Report for the Fifth Session of the Eleventh National Assembly

REPUBLIC OF ZAMBIA

REPORT

OF THE

COMMITTEE ON COMMUNICATIONS, TRANSPORT, WORKS AND SUPPLY

FOR THE

FIFTH SESSION OF THE ELEVENTH NATIONAL ASSEMBLY APPOINTED ON 24TH SEPTEMBER, 2015

Printed by the National Assembly of Zambia

REPORT

OF THE

COMMITTEE ON COMMUNICATIONS, TRANSPORT, WORKS AND SUPPLY

FOR THE

FIFTH SESSION OF THE ELEVENTH NATIONAL ASSEMBLY APPOINTED ON 24TH SEPTEMBER, 2015

TABLE OF CONTENTS

No Paragraph Page

1.0 Composition of the Committee 1 2.0 Functions of the Committee 1 3.0 Meetings of the Committee 1 4.0 Programme of Work 1 5.0 Procedure adopted by the Committee 2

PART I

Consideration of Topical Issues: 6.0 The Role of Information and Communication Technology 2 in National Development 7.0 The State and Management of Canals, Ports and 15 Harbour Infrastructure in Zambia

PART II

8.0 Tour of Airtel and Zamtel 19

PART III

9.0 Consideration of the Action-Taken Report on the Report 21 of the Committee for the Fourth Session of the Eleventh National Assembly 10.0 Consideration of the Action-Taken Report on the Report 28 of the Committee for the Third Session of the Eleventh National Assembly 11.0 Consideration of the Action-Taken Report on the Report 34 of the Committee for the Second Session of the Eleventh National Assembly 12.0 Consideration of the Action-Taken Report on the 39 Report of the Committee for the First Session of the Eleventh National Assembly 13.0 Consideration of the Action-Taken Report on the Report 40 of the Committee for the Fifth Session of the Tenth National Assembly 14.0 Consideration of the Action-Taken Report on the Report 41 of the Committee for 2010 (Tour Report) 15.0 Consideration of the Action-Taken Report on the Report 42 of the Committee for 2009 16.0 Conclusion 43

Appendix I – List of Officials 44 (i)

REPORT OF THE COMMITTEE ON COMMUNICATIONS, TRANSPORT, WORKS AND SUPPLY FOR THE FIFTH SESSION OF THE ELEVENTH NATIONAL ASSEMBLY APPOINTED ON THURSDAY, 24TH SEPTEMBER, 2015

Consisting of:

Mr E K Belemu, MP (Chairperson); Mrs A M Chungu, MP; Mr K Konga, MP; Mr M A Malama, MP; Mr R Muntanga, MP; Mr M Chishimba, MP; Mr J Shuma, MP and Mr K Simbao, MP.

Following the appointment of Mr K Simbao, MP, as Minister of Transport and Communications, Mr M Kapeya, MP, was appointed to the Committee on Wednesday 14th October, 2015.

The Honourable Mr Speaker National Assembly Parliament Buildings LUSAKA

Sir

Your Committee has the honour to present its Report for the Fifth Session of the Eleventh National Assembly.

Functions of the Committee

2.0 The functions of your Committee are:

(a) to study, report and make recommendations to the Government through the House on the mandate, management and operations of Government ministries, departments and/or agencies under its portfolio; (b) to carry out detailed scrutiny of certain activities being undertaken by Government ministries, departments and/or agencies under its portfolio and make appropriate recommendations to the House for ultimate consideration by the Government; (c) to make, if considered necessary, recommendations to the Government on the need to review certain policies and/or certain existing legislation; and (d) to consider any Bills that may be referred to it by the House.

Meetings of the Committee

3.0 Your Committee held twelve meetings during the year under review.

Programme of Work

4.0 At your Committee’s second meeting held on Wednesday, 30th September, 2015, it considered and adopted the programme of work as follows:

(a) consideration of the Action-Taken Report on the Committee’s Report for Fourth Session of the Eleventh National Assembly; (b) the Role of Information and Communications Technology in National Development; (c) the State and Management of Canals, Ports and Harbour Infrastructure in Zambia; and (d) consideration of the draft report.

Procedure adopted by the Committee

5.0 Your Committee requested detailed memoranda on the topics under consideration from concerned stakeholders and invited them to appear before it in order to give verbal submissions and clarifications on issues arising from their submissions.

Your Committee also visited Airtel and Zamtel in order to find out what was obtaining on the ground regarding the role of Information and Communications Technology (ICT) in national development.

The Report of your Committee is in three parts. Part I deals with topical issues, while part II is on your Committee’s tour to Airtel and Zamtel and part III is on the Action-Taken Report on the Committee’s Report for the Fourth Session of the Eleventh National Assembly.

PART I

Topical Issues

Topic 1: The Role of Information and Communications Technology in National Development

Background

6.0 Information and Communications Technologies (ICTs) are important in achieving development goals and promoting citizen participation. Zambia is one of a number of countries in the Southern African region that have sought to include ICTs in their national development plans. According to the Sixth National Development Plan 2013 to 2016, ICTs comprise the convergence between the traditionally separate businesses of broadcasting, telecommunications, computing and the Internet into one platform. Research has shown that investment in broadband ICTs has a multiplier effect in terms of job creation such that one direct job creates between 1.4 and 3.6 indirect and induced jobs. This is because broadband brings high opportunities for self- employment and content development such as production of local films and it enhances ICT applications.

During the last decade, the ICT sector continued to implement key programmes aimed at inducing growth in the sector. Mobile network subscription across all the three mobile service providers grew to 10.9 million in 2015, compared to 2.6 million in 2007. This corresponds to an improvement in mobile phone service penetration relative to the population from 22.5 percent in 2007, to 70.3 percent in 2015.

In light of the above, your Committee resolved to undertake a study on the role of ICTs in National Development in Zambia. The objectives were:

(a) to ascertain the policy objectives of the National ICT Policy; (b) to assess the effectiveness of the information and communications technology policy on the accessibility of ICT services; (c) to find out the benefits that have been derived through the use of ICTs; (d) to find out what initiatives the Government has put in place, if any, to increase the accessibility of ICTs in communities; (e) to assess the challenges, if any, faced by ICT consumers, ICT service providers and the regulatory authority; and (f) to make recommendations to the Executive on the way forward.

The following stakeholders made both written and oral submissions on the subject:

(a) Zambia National Farmers Union (ZNFU); (b) Bankers Association of Zambia; (c) Airtel Zambia; (d) Mtn Zambia; (e) Zamtel; (f) Ministry of Health; (g) Ministry of Finance; (h) Zambia Information and Communications Technology Authority (ZICTA); (i) Consumer Unit Trust (CUTS); (j) CEC Liquid Telecom; (k) Jesuit Centre for Theological Reflection (JCTR); (l) Ministry of General Education; (m) Transparency International Zambia (TIZ); (n) Mr Andrew Kashita - Member of the public; and (o) Ministry of Transport, Works, Supply and Communication.

Consolidated Summary of Submissions

Policy Objectives of the National ICT Policy

Your Committee learnt that the sector was currently guided by the National ICT Policy of 2006, that defined priority areas of growth to ensure that ICT continuously contributed to being an enabler for Zambia’s socio-economic growth. Since its adoption and launch in 2007, the Policy had significantly contributed to the enhancement and growth of the ICT sector in Zambia. The key objectives of the ICT Policy included:

(a) increasing market size through integration and cross border trade with ICTs playing an integral part of the social and economic development of member states; (b) creating competition among market payers in the ICT sector in member states; (c) conveying of regulatory authorities in telecommunications and broadcasting; (d) implementing dependable and technology–neutral legal and regulatory frameworks; (e) independence of market players especially the regulatory functions; and (f) private sector participation in the development of ICT products and services.

To this effect, the legal and regulatory framework was developed in implementing this policy as set out below.

(a) Information and Communication Technology Act No. 15 of 2009

The Act provides for the economic and technical regulation of information and communication technology; facilitates access to ICTs; protects the rights and interests of service providers and consumers; and regulates and manages radio spectrum. The ICT Act also renamed the Communications Authority of Zambia (CAZ) as the Zambia Information and Communications Technology Authority (ZICTA).

(b) Electronic Communications and Transaction Act No. 21 of 2009

The Act provides for the development of a safe, secure and effective environment for the consumer, business sector and the Government to conduct and use electronic communications; promotes legal certainty and confidence, and encourages investment and innovation in the

3 electronic communications industry; facilitates the creation of secure communication systems and networks; and allows the legal interception of electronic communications and admissibility of intercepted communications.

The Act provides for the regulation of the postal and courier services by ZICTA. Previously, the Ministry of Communications and Transport regulated the postal services sector directly.

Effectiveness of the Information and Communications and Technology Policy on the Accessibility of ICT Services

Your Committee was informed that from the guiding principles of the Policy, it was designed to guide and mainstream the use of ICTs in all sectors of the economy. The Policy was meant to be an ICT for development (ICT4D) that fits into the socio-economic development agenda. The ICT Policy had the following goals:

(a) promotion of human resource development; (b) promotion of ICT in education, research and development; (c) promoting public access, content development and cultural heritage; (d) developing the ICT sector; (e) developing telecommunications and supporting infrastructure; (f) promoting Electronic Government (E-Government); (g) promoting Electronic Commerce (E-Commerce); (h) promoting the integration of ICT in agriculture development; (i) promoting the integration of ICT in health care delivery; (j) promoting the integration of ICT in tourism, environment and natural resources management; (k) using ICT to mainstream youth and women issues; (l) developing the legal and regulatory framework; and (m) promoting security in the information society.

Your Committee also learnt that the targets and goals of the ICT Policy were in line with the regionally accepted thirteen pillars of ICT and thus if fully implemented could reach the overall goal of the Policy to provide ICTs adequately for development. This, however, required the commitment of not only ZICTA, but various line ministries to be in tune and appreciate the importance of ICTs in their work.

Your Committee was informed that the policy needs to be updated in line with growing trends with respect to technological developments and consumer demand for ICT based goods and services. Further, there was need for the policy to clarify the role of all players to avoid overlapping in functions such as the Regulator’s involvement in roll out of infrastructure which must be the preserve of operators. Further, there was need for the Government to consider investing in a High Capacity National Optic Fibre Backbone Network, which would connect all districts in Zambia. This would considerably improve access to ICT services in all parts of the country. This would be viewed as a national infrastructure development project much like the Link Zambia 8,000. As a means to achieving this, a clear policy direction was required in order to ensure that the deployment of all major infrastructure projects such as roads, electrification and rail-line projects, among others, included basic ICT infrastructure such as optic fibre, as an integral part of the project from the onset. The unnecessary duplication of ICT infrastructure for example optic fibre network, particularly by state owned enterprises such as Zamtel and Zesco, should be discouraged.

