THE Zimbabwean government has finally agreed to clear the decades long- outstanding debt of about US$260 million owed to Zambia for the shared operations costs of Kariba Dam infrastructure.
Minister of Lands, Energy and Water Development Chris Yaluma last week met his Zimbabwean counterpart who was in the country to discuss the debt and how best the federation-era liability could be settled.
Mr Yaluma confirmed in an interview that the Zimbabwean energy minister was in Zambia to discuss the long-outstanding Central Africa Power Corporation (CAPCO) debt for the shared Kariba infrastructure.
“When the assets were sold, the component of the money due to Zambia was not given. There has been some interest accrued and the Zimbabwe government is trying to look for a fair solution where the Zambian government drops off the interest and they simply pay the principle or consider paying the accrued interest,” Mr Yaluma said.
The settling of the debt will pave way for Zambia and Zimbabwe to co-operate in constructing the 1,650 megawatt (MW) Batoka hydropower station as the two countries have ever collaborated closely in hydropower generation.
“The Zimbabwe government is trying to put up Batoka hydropower station and the success of this plant will depend on how well they work with us. They are very much eager to ensure that they settle whatever they owe so that we can work together on this project,” Mr Yaluma said
The Batoka power project, first mooted in 1993, was meant to be a joint venture between Zimbabwe and Zambia but lack of funding and reluctance by the Zambian Government to start the project delayed its implementation.
According to information posted on www.thezimbabwemail, Zimbabwe has agreed to settle the money owed to Zambia for the shared Kariba infrastructure, paving the way for both countries to co-operate in constructing the 1,650 MW Batoka hydropower station.
Zambia could not partner with Zimbabwe until the asset debt accrued during the Federation-era was cleared.
Zimbabwe’s Minister of Economic Planning and Investment Promotion Tapiwa Mashakada told the Zimbabwean Mail that Zambia has indicated that for them to co-operate on the Batoka project, Zimbabwe should clear the debt.
“We discussed this matter in Cabinet and agreed that we should pay them (Zambians) the principal amount only and not the interest, then we can start cooperation in building the Batoka,” he said.
Batoka is situated 50 kilometres downstream of Victoria Falls and would provide 800 MW of hydro-power generation capacity for each of the two countries.
[Zambia DAily Mail]
Are they paying it with interest? But hey well done PF! That foreigner we had as President didn`t bother.
I remember a certain (Capitalist/Bootfimofimo) saying they are our brothers we have to help them. Laughable really!
We need that money and we need that hydro electric power station put up.
This is total nonsense, the energy minister from zambia met his counterpart from Zim. hehehehe do u think that zim minister can make decisions on such a huge amount without consulting Mugabe marubish iam sure that man will be fired and zim will not pay that money dont fool us please, if they will when cos. we want to monitor??
How much you say? $260 million? What…$260 million? Look here, there are only 13 million of us Zambians. Would it hurt to give a million dollars to every Zambia? I mean, not once but two or three rounds would do for me. They would hand me a million, RB his million (but hey, no more corruption now), and then Sata would get his $1 milli (but hey, you need to shut up about all this corruption talk…and just enjoy your share)….SECOND Round!!!
USD 250 million will be only enogh for 250 people. this means RB, SATA, Nevers Mumba and some few other people
Man, you are terribly lacking in your Math skills! $260 million divided by 13 million people can never equal $1 million per person. It is more like $20.00 per person, ‘Mr. Einstein’!
While your Maths is not very good I agree with the concept of sharing the money out to all Zambians
@make every Zambia a Millionaire
Hehehehe that is the kind of thinking we need put money in our pockets. Can you imagine that kind of stimulus package impact of the economy I mean not just the Zambian economy. I am waiting for my share for sure.
No.4, your Math is wrong; $260 million divided by 13 million Zedians works out to $20, not a million dollars my friend.
# 6,# 4 is right,he has not said after the 1mil ninshi the money finishes no,we then go for another round then another and another till mayb 18th round,lmao!!that would be fun,am also waiting in line for that $1mil
It means, as a parent, i will also get my two children’s shares ka? hehehe!twanwa again!
