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Home News Namibia

RFA now wants targeted tolling

by editor
July 30, 2024
in Namibia
311
A A

The Road Fund Administration (RFA) says it is now exploring targeted tolling as a potential solution to the ongoing funding challenges facing the country’s road infrastructure.

Despite suspending toll road plans last year due to the non-conducive economic situation, the RFA is now revisiting the idea of toll collection amid concerns over the sustainability of the fund.

RFA’s Chief Executive Officer, Ali Ipinge, said targeted tolling, which involves charging motorists for using specific upgraded road sections, is seen as a more sustainable solution.

“…that’s a concept around tolling, because you’re not tolling the whole road. We’re saying, for those that are enjoying, for instance, the A-class road, which are our highways, if you put up a toll, then you only charge those that are using that specific road section at that time,” he said.

He, however, said that an immediate solution to meet RFA’s funding needs is to adjust existing levies such as fuel taxes and vehicle licences. He emphasised that these measures would only provide short-term relief. 

“While not the quickest solution, an immediate step to address the funding shortfall is to adjust current tolls. We understand the challenging economic climate, but this measure is essential to maintain our road infrastructure. This includes considering increases in fuel levies, vehicle licenses, and other existing charges,” he said. 

The RFA acknowledged that increasing costs for motorists are undesirable but stressed the importance of maintaining the country’s road network, which is crucial for economic growth and development.

“So, if the funding is going to widen, then we’ll be forced to use those current instruments, which is already in existence by law, to make the tariffs a little bit higher,” Ipinge said.

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