Programmes that the Government has put in Place to Increase and Stimulate the use and Accessibility of ICTS

The Government had put in place several initiatives to catalyse the utilisation of ICTs in the country. The Government had facilitated and continued to provide an enabling policy and legal environment for the public and private sector to thrive in the utilisation of ICTs for business. Some of the initiatives that the Government had put in place to stimulate the use of ICTs in the various sectors are outlined below.

(a) Formulation of National Strategic Documents

Your Committee was informed that the National Strategic Documents included the ones set out below.

(i) National ICT Strategic Implementation Plan 2016 – 2021

The Government was in the process of developing a National ICT Strategic Implementation Plan 2016 – 2021, to guide the development, investments and other interventions in the ICT sector including broadband.

(ii) National Postal Policy

The Government was developing the National Postal Policy which encouraged the use of the Postal networks and ICTs in the delivery of services to rural unserved areas by both the public and private sectors.

(b) E-Government Programme

The Government had embarked on an e-Government programme whose focus was on the development of ICT Infrastructure and provision of electronic services to enhance public service delivery to citizens and businesses in an efficient, effective and accountable environment. The Government had embarked on the identification, development and implementation of e-services in the provision of Government goods and services. This would result in delivering integrated, accessible and convenient services for citizens, businesses, Government employees and other Government agencies. The key priority projects were as outlined below.

(i) Integrated National Registration Information System

Your Committee was informed that Integrated National Registration Information System (INRIS) formed the key pillar for the efforts on developing an electronic governance system. The project once completed would provide for an accurate reference for identifying individuals in the country providing a credible reference to all institutions that would require to verify identity documents. The INRIS was made up of various components of which National Registration was one of them with sub-modules such as:

• National Registration (Issuance of NRCs); • Births and Deaths Registration; • Marriage Registration; • Adoptions Registration; • Village Registration; • Citizenship Registration; and • Passport issuance.

This project was being undertaken under the Ministry of Home Affairs and was in final stages of completion.

(ii) Zambia Integrated Land Management Information System (ZILMIS)

This project was being undertaken under the ownership of the Ministry of Lands, Natural Resources Management and Environmental Protection. The project once completed would provide an end to end solution for decentralised capturing of information on land, its ownership and planned use and associated processing requirements in the administration of land. The project had been implemented and was in its final stages of deployment.

Your Committee learnt that Education was one of the priority areas for the development of Zambia since the highest form of investment for any nation was in the education of its people. Education related services had huge potential for leveraging ICT. E-learning could help in addressing issues of access and providing access to training. The Government and the private sector were actively participating in the provision of educational materials following the approved curriculum through various electronic platforms such as DVDs, CDs and tablets, among others. An Education Management Information System (EMIS) is a comprehensive system that brought together people, process, and technology to provide timely, cost effective, and user appropriate information to support educational management at whatever level is needed. These initiatives were being spearheaded by the Ministries of Higher and General Education.

(d) E-Health and Health Information System

Your Committee was informed that health was also one of the focus areas for the Government of Zambia. It was imperative that the field of health was enabled not only to improve the efficiency and the effectiveness of the hospitals and laboratories, but also to build a base for gaining access to future advancements in medical science. The Ministry of Health and its collaborating partners had been developing various interventions to enhance the use of ICTs in the management of patient information, pharmacy activities, performance of medical practitioners and management of laboratory data, among others. The Ministry was currently piloting the smart care solution which provided some of the required services on an electronic platform.

(e) Government Data Portals

The Government had initiated the development of an integrated business licensing portal which was envisaged to be a one stop location for all information on business licensing across various sectors of business in the country. The initiative was being spearheaded by the Private Sector Development Industrialisation and Job Creation Division at Cabinet Office in collaboration with the Ministry of Finance, Bank of Zambia and the Ministry of Labour and Social Security. The Government had developed the following data portals: Ministry of Transport and Communications, Central Statistical Office, Ministry of Finance, Bank of Zambia and Ministry of Labour and Social Services. Other data portals were at different stages of development.

(f) Zambia Transport Management Information System

The Government had embarked on the development of a Zambia Transport Management Information System that would provide integrated electronic services for clients interacting with the Road Transport and Safety Agency. The Government had also embarked on the development

6 of the National Transport Sector Data Management System which was a monitoring tool for the performance of various facets in the transport sector.

(g) Tourism

The Government was aware of the potential the tourism sector could contribute to the economy through job creation, tax contributions from business and direct foreign cash inflows from tourists visiting various parts of the country. The Government, through the Ministry of Tourism and Arts, was making efforts in using electronic platforms to promote Zambia as a tourist destination and ease the administrative burden for tourists to gain access to the country.

(h) Taxation

The Government of Zambia had launched an ambitious Government transformation plan. In order to support such growth, huge amounts of resources were needed. In order to generate these resources, it was imperative to ensure that the cost of compliance to the tax system in Zambia was lowered so that tax collections could be enhanced. This project aimed at facilitating e-filing and e- payment of domestic tax. This project was being managed by the Zambia Revenue Authority.

(i) Construction Permits Information System

The Town and Country Planning Unit was leveraging ICT to facilitate the delivery of services in the issuance of construction permits. They were working with the Lusaka City Council in developing a Construction Permits Information System to ease the management of submission for approval for construction permits. This project was being undertaken with support from the Private Sector Development Industrialisation and Job Creation Division at Cabinet Office.

(j) Private sector e-commerce services

The Government was encouraging e-commerce and m-commerce initiatives being undertaken to promote online trade in the private sector. The Government had developed laws that enhanced the online transactions, protected consumers and enhanced legal coverage for the prosecution of perpetrators on cyber-crimes.

(k) Integrated Financial Management Information System

The Government had continued to promote accountability in the use of public resources through the use of the Integrated Financial Management Information System. Enhancement of the existing Integrated Financial Management Information System was addressing the core functions of public financial management.

(l) Government Wide Intranet

The Government was developing an intranet to address issues of collaboration and communication within the public service. This initiative was being undertaken under a programme called ‘Government Shared Service’ in collaboration with Microsoft Corporation. The Government Shared Services programme included the development of a data centre, deployment of unified electronic mail services, deployment of voice over internet protocol (VOIP) services and other collaboration tools alongside the capacity building activities.

(m) Geographic Information System (GIS)

The Government had embarked on the development of a National Spatial Data Infrastructure (NSDI) for shared Geographical Information Services. This initiative was envisaged to curb the duplication of efforts in the acquisition of GIS, spatial and associated meta data on locations and enhance sharing of data between entities such as the councils, water and electricity utility companies, among others. The GIS would be a critical tool for national and regional planning especially for determining the allocation of public infrastructure.

Initiatives the Government has in Place to Increase the Accessibility of ICTs in Communities

Your Committee was informed that the Government had premised the E-Government programme on the delivery of efficient, effective and accountable services on various platforms available to all citizens. The measures put in place to increase the accessibility of ICTs in communications were as set out below.

(a) Tax incentives

The Government over the years had provided tax incentives on the importation of ICT assembly equipment such as computer components to promote the ICT industry in Zambia and in efforts to reduce the cost of equipment for the ordinary citizen.

(b) Universal Access

The Government, through policy and regulation, had encouraged universal access to ICTs for all. Some of the initiatives that had been implemented under this initiative were distribution of computers to schools, building of computer laboratories in schools and colleges, connecting higher learning institutions on a high speed network, providing ICT equipment for the visually impaired persons and construction of communication towers in rural unserved and underserviced communities.

The Government was in the final stages of developing the national postal policy and ensuring that the postal network in the country was strategically positioned to offer one stop shop facilities for delivering public services. The Government had embarked on a project to deliver services through the use of self-service kiosks to be deployed in the postal network. The current pilot only covered Lusaka, Ndola and Kitwe main post offices. It was envisaged that the kiosks would be rolled out to all parts of Zambia to provide citizens and businesses access to services electronically, thereby avoiding travel costs and enhancing efficiency.

(d) Education Policy

The Government, through the education policy, had mandated that ICTs should be taught in all schools from primary through to secondary schools. This pronouncement had obligated schools to provide for acquisition of ICT equipment to ensure compliance and provide an adequate learning environment. The private sector had also responded to the policy pronouncement by offering innovative solutions to ensure schools had access to the much needed ICT equipment at very low prices.

(e) Broadband

The Government had prioritised access to broadband facilities in all areas of the country to support the transmission of data, online transactions and access to digital entertainment medium and information. The Government was supporting and facilitating the deployment of fibre optic cable and mobile broadband to reach 100 percent population coverage.

Benefits that have been derived through the use of ICTs

Your Committee was informed that currently, there were some developments around use of ICTs that could be commended as beneficial in fostering development. Some benefits of ICTs could be categorised as set out below.

(a) Development of a national electronic database base for farmers and crop inventory through GPS technology

Your Committee was informed that mobile electronic gadgets were also fitted with cameras and a Global Positioning System (GPS), which enabled service providers to obtain secure information of the clients (farmers) in terms of photographs and actual farm location. The Zambia National Farmers’ Union (ZNFU) and the Government were using this technology in the administration of the pilot e-card for the Famer Input Support Programme (FISP). Using this device, the Government had been able to wed out ghost farmers under the FISP programme who were abusing tax payers’ money.

In addition, the Global Positioning Systems (GPS) provided a cost effective and efficient tool for conducting crop inventory. The ZNFU had so far conducted crop inventories for wheat, barley and sugar cane for three consecutive seasons and this had helped to accurately determine production levels of these crops. The results of such surveys had been used to inform agriculture policy pertaining to the three crops.

(b) Weather Indexing Insurance

Your Committee was informed that crop failure resulting from weather variability or climate change had continued to affect agriculture productivity in Zambia. Weather shocks could trap farmers and household into poverty and conventional crop or livestock insurance, which relied on direct measurement of loss, or damage suffered by a farmer, was normally costly and inefficient. Therefore, the use of ICT in Weather-Indexed Insurance (WII) eliminated the need for field assessments and responded to an objective parameter, which was measurement of rainfall or temperature.

ZNFU successfully piloted the use of WII on its input loan scheme, the Lima Credit Scheme during the 2014/2015 farming season. In order for farmers to mitigate against adverse weather effects such as droughts or floods, insurance companies were now riding on ICT platforms to offer weather index insurance to crop farmers. Weather Index Insurance used camera and GPS coordinates to capture and identify farmers affected by droughts or floods in order to effect pay- outs to affected farmers.

