1. Home
  2. Library
  3. N4 Toll Route

Title: N4 Toll Route

Language: English

Type: Document

Nature: Case Study

Published: November 30, 2020

Region: Sub-Saharan Africa

Country: Mozambique

Sector: Transportation

Topic: Fragile and Conflict-Affected States

Keywords: Fragile and Conflict-Affected States - FCS, Road

Document Link(s):

Document Summary:

The N4 Toll Route is a brownfield toll road concession of 630 km running from Pretoria, South Africa’s administrative capital, to Maputo, the capital of Mozambique and a deep-sea port on the Indian Ocean. The project was structured as a public-private partnership (PPP) between the governments of South Africa and Mozambique and a private consortium for a 30-year period. It was the first cross-border transport PPP project in Sub-Saharan Africa and the first brownfield PPP of this scale in South Africa.

Document Details:

The case study describes the N4 Toll Road Project, a brownfield toll road concession of 630 km running from Pretoria, South Africa’s administrative capital, to Maputo, the capital of Mozambique and a deep-sea port on the Indian Ocean. The project was structured as a public-private partnership (PPP) between the governments of South Africa and Mozambique and a private consortium for a 30-year period. The project is the first cross-border transport PPP project in Sub-Saharan Africa and the first brownfield PPP of this scale in South Africa. The case study describes the development of the project (challenges and opportunities addressed by the project as well as perceived long-term benefits), procuring and finance (procurement process, contractual model, infrastructure finance and risk mitigation), management (political and operational coordination, including tariff setting as well as the harmonisation of rules, standards and procedures) and draws conclusions. According to the case study the project has not only benefited the two countries but has also fostered trade among other neighbouring countries such as Namibia and Botswana. The road has also facilitated further private sector investment in transport infrastructure. According to the case study factors that contributed to the success included (i) a strong government commitment, support and regulatory framework; (ii) an efficient and in-depth stakeholder management; (iii) specific contractual conditions, that obliged the concessionaire to subcontract a share of local small companies in both countries, including training on the job for the construction workers (iv) early risk identification and allocation (v) a detailed contract that focuses on performance (not design) specifications and outlines specific responsibilities.

Updated: November 19, 2022

Related Content