Road Fund Authority avails N$500 million bail out to Roads Authority – Payment of overdue contractors invoices commences
The Roads Authority (RA) last week said it had commenced with the payment of outstanding invoices to owed to various contractors.
At a press briefing last Friday, CEO of the Roads Authority, Conrad Lutombi, confirmed that RA owes contractors and consultants an amount of N$500 million, which was due from end of January.
At the meet Lutombi announced that the issue of payments was resolved at a meeting held between the Ministry of Finance, Road Fund Administration (RFA) and RA, for the RFA to avail funds, in the form of a loan to the government to settle the outstanding invoices.
According to Lutombi, the loan will be repaid over a period of 12 months.
The Road Fund Authority CEO, Ali Iipinge, confirmed that the RFA commenced on Friday with the disbursement of N$250 million for the settlement of invoices.
Iipinge said the remaining balance of N$$250 million will be paid out to contractors and consultants during the course of this week from 25 February to 1 March.
The projects that were initially affected and whose invoices will be settled as part of this agreement are as follow: Windhoek – Okahandja road (Section 4a); WalvisBay – Swakopmund road (Phase 1); Swakopmund – Henties Bay road (Section 1); Isize – Namalubi – Luhonono road and the Onhuno – Endola – Okatana road (4km dual carriageway between Okatana and Oshakati).
Meanwhile Lutombi, expressed gratitude to the RFA and the government for finding a quick and favorable solution that will see that all outstanding invoices are settled and for work to resume immediately.
The CEO further confirmed that the above projects were budgeted for and will be completed as originally planned.