Your Committee was informed that institutions such as Central Statistical Office, and Universities such as University of Zambia (UNZA) were using ICTs to disseminate information. Central Statistical Office (CSO), in 2016 at the African Statistics day launched a portal that allowed

9 people to view all statistical survey reports as well as carry out simple analysis on results. The University websites such as UNZA website now provided for online registration, publishing of information on those who had been selected per intake and examination results. Previously, all these services required physical presence at the University and/or publication in the newspaper which was labour extensive and expensive.

(d) Improving access to transfer of funds

Your Committee was informed that ICTs had transformed the transactions of money with the introduction of money transfer platforms such as Airtel and MTN Money as well as Shoprite transfer platforms.

(e) Effective co-ordination

Your Committee was informed that in 2015, the e-Government wing which had stalled since 2009, was launched. This programme once fully implemented holds promise of improving information and coordination within the Government. Programmes designed under this include:

(i) e-Public Service Management (e-PSM)- Provision of public services market places, e- recruitment, e-payslips, e-registration online training and online access to circulars and civil service policies and practice handbooks; (ii) Government Knowledge Management Systems (KMS)- ensure that civil servants develop, share, combine and consolidate knowledge, and take advantage of the electronically networked global knowledge; (iii) e-Council- enable effective participatory community monitoring in Local Government Units; (iv) e-School- focuses on the utilisation of ICTs to deliver education services; (v) e-Registrar of Societies Management System (e-RoS)- enables monitoring, tracking and management of information about organisations that are registered under the Registrar of Societies; (vi) e-Police Criminal Record Tracking System (e-Police)- Police Criminal Record Tracking System (PCRTS) is an ICT solution for crime management and security; and (vii) e-Police Public Complaints Authority Information Management System (e-PPCA)- The e- PPCA enables receipt, storage and management of information on complaints from members of the general public on the conduct of police officers in the execution of their duties at the Police Public Complaints Authority (PPCA), Ministry of Home Affairs.

Challenges faced by ICT Consumers

Your Committee was informed that some of the challenges faced by ICT consumers were as outlined below.

(a) Low levels of access to internet services

Your Committee learnt that despite the policy pronouncement by the Government to achieve universal access to internet services, Zambia’s internet connectivity was still poor. According to the International Telecommunications Union database (2015), Zambia internet connectivity was currently at 17 percent which was even lower than that of regional competitor’s such as Kenya and South Africa with internet penetration rates of 43.40 percent and 49 percent respectively. At these abysmally low levels of internet connectivity, in sectors such as the agriculture sector, farmers in Zambia were still facing high information and communication transaction costs which made them unable to compete with farmers from other countries in the region and beyond.

% of people with access to internet in Zambia

2020 20.00 18.00 2015 16.00 2010 14.00 12.00 2005 10.00 8.00 2000 6.00 1995 4.00 2.00 1990 0.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Year % of people using internet

Source: International Telecommunications Union database (2015)

(b) High poverty levels in rural areas

Your Committee was informed that a survey undertaken by ZICTA in 2015, showed that due to high incidences of poverty in rural areas where agriculture was the main economic activity, only 38.8 percent of rural population actively used mobile phones for the communication compared to 68.3 percent in urban areas. The Government still needed to develop interventions that would accelerate adoption and use of mobile phones by the majority of people in rural areas in order to reduce their information and communication costs and increase production efficiencies.

Your Committee was informed that due to high levels of illiteracy, most people in rural areas had not yet accepted and embraced the different feats of technologies that were available on the markets.

(d) Limited incentives

Your Committee heard that one of the biggest challenges facing potential ICT consumers was the high cost of equipment and broadband services. The cost of hardware equipment such as personal computers or television sets was still out of reach for the majority of Zambians. Lack of incentives to invest in the different feats of ICTs had contributed to the low adoption rate of ICTs among Zambians across the country. Mobile phones and other related electronic gadgets still attracted VAT by the Zambia Revenue Authority (ZRA) making it costly for people to acquire them. Further, most rural areas had poor networks which made it difficult for consumers to use mobile phones efficiently.

(e) Unreliable power supply

Your Committee was informed that lack of accessible telecommunications and power infrastructure in rural areas limited available choice for new ICTs. Some parts of the country had no mobile phone coverage and this limited the type of ICT tools that could be introduced and rolled out in such areas. ZICTA in its 2015 ICT Survey report estimated that only 33.1 percent of the households in the country were accessing power from the national grid. Financial ICT

11 innovations were also not accessible in some parts of the country due to poor infrastructure as services such as ATM and point of sale machines needed mobile or internet connectivity to be able to function.

Challenges faced by ICT Service Providers

Your Committee was informed that the challenges faced by ICT service providers were as outlined below.

(a) Availability and Cost of Energy

The cost of the electrical power used to run ICT equipment had risen very sharply over the past few years. This had further been exacerbated by poor electrical power availability on the commercial power grid resulting in many hours of load shedding every day. This had forced service providers to rely extensively on alternative backup power sources such as diesel generators and solar-based power which were more costly in terms of running expenses and initial capital outlay respectively.

(b) Cost of International traffic

Zambia, being a landlocked country, had to import its internet services via third-party neighbouring countries with access to undersea submarine optic fiber cables, at often exorbitant costs. The fact that Zambia did not have ready access to coastal submarine optic fiber cables, was a serious impediment to the provision of cheaper internet services. These costs were invariably passed on to the ICT consumers.

The cost of leasing land from individuals and organisations for the purpose of hosting ICT infrastructure had risen dramatically over the last decade. Land owners had grown increasingly “commercial” in outlook, sometimes asking for extortionist land lease rates, which made it expensive to acquire and lease such land on a sustainable basis. This had increased the cost of delivering ICT services.

(d) Infrastructure sharing

The sharing of ICT infrastructure was always encouraged, as it should result in decreasing the initial cost of setting up ICT infrastructure, as well as the long-term cost of deploying and operating ICT infrastructure. However, this was not the case in Zambia. A case in point was the current scenario in which a single, private, foreign owned Infrastructure Leasing Company had become a powerful monopoly by owning over 80 percent of mobile communication towers it had acquired from Airtel and MTN. Zamtel, as the smallest of the three mobile operators, was the worst affected by this state of affairs as it had to lease the largest number of sites for co-location purposes.

The tower leasing company was able to dictate tower sharing (co-location) lease costs on a take- it-or-leave-it basis, with very high monthly leasing costs. Zamtel was in the unfortunate position of having the most number of leased towers and thus had little choice but to pay the high tower lease fees, thus contributing to making the provision of ICT services even higher. This did not augur well for the industry in general and made the extension of ICT services to currently underserved and unserved areas in Zambia even less attractive and more costly.

(e) Cost of ICT devices and services

The cost of ICT devices and services was one of the barriers to increased access to ICTs. Zambia was the only country in the SADC region that applied excise duty on airtime currently at 15 percent. Customs duty applied on various ICT products which mainly ranged between 15 percent and 25 percent also contributed to the increased cost of the products. The telecommunications sector also had the highest corporate tax burden of 40 percent in addition to which operators were required to pay 3 percent annual operating fees on revenues to ZICTA. This limited the ability of operators to further invest in network expansion and quality improvements. The cost of bandwidth was also relatively high mainly owing to the fact that the country had no direct coastal access to undersea cable.

(f) Vandalism and theft of infrastructure

Service providers continued to suffer from effects of rampant vandalism and theft of ICT infrastructure. This increased the cost of operations through the deployment of expensive security services and the cost of infrastructure replacement. Thefts and vandalism also lead to poor service delivery during the period as they result in network service outage. Copper cables in the fixed network as well as batteries and solar panels were particularly prone to frequent and sustained theft and vandalism.

Challenges Faced By the Regulatory Authority

Your Committee learnt that the increased use of ICTs had also seen the advent of cyber security challenges such as hacking. These to some extent had potential to limit the uptake of some ICT services such as online transactions.

Committee’s Observations and Recommendations

Arising from submissions above, your Committee observes and recommends as set out below:

(a) Your Committee observes that despite the policy pronouncement by Government to achieve universal access to internet services, Zambia’s internet connectivity is still poor and has a penetration rate of 17 percent.

Your Committee recommends that the Government must ensure that modern ICT infrastructure is rolled out in all parts of Zambia, including rural areas, so as to ensure that ICT services are readily available to all Zambians on a non-discriminatory, ubiquitous basis. Where need arises, Government should provide incentives that will attract operators to roll-out ICT infrastructure nation-wide, particularly to rural and underserved or unserved areas.

(b) Your Committee observes that most rural areas have poor mobile coverage network, mainly 2G which makes it difficult for consumers to use mobile phones effectively.

Your Committee recommends that the Government should ensure that mobile network coverage using 3G and 4G technology, as well as suitable fixed network technology, such as optic fiber, should be rolled out to all parts of the country, as soon as practically possible.

(c) Your Committee observes that the ICT policy does not provide for growing trends with respect to technological developments and consumer demand for ICT based goods and services.

Your Committee strongly recommends that the Government should ensure that the ICT policy is updated to provide for growing trends with respect to technological developments and consumer demand for ICT based goods and services.

(d) Your Committee observes that the telecommunications sector is the highest taxed business sector with Corporation tax standing at 40 percent. In addition, operators are required to pay 3 percent annual operating fees on revenues to ZICTA.

Your Committee recommends that the Government should ensure there is a regular review of taxation policy in the telecommunications sector.

(e) Your Committee observes that the E-Government programmes being implemented in various Government ministries are at different stages of development.

Your Committee recommends that the Government should ensure that the E-Government programmes being implemented in various Government ministries are developed and implemented at the same pace.

(f) Your Committee observes that lack of incentives for investment in the different feats of ICTs has contributed to the low adoption rate of ICT’s among Zambians.

Your Committee recommends that the Government should consider zero-rating taxes on end user devices in order to increase the affordability and uptake of smart devices and improve accessibility to ICT services, particularly for rural communities.

(g) Your Committee observes that 80 percent of mobile communication towers are owned by a single, private, foreign owned infrastructure leasing company.

Your Committee recommends that the Government should ensure that low cost, non- commercial standard frameworks are developed through the regulator to promote infrastructure sharing among service providers in Zambia, on a cost-based model in order to encourage infrastructure sharing and roll-out. This will improve the rollout of services to areas that are currently underserved or unserved.

(h) Your Committee observes that service providers continue to suffer from effects of rampant vandalism and theft of ICT infrastructure.

Your Committee recommends that the Government should initiate and implement sensitisation campaigns to ensure that Zambians are sensitised on the effects of vandalism and theft of ICT infrastructure.

