The China National Electric Equipment Corporation (CNEEC) has shown interest in developing the Kafue Lower Gorge Hydro Power Station at a cost of $1.5 billion.
Corporation President, Zhao Ruolin, says the Chinese power company will source for the money if the Zambian government agrees to contribute fifteen per cent of the total cost.
Znbc’s Luckson Nthani reports that Mr. Zhao made the pledge in Beijing on Monday.
This was when a delegation of Zambian parliamentarians and government officials visited the Headquarters of CNEEC which is solely-owned by the Chinese government.
He also said CNEEC is willing to help Zambia to develop alternative sources of energy from bio-mass, thermal, solar and wind.[quote]
At the same meeting, Chief parliamentary Whip, Vernon Mwaanga thanked the government of China for supporting Zambia’s efforts to meet its energy needs.
And Commerce Minister Felix Mutati has invited the President of CNEEC, Mr. Zhao to Zambia in July to attend a SADC pledging conference for the Kafue Lower Gorge Power Station Project.
Mr. Mutati said Zambia’s power deficit needs urgent attention.
CNEEC has already signed a Memorandum of Understanding with private investors in Zambia who are planning to develop a hydro-power station on the Kalungwishi River in the Luapula Province.
The Kalungwishi River Power Station is expected to cost $600 million.
[ZNBC]
Finish ZamChina xpect more power cuts. cheap is expensive.
Alternative energy sources is the way to go where natural resources are abundant. Though hydro stations are a good source of energy they are expensive to build and run. I am doubtful over biomass because of the pollution but solar is probably the best way to invest.
Great stuff from the Chinese,but let us be careful with them for the next we may realise that all our big comapnies are in their hands. Such will mean that the Chinese literally own Zambia.
Have a blessed day and keep well you all.
_
1P 3 + KJV Bible:
15 But sanctify the Lord God in your hearts: and [be] ready always to [give] an answer to every man that asketh you a reason of the hope that is in you with meekness and fear:
16 Having a good conscience; that, whereas they speak evil of you, as of evildoers, they may be ashamed that falsely accuse your good conversation in Christ.
We can have nuclear power plant, we have the raw materials, what are we scared of?
#4 Malole, Nuclear plants are very very expensive and dangerous they cost way more than electricity hydro stations. You don’t want another chernobyl happening this time on zambian soil. Plus disposing of teh nuclear waste can poision the land and water for centuries. pPlus not forgetting international red tape
Let us thus wake up before it is time to fail to get back what the chinese will be owing. I hope the MMD’s Triangle of Hope model will stop these FDI moves soon, otherwise we just need a new PF-UPND GRZ to give us some alternative before everything is lost to foreigners.
Have a blessed day and keep well you all.
_
1P 3 + KJV Bible:
15 But sanctify the Lord God in your hearts: and [be] ready always to [give] an answer to every man that asketh you a reason of the hope that is in you with meekness and fear:
16 Having a good conscience; that, whereas they speak evil of you, as of evildoers, they may be ashamed that falsely accuse your good conversation in Christ.
This is such a shame, cant we zambians run our own companies? Letting the chineese run such big projets is the same as selling your own sole to the devil, For the Chineese to show interest in the plant, it means there must be something in it for them, but we Zeds are sleeping.
It’s true “Cheap is expensive”. That Hydro Power Station wont run for a long time. Chinese do things to make sure they keep coming. I wonder why our leaders don’t see the need in doing one thing which will serve for a very long time, so that they tackle other development projects. I’m talking in terms of 10-20 years. That’s how Europeans think. They invest in something that will last. But what do we do. We do road constructions every year. When the chinese work on them this year, the following year there’ll be potholes. It means, we are not developing. Chinese have always been crafty. They are getting 100% more that they are offering.
This may sound good but the public needs specifics. How much will be owned by the Zambians if this deal goes through? What is the share of the Chineese company in comparison to Zambian goverment? What will the profit margin be if china invests for Zambians? Will electricity costs be lower? Can 60% shares of Kafue Lower Gorge Hydro Power Station be offered to Zambians so that they may own part of this deal and benefit . Do not know much about electricity but I think it is important for Zambians to own some of our most important resources……
This is SAD you can’t let the chinese take over all our companies. This is total colonialism. China will soon be colonising Zambia and Banda will be a representatvie governor for China. SAD SAD
#9 I wish RB could read your submission. Our government does not even think in those lines and yet those are the specifications which should be discusses before signing the contract. Why do you think chinese are more in developing countries. Because there’s no definition of specifications and no quality management. Everything is left in their hands. Awe RB kakaye mwe!
