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Mobilisation of Roads Fund resources

The RFA arranges for the collection of monies assigned to the Roads Fund and recommends to the Minister of Finance, Economic Planning and Development other road user charges and tariffs and funding strategies as required. In this regard, the RFA has – for efficiencies – outsourced the collection of the International Transit Fees and Road Access Fees to the Malawi Revenue Authority (MRA) and the collection of fuel levies to the Malawi Energy Regulatory Authority (MERA).

Financing of approved annual road works, road safety and traffic management programmes

The RFA allocates to the implementing agencies financial resources for the maintenance and rehabilitation of public roads based on a percentage of the approved Annual National Roads Programme and for selected approved road safety and traffic management programmes. The RFA then finances the approved programmes and emergencies according to financing agreements entered into between the RFA and the implementing agencies.

Total and timely accountability of the Roads Fund
The RFA coordinates and ensures total and timely accountability of the Roads Fund. All audited annual accounts of the Roads Fund for the past ten years of its existence have been concluded on time and the RFA has always had clean and unqualified annual audit reports.

Administration and management of other road sector funds

The RFA administers and manages resources made available to it by the Government and its cooperating and development partners for the implementation of projects for the construction, maintenance and rehabilitation of public roads and related activities. To this end, the RFA has managed funds for the Ministry of Lands and Urban Development, the Ministry of Tourism, the Railways and Marine departments of the Ministry of Transport and Public Works, the European Union, the World Bank, and the African Development Bank. This function includes facilitation of compensation payments to projects affected people on road projects as requested by the Government.

Assurance of Value for Money in the use of Roads Funds

The RFA ensures value for money for all activities financed from the Roads Fund or the RFA-managed funds. This function is achieved through financial, technical and procurement audits and continuous monitoring of the funded programmes through desktop reviews of all interim payment certificates before payments are made; projects progress tracking reviews; and periodic physical inspection of selected projects.

Agency collection of Value Added Tax and NCIC Levy

The RFA – under agency agreements with the National Construction Industry Council (NCIC) and the Malawi Revenue Authority (MRA) – directly collects NCIC Levy and Value Added Tax on behalf of NCIC and MRA from contractors and consultants at the time of payment for the road works contractors’ certificates and consultants’ invoices.