(i) You Committee observes that increased use of ICTs has also seen the advent of cyber security challenges such as hacking, which to some extent, has potential to limit the uptake of ICT services such as online transactions.

Your Committee strongly recommends that the Government should ensure that training in cyber security among the security agencies aimed at mitigating risks is a continuous process.

(j) Your Committee observes that optic fibre services are being provided by Zamtel and Zesco which are both state-owned enterprises.

Your Committee strongly recommends that the Government must harmonise the implementation of the optic fibre service in order for both institutions to have clearly defined roles.

Topic 2: The State and Management of Canals, Ports and Harbour Infrastructure in Zambia

Background

7.0 The Ministry of Transport and Communication is responsible for the construction, rehabilitation, upgrading and maintenance of canals. It is also responsible for the construction, maintenance and upgrade of the ports and harbour infrastructure. In view of the foregoing and in an effort to carry out its oversight role, your Committee resolved to undertake a study on the state and management of canals, ports and harbour infrastructure in Zambia with a view to make appropriate recommendations to the Executive.

The objectives of the study were, therefore, to:

(a) assess the effectiveness of the policy on the maintenance and management of canals, ports and harbours; (b) assess the challenges, if any, faced in the maintenance and management of canals, existing ports and harbours; (c) find out what measures the Government has put in place to ensure that dredging machines, canals, ports and harbours are well maintained; (d) ascertain the state of canals, ports and harbours; and (e) make recommendations to the Executive on the way forward.

The following institutions made both written and oral submissions on the subject:

(a) Mpulungu Harbour Corporation; (b) Zambia Sugar PLC; (c) Lafarge; and (d) Ministry of Transport and Communications.

Consolidated Summary of Submissions

Effectiveness of Government’s Policy on the Maintenance and Management of Canals, Ports and Harbours

Your Committee was informed that the Government policy on canals, ports and harbours was articulated in the 2002 Transport Policy document.

The Government policy direction on maintenance and management of waterways infrastructure was to improve the current facilities to match some of the waterways infrastructures in the region and where necessary adequate enough to support the expected volumes of cargo and passengers that could be handled. To ensure that the infrastructure challenges were addressed, the policy had outlined programmes and initiatives to procure additional dredging facilities and distributing them to various major water bodies. Through this policy, the Government expected that as water

15 transport boards operate commercially, both cargo and passenger operations could be expected to run sustainably.

Your Committee was informed that there were a number of strategies which the policy supported which when fully implemented would impact positively on waterways infrastructure development. The policy also emphasised the important aspect of compliance to safety standards by vessel operators as prescribed in Chapter 466 of the Laws of Zambia.

The State of Canals, Ports and Harbours

Most canals were in a poor state as most of them were clogged with weeds and siltation owing to lack of maintenance resources and skills. Furthermore, most ports and harbours were underdeveloped except for Mpulungu Harbour which was quite advanced in comparison terms. The Port currently had three jetties on the western end of the Port and an oil jetty to the east of the Port. The first jetty on the western end provided the largest berthing length of about twenty metres.

Currently, vessels using this jetty had to double berth and in some cases there were up to four vessels lined up across the jetty. It was difficult to reach the outer vessels during operations and this presented a big operational risk in the event of strong winds. The jetties were inadequate as the vessels currently in operation on the lake were more than forty metres in length.

The African Development Bank funded port modernisation project would, among other things, ensure the extension of the existing quay eastwards to provide berths for two typically large vessels to lay alongside the quay. The targeted extension was from metres twenty to 120metres. The port had five warehouses with total storage capacity of 11,000mt. Four warehouses were in regular use and in good condition. The fifth warehouse required a slab to make it fully usable. The slabbing of the fifth warehouse was currently a function of demand and was planned for the first quarter of 2016. The Government had purchased modern industrial equipment for the Port. The new equipment comprised a 300ton capacity Crawler Crane, a Reach Stacker with capability to lift 40 foot containers and three (3) 20ton forklifts. The total purchase price was Three Million Seven Hundred Twenty Two Thousand Nine Hundred Twenty Eight United States Dollars ($3,722,928) and all the equipment had since been delivered. The investment in a reach stacker for Mpulungu Port was a commitment by the Government to ensure that Mpulungu Port had modern infrastructure befitting modern trends in port management. It was envisaged that the new port would have a dedicated container terminal to facilitate smooth container traffic between Mpulungu and Bujumbura. The newly acquired crawler crane would supplement the reach stacker and give the Port added capability in the absence of gantry cranes. The crawler crane had capacity to reach vessels docked several metres away from the quay, in the case of many vessels being berthed across the quay.

The Government had also procured thirty new desktops and fifteen new laptops for the Port. The total purchase price was K371, 192. All the units had been delivered to the Port.

Challenges Faced in the Maintenance and Management of Canals, Ports and Harbour Infrastructure

Your Committee was informed that the challenges faced in the maintenance and management of canals, ports and harbour infrastructure were as outlined below.

(a) Lack of modern maritime public infrastructure - Most of the canals, ports and harbours were in a deplorable state and required rehabilitation and maintenance.

(b) Lack of maritime training schools and colleges-Currently, there was no training institution in Zambia offering specialised training in the maritime field.

(c) Limited human and technical skills -There was limited human and technical skills in the maintenance of ports and harbour infrastructure. In addition, there was insufficient capital equipment to undertake port maintenance jobs. This situation further leads into high deterioration of the existing equipment.

(d) Lack of handling equipment at harbours and inadequate dredging facilities, particularly for canals and rivers- Most of the cargo which needed lifting equipment had to be manually handled thus increasing handling time. The lack of dredging equipment also delayed the improvements of the ports to accommodate bigger and modern vessels.

(e) Lack of navigation aid equipment-Currently, there were no navigation aids at any Zambian port.

(f) Reduced port revenues as a result of limited port size- The constrained throughput of imports and exports at the port was reducing the amount of revenue that the Government could generate by way of road tax, export permits, customs clearance and port charges. The local district was also being deprived of the needed funds from the local levy payments for district development.

(g) Adverse weather affecting the equipment- There was actually need for specialised equipment that could operate effectively in hot and humid weather.

(h) Lack of adequate warehouse space – There was need to put up adequate storage space to allow for enough cargo to be stored, prepared and loaded onto the ships/vessels within record time. At present, cargo has to be rushed to the port to meet the vessels. This increase the idle time or standing time for the vessel and thus increase the cost of operations at port Mpulungu.

(i) Limited staging area – this restricted the amount of cargo that could be loaded onto the vessels thereby reducing the amount of cargo that could be loaded at any one time. It also reduced the number of vessels that could dock to load and restricted the type of handling equipment that could be used.

Measures the Government has put in place to ensure that Dredging Machines, Canals, Ports and Harbour Infrastructure are well maintained

Your Committee was informed that Government interventions included encouraging partnerships between international and local firms when undertaking major port maintenance jobs as a means for practical experience. The Ministry of Transport and Communications was currently developing sub-policies for maritime which would be included in the Transport Policy and Transport Infrastructure Master Plan including development of training centres of maintenance yards and maritime equipment.

Your Committee was also informed that the Government was embarking on a Mpulungu Port modernisation project. Artelia, a consulting firm based in France, had been offered a contract to conduct the preparatory study in the sum of US$749,148. This project included preparing the Engineering designs for the modern port. An inception report had since been done which would be subjected to review by a Technical Assistant, Eng. Macoza Zulu, based in the Netherlands.

Committees for the Mpulungu Port modernisation project had also been constituted, namely a Joint Technical Committee and a Joint Steering Committee. The Joint Technical Committee had been charged with the responsibility of managing the day-to-day processes of the project while the Joint Steering Committee would provide project oversight and policy direction.

Furthermore, your Committee was informed that the Zambian Government was party to a Memorandum of Understanding signed on 14th September, 2013, with the Government of Burundi regarding the Lake Tanganyika Transport Corridor Development Initiative. The MoU lays down a framework for cooperation between the two Governments in the development of Lake Tanganyika as a transport corridor and for the exploitation of its full economic potential. Consequently, a Letter of Agreement was signed by the Zambian Government on 10th January, 2014, with the African Development Bank under the NEPAD – Infrastructure Project Preparation Facility (NEPAD-IPPF). This was in respect of a grant to the Republic of Zambia for financing part of the costs of the project preparatory study for the development of the Lake Tanganyika Transport Corridor. The grant was in the sum of US$1,478,000.

Your Committee was also informed that the Government had purchased a passenger ferry with capacity to seat 250 people with sleeper rooms, dining room and other facilities. This was expected to be the Zambian national flag carrier on Lake Tanganyika. Currently, there was only one passenger ferry, the Liemba, which had been making voyages between Kigoma, in Tanzania, and Mpulungu for more than fifty years. The new passenger ferry, whose delivery was expected in mid 2016, would boost Government efforts to develop the northern circuit as an attractive tourist destination.

Committee’s Observations and Recommendations

Arising from submissions above, your Committee makes observations and recommendations as set out below.

(a) Your Committee observes that most canals, ports and harbours are in a deplorable state and require rehabilitation and maintenance.

Your Committee recommends that there should be increased funding to the Department of Maritime and Inland Waterways at the Ministry of Transport and Communications for improved infrastructure development, maintenance and management. This will result in continued maintenance of the equipment.

(b) Your Committee observes that there is no training institution in Zambia offering specialised training in the Maritime field. Further, there is lack of human and technical skills in the maintenance of port and harbour infrastructure.

Your Committee strongly recommends that the Government should establish a training institution to offer specialised training in the maritime field and build capacity in the sector by producing qualified and skilled personnel. The Government may also explore Public Private Partnerships to actualise its programme.

(c) Your Committee observes that the constrained throughput of imports and exports at Mpulungu port reduces the amount of revenue that the Government generates by way of road tax, export permits, customs clearance and port charges.

Your Committee recommends that the Government should ensure that the expected extension works at Mpulungu Port are expedited in order to avoid loss of revenue arising from limited port size.

(d) Your Committee observes that there is inadequate storage space at Mpulungu Port resulting in increased standing time for the vessel thereby increasing the cost of operations at the Port.

Your Committee recommends that the Government should ensure that the port warehouses are upgraded in order to increase the storage capacity. With cargo on site, the process of loading the vessels is made quicker and more cost effective. The increased loading pace at the port will also allow for quick turnaround of the vessels in the harbour.

(e) Your Committee observes that there is lack of handling equipment at harbours and inadequate dredging facilities, particularly for canals and rivers. Most of the cargo which needs lifting has to be manually handled thereby increasing handling time.

Your Committee strongly recommends the Government to ensure that handling equipment at harbours and dredging facilities, particularly for canals and rivers, are made available.

