Definition:

"A Road User Charging (RUC) System in general is defined as a system to raise revenue from road users to cover and pay for the costs of providing and maintaining public roads" (Africon Namibia, April 2004).

History:

"During October 1990 the Ministry of Works, Transport and Communication (MWTC) appointed consultants to carry out a study on an appropriate road taxation system for Namibia. During April 1992 Cabinet approved of the Draft White Paper on Transport Policy (DWP). The initiative for a RUC System was based on the recommendations of the Draft White Paper. In March 1993 the Cabinet in principle adopted the recommendations of a document entitled Proposed Policy on Road User Charging, and at the same time approved that an Interministerial Committee of Technical Experts (ICTE) be appointed to formulate final policy recommendations concerning the administrative, technical, legal and institutional issues related to the implementation of a RUC System for Namibia. Subsequently a RUC System was implemented for Namibia in 2000" (Africon Namibia, April. 2004).

Objectives of the RUC System: "The Namibian RUC System was developed with the aim of economically recovering the full cost of roads expenditure from road users in an equitable manner. The system determines the amount and manner of funds to be raised from road users in accordance with the 'user pay' principle and consequently determines the road user charges to be imposed.
The RUC System was designed to achieve the following objectives:

• Ensure that revenue needed to provide and maintain roads is raised from road users (including foreign road users) rather than the general taxpayer;
• Price the use of roads so as to improve economic efficiency in road transport by removing price distortions and charging road users according to the 'consumption' of roads;
• Promote equity between different categories of road users;
• Establish a link between supply and demand for transport infrastructure;
• Increase transparency in the road funding process; and
• Provide for equal competition between road and rail transport by letting road transport operators pay for their use of infrastructure" (Africon Namibia, April 2004).

The Road User System (RUC) comprises the following:

• The determination of funding for projects and programmes submitted to the Road Fund Administration (RFA) for funding from the Road Fund (Section 20 [4] of the RFA Act);
• The determination of the rates of road user charges consequent to the requirements of [a] (Section 18 of the RFA Act);
• The imposition and collection or road user charges into the Road Fund;
• The refunding of fuel levies on fuel used off-road (the RFA Act allows for either a rebate or a refund system;the RFA has opted for a refund system);
• The defrayal of expenses from the Road Fund in accordance with the RFA's approved business plan;
• The management of the RUC and the Road Fund by the RFA.

Types of Road User Charges

Section 18 [1] of the RFA Act, 1999 (Act 18 of 1999), mandates the RFA to levy the road user charges as listed bellows:

• Vehicle registration and annual license fees for vehicles registered in Namibia.
• A levy on petrol and diesel used for travel on public roads referred to as fuel levies.
• An entry fee imposed on foreign registered vehicles entering Namibia, referred to as cross-border charges
• Abnormal load fees which is levied on vehicles of which the dimensions and/or mass exceed the legal limits.
• Mass distance charges (MDC) is a fee based on traveling distance, mass, dimensions and vehicle configuration in respect of any vehicle traveling on a public road. MDCs have been implemented as from 1 June 2006.
• Fines and compensation for damage to roads - the RFA Act requires that fines imposed by courts of law for the overloading of vehicles shall be paid into the Road Fund. The RFA may also institute legal proceedings against any party that has caused damage to the national road network, for the recovery of the cost for repairing such damage. However please note that at this stage these fines are collected by the Magistrate's Courts and deposited into the central fiscus (i.e. Ministry of Finance).

Determination of funding

Management of the National Road Network The management of the national road network is the responsibility of the Roads Authority in terms of the Roads Authority Act, 1999 (Act 18 of 1999). The Roads Authority annually submits a budget for projects and programmes, including the administrative expenses of the Authority, to the RFA.

Management of the urban road network The Road Fund contributes to Local Authorities that have been published in the Official Gazette as Approved Authorities in terms of Section 1 of the RF A Act, for traffic-related maintenance or urban roads and streets. These contributions are based on the budgets submitted and the agreements concluded between the RFA and the Approved (Local) Authorities.