LUSAKA – The final component of the Kazungula Bridge Project (KBP) on the Zambia /Botswana border is now in place after the signing in Zambia on October 17 of a K263 million contract for the construction of the third and final component of the project – a One-Stop Border-Post (OSBP) facility on the Zambian side.
The first consisted of erecting a temporary bridge over the Zambezi River to facilitate the construction of the 923m permanent road and railway-bridge. Work on this aspect of the project is almost complete, thus making it possible for the contractor to embark on the construction of the foundation of the permanent superstructure.
The second phase was the building of an OSBP on the Botswana side of which the contract was awarded in March this year and work is well underway. The third component that involves the construction of OSBP on the Zambian side is the missing link, but with the recent signing of the deal, works on this phase should commence soon.
Chinese contractor, SEGOCOA, was awarded the contract for the Zambian OSBP whose works (the construction often (10) main buildings, 800 meters of circulation roads, parking areas and 2.4 km of the main bridge approach road – the construction of ten main buildings, 800 meters of circulation roads, parking areas and 2.4 km of the main bridge approach road) must be executed in 30 months.
Other components include a passenger control facility, a scanning-equipment terminal, ablution blocks, freight terminals/freight clearing agencies’ offices, a veterinary department, warehouses, a police station, and waste disposal buildings.
“The signing of this contract on the larger Kazungula Bridge construction project fulfills the final linkage in the implementation of all the project packages. The project is considered a priority by the governments of Botswana and Zambia and is supported by SADC”, said Kanyuka Mumba, the former CEO of the Road Development Agency (RDA) who signed for Zambia.
He reiterated the significance of the project, saying once completed the bridge would provide the much-needed connection between the regional economic areas and link regional ports which handle exports and imports from and through Botswana and Zambia. The bridge would also enhance transportation of cargo and passenger traffic along the regional North-South Corridor, which links the mineral-rich regions of Zambia and the Democratic Republic of Congo (DRC) to Botswana, Zimbabwe and the port of Durban in South Africa.
This would be especially so as the bridge project has a provision for a railway line.
Also the OSBP concept and the construction of modern border facilities will significantly reduce border transit times from as much as five days to only one or two days. It is also envisaged that improved border operations and border management will ensure efficient service delivery and curb congestions.
The construction of the OSBPs would help improve regional connectivity and contribute to the regional Integration of the Southern African Development Community (SADC) economies, Mumba said.
“This development will help improve the regional competitiveness of Botswana and Zambia in particular which will in turn boost trade and improve the global competiveness of the entire SADC region,” he added.
Botswana’s Project Manager Pius Seone, who represented the Deputy Permanent Secretary for Transport, Isaac Moepeng and signed for his country, welcomed the consummation and urged the contractor to work round the clock to ensure the project was completed on schedule.
Seone said the project was long overdue as it had been on the drawing board for a long time and that the OSBP on the Zambian side was an important part of the main project and would lay the foundation for the modern way of doing business.
He emphasized the need for policy changes in Botswana and Zambia to facilitate the smooth flow of trade and that the two cooperating governments expected the contractor to deliver quality work.
SEGOCOA’s representative, Deputy Director Shen Fengmei pledged to deliver on time and to the prescribed quality and standard.
The US$259.3 million project was officially launched in September 2014 by then Vice-presidents of Zambia and Botswana Dr Guy Scott and Ponatshego Kedikilwe respectively and is financed by the African Development Bank (AfDB) and the two governments.
It is part of a corridor-long infrastructure improvement programme on the North-South Corridor. The project scope includes a bridge linking Botswana and Zambia over the Zambezi River to replace the existing pontoon. It is due for completion in 2018 and the main contractor is Daewoo Engineering of South Korea. (SPA)
Botswana has made improvements on preventing and ending arbitrary deprivation of liberty, but significant challenges remain in further developing and implementing a legal framework, the UN Working Group on Arbitrary Detention said at the end of a visit recently.
Head of the delegation, Elina Steinerte, appreciated the transparency of Botswana for opening her doors to them. Having had full and unimpeded access and visited 19 places of deprivation of liberty and confidentiality interviewing over 100 persons deprived of their liberty.
She mentioned “We commend Botswana for its openness in inviting the Working Group to conduct this visit which is the first visit of the Working Group to the Southern African region in over a decade. This is a further extension of the commitment to uphold international human rights obligations undertaken by Botswana through its ratification of international human rights treaties.”
Another good act Botswana has been praised for is the remission of sentences. Steinerte echoed that the Prisons Act grants remission of one third of the sentence to anyone who has been imprisoned for more than one month unless the person has been sentenced to life imprisonment or detained at the President’s Pleasure or if the remission would result in the discharge of any prisoner before serving a term of imprisonment of one month.
On the other side; The Group received testimonies about the police using excessive force, including beatings, electrocution, and suffocation of suspects to extract confessions. Of which when the suspects raised the matter with the magistrates, medical examinations would be ordered but often not carried out and the consideration of cases would proceed.
“The Group recall that any such treatment may amount to torture and ill-treatment absolutely prohibited in international law and also lead to arbitrary detention. Judicial authorities must ensure that the Government has met its obligation of demonstrating that confessions were given without coercion, including through any direct or indirect physical or undue psychological pressure. Judges should consider inadmissible any statement obtained through torture or ill-treatment and should order prompt and effective investigations into such allegations,” said Steinerte.
One of the group’s main concern was the DIS held suspects for over 48 hours for interviews. Established under the Intelligence and Security Service Act, the Directorate of Intelligence and Security (DIS) has powers to arrest with or without a warrant.
