Maravi

(NEWZIMBABWE) Taking a toll on road users

COMMENT - Toll roads... Where did I hear that idea before? Road privatisation is the next trick in the neoliberal/globalist arsenal. Ownership of raw materials and land, then ownership of telcos, mail delivery, really the entire infrastructure that everyone uses so the middle class can be levied and charged into oblivion. More from the blog of former 'socialist' New Labour minister and director at NM Rothschild & Sons, John Redwood, back in 2009: The Sunday Times Rothschilds story. Britain is about the have their entire roadnetwork privatised this way. The BBC states: "5. It would raise a lot of money for a cash-strapped exchequer - £100bn according to a report by the bankers NM Rothschild". More on this blog.

Taking a toll on road users
19/03/2012 00:00:00
by Emmanuel Ndlovu

DESPITE the idea of tolling in Zimbabwe being hailed as a bold effort in combating fiscal distress and towards the rehabilitation of rudimentary road infrastructure and maintenance thereof, perennial problems arising from lack of accountability and transparency have presented a new set of problems.

Mal-administration, misappropriation, corruption, poor control mechanisms and revenue leaks have become the byword of the tolling system in Zimbabwe. There is urgent need to address diminishing confidence of both road users and citizens in general over the entire toll gate revenue collection process through inculcating a culture of accountability and transparency.

Tolling is a relatively new phenomenon in Zimbabwe. There are currently more than 24 tollgates dotted around the country’s major roads. The Zimbabwe National Road Administration (ZINARA) is mandated to manage the road maintenance fund including setting road-user tariff levels, collection of the funds, disbursement of the funds to road agencies and the monitoring of the usage of such funds.

Since the inception of the idea of tolling, toll gates have generated revenues of more than US$15 Million. The revenue, we are told, is helping the Ministry of Transport to transition out of the fiscal quandary and to ease the burden of the state in financing road infrastructure works.

Ever since their introduction in year 2009, toll gates have been generating an average of US$1,5 million on a monthly basis. According to a report by the Ministry of Transport, 90 percent of the revenue has been remitted to ZINARA with the remaining 10 percent being retained as administration fees.

Problems of revenue misappropriation, mal-administration, corruption, politicisation and outright greed continue to dog the entire process. As Zimbabwe comes of age in its tussle with diminishing public funds to meet the demands for a new and improved transportation infrastructure, it is increasingly becoming important to invest more and more in public-private partnerships (PPP).

Tolling is highly-regarded as a solution to shortfalls in central government financing, but a new set of problems that have presented themselves have greatly imperiled government’s ability to manage the process alone. Public-sector initiatives are thus needed and should be viewed as having the potential to improve quality of life at a reasonable cost, through implementing transportation solutions that can improve quality of life for the public by providing relief and creating economic development opportunities.

In the majority of instances, PPPs provide the opportunity to build projects more quickly and at a lower cost, such as the completion of the needed tolling infrastructure. However, such partnerships require risk sharing, which must begin with an evaluation of each party’s objectives and respective ability to bear risks. In this regard, enduring tolling infrastructure must be constructed through a public-private partnership on a build, manage-and transfer basis.

There has been a growing public outcry that the distribution of the proceeds from the toll gates has been undemocratic and inequitable to the extent that the distribution of the money was done with little regard to its intended use. Toll gates dotted around Zimbabwe have rudimentary infrastructure. They have poor or non-existent verification methods of the amounts being collected.

According to a report given by the Ministry of Finance to Parliament, the Zimbabwe Revenue Authority (ZIMRA) is incurring tremendous losses from running tollgates on behalf of ZINARA. One Member of Parliament boasted in the House of Assembly that his constituency has immensely benefited from the benevolence of the Ministry of Transport which awarded his constituency a hefty share which far exceeded what was actually needed by the constituency. He stated that instead of getting the US$400,000 which they had requested for, the Ministry actually gave his constituency US$1, 8 million.

This raises concerns that the distribution of the money was influenced by other ulterior motives leading to the whole process being regarded as partial, inequitable and not need-based, raising concerns that the money is being used for patronage and vote buying.

This is against the backdrop that the money generated from toll gates should be used for the resurfacing of roads, patching up potholes and financing the construction of permanent shelters at the designated tollgate points.

Roads today are in a horrific state of disrepair and ZINARA and ZIMRA continue with their endless disputes which are not helping road users. ZIMRA corruption at the toll gates, crooked allocation of tickets, failure to adequately monitor and control revenue inflows and non-existent tracking mechanisms capture the state of the tolling system in Zimbabwe. ZINARA also admits that it does not even have control or influence over the printing of tickets, allocation and monitoring thereof.

Against this backdrop, and in order to curb these challenges, there is need for the tolling franchise to be awarded to cities/ municipalities to take over the responsibility of collecting tollgate revenues in order to ensure that the money is used equitable for its intended purpose and minimise chances of accountability and transparency becoming a perpetual mirage. This shall also aid stakeholder monitoring and tracking, which is highly critical.

In this regard, consultation between councils and various other stakeholders is critical. The responsibility to maintain should also be assumed by local authorities. The Ministry of Transport in this case can offer maximum rate of return. In instances where revenue exceeds specified levels, a portion of the excess must go to the state so that this does not create a drag on the state’s ability to support other projects.

As a best practice, government should not only offer minimum revenue guarantees but also prescribe the maximum annual rate of return. This will ensure that the money is used towards its intended benefit. This has the potential of boosting public and corporate confidence and trust and eliminating revenue leaks and mal-appropriation and mal-administration.

Emmanuel Ndlovu is the Advocacy and Programmes Manager for the Bulawayo Progressive Residents Association. He writes in his individual capacity.

Contact him: umanu.ndlovu@gmail.com

Labels: ROADS, TOLL ROADS

posted by MrK @ 10:55 AM