(f) Your Committee observes that the staging area at Mpulungu Harbour is limited thereby restricting the amount of cargo that can be loaded onto the vessels. This reduces the amount of cargo that can be loaded at any one time and also the number of vessels that can dock to load. This also restricts the type of handling equipment that can be used.

Your Committee recommends that the staging area at Mpulungu Harbour should be extended to allow for adequate amounts of cargo to be loaded onto the vessels.

(g) Your Committee observes that currently, there are no navigation aids at any Zambian port.

Your Committee strongly recommends the Government to ensure that navigation aids are installed on all ports in Zambia.

PART II

Tour of Airtel and Zamtel

8.0 Your Committee toured Airtel and Zamtel in Lusaka in order to find out what was obtaining on the ground regarding the role of ICT in national development.

Tour of Airtel

Your Committee toured the call centres at Petroda House, off Malambo road and along Great East Road, respectively. Your Committee also visited the Network Operations Centre along Addis Ababa drive.

Your Committee was informed that Airtel appreciates the steps taken by Government to reduce taxes on telecommunication equipment including solar technologies and alternative energy used in powering telecommunications sites. This had helped to extend services to rural areas in view of lowered entry costs.

In addition, the licensing structure currently in place had allowed Airtel to deploy infrastructure across all 103 districts and in many cases beyond the districts. In addition, Airtel had given Call Centre access in seven local languages thus allowing people that were not conversant with English to have their queries resolved and any other assistance given. Further, in collaboration with the Government, Airtel had deployed an excess of 250 towers in rural areas where the business case was not favourable.

However, more could still be done particularly in view of the fact that this industry relied mostly on dollar based inputs such as bandwidth whereas the revenues were Kwacha based. The recent high volatility of the Kwacha had reduced the revenue gains by nearly half. This had been compounded by the increased load shedding as transmission services had traditionally relied on the Zesco grid. Sustaining transmission in the wake of load shedding had meant increased investment in alternative energy sources at amounts not previously foreseen. This had meant an increase in the cost of doing business whereas Airtel had had to continue providing the services without increasing retail tariffs.

Tour of Zamtel

Your Committee also toured Zamtel Headquarters along Church road, Zamtel Kwacha House in Suez Road and Zamtel East Park Mall situated at the corner of Great East and Thabo Mbeki Roads.

Your Committee was informed that Zamtel continued to use ICTs as a key touch-point for interacting with its customers, without their having to come into one of their offices. Zamtel used a self-care web-based portal which enabled customers to check their bills remotely using electronic devices thereby providing improved customer access to their bill data, as well as improving customer care service. Zamtel was also using ICTs for internal use, such as on-line staff appraisal and performance management system which had led to improved employee performance tracking.

Your Committee learnt that Zamtel had 285 networks in 140 countries all over the world and had 12 percent market share in Zambia. Zamtel was the only fixed line operator, but due to a lack of investment during the past few decades, the primarily copper-based fixed line network had become aged and of poor quality. It was, therefore, not possible to deliver high-speed broadband services on such a fixed network. In addition, the fixed copper network was highly prone to frequent vandalism and copper cable theft, resulting in poor quality of service arising from increased operational costs, due to the frequent replacement of stolen copper cables as well as network outages arising from the same. Zamtel had commenced the replacement of some of the large copper cables that connect the main exchanges to cabinets close to residential and business areas, by way of a Fiber-to-the-Cabinet (FTTC) project. Some initial strides had been made in this regard, with Lusaka and Livingstone, serving as a starting point. This project was, however, very capital intensive and could only be rolled out aggressively nationwide, when suitable project funding was available.

Committee’s Observations and Recommendations

Arising from the findings, your Committee makes observations and recommendations as set out below.

(a) Your Committee observes that the operations of Airtel are negatively affected by power outages.

Your Committee recommends that the Government should consider securing supply of reliable, high quality electrical grid power for sensitive ICT installations countrywide.

(b) Your Committee observes that infrastructure at Airtel and Zamtel is highly prone to theft and vandalism.

Your Committee recommends that the Government should ensure communities are sensitised regarding thefts and vandalism of ICT infrastructure.

(c) Your Committee observes that Zamtel’s primarily copper-based fixed line network is of poor quality due to lack of investment during the past few decades.

Your Committee strongly recommends that the Government should consider recapitalising Zamtel in order to ensure that the infrastructure is upgraded to enhance delivery of high-speed broadband services and the roll out of optic fibre country wide.

Part III

9.0 Consideration of the Action-Taken Report of the Committee on Communications, Transport, Works and Supply for the Fourth Session of the Eleventh National Assembly

The construction industry in Zambia vis-a-vis the participation of local contractors

(a) Reviewing the National Council for Construction Act No. 13 of 2003

Your previous Committee had recommended that the Government should amend the National Council for Construction (NCC) Act No. 13 of 2003, so that the NCC could also regulate and punish all the erring contractors that undertook works in the private sector.

Executive’s Response

Your Committee was informed that the National Council for Construction (NCC) had commenced the process of reviewing its Act holistically. It was envisaged that with enhanced stakeholder consultative workshops and submissions from the members of the general public, the anticipated review would culminate in addressing the various issues that had created a lacuna in the current Act.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the matter.

(b) Enhance Research

Your previous Committee had recommended that there was need for the Government to urge the NCC to enhance its research in relation to the construction sector.

Executive’s Response

It was reported in the Action-Taken Report that the National Council for Construction was working on modalities to implement targeted local contractor development programmes in 2016. Further, the Council had increased the promotion of joint ventures between local and foreign

21 contractors, skills transfer programmes and practical training schemes through partnerships with the private sector.

Committee’s Observations and Recommendations

Your Committee notes the response. However, your Committee requests the Government to clearly state the measures that have been put in place to enable the NCC to enhance its research in relation to the construction sector.

Your previous Committee had recommended that the Government should ensure that the Citizens’ Economic Empowerment Act No. 9 of 2006 and the Zambia Public Procurement Act No. 12 of 2008 were harmonised in order to facilitate consistency in the definitions of citizen companies as provided in the Acts.

Executive’s Response

Your Committee was informed that the Government had taken note of the need to harmonise the two Acts. In this regard, the Government would, in due course commence the consultative process on the two Acts in order to ensure that there was consistency in the definitions of ‘citizen companies’ as provided in the two Acts.

However, your Committee was further informed that the two Acts were similar as a company could not be licensed to undertake business activities in Zambia unless it was registered in accordance with the Zambian Laws. This was so because of the similarities in the respective Acts which speak the same language.

The Procurement Act No.12 of 2008, defines ‘citizen’ companies as follows:

• ‘Citizen Empowered Company’ as a company where twenty five to fifty percent of its equity is owned by citizens, and licensed to undertake business activities in Zambia; • ‘Citizen Influenced Company’ as a company where five to twenty five percent of its equity is owned by citizens, and is licensed to undertake business activities in Zambia; and • ‘Citizen Owned Company’ as a company where at least fifty point one percent of its equity is owned by citizens and in which the citizens have significant control of the management of the company, and is licensed to undertake business activities in Zambia.

On the other hand the CEE Act No.9 of 2006 defines ‘Citizen’ company as follows:

• ‘Citizen Empowerment Company’ means a company where twenty-five to fifty percentage of its equity is owned by citizens; • ‘Citizen Influenced Company’ means a company where five to twenty-five percent of its equity is owned by citizens and in which citizens have significant control of management of the company; and • ‘Citizens Owned Company’ means a company where at least fifty percent point one of its equity is owned by citizens and in which citizens have significant control of the management of the company.

Therefore, the above indicate similarities that lie in the two Acts. However, the major difference between the two Acts is that the Procurement Act goes further to request that, companies should be licensed to undertake business in Zambia while the CEE Act does not make express

22 requirement for companies to be licensed to undertake business in Zambia. Further, the CEE Act No.9 of 2006 gives a definition of a company as a private or public company as defined in the Companies Act.

Committee’s Observations and Recommendations

Your Committee notes the response. However, your Committee requests the Government to clearly state when exactly the Citizens’ Economic Empowerment Act No. 9 of 2006 and the Zambia Public Procurement Act No. 12 of 2008 would be harmonised so as to facilitate consistency in the definitions of ‘citizen’ companies as provided in the Acts.

(d) Industry specific regulations

Your previous Committee had recommended that the Government should ensure that industry specific regulations were developed to assist with managing health, wellness and safety of workers in Zambia.

Executive’s Response

Your Committee was informed that the National Council for Construction was currently reviewing its Act and issues to deal with Construction Industry Safety and Health would be enhanced through the development of appropriate enforcement legislation and codes of practice.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the matter.

(e) Harmony and standardisation

Your previous Committee had recommended that the Government should undertake urgent measures to transfer all procurement of Government building works and supervision back to the Ministry of Works and Supply whose responsibility it was even before, in order to restore harmony and standardisation.

Executive’s Response

It was reported in the Action Taken Report that the Government prepared and circulated a draft Cabinet Memorandum proposing the reverting of project procurement and management of Government buildings to the Ministry of Works and Supply. The Cabinet Memorandum had since been submitted for consideration. In the meantime, for the execution of the infrastructure projects in the new districts, the Ministry of Works and Supply through Cabinet Office requested and was granted permission to constitute Provincial Projects Implementation Teams drawn from several line ministries coordinated by the Provincial Buildings Engineers to oversee the construction of all projects in the new districts.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the outcome from the Cabinet Memorandum proposing the reverting of project procurement and management of Government buildings to the Ministry of Works and Supply.

(f) Payments to contractors

Your previous Committee had recommended that the Government should put in place measures to ensure that contractors were paid on time.

Executive’s Response

Your Committee was informed that the Government through the Ministry of Works and Supply was working with the Ministry of Finance to come up with ways of ensuring speedy release of funds for construction works and other development projects.

Committee’s Observations and Recommendations

Your Committee notes the response and requests the Government to clearly state the measures put in place to ensure the speedy release of funds for construction works and other development projects.

(g) Mandatory sub-contracting

Your previous Committee had recommended that the 20 percent mandatory sub-contracting to local contractors in the road sector should be adopted for all construction activities. Further, there was need to increase the threshold with a view to enhancing the participation of local contractors. In addition, there was need for the Government to transform the 20 percent mandatory sub- contracting policy into law so that all principal contractors would be bound by law to implement the policy. Furthermore, the law should make it mandatory that the scope of works to be subcontracted was specified in the bidding document and the selection process of a sub-contractor should be transparent and supervised by the client or their agent and not left to the main contractor.

