RFA considers toll roads

The parastatal says a user-pay system means that users do not pay for the maintenance of roads they do not use.

09 August 2019 | Infrastructure

The Road Fund Administration (RFA) wants to investigate the viability of tolling Namibian roads as a potential additional revenue stream to the Road User Charging System (RUCS) that collects funds for the maintenance and rehabilitation of national roads in urban and rural settings.

At the start of this month, the RFA put out a tender calling for the determination of the road network or sections thereof for tolling and the 'toll' infrastructure to be provided.

The proposed study is further to determine toll fees, including toll revenue forecasted over a five-, 10-, 20-, and 30-year horizon, and collection mechanisms to be employed, as well as a legal framework in respect of introducing tolling in Namibia.

RFA CEO Ali Ipinge said the Fund is currently only looking into the feasibility of tolling.

The last study done on this was in 2008, and it found that tolling of any Namibian road was “not feasible” because the country then did not have the proportionate daily traffic volumes to justify tolling.

Since then the Namibian vehicle population has increased from 196 000 registered vehicles to 370 000, which Ipinge said “might be sufficient to build a business case for tolling”.

“But at this stage we do not know, and hence we are investigating the feasibility of tolls,” Ipinge said.

He said the current road user charges fee structure is not equitable.

“As vehicles become more fuel efficient, road users pay less per kilometre of road travelled. However, lower income groups are still stuck with fuel inefficient cars resulting in them paying more per kilometre of road travelled. This disparity has simply become too large to ignore and sadly, the lower income road users end up subsidising road maintenance for the wealthier road user,” Ipinge said.

To that end, he said, the RFA is seeking a road user charging methodology that is fair and transparent to all road users and “socially just for the less fortunate”.

Government pays for the development of new roads, while the RFA collects funds through its RUCS for the maintenance and preservation of national roads.

Ipinge said by moving towards a “user-pay” principle - a method he said is more popular worldwide - road users will not pay for the maintenance of roads they do not use.

“The RFA aims to strike a balance between road user charges and vehicle running costs,” he said.

Ipinge said as road user charges increase, road quality improves and vehicle maintenance costs fall.

At this “intersection”, he said, road user charges, vehicle maintenance costs, and overall transport costs are minimised for the road user.

“We do not believe that Namibia is at this sweet spot and therefore we are pursuing new and innovative ways to get there. Thereby ensuring value for money for the road users and creating a conducive environment for the advancement of the government's logistic hub development agenda,” Ipinge said.



CATHERINE SASMAN

Similar News

 

TransNamib a mono oobiliyona 2.5

1 month - 15 October 2019 | Infrastructure

Omunambelewa omukomeho gwoTransNamib, Johny Smith okwa popi kutya oombaanga dhaNamiba oshowo ombaanga dhomuumbugantu waAfrica odha gandja ezimino lyoshimaliwa shoobiliyona 2.5 kehangano ndyoka lya yama...

A place to call home

1 month - 18 September 2019 | Infrastructure

Low-income residents in Oshakati and Okahao are paving the way to becoming homeowners as part of an innovative low-cost housing project.At Okahao, more than N$1.2...

Billions for new power lines

2 months ago - 29 August 2019 | Infrastructure

As part of its new strategic plan, NamPower is expected to spend upward of N$1 billion on the construction of three new heavy-current power lines...

Logistics vision gathers steam

2 months ago - 27 August 2019 | Infrastructure

Recent upgrades to Namibia's roads, railways and ports have brought the country closer to reaching logistical and economic targets.According to the Walvis Bay Corridor Group...

Fire kills one, destroys vessel

2 months ago - 19 August 2019 | Infrastructure

A man was killed when the hake trawler Ocean Tide moored at the jetty of Seawork Fish Processors in Walvis Bay caught fire below deck...

Bypass cuts deep

2 months ago - 19 August 2019 | Infrastructure

Residents of Vergenoeg, an 'illegal' settlement on the western outskirts of Okahandja, held a community meeting on Saturday afternoon. The purpose was to discuss the...

Air Nam flight delays due to grounded pilots

3 months ago - 16 August 2019 | Infrastructure

Complaints are flooding in from frustrated Air Namibia customers who say they had to spend hours at Hosea Kutako International Airport (HKIA) because of delayed...

Millions for Windhoek’s informal settlements

3 months ago - 15 August 2019 | Infrastructure

The ministry of urban and rural development has set aside N$50 million to improve the living conditions of Windhoek’s informal settlements residents for the 10...

CoW delivers zero serviced plots in 2017/18

3 months ago - 13 August 2019 | Infrastructure

Despite setting sights on delivering 430 serviced erven for residential, business and institutional purposes during the 2017/18 financial year, the City of Windhoek (CoW) failed...

RFA considers toll roads

3 months ago - 09 August 2019 | Infrastructure

The Road Fund Administration (RFA) wants to investigate the viability of tolling Namibian roads as a potential additional revenue stream to the Road User Charging...

Latest News

August 26 CEO innovates

2 days ago - 15 November 2019 | Business

Elizabeth Joseph ...

Fishing quotas under scrutiny

2 days ago - 15 November 2019 | Fishing

President Hage Geingob and acting fisheries minister Albert Kawana will meet next week to discuss the credibility of the fishing quota allocation process, as well...

Geingob was 'talked out of'...

2 days ago - 15 November 2019 | Government

President Hage Geingob had written dismissal letters for ministers Sacky Shanghala and Bernhard Esau on Wednesday morning, but a high-level meeting that included Vice-president Nangolo...

Helping people help themselves

2 days ago - 15 November 2019 | People

Evany van WykMarjolize Scholtz has been a wellness professional for over 17 years. During her career her empathy towards people has grown immensely. Scholtz was...

Putting on a corporate...

2 days ago - 15 November 2019 | People

Elizabeth Joseph Margaret Thatcher once quipped that if you want something said, ask a man. If you want something done, ask a woman. Langford...

Fuelled by ­creativity

2 days ago - 15 November 2019 | People

Evany van Wyk “Every challenge is put on your path to groom you and build you and if I had the opportunity to change something...

A musician at heart

2 days ago - 15 November 2019 | People

Queen, Mumford and Sons, as well as Koos du Plessis are all musical influences that Ruan Greeff, or John Rock Prophet as you may know...

EVMs in the firing line

2 days ago - 15 November 2019 | Politics

Independent president candidate Panduleni Itula, the Electoral Commission of Namibia (ECN) and Swapo will square off in the electoral court on Tuesday, 19 November over...

Unshackling the toothless ACC

2 days ago - 15 November 2019 | Opinion

Much has been said about the Anti-Corruption Commission (ACC) over the years. Many have called it toothless.Revelations this week that it has been sitting on...

Load More