy duty trucks.

“I support the thing of the weighbridge where those heavily loaded trucks are, because they are causing most damage to our roads. Those trucks that are coming from Zambia, those copper and ore that they are bringing in, they must pay high,” he said.

“If they have to introduce a toll road, I just want to know where is the alternative road? . . . We can only think of introducing toll roads if there are additional roads that can be used,” he said.

Gilbert Boois, Walvis Bay Corridor Group project manger, said that toll fees will not negatively impact the logistics industry because they would only be applied to certain roads.

“Also, when people start experiencing the benefits of safe roads and quality roads, they will not mind paying the fees, because eventually all the toll money will be used to upgrade and maintain the roads.

“It’s an acceptable law in Zambia and Tanzania, and more companies pay, but if the road quality is very poor with potholes, then people will be reluctant to pay,” Boois said.

PUBLIC ENGAGEMENT

RFA will initiate nationwide public engagements in order to educate road users about tolling.

“So, by the time the decision is made, at least the road users and the community will appreciate where we are coming from with the tolling agenda,” Ipinge said.

“It is a new concept for Namibia, but in the Southern African Development Community, with the exception of Botswana, all the other countries have toll roads,” he said.

Jauch stated that Namibian authorities should learn from South Africa.

“I am surprised with all the verdicts in South Africa where there was social unrest over toll gates, especially in areas around Gauteng. I am surprised that we are now going to follow the same example, which will only make matters worse,” he said.

Enoch Godongwana (South Africa’s finance minister) announced last week what could be a fatal blow to South Africa’s tolling system in Gauteng.

Instead, the South African National Roads Agency received funding from the national treasurery.

Yesterday, RFA’s executive for planning Namene Calili stated that more funds are needed as current road user fees are insufficient to finance the maintenance of the existing road network.

Kalili reports that the fund has completed an evaluation of the proposed tolling scheme’s financial viability.

Yesterday, he spoke at the launch of the RFA’s six-year business plan in Windhoek.

“This would bring another billion to the RFA’s coffers and set the organisation onto a more sustainable revenue path as we transition towards a distance-based road-user charging model,” he said.

Source: namibian

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