Executive’s Response

It was reported in the Action-Taken Report that the Government through the Ministry of Works and Supply held several meetings with the Association of Buildings and Civil Engineering Contractors (ABCEC) and the National Association of Medium and Small Scale Contractors (NAMSSC) to work out modalities for the compulsory subcontracting of 20 percent of the building contracts. Unfortunately, the contractors amongst themselves could not agree on the mode for selection for the subcontracts and this was the status quo to date. However, the Ministry of Works and Supply had empowered local contractors mostly registered in Grades 3, 4, 5 and 6 in collaboration with the National Council for Construction by limiting the participation of foreign owned firms in the construction of the infrastructure in the newly created districts. This deliberate policy had resulted in the awarding of 165 contracts to local firms for the construction of buildings in thirty-six districts while foreign firms only received five contracts in the same period for projects in the new districts.

Committee’s Observations and Recommendations

Your Committee notes the response and urges the Government to clearly state the measures that would be put in place to ensure that the twenty (20) percent mandatory sub-contracting to local contractors in the road sector is adopted for all construction activities. Further, your Committee requests the Government to clearly state the measures put in place to prevent the subcontractors from reselling contracts.

The Management and Maintenance of Government Buildings in Zambia

(a) Maintenance policy

Your previous Committee had recommended that the Government should expedite the process of developing the maintenance policy for Government buildings which would guide Ministries, Provinces and Spending Agencies (MPSAs) on how to ensure that all Government buildings were well maintained once it had approved by Cabinet.

Executive’s Response

Your Committee was informed that the Government through the Ministry of Works and Supply had completed the preparation of the draft maintenance policy which would be circulated to all Ministries for comments before submission to Cabinet.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the matter.

(b) Recruitment of skilled personnel

Your previous Committee had recommended that there was need for the Government to ensure that adequate skilled personnel were recruited in the Buildings Department.

Executive’s Response

It was reported in the Action-Report that the Government had forwarded lists of qualified applicants to Public Service Management Division (PSMD) for employment and was awaiting a response. Further, in order to improve service delivery countrywide and meet the supervision demand of various projects, the Ministry of Works and Supply had also requested the Government to consider the expansion of its construction professional’s establishment structure which had since been submitted to PSMD for further consideration.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the matter.

Your previous Committee had recommended that there was need for the Government to ensure that there was professional input in analysis and ranking of critical maintenance works.

Executive’s Response

It was reported in the Action-Taken Report that efforts were still being made to address all the maintenance works professionally. However, preparation of detailed works schedules was still being hampered by the inability to recruit more trained personnel so as to increase the establishments at Buildings Headquarters, Provincial and District levels.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the matter.

(d) Budget lines

Your previous Committee had urged the Government to ensure that budget lines for maintenance of all Government Buildings were channelled through the Ministry of Works and Supply as this would bring about harmony and standardisation.

Executive’s Response

Your Committee was informed that efforts were still being made to address all the maintenance works professionally. However, preparation of detailed work schedules were being hampered by the inability to recruit more trained personnel so as to increase the establishments at Buildings Headquarters, Provincial and District levels.

Committee’s Observations and Recommendations

Your Committee reiterates its previous recommendation for the Government to ensure that budget lines for maintenance of all Government Buildings are channelled through the Ministry of Works and Supply. Your Committee also requests for a progress report on the matter.

Foreign Tour to Kenya

(a) Construction Levy

Your previous Committee had urged the Zambian Government to consider introducing a construction levy and increasing funding to the NCC to enable it conduct adequate research and build capacity for local contractors.

Executive’s Response

Your Committee was informed that the National Council for Construction through the Ministry of Works and Supply had passed a Statutory Instrument on project registration in order to assess the possibility of introducing the construction levy.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the matter.

(b) Sub-contractors

Your previous Committee had recommended that there was need for the Zambian Government to increase the percentage that foreign contractors were mandated to sub-contract to local contractors.

Executive’s Response

It was reported in the Action-Taken Report that the Government through Ministry of Works and Supply held several meetings with the Association of Buildings and Civil Engineering Contractors (ABCEC) and the National Association of Medium and Small Scale Contractors (NAMSSC) to work out modalities for the compulsory subcontracting of the 20 percent of the building contracts. Unfortunately, the Contractors amongst themselves could not agree on the mode for selection for the subcontracts and the status quo continues to date. However, the Ministry of Works and Supply in collaboration with the National Council for Construction,

26 decided to empower local contractors who were mostly registered in Grades 3,4, 5 and 6 by limiting the participation of foreign owned firms in the construction of the infrastructure in the newly created districts.

Committee’s Observations and Recommendations

Your Committee reiterates its previous recommendation for the Government to increase the percentage that foreign contractors are mandated to subcontract to local contractors.

Your previous Committee had recommended that foreign contractors should be mandated to provide a programme to the NCC on how skills will be transferred to the local sub-contractor.

Executive’s Response

Your Committee was informed that the National Council for Construction was working on modalities to implement a targeted Local Contractor Development Programme in 2016. Further, the Council had increased the promotion of joint ventures between local and foreign contractors, skills transfer programmes and practical training schemes through partnership with the private sector.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on a targeted local contractor development programme in 2016.

(d) One project at a time

Your previous Committee had recommended that there was need for the Zambian Government to ensure that foreign contractors were only allowed to undertake one project at a time.

Executive’s Response

Your Committee was informed that the Government was working on developing policies that could provide contractual guidelines on Zambian projects.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the development of the policies that can provide contractual guidelines on Zambian projects in order to ensure that foreign contractors are only allowed to undertake one project at a time.

(e) Maintenance funds

Your previous Committee had recommended that there was need for the Zambian Government to allocate maintenance funds in the national budget which should be domiciled in the client ministries.

Executive’s Response

It was reported in the Action-Taken Report that once the maintenance policy had been approved, the Ministry of Works and Supply could guide responsible MPSAs and other agents on how to allocate funds for the maintenance of buildings to the national budget.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the matter.

(f) Maintenance Policy for Government

Your previous Committee had urged the Zambian Government to expedite the process of developing the Maintenance Policy for Government buildings which when approved by Cabinet would guide MPSA on how to promote and ensure that all Government buildings were well maintained.

Executive’s Response

Your Committee was informed that the Government had completed the preparation of the draft maintenance policy which would be circulated to all ministries for comments before submission to Cabinet.

Committee’s Observations and Recommendations

Your Committee notes the response and requests an update on the matter.

10.0 Consideration of the Action-Taken Report on the Report of the Committee on Communications, Transport, Works and Supply for the Third Session of the Eleventh National Assembly

Public Private Partnership (PPP) in Infrastructural Development in Zambia

(a) Creation of Public Private Partnership (PPP) Sub-Units

Your previous Committee had noted the response and requested for a progress report on the matter.

Executive’s Response

It was reported in the Action-Taken Report that the Government through ZDA, in collaboration with the Private Sector Development Industrialization and Job Creation Unit (PSDIJC), had embarked on a programme to train sixty public officers in PPPs, with at least two from each Contracting Authority. These public officers would be the contact personal regarding PPP projects for their respective Ministries. Further, the Government through ZDA had secured funding of the training through the PSDIJC and the training was expected to be undertaken before the end of 2015.

Committee’s Observations and Recommendations

Your Committee notes the response and requests an update on the matter.

(b) PPP regulations and manuals

Your previous Committee had noted the response and requested an update on the amendments to the PPP Act and regulations as well as the progression guidelines and manuals to be developed for use in the implementation of PPP projects.

Executive’s Response

The Government through ZDA, in collaboration with Private Sector Development Industrialization and Job Creation Unit (PSDIJC) had embarked on a programme to train 60 public officers in PPPs, with at least two from each Contracting Authority. These public officers would be the contact personnel regarding PPP projects for their respective Ministries. Government through ZDA had secured funding of the training through the PSDIJC and the training was expected to be undertaken before the end of 2015.

Committee’s Observations and Recommendations

Your Committee notes the response and reiterates its previous recommendation to have an update on the amendments to the PPP Act and regulations as well as the progression guidelines and manuals to be developed for use in the implementation of PPP projects.

Your previous Committee had urged the Government to expedite the process of developing mechanisms for project implementation, monitoring and contract management, within the PPP Unit and line ministries.

Executive’s Response

Your Committee was informed that a mechanism would be developed and put in place once the PPP Act No.14 of 2009 had been amended to transfer PPP functions from the Ministry of Finance to the ZDA. The mechanisms would be done through Regulations and Guidelines.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the matter.

(d) Revision of the Public Private Partnership Act of 2009

Your previous Committee had urged the Government to expedite the process.

Executive’s Response

Your Committee was informed that the revision of PPP Act No. 14 of 2009, would be completed in due course once the consultative process had been completed.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the matter.

Topic 2: The State of Railway Infrastructure in Zambia

(a) Revision of the Tanzania Zambia Railway Act

Your previous Committee requested had an update on the matter.

Executive’s Response

Your Committee was informed that the Government through the then Ministry of Transport, Works, Supply and Communications began the process of revising the TAZARA Act of 1995 in 2013. The revision process had been concluded and the revised document was with the Ministry of Justice for further review and subsequent conveyance to and approval by cabinet.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the matter.

(b) Capacity for training

Your previous Committee had requested an update on the revamping of the TAZARA and Zambia Railways Limited Training Centres in Mpika and Kabwe respectively.

Executive’s Response

It was reported in the Action-Taken Report that the revamping of the TAZARA and Zambia Railways Limited Training Centres in Mpika and Kabwe respectively was very vital. The Government of the Republic of Zambia through the Ministry of Transport and Communications had instructed the railway companies to get into partnerships and various PPP financing modes aimed at revamping the subsector in the country through provision of training as a key component to railway operations, maintenance and management. To this effect, the Mpika Railway Training Centre had partnered with Copperbelt University in order to begin offering training in railway related fields.

Committee’s Observations and Recommendations

Your Committee notes the response and requests an update on the revamping of the Training Centre in Kabwe.

Local Tour to Lusaka, Central, Copperbelt, Muchinga and Eastern Provinces

(a) Upgrading Workshops

Your previous Committee had requested an update on the matter.

Executive’s Response

It was reported in the Action-Taken Report that adherence to standards had not been constituted due to inadequate funding to the Department of Transport and subsequently to the Road and Rail Transport Unit of the Department, which was mandated to oversee the development of the Land Transport (Road and Rail) subsector. The Government through the Ministry would therefore, request the Treasury to consider a special funding to facilitate this function and the Ministry

30 would constitute the committee this August 2015. The team was expected to be headed by the Director of Transport Department.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the matter.

(b) Securing Infrastructure

Your previous Committee had requested a progress report on the enactment of the proposed repeal bill of the Railways Act.

