Zambia Signs US$320 Million Deal for Mutanda-Kasempa-Kaoma Road Upgrade
The Zambian government has entered a landmark Public-Private Partnership (PPP) agreement worth US$320 million with Barotse Highway Limited (BHL) for the construction, upgrade, and maintenance of the 370-kilometer Mutanda-Kasempa-Kaoma Road.
The signing ceremony, held on December 1, 2024, in Kasempa District, was led by Finance and National Planning Minister Dr. Situmbeko Musokotwane. The event was also attended by Education Minister Douglas Siakalima, Labour and Social Security Minister Brenda Tambatamba, and representatives from BHL and First Quantum Minerals (FQM), a project investor and technical advisor.
The project, valued at US$326 million, encompasses constructing two bridges over the Lalafuta and Luena rivers and upgrading urban roads in Kasempa and Kaoma to bituminous standards.
Dr. Musokotwane highlighted the project’s significance: “This agreement underscores our commitment to enhancing regional connectivity, boosting trade, and improving access to essential services for our people.”
The road forms a crucial corridor linking Zambia’s Northwestern and Western provinces to Walvis Bay in Namibia, vital for regional trade and economic development. Key industries, including agriculture and mining, stand to benefit from reduced transportation costs and improved logistics.
BHL will oversee the road’s design, financing, construction, and maintenance over a 25-year concession period, with two years allocated for construction.
FQM Country Manager Dr. Godwin Beene emphasized the project’s regional impact: “This initiative is a catalyst for regional growth, enhancing transport networks that benefit not only mining but also local communities.”
BHL CEO Buks Van Rensburg described the project as transformative. “It’s about empowering local communities, fostering economic resilience, and shaping a prosperous future for Zambia.”
The development is expected to create hundreds of direct jobs during construction, with additional employment through local contractors. Social infrastructure, including schools, health posts, and markets, will enhance community welfare along the corridor.
Minister of Infrastructure Charles Milupi directed BHL to prioritize local employment and contractor engagement, ensuring broad-based economic benefits.
