By Angela Moonga
Finance minister Dr Situmbeko Musokotwane says the concession for the construction of student hostels at the University of Zambia (UNZA) under the Public Private Partnership (PPP) will run for 27 years, with rental spaces for bed spaces ranging between K2500 to K3000.
Speaking during the signing ceremony, Musokotwane said through the partnership, modern student hostels with approximately 6,480 bed spaces, coupled with supporting amenities and facilities, will be developed at the University of Zambia.
He describes the partnership as a significant milestone not only for the University of Zambia, but also for government’s broader agenda of promoting sustainable infrastructure development through strategic partnerships with the private sector.
”As government, we recognise that quality infrastructure is essential to economic growth, social development, and improved public service delivery. We also recognise that public resources alone cannot meet the growing demand for infrastructure across all sectors. it is for this reason that Public-Private Partnerships remain a key instrument in mobilising private capital, innovation, and technical expertise to complement national development efforts,” Musokotwane said. “The signing of today’s concession agreement demonstrates the practical success of Public-Private Partnerships. Through this partnership, modern student hostels with approximately 6,480 bed spaces, coupled with supporting amenities and facilities, will be developed at the University of Zambia.”
He said the
project represented a capital investment of USD 37,569,852.00, signifying a major private sector commitment to the higher education sector.
”The concession will run for a period of Twenty-Seven (27) years, providing sufficient time for financing, construction, operations, maintenance, and eventual transfer of the facilities to the university,” Musokotwane said. “The challenge of student accommodation has for many years affected institutions of higher learning across the country. Therefore, this project is both timely and necessary reflecting government’s determination to address infrastructure constraints in higher education through practical and innovative solutions.”
He said the journey to this point required careful appraisals to ensure that the final concession agreement achieves value for money, protects the public interest, and remains commercially viable.
”As we sign this agreement today, we must now shift our focus to implementation. Government expects timely financial close, adherence to agreed milestones, compliance with all contractual obligations, and delivery of quality infrastructure within the expected standards and timelines,” Musokotwane said. “We equally note that the approved rental structure provides for k2,500 per month per bed space for type a accommodation and k3,000 per month per bed space for Type B accommodation. These facilities are expected to offer safe, modern, and well-managed accommodation for our students. Under the agreement, Government and the University will also benefit through revenue sharing from rental collections, being 3 percent from year 3 to year 11, and 8 percent from year 12 to year 27.”
He welcomed the private investment and encouraged them to deliver a project that would stand as a benchmark for future PPP investments in Zambia.
”To our students, this initiative reflects government’s continued commitment to improving the quality and accessibility of higher education.To the wider investment community, today’s signing of the concession agreement sends a strong signal that Zambia remains open for credible investment and is committed to structured partnerships that deliver mutual benefit,” said Musokotwane. “May this agreement mark the beginning of a successful partnership and a lasting legacy for the University of Zambia and our nation at large.”