If we put all the eggs in one basket (China) the way Zambia is doing and the basket decides to go bust, what will happen to our generation. Remember this has nothing to do with RB’s generation , this is our generation being sold. This should begin to motivate Zambia all over the world to thick more crtically to what is happening in Zambia. Ten years from today I can see a day when China will be appointing the Finance Minister, because all he cards would have been passed to them.
wow Fong Kong electricity. I cant imagine
Its to state that if PF/UPND formed the next GRZ after 2011general elections will do away with the Chinese investments. This has come to stay. We need their money to develop our energy sector. Infact the pipo who will be negotiating are the technocrats from Finance, Energy & Environmental Council of Zambia etc. We just need to be tactiful when negotiating, we should not allow the Chineses to take a biga % of shareholding like they have done with Albidon Mining from 20 to 80%shareholding. There is need for a watchful of the NGO’s to take interest whenever such deals involving huge sums of financing big projects. The built is the Chinese will never take to China the planned Hydro Projects on their shoulders or ship them out of the country. We should ensure quality for such investments.
# 7 ba honey, the problem really is the cost and expertise. That US$1.5 billion is like half our annual budget so the government does not have the money so they need to negotiate with some one and rightt now the Chinese appear to the world bankers. Then as for expertise we also do not the engineers with experience in building hydro- power partly coz we last built one over thirty years ago
The words the I hate most coming from china is ” we will help you with blah blah blah”, And the stupid thing is our dull foolish leaders buy this crap. Surely do these leaders of ours think these foreigners love us so much to come and develop our country. Come on, we have lived among these people, (foreigners) and we know how greedy and self-centeredness they are. Zambia will only be developed by zambians period. chinese will come only when they know that they have their cut.
Felix Mutati has not stated the expected mega watts to be generated form both Kalungwishi and Lower Kafue. We need a bit of details so that we can pass informed comments. Is Zesco going to involved in these projects or it be other stakeholders. How long will the 2 projects take long to be finished. Are they going to be turn key projects or not? Is GRZ going to form another company to run the 2 HPower stations or not given the situation that Zesco has alot of operational problems etc. We need the investments from other parts of the World but we need to see how we are going to benefit in the long term other wise we will find ourselves in another US$10Billion debt. Currently no mention of Rural Eletrification Authority (REA) projects are progressing.
# 17 motomoto, you are absolutely correct we need to get the information so that we can inteligently comment on these things. The suprising thing is most pipo and organisations will not be interested and thats creates room for bad decisions and outright corruuption. However pipo like you who seem knowledgable should make reccomendations so as to promote informed debate
Let the Chinese do what we have failed to do. Today we cry of power cuts and nation wide blackouts. Shame! The Chinese investment in hydro could be the solution to our problem. I like communist investors, they are better than the capitalists. I believe in Zambian empowerment, but we should not try to speak the loudest now because we have not utilized this potential for ages and the Chinese are there to help us. Which one is better, to have a piece of bread or nothing? If govt cannot give the 15%, let Zambians be afforded the chance to take it up. If Zambian companies can do anything.. not including ZESCO of course.. let them develop the Ithezi thezi power station, let them run the mines! They are financing broke! China has the cash and so… Go China go! We hv the mouth but no cash!
He also said CNEEC is willing to help Zambia to develop alternative sources of energy from bio-mass, thermal, solar and wind.
I don’t know how biomass works but thermal is a very good alternative. In the solar and wind cannot give enough power and should be restricted to rural areas and small towns. The technology is not there yet to have solar power stations in the city because the power generation is too low.
It is good to see so much Foreign Direct Investment flowing into the country. Especially from the Chinese who have the money and are here on a strictly business model. Such investment is what we truly need and having private companies in power generation will result in a prudent and efficient power system. This shows Zambia has a good investment climate.
CHINA TOPS INVESTORS IN ZAMBIA
Chinese investment in Zambia is expected to hit $4 billion when Zhonghui Mining Group limited invests $3.6 billion in mining projects in North-Western and Luapula provinces.
Commerce Deputy Minister, Richard Taima says this makes China the single largest investor in Zambia.
Mr. Taima said this in Lusaka, Friday when he received a business delegation from China at his office.
The seven-member delegation is in Zambia for two days and will also visit Livingstone.
Mr. Taima paid tribute to economic relations that exist between Zambia and China particularly with china’s support in developing the economic Zone in Zambia.
cont. from #21
Delegation leader, Chen Bing Hui said the team is in the country to explore investment opportunities in mining, automotive and furniture sectors among others.
He said the visit to Zambia is aimed at assessing the country’s investment climate and which areas of the economy offer the best investment opportunities.
[thelusakapaper . com]
#2 Maestro,much as we should be wary of Chinese companies especially those that are Govt owned,these guys have really shown the willingness to invest genuinely.They did it in America and but Europe/west is afraid of losing its influence hence the fear.But things are happening and they have the most important current asset I.e DOLLAR.
You know what is happening at the stadium construction site in Ndola, the chineese have formed or came with their company that is making blocks for construction. Roumer has it that some big fish in Govt is a serious share holder. i mean a minister!!!!! This is shameful, because quality wise i think we are better.
23 Sharp Shooter greetings. I hear you on your “They did it in America and but Europe/west is afraid of losing its influence hence the fear.But things are happening and they have the most important current asset I.e DOLLAR.” But check how South Africans are doing things. They do not just look to one side but balance their partners. Best way to go, otherwise it ‘ll be tricky!