Executive’s Response

Your Committee was informed that the enactment of the repeal bill which would enshrine measures to secure the infrastructure which was being vandalised had not yet been done. The bill had been sent to the Ministry of Justice for approval. The Ministry of Transport and Communications through the Department of Transport would follow up the matter with the view to expedite the process.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the matter enactment of the proposed repeal bill of the Railways Act.

Your previous Committee had requested an update on the matter.

Executive’s Response

Your Committee was informed that the Government through the Ministry of Transport and Communications had constituted a team of experts to resolve the issues that surrounded Railway Systems of Zambia Limited’s (RSZ) outstanding debts. The team of experts had since resolved the issues and also did establish the amount owed to former RSZ employees. The Ministry of Transport and Communications had conveyed the information to the Ministry of Finance for its analysis, consideration and approval, and the subsequent effecting of payments.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the clearing of the outstanding terminal benefits owned to the former RSZ workers.

(d) Performance audit

Your previous Committee had noted the response and requested for a progress report on the performance audit on the utilisation of the US$120 million portion of the Eurobond.

Executive’s Response

Your Committee was informed that the Office of the Auditor General and Ministry of Finance had carried out the performance audit on the utilisation of the USD 120 million portion of the Eurobond. However, the report had not yet been finalised.

Committee’s Observations and Recommendations

Your Committee notes the response and requests a progress report on the matter.

(e) Recapitalisation programme

Your Committee had noted the response and requested an update on the matter.

Executive’s Response

It was reported in the Action-Taken Report that the continued recapitalisation programme of ZRL was vital. However, this had been difficult due to funding constraints.

With regards to Greenfield Railway Projects, the Ministry of had engaged a number of institutions both local and international for financing of feasibility studies, production of detailed Engineering Drawings and construction of the railway lines as outlined below.

(a) Chingola-Solwezi-Jimbe: to link Zambia Railway network to the Angolan network through to Port Lobito. The developer is North Western Railway –Concession Agreement is under review awaiting input from Ministry of Finance. (b) Nseluka-Muplungu Railway: to link TAZARA to the Great Lakes Region of East Africa via Lake Tanganyika- First preliminary feasibility done by TAZARA and the second by China Civil Engineering Construction Corporation (CCECC). Detailed feasibility study being done by ROME International with support from African Development Bank. (c) Chipata-Mchinji line connecting to TAZARA line: to facilitate freight through Port Nacala and ease congestion at Dar es Salaam-CCECC are negotiating with the Government to do the studies and construct the railway line. (d) Kafue-Lion’s Den (Zimbabwe): to link the Zambia Railway network to Port Beira of Mozambique via Zimbabwe-No feasibility done. (e) Livingstone-Katima Mulilo via Kazungula: to enhance trade links amongst Zambia, Botswana and Namibia by utilizing Walvis Bay Port-detailed feasibility study being done by ROME international with support from ADB.

Committee’s Observations and Recommendations

Your Committee notes the response and requests a further update on the Greenfields railway projects.

TANZANIA-ZAMBIA RAILWAY AUTHORITY

(a) Proper and Specified Contracts

Your Committee had requested an update on the matter.

Executive’s Response

Your Committee was informed that the Government through the TAZARA Board had instructed TAZARA Management to ensure that workers operated on proper and specified contracts. However, the TAZARA Management did not execute the instruction. The new Managing Director therefore would have to effect this instruction.

Committee’s Observations and Recommendations

Your Committee notes the response and requests a further update on the matter.

(b) Safe Communication Devices

Your previous Committee had requested an update on the matter.

Executive’s Response

Your Committee was informed that the installation of the signalling and telecommunication system at ZRL had commenced. However, nothing had been done at TAZARA.

Committee’s Observations and Recommendations

Your Committee notes the response and requests the Government to clearly state when installation of the signalling and telecommunication system would commence at TAZARA.

Your Committee had requested an update on the matter.

Executive’s Response

Your Committee was informed that the Government was unable to provide funding for both working capital and recapitalisation as earlier stated. Therefore, the company was still facing some fuel shortages. However, there was an improvement from the previous year (2014).

Committee’s Observations and Recommendations

Your Committee notes the response and requests the Government to clearly state the measures that will be put in place to ensure that fuel for use in locomotives is made available.

(d) Payment of retirees

Your previous Committee requested an update on the matter.

Executive’s Response

It was reported in the Action-Taken Report that after releasing the USD 2.96 million to clear salary arrears, the Government had released funds amounting to approximately USD 12.5 million to pay off outstanding dues to retirees, including senior managers.

However, TAZARA retirees statutory dues were still pending in amounts of about ZWK12, 500,000. Further, some retirees sued TAZARA and the ruling made in their favour stipulated that

33 dues were to attract interest at the current average bank lending rate. Therefore, interest accrued incessantly, thereby increasing the amount owing to the retirees.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the matter.

Kasumbalesa and Nakonde Border Posts – Public Private Partnership Projects

(a) Additional offices

Your previous Committee had requested an update on the on-going works at Nakonde Border Post.

Executive’s Response

Your Committee was informed that there was no PPP arrangement at Nakonde Border Post. It was being managed by the Zambian Government through the Zambia Revenue Authority. The Border Post had since been commissioned and the Government was now working on feeder roads and the construction of staff houses. The construction of staff houses was at tender process.

Committee’s Observations and Recommendations

Your Committee notes the response and requests the Government to clearly state when additional offices will be constructed at Nakonde border post.

(b) Work in progress

Your previous Committee had requested an update on the construction of the staff houses.

Executive’s Response

Your Committee was informed that the construction of the staff houses at Kasumbalesa Border Post had been planned for and would be considered for inclusion in the 2016 Budget.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the construction of the staff houses at Kasumbalesa Border Post.

11.0 Consideration of the Action-Taken Report on the Report of the Committee on Communications, Transport, Works and Supply for the Second Session of the Eleventh National Assembly

(a) Airport Infrastructure

(i) Simon Mwansa Kapwepwe

Your previous Committee had requested a further update on the construction of the new Simon Mwansa Kapwepwe International Airport in Ndola.

Executive’s Response

It was reported in the Action-Taken Report that the surveying and mapping of the new Simon Mwansa Kapwepwe International Airport land in Ndola had been done. However, it was discovered that there were properties within the same land, which had been surveyed and held on titles. The Offices of the Surveyor General, Civil Aviation Authority and the National Airport had been engaging the title holders to ensure there were no encumbrances before the land could be handed over to the contractor.

Committee’s Observations and Recommendations

Your Committee notes the response and requests an update on the matter.

(ii) Southdowns and Kasompe Aerodromes

Your previous Committee had requested a further update on the maintenance of the aerodromes.

Executive’s Response

Your Committee was informed that currently, no maintenance had been conducted due to manpower constraints. However, the Government would consider conducting maintenance of the aerodromes before the end of the fourth quarter of 2014.

Committee’s Observations and Recommendations

Your Committee notes the response and requests a further update on the maintenance of the aerodromes.

(b) Upgrading Aerodromes

Your previous Committee had requested an update on the matter.

Executive’s Response

Your Committee was informed that ten selected aerodromes were to be upgraded to bituminous standard and the contractor had started works on aerodromes in Lot 3 after being paid an advance payment with Chama being the first. The works were progressing under the supervision of Eastconsult Limited. Works would commence on other aerodromes in Lots 1 and 2 after completion of Aerodromes in Lot 3.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the upgrading of aerodromes in Lots 1 and 2.

(i) Procurement of surveillance radar

Your previous Committee had requested an update on the matter.

Executive’s Response

It was reported in the Action-Taken Report that Surveillance Radar had been installed at Harry Mwanga Nkumbula International Airport (HMNIA) by November 2013 and was currently operational. However, there was one sensor for the runway visual range (RVR) which was yet to be procured and mounted.

Further, ten Messir-Aero Pilot Meteorological Briefing Systems were procured and installed at the main Airports and aerodromes as follows: Kenneth Kaunda International Airport (KKIA), Harry Mwanga Nkumbula International Airport (HMNIA), Simon Mwansa Kapwepwe International Airport (SMKIA), Mfuwe International Airport, City Airport, Lusaka, Solwezi Aerodrome, Chipata Aerodrome, Mongu Aerodrome, Kasama Aerodrome and Mansa Aerodrome.

Additionally, thirty three AWS for general climate monitoring were also procured and installed across the country in 2014 and 2015 as part of the modernisation and expansion programme that the Meteorological Department was undertaking with support from cooperating partners.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the installation of sensor for the runaway visual range (RVR) at Harry Mwanga Nkumbula International Airport.

(ii) Modernisation of key navigation equipment

Your previous Committee had requested a progress report on the matter.

Executive’s Response

Your Committee was informed that the Government was awaiting funding to undertake an Airspace Study which would give an indication of the most effective equipment prior to procurement. The last such study was in 1989. The Government had budgeted K6, 000,000 for the equipment in 2014.

Committee’s Observations and Recommendations

Your Committee notes the response and requests an update on the matter.

(iii) Control towers

Your previous Committee had requested an update on the rehabilitation of the control towers at the Kenneth Kaunda, Simon Mwansa Kapwepwe, Harry Mwaanga Nkumbula and Mfuwe International Airports.

Executive’s Response

Your Committee was informed that works at Harry Mwaanga Nkumbula had been completed. Upgrades were under progress at Kenneth Kaunda, whilst developers to conduct works at Simon Mwansa Kapwepwe and Mfuwe were still being sought.

Committee’s Observations and Recommendations

Your Committee notes the response and requests a further update on the rehabilitation of the control towers at the Kenneth Kaunda, Simon Mwansa Kapwepwe and Mfuwe International Airports.

Consideration of Matters Arising from Local Tours

(a) Mfuwe International Airport

(i) Safety of the travelling public

Your previous Committee had requested an update on the fencing of the airport to deter animals from entering Airport premises.

Executive’s Response

Your Committee was informed that 70 percent of the fencing had been completed.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the matter.

(ii) Secure Airport land

Your previous Committee had requested an update on the matter.

Executive’s Response

Your Committee was informed that the process of surveying all Government aerodromes including Chipata Airport for the acquisition of title deeds would commence in 2016.

Committee’s Observations and Recommendations

Your Committee notes the response and requests a progress report on the matter.

(b) Chipata Airport

(i) Security at the Airport

Your previous Committee had requested a progress report on the matter.

Executive’s Response

It was reported in the Action-Taken Report that Aviation Security had not yet received the required up scaling due to funding constraints. The Department of Transport had plans to install security scanners for passengers and baggage at Mongu, Solwezi, Chipata, Southdowns and Kasama Airports once funds were available.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the installation of security scanners at Mongu, Solwezi, Chipata, Southdowns and Kasama Airports.