The group said the “DIS usually requests individuals to come in for an interview and has no powers to detain anyone beyond 48 hours; any overnight detention would take place in regular police stations.”
The Group was able to visit the DIS facilities in Sebele and received numerous testimonies from persons who have been taken there for interviewing, making it evident that individuals can be detained in the facility even if the detention does not last more than few hours.
Moreover, while arrest without a warrant is permissible only when there is a reasonable suspicion of a crime being committed, the evidence received indicates that arrests without a warrant are a rule rather than an exception, in contravention to article 9 of the Covenant.
Even short periods of detention constitute deprivation of liberty when a person is not free to leave at will and in all those instances when safeguards against arbitrary detention are violated, also such short periods may amount to arbitrary deprivation of liberty.
The group also learned of instances when persons were taken to DIS for interviewing without being given the possibility to notify their next of kin and that while individuals are allowed to consult their lawyers prior to being interviewed, lawyers are not allowed to be present during the interviews.
The UN Working Group on Arbitrary Detention mentioned they will continue engaging in the constructive dialogue with the Government of Botswana over the following months while they determine their final conclusions in relation to the country visit.
Standard Chartered Bank Botswana (SCBB) has informed the government that it will not be accepting new loan applications for the Government Employees Motor Vehicle and Residential Property Advance Scheme (GEMVAS and LAMVAS) facility.
This emerges in a correspondence between Acting Permanent Secretary in the Ministry of Finance Boniface Mphetlhe and some government departments. In a letter he wrote recently to government departments informing them of the decision, Mphetlhe indicated that the Ministry received a request from the Bank to consider reviewing GEMVAS and LAMVAS agreement.
He said: “In summary SCBB requested the following; Government should consider reviewing GEMVAS and LAMVAS interest rate from prime plus 0.5% to prime plus 2%.” The Bank indicated that the review should be both for existing GEMVAS and LAMVAS clients and potential customers going forward.
Mphetlhe said the Bank informed the Ministry that the current GEMVAS and LAMVAS interest rate structure results into them making losses, “as the cost of loa disbursements is higher that their end collections.”
He said it also requested that the loan tenure for the residential property loans to be increased from 20 to 25 years and the loan tenure for new motor vehicles loans to be increased from 60 months to 72 months.
Mphetlhe indicated that the Bank’s request has been duly forwarded to the Directorate of Public Service Management for consideration, since GEMVAS and LAMVAS is a Condition of Service Scheme. He saidthe Bank did also inform the Ministry that if the matter is not resolved by the 6th June, 2022, they would cease receipt of new GEMVAS and LAMVAS loan applications.
“A follow up virtual meeting was held to discuss their resolution and SCB did confirm that they will not be accepting any new loans from GEMVAS and LAMVAS. The decision includes top-up advances,” said Mphetlhe. He advised civil servants to consider applying for loans from other banks.
In a letter addressed to the Ministry, SCBB Chief Executive Officer Mpho Masupe informed theministry that, “Reference is made to your letter dated 18th March 2022 wherein the Ministry had indicated that feedback to our proposal on the above subject is being sought.”
In thesame letter dated 10 May 2022, Masupe stated that the Bank was requesting for an update on the Ministry’s engagements with the relevant stakeholder (Directorate of Public Service Management) and provide an indicative timeline for conclusion.
He said the “SCBB informs the Ministry of its intention to cease issuance of new loans to applicants from 6th June 2022 in absence of any feedback on the matter and closure of the discussions between the two parties.” Previously, Masupe had also had requested the Ministry to consider a review of clause 3 of the agreement which speaks to the interest rate charged on the facilities.
Masupe indicated in the letter dated 21 December 2021 that although all the Banks in the market had signed a similar agreement, subject to amendments that each may have requested. “We would like to suggest that our review be considered individually as opposed to being an industry position as we are cognisant of the requirements of section 25 of the Competition Act of 2018 which discourages fixing of pricing set for consumers,” he said.
He added that,“In this way,clients would still have the opportunity to shop around for more favourable pricing and the other Banks, may if they wish to, similarly, individually approach your office for a review of their pricing to the extent that they deem suitable for their respective organisations.”
Masupe also stated that: “On the issue of our request for the revision of the Interest Rate, we kindly request for an increase from the current rate of prime plus 0.5% to prime plus 2%, with no other increases during the loan period.” The Bank CEO said the rationale for the request to review pricing is due to the current construct of the GEMVAS scheme which is currently structured in a way that is resulting in the Bank making a loss.
“The greater part of the GEMVAS portfolio is the mortgage boo which constitutes 40% of the Bank’s total mortgage portfolio,” said Masupe. He saidthe losses that the Bank is incurring are as a result of the legacy pricing of prime plus 0% as the 1995 agreement which a slight increase in the August 2018 agreement to prime plus 0.5%.
“With this pricing, the GEMVAS portfolio has not been profitable to the Bank, causing distress and impeding its ability to continue to support government employees to buy houses and cars. The portfolio is currently priced at 5.25%,” he said. Masupe said the performance of both the GEMVAS home loan and auto loan portfolios in terms of profitability have become unsustainable for the Bank.
Healso said, when the agreement was signed in August 2018, the prime lending rate was 6.75% which made the pricing in effect at the time sufficient from a profitable perspective. “It has since dropped by a total 1.5%. The funds that are loaned to customers are sourced at a high rate, which now leaves the Bank with marginal profits on the portfolio before factoring in other operational expenses associated with administration of the scheme and after sales care of the portfolio,” said the CEO.