The Road Fund Administration (RFA) has received some strong negative reaction to a proposed toll gate introduction as a revenue option to maintain the national road network. And now, the contentious project has been put on hold until further notice.
RFA CEO Ali Ipinge in a recent report said the feasibility study on the tolling of roads is already completed. The main idea behind tolling is that the administration’s funding gap has been growing over the years and revenue desperately needs to be sourced elsewhere.
He said the number of vehicles on Namibia’s road network have increased massively in recent years, hence the need for toll gates as a revenue alternative. According to the RFA, value-addition and job-creation to road users will far outweigh the cost of living on badly-maintained roads.
“In the past financial years, we have reiterated that the existing road user charges are inadequate to sustain the national and urban road network, and this financial shortfall will persist as the road network ages over time,” stated Ipinge.
The CEO added that as they continue to seek innovative ways to bridge the revenue gap in the short and medium-term, consultation has yielded some insights that may be beneficial in the short-term. These, among others, include the possibility of local authorities forming public-private partnerships with other companies for innovative revenue-generation and closing the gap on road maintenance funding from the RFA.
Ipinge further noted that while introducing tolling as an avenue to increase revenue is on hold, the RFA will continue to monitor innovations in the vehicle industry such as electric vehicles that have major implications on fuel consumption, and subsequently on fuel levies.
The 2023 report noted the average toll would range from N$19.26 for passenger vehicles to N$83.08 across all sections. However, the actual toll fee will be determined primarily by traffic volumes, road length and cost of capital. “We achieved a remarkable 28% rise in revenue, which resulted in revenue amounting to N$2.9 billion after fuel levy refunds. In the reporting period, total revenue amounted to N$3.4 billion (N$2.9 billion after deducting fuel levy refunds), a substantial improvement compared to the previous year,” reads the 2024 report.
It added that the main source of RFA revenue, the fuel levy, saw growth, demonstrating dedication to preserving and restoring durable infrastructure.
Furthermore, the RFA’s total expenditure for 2024 reached N$3.08 billion, with a significant share dedicated to the maintenance and rehabilitation of roads. Notably, the management of the national road network received an allocation of N$2.9 billion.