(ii) Crash Aid Bay

Your previous Committee had requested an update on the matter.

Executive’s Response

Your Committee was informed that construction of the Crash Aid Bay was complete and was yet to be provided with furniture and medical equipment.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the matter.

(i) Construction of fire station

Your previous Committee requested an update on the matter.

Executive’s Response

Your Committee was informed that the fire station had not yet been constructed. However, the fire tenders were currently sheltered in a temporary old hanger at the Airport.

Committee’s Observations and Recommendations

Your Committee notes the response and requests an update on the matter.

(ii) Runway upgrade

Your previous Committee had requested an update on the matter.

Executive’s Response

It was reported in the Action-Taken Report that the contractor had commenced works on the upgrade of the Runway under the supervision of N’gandu Consulting Limited.

Committee’s Observations and Recommendations

Your Committee notes the response and requests an update on the matter.

(d) Kabwe Airstrip

(i) Prevention from encroachment

Your previous Committee had requested for a progress report on the matter.

Executive’s Response

Your Committee was informed that surveying of all Government aerodromes was on going and Kabwe would be considered. The Department of Transport was facing challenges in carrying out surveys for all Government Aerodromes in order to process title deeds due to funding constraints. The programme to carry out surveys of all Government Aerodromes was however on- going.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the matter.

12.0 Consideration of the Action-Taken Report on the Committee's Report for the First Session of the Eleventh National Assembly

The Management and Utilisation of Government Vehicles in Zambia, vis-avis the Role of the Engineering Services Corporation (ESCO) Limited

(a) Establishment of Workshops at Provincial Centres

Your previous Committee had requested a progress report on the matter.

Executive’s Response

It was reported in the Action-Taken Report that the Government through the Ministry of Works and Supply was awaiting Authority from Cabinet Office to upgrade the Government Transport Control Unit (GTCU) into a department. However, proposed costs to build workshops in all provincial centres were submitted to Cabinet Office in early 2013. The cost had been arrived at in liaison with Architects from Buildings Department. Currently, the Engineering Services Corporation (ESCO) had been tasked to put up motor vehicle repair workshops on pilot bases using the facilities at the Provincial Buildings Engineers premises.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the matter.

(b) Transformation of the Government Transport Control Unit into a Department

Your previous Committee had urged the Government to expedite the transformation process.

Executive’s Response

Your Committee was informed that proposals were made to Management Development Division (MDD) during the Ministries Strategies Planning Seminar held at Golden Bridge Hotel to upgrade GTCU into a department as recommended by Parliament. However, this was not implemented. Government Transport was left operating as a Unit under Human Resource Administration as was the case before.

Committee’s Observations and Recommendations

Your Committee notes the response and requests the Government to clearly state when exactly the Government Transport Control Unit would be transformed into a department.

Your previous Committee had requested an update on the matter.

Executive’s Response

Your Committee was informed that the Ministry had written to the Secretary to the Treasury requesting for an upward adjustment of penalties for misusing Government vehicles and was currently waiting for feedback. However, the Committee heard that the penalties had not yet been authorised by Parliament and as such were illegal. There was no Act of Parliament authorising Government Transport Control Unit to impose penalties on erring drivers. This would be revised during the implementation of the Cabinet Memorandum during which the regulation on the use of Government vehicles would be revised.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the matter.

(d) Filling Stations

Your previous Committee had requested a further update on the release of the transport policy which would enable the Government to revert to having its own filling stations.

Executive’s Response

Your Committee was informed that the Government was awaiting the signing and release of the Transport Policy by Cabinet Office. However, there was need to upgrade the Government Transport Control Unit into a department in order for it to manage the filling stations effectively.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the matter.

13.0 Consideration of the Action-Taken Report on the Committee's Report for the Fifth Session of the Tenth National Assembly

(a) Driving Schools Training Grounds

Your previous Committee had requested a further update on the matter.

Executive’s Response

Your Committee was informed that the Agency had acquired land in the following towns: Kazungula, Livingstone, Choma, Monze, Chinsali, Mpika, Kabwe, Lundazi, Luanshya, Petauke, Chipata and Lusaka. However, the Agency had had a challenge to access land in Kitwe and Kapiri mposhi. The legal department was processing documentation on all the pieces of land acquired by the Agency so that clearing of the land could commence and circumference walls could be built to avoid land encroachment.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the matter.

(b) Uniform Syllabus for Driving Schools

Your previous Committee had requested a further update on the institutionalisation of the uniform syllabus for driving schools.

Executive’s Response

Your Committee was informed that the Uniform Syllabus for driving schools was concluded in the third quarter of 2014. In order to deliver a Uniform Syllabus, the committee through the Technical Education and Training Authority (TEVETA) started the process of preparing a driver’s instructors syllabi. The Agency had concluded the preparation of the instructors syllabi and would be engaging stakeholders in the third quarter of 2015, for implementation.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the matter.

14.0 Consideration of the Action-Taken Report on the Report of the Committee for 2010 (Tour Report)

(a) Kafue-Mazabuka Road

Your previous had Committee requested a further update on the matter.

Executive’s Response

It was reported in the Action-Taken Report that the contract for the detailed design and construction supervision of the rehabilitation of the Kafue to Mazabuka Road was awarded to Messrs WCE Zambia Limited, on May 6, 2013, for a total contract sum of K4,354,988.00. The initial scope was for a “design review and periodic maintenance supervision”. However, this was later changed to a detailed design and construction supervision of the rehabilitation of the Kafue to Mazabuka Road owing to the fact that the road had reached its terminal life. The contract completion period for the detailed design phase was therefore revised from September 2013 to July 2015. The Consultant was currently finalising the design and was expected to submit the final design report by end of July 2015. It was envisaged that the procurement of the works would commence in September, 2015 and that the works contract would be signed during the first quarter of 2016. In the interim, the Road Development Agency (RDA) would continue to carry out pothole patching on the road in readiness for the full rehabilitation works.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the matter.

(b) Mulamba-Harbour (Mongu)

Your previous Committee had requested a further update on the matter.

Executive’s Response

Your Committee was informed that the Ministry of Transport and Communications had been holding meetings with the Baroste Royal Establishment (BRE) over the maintenance and rehabilitation of the Mulamba Harbour.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the matter.

Your previous Committee had requested a further update on the matter.

Executive’s Response

It was reported in the Action-Taken Report that the procurement of Contractors to carry out rehabilitation works on 169km of the Chingola to Solwezi road had been completed. The Road had been divided into three (03) Lots for ease of implementation of the works.

• Lot 1 [from Chingola (Km 0) to Km 60] was awarded to Messrs China Geo Engineering at a contract sum of K481, 085,786.95. The contract was signed on 12 June, 2015 and was scheduled to be completed by 11 June, 2017. The Contractor was currently mobilising. • Lot 2 (From Km 60 to Km 100) was awarded to Messrs Buildcon Investments Limited at a contract sum of K305, 014,166.77. The contract was signed on 1 June, 2015 and was scheduled to be completed by 29 November, 2016. The Contractor was currently mobilising. • Lot 3 (From Km 100+000 to Km 168+000) was awarded to Messrs China Geo Engineering at a contract sum of K586, 506,638.14. The contract was signed on 12 June, 2015 and was scheduled to be completed by 11 June, 2017. The contractor was currently mobilising.

The three Lots on the Chingola to Solwezi Road were officially launched by His Excellency, the President of the Republic of Zambia, Mr. Edgar Chagwa Lungu, on 4 June, 2015. The Chingola to Solwezi Road rehabilitation works were going to be supervised by Messrs Rankin Engineering Consultants for a total contract sum of K 18,377,291.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the matter.

15.0 Consideration of the Action-Taken Report on the Report of the Committee for 2009

(a) Mansa-Luwingu-Kasama Road

Your previous Committee had requested a further update on the construction of the Mansa to Luwingu (M3) Road scheduled to be completed by 21st February, 2017.

Executive’s Response

Your Committee was informed that the design and construction of the Mansa to Luwingu (M003) Road (175Km) in the Luapula and Northern Provinces and 30Km of Township Roads in Mansa and Luwingu commenced on 22nd October, 2013. The road construction works were scheduled to be completed by 21st October, 2017. The contract sum was US$206, 962,966.38. China Henan International Corporation Group Co. Ltd was the contractor on the project. The works were being supervised by Bari Zambia Ltd for a total contract sum of K 10,173,664.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the matter.

(b) Construction of a Weighbridge Along Great East Road

Your previous Committee had requested an update on the matter.

Executive’s Response

It was reported in the Action-Taken Report that the tender for the construction of a new weighbridge along the Great East Road in Chongwe District was awarded to Messrs Nelkan Industrial Construction at a sum K16, 037,120.99 VAT inclusive. The contract was signed on January 15th, 2015 and was scheduled to run until August 29th, 2015. The works were currently ongoing and the Contractor had so far completed 30 percent of the earth works and 70 percent of the main approach had been completed up to Sub-grade level. The RDA was considering varying works on the weighbridge to include a second multi-deck electronic weighbridge to ensure that weighing was done in both directions.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the matter.

Your previous Committee requested an update on the matter.

Executive’s Response

Your Committee was informed that the procurement of a Consultant to carry out the detailed design and construction supervision of the Lufubu Bridge across the Lufubu River was currently on-going. It was envisaged that the Consultancy contract would be signed in the 4th quarter of 2015, and that the works would commence in the 2nd quarter of 2016, upon finalisation of the designs and procurement of a works contractor.

Committee’s Observations and Recommendations

Your Committee notes the response and requests for a progress report on the matter.

CONCLUSION

16.0 Your Committee pays its tribute to all stakeholders who appeared before it and tendered both oral and written submissions. Members also wish to thank you, Mr Speaker, for affording them the opportunity to serve on your Committee for the Fifth Session of the Eleventh National Assembly. Your Committee also appreciates the services rendered by the Office of the Clerk of the National Assembly.

E K Belemu, MP March, 2016 CHAIRPERSON LUSAKA

APPENDIX I

LIST OF OFFICIALS

National Assembly Mr S C Kawimbe, Principal Clerk of Committees Ms M K Sampa, Deputy Principal Clerk of Committees Mr F Nabulyato, Committee Clerk (SC) Mrs M E Z Banda, Assistant Committee Clerk Ms C Chikonde, Intern Ms A Maluwa, Typist Mr R Mumba, Committee Assistant Mr C Bulaya, Committee Assistant Mr M Chikome, Parliamentary Messenger