Guest Contributor | Jul 29, 2020 | 0
Road Fund increases road tariffs by 6.5%
The Road Fund Administration (RFA) recently announced an increase in Road User Charges (RUCs), in a move to provide optimum funding for an efficient road sector for all road users
According to RFA CEO, Ali Ipinge, the Minister of Finance granted the approval of a 6.5 % RUCs increase earlier this year.
“The need to maintain, preserve and rehabilitate the national road network, comprising of bitumen surface and gravel roads, has become ever more critical, especially in supportingthe Government’s NDP 5, Harambee Prosperity Plan and Vision 2030,” he said.
Ipinge said that the consistent annual growth of between 4 – 6% in vehicle population as well as total annual distance travelled on the Namibian road network coupled with adverse climatic conditions has resulted in traffic-induced deterioration and natural depreciation of the condition of the national and urban roads. This called for the increased need for more funding to maintain this key national asset – our roads.
The tariff adjustments in RUCs will assist the RFA in creating the necessary reserves to further support the maintenance of the national road network, although only at a suboptimal level and contribute to the maintenance of urban roads and streets.
Ipinge said that it will further assist with the rehabilitation of the TR1/3, between Keetmanshoop and Mariental, to automate Mass Distance Charges, with the administrative expenses of the RFA and with the acquisition of land for the development and construction of a ONE STOP NaTIS Centre in Windhoek.
“To ensure a sustainable road sector, which is a key contributor to the national GDP, we have to call on our Road Users for an increased contribution through the Road User Charging System for own benefit,” Ipinge added.