Have a blessed day and keep well you all.
_
1P 3 + KJV Bible:
15 But sanctify the Lord God in your hearts: and [be] ready always to [give] an answer to every man that asketh you a reason of the hope that is in you with meekness and fear:
16 Having a good conscience; that, whereas they speak evil of you, as of evildoers, they may be ashamed that falsely accuse your good conversation in Christ.
The politically ochestrated hatred for Chinese investors wont take us anywhere. Instead we should focus on a number of issues which should not lead to a failed project. One of the issues is for GRZ to increase its share to something like 30%. That can also translate into technical & management positions to be shared in the same ratio. The second issue is to work on the culture to instil willingness to pay so that peoples’ attitudes are oriented towards appreciating value for money. The third one is that such ventures should open Zambians’ eyes in terms of innovation. Rather than crying when chinese companies come in to supply materials for operations of such projects we should strategise on how we could venture into companies that could manufacture parts used by electricty companies
Are the Chinese the only investors we can attract to Zambia sure? Why can’t our politicians diversify the type of investors we attract to Zambia. It is this type of behaviour that brings resentment to all loving Zambians that would like to see the country attract investors from all corners of the globe. Let us vote these gooners is suits out in 2011. RB & his cabinet love the Chinese let them sell shares in the companies their individually own. We luck leaders who want to develop Zambia & not sell it as an extension of China’s province. It is a shame.
# 24, let us not tell the Chinese what do with their money. They have the right to do anything with it! Thank God they are not throwing it into the sea or keeping it in banks, they are building us a stadium for free, which the west will never do. Or is it not free?
#26 I like your analysis. Today China has the largest man made dam for Hydro. It is so magnificent that tourist and engineers from around the globe go to view and learn. Of course there are also unregulated markets in China which produce cheap and poor quality products. It is these products which has made the uniformed to believe that China is all about poor products. Come to SA and you will find real high quality Chinese products, not those we find at Zed! The problem really is not China, but Zed.
# 29 We can also try other investors to diversify. Chinese may have the largest Hydro power plant but we can also learn from other investors as well. SA has power supply problems why can’t we team up with them & build a power plant that will also contribute to SA & Zambia and probably the entire SADC region. Are we serious with this SADC regional integration? I ask cause a project like that would augur well with the sort of economic goals that bring the SADC countries closer to one regional force to be reckoned with.
they say beggar can’t not be choosers, but we need to realise is we are not beggars!! the chinese are not coming to zambia because they believe in charity work!! they are here because the have seen something they want in zambia!! we should be smart by insuring we also get what we want out of this “patnership”!!!
the chinese are not where they are in the world necessarily because they have come up with new ideas!! its because the take ideas and find easier and cheaper ways to excute them on a large scale!! so investment is welcome we should jus make sure we regulate it!!
ll the developed countries are using it. It maybe expensive to build but its very clean. And we can process the waste and have our on nuclear bomb. Why not?? USA, RUSSIA, UK, FRANCE, INDIA, all have them. Why cant we? Is it becoz we are Africans?
i dont know where we are going. its always china having interests in everything in Zambia both cheap and expensive projects. We are done fellows!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! why??????????????? dem!!!!!!!!!!!!!!!!!!!!!!!!!! we are.
God has given Zambia water for free to produce electricity unlike other countries in Africa. Are we going to give that to China too…..There are some things you do not sell. Zambia is better off waiting they say patience is a virtue and Rome was not built in a day. Do not give away your inheritance like Esau in the bible over a bowl of soup. Whatever decision is being made please consider the future generation kids what will they own. A long time ago Zambia survived with black out’ s. National security is also linked to water and electricity that is why the Zambian public or goverment needs to own 3/4 of projects to do with water and electricity . It is also advisable to get a variety of investors instead of only China in this project.
China is the emerging world power. Let us just get used to the idea. Global power has been shifting from West to East. We must recognise this and find ways to work with China, just like the USA, UK etc have recognised it. Much as we would like Western countries to come invest in Zed, most are not able.
#34 Transperancy, while we wait we continue loosing out on the much talked potential and our country is not moving. Actually Zambia has moved from being a net exporter to a net importer of electricity. As for the variety of investors get them , but believe investors are standing around waiting for ZAMBIA. so we need to deal with what or who is interested
My friend#36 and #35 I am not saying we don’t trade with China but we do it with wisdom. Africa has an experience other countrieslike the rest of the world doesnt. That is colonisation we got independent in 1964 go back in history and find out what people like KK fought for. that is owning Zambian assets and it’s resources. Do you realise that you control all companies in Zambia when you own the electricity and water? If foreign investors are not willing to let you control 60% of the project or your terms you r better of waiting until you are able to get the deal done where you are in control. Africa is rich but why is it poor check the contracts made by their leaders in the name of moving forward….
Chikumbutso @ 1, absolutely spot on! Is there anything left in Zambia that doesn’t have China written all over it? We might as well just have then appoint the president for us. We basically an overseas outpost of China.