How can it be applied by the project developers

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Reference no: EM133450333

The New Dawn Government has clinched a USD 577 Million concession agreement deal with Macro-Ocean Investment Consortium for the financing, construction, operation and maintenance of 327 Kilometers Ndola-Lusaka Dual Carriage Way. Besides the 327 Kilometers Ndola-Lusaka dual carriageway project, the 25-year deal will also see the rehabilitation of the 45 Kilometers Luanshya-Fisenge Masangano Road. Minister of Finance and National Planning Dr. Situmbeko Musokotwane signed the concession agreement for the Public Private Partnership Project for the upgrading of the Ndola Lusaka Road into a dual carriage way on behalf of the Government with E Shangfa signing on behalf of the consortium.

Speaking after the signing ceremony at Protea Hotel in Ndola, Dr Musokotwane said there is a need to manage roads profitably and further highlighted the advantages of the project.

Macro Oceans Investment Director Consultant E Shangfa assured that the firm will put up quality works within the timeframe of three years (36 months).

"This project with a direct investment of USD 577 Million shall see the new Lusaka Ndola road be upgraded to a 327 Km dual carriage way all the way from Lusaka and the rehabilitation of 45 Kms of the Luanshya -Mafinge Road. This is a very big milestone in the history of the country as the road remained a single carriage-way from independence. The new dual carriage way shall not only ensure road safety for motorists and passengers following the many accidents that have claimed many lives on the road but it shall also provide better driving experience to motorists thereby reducing travel time and cost between the many cities along the road," Shangfa said.

"We are confident that through efficiencies to be created by the new road there shall be exploitation of many export opportunities for Zambian goods and products and shall reduce the cost of doing business as compared to the current situation. We would like to assure the government of our commitment to build a high quality road within 36 months of commencement of works. It is our hope that the financial negotiations shall be concluded within the next six months so that project construction can commence. It is also our pledge that we shall ensure smooth operation of the road while construction works are underway and provide good operation and maintenance service after the project is completed," he said.

Task: A Project Financing Organization to finance this project has consulted your firm to assist on the following before the financing is approved.

What is a Real Option? How can it be applied by the Project Developers on this project with so many concerns from the stakeholder?

Reference no: EM133450333

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