#4: Maths wrong; #6 maths is right. The key issue here for the PF is “interest”; They will be very foolish if they discount market rates for interest; because if you consider the time when the Kariba was constructed, interest on interest alone could be running in billions of dollars. Here is the best approach deal with interest: take out the annual interest rates from the time the funds were expended to date; then find an average. Workout the compound interest for all these years; and add the initial amount $260m and give them what they aught to pay. Then you can negotiate on how they will be paying it. If they are to be offered any discount, let it be known to them and to the public as to how much that discount will be.
#9 continued: For example, if I did a job for a relative, I would normaly charge commercial rates; then add all the expenses, $1200. Then I apply a 100% discount; leaving them with $00 due for payment. This way, they can see that the value of the work I have done for them is $1200; but am asking for no payment, in stead I have given it as “help” or aid. This is very crucial ba PF; because in the future they will remember the discount, the princinple, interest, and what they are supposed to pay. Remember Zambia was forgiven of its debts; totalling $6bn; we still remember that. They did not forgive our “debts” per se; they stated the value of tha forgiveness. These are commercial matters and have to be treated as such.
Atleast it will solve one or two issues, good move
oh come that $260 should come from the british empire i see don’t see how zim owes us…zim guys must be desperate for this power plant other wise they would have told us to f##K off
260,000,000 / 13,000,000 = 260, / 13 = 26 / 1.3 = 20……INSAMUSHI bane….arithmetic….not even calculas……..the answer is $20.
as always zimbabawe dictates the terms of payment and even the reason to pay is more to their interest than ours.sad really.it seems we dont love our country
13million into 260million equals 20. Number 4 you are very right and not 20dollars as indicated by #6. Iam number 15. Make sure we bring all our NRCs to get the umukama. We can do without interest because they are our broithers. What is the connection with Batoka? Are they playing a card here? Watch out before we walk in a trap with our eyes wide open. Good point above. #13 you are close to a genius.
Can we have it back with interest please. 260mill back then was a lot of money…Im sure todays equivalent is more than a few billion. 240mill USA cant even pave the roads in Lusaka.
What’s all this about wrong maths with #4? The problem is you guys can’t understand what you read. At no point did #4 mention that Zambians should share the $260m! The simple question he asked was “Would it hurt to give a million dollars to every Zambia?” He then went on further to say that the $1m, to every Zambian, could be given in rounds, not all at once! “I mean, not once but two or three rounds would do for me” There is nothing wrong with #4’s maths, but everything wrong with your .. ehhh..? I rest my case.
Let them pay, we sign to corporate with them on batoka and then we kick them to kerb, why should they hold us to ransom on our own money? We do not need batoka its only going to reduce the height of our Victoria falls. We can concentrate on Kafue lower and itezhi tezhi and sell them the power.
@KJ good point why should we destroy one of the “seven” wonders of the world, let us concentrate on Kafue and Itezhi tezhi, we can also create demand for our electricity in Zim whilst maintaining a strong tourist economy. double double!!!
….a lot of dull math discussions above….. Change topic, its nauseating??
@Kachasu:
Don’t take your name too literally, are you drunk?!! And on what amount did #4 base his numbers? Kachasu indeed does kill brain cells, I fear for both of you!!!!!
hahahaahaahah we need to go back to school
If each of the 13 million Zambians was to get $1 million, the total amount required is $13 billion and in kwacha at the rate of K5,000 the total amount is K65 Trillion (US) Kwacha and our 2012 annual budget is K28 Trillion. My maths stands your correction.
Thank you Zimbabwe for not being difficult about this Colonial debt. Thats how African countries should cooperate. But let me wait until you have paid us the mali
kanshi napa Z bamo balitukwatilako inkongole mbonafye kwatilimbi nifwebofye bapinda. tulebakongweshako neshakufuma mu bank ninshi twa improver. go ZZZZZZZZZZZZZZZZZZZZ!
@3 Mashindu: With its growing Gold, Diamond and Chrome mining activities, Zimbabwe has alot more to benefit from the new Batoka Hydro power station than this US$260m, and the Batoka project depends on our co-operation, so I think they are in a tight corner and will definately pay (I that minister carried Mugabe’s mandate to assure us). The only thing that does’nt make Zim look good is that they may not have had the intention of paying and have just been compelled by the serious power generation challenges they are experiencing, which necessitate the Batoka project!
@#4
you are a Fool $260mill divided by 13 mill is $20 please have a level of intelligence if you are going to post here