Fund allocates N$430 million to municipal roads

The Road Fund Administration (RFA) says it has allocated N$430 million to supporting local authorities’ road infrastructure.

The announcement comes after a stakeholder consultation workshop held in November 2022, which highlighted the need for increased funding of local road maintenance.

RFA chief executive Ali Ipinge says the allocation is a significant boost from the N$150 million to N$160 million previously allocated per year.

He says the allocation is expected to improve the condition of local gravel road networks and enhance overall road infrastructure across the country.

“Until last year, our annual allocation was approximately N$150 million to N$160 million. We are pleased to announce that this year’s budget has been increased by 34% to approximately N$430 million, effective from the start of this financial year,” he says.

Ipinge highlights the ongoing financial constraints faced by the fund and points out the challenges associated with limited revenue collection through road user charges.

He says despite these limitations, the fund remains committed to prioritising local road maintenance and exploring sustainable solutions.

“The RFA’s role was to find additional funding for road maintenance. We face significant challenges in generating enough revenue through road charges to support all local authorities. Despite these financial constraints, we have worked diligently to secure resources to address the critical needs of our road network.”

On the other hand, the fund is considering using smaller box graders to maintain gravel roads in local authorities according to its business plan.

These machines are much cheaper to buy than the large graders currently used and will save money.

This initiative aims to reduce the capital costs associated with traditional motor graders by 90%, ultimately freeing up funds for more expensive periodic maintenance interventions.

“For the local authorities, the RFA is exploring the introduction of tractor-drawn box graders, to insource blading services within the respective local authorities and save 90% on the capital costs of a motor grader,” he says. – The Brief