22 Nov 2016 15:00pm
WINDHOEK, 22 NOV (NAMPA) The Road Fund Administration (RFA) has collected about N.dollars 2.12 billion from the road user charging system during the 2015/16 financial year.
RFA Chief Executive Officer (CEO), Ali Ipinge made the announcement during the 2016 Annual Business Plan stakeholders consultation and workshop in the capital on Tuesday.
He said it should be understood that the RFA acts in the interest of road users.
The RFA acts as a trustee on behalf of road users to ensure that they receive value for their money and that revenue from the road user charging system is utilised for their benefit, he said.
The road charge fees include annual motor vehicle licence and vehicle registration; cross-border charges/entry, mass distance charges or traveling distance charges; abnormal load; and fuel levies which increased by 10 per cent as from May 2015.
Ipinge said the Fund has made investments of N.dollars 1.84 billion into the road sector for the same period.
He noted that the achievement came as a result of key initiatives and strategies employed by the RFA and approved by authorities, particularly the Namibia Road Authority (RA) over the past 12 months.
Ipinge said the funds financial position ended positively, with a recorded surplus of N.dollars 277 million and reduction in accumulated deficit from over N.dollars 550 million the previous financial year to N.dollars 66 million.
The CEO stated that the institution managed to repay its old loan stock of N.dollars 330 million, which matured in January 2016. The settlement of this debt obligation, he said, has freed up much needed cash to fund additional road related maintenance projects.
He stressed that through the Kreditanstalt fur Wiederaufbau (KfW) Development Bank loan of N.dollars 447 million obtained in December 2015, RFA was able to fully fund the first phase of the Windhoek-Okahandja dual carriageway project.
The first section of this road is expected to open for traffic in December 2016.
Speaking at the same occasion, RFA Chairperson Penda Ithindi noted that the new cross border charge offices in various strategic entry and exit points has strengthened the RFA revenue administration capacity.
He called on all participants to adopt a realistic plan which continues to address the development needs in the road sector, while giving effective meaning to the national agenda.