The Zambian government and the African Development Bank (ADB) have signed a US$50 million loan which will be used to support the Itezhi-Tezhi hydro power and transmission line project.
The loan will be used towards financing the construction and operation of a 120 megawatt hydro plant at Itezhi Tezhi dam along the Kafue river.
Speaking at the signing ceremony in Lusaka today, Minister of Finance Alexander Chikwanda said once completed, the project will significantly increase the country’s power supply which at the moment stands at 1000 megawatts.
Mr. Chikwanda explained that the increase in electricity generation and distribution will assist in reducing the erratic power supply which is currently being experienced in the country.
He said it will also contribute to providing adequate energy to complement the country’s fast growing economy.
Mr. Chikwanda added that ADB has been a significant partner to Zambia through the provision of support in infrastructure and strengthened management systems in various sectors of the economy.
He cited the development of the Victoria Falls power transmission project in the energy sector, the establishment of Lukanga water in the water and sanitation sector and the formation of Kaleya holdings in the agriculture sector as some of the valued contribution the bank has made to Zambia.
He hoped that preliminaries that are necessary to launching the project will be met so that site works can commerce soon.
And ADB Vice President for Operations, Infrastructure, Private Sector and Regional Integration, Gilbert Mbesherubusa, disclosed that the Itezhi Tezhi hydro power project was economically attractive adding that its development will help address Zambia’s growing power deficit.
Mr. Mbesherubusa said the project was a milestone as it will open Zambia’s first Public Private Partnership (PPP) in the energy sector.
He said the project was also critical for planning the long-term and sustainable performance of the Zambia Electricity Supply Corporation (ZESCO), equitable tariff structures and the provision of a reliable service that underpins the economic growth of the nation.
He explained that the whole Southern African region is experiencing power deficit.
Mr. Mbesherubusa further charged that this was why the Itezhi Tezhi hydro power plant project will improve the reliability of electricity supply and enhance energy security in Zambia.
ZANIS
Can someone please advise me a lay person, the way I see it, looks like we getting deeper and deeper into debt. What happened to the Eurobond money?I would have thought it was better to use such monies borrowed to finance such ventures than going for more nkongole or should we say kaloba?
Eh my guy don’t worry. when they come to pinda us we’ll just say it is not us that took the money it was daddy…
We were told the Euro bond will be used for such projects, why are they going out on a borrowing scheme once again? Zambia is in trouble, by the time these *****s are out of power we will be in deep trouble with debt.
Where is Euro bond?
I think we are over borrowing :o
Kaloba every day.
Zambia had to borrow a paltry $50 million? I agree with #4 above, Zambia is overborrowing. The country will soon go bowl in hand to other countries to ask for money to build the stadium and the university in Western province. Zambia will soon be neck-deep in debt.
and this is what KK is proud of…..these fools will all die soon and we will remain here paying for the debts they are putting us in
By-elections could be destabilizing the scene… Come to think of it – is there funding budgeted for by-elections? How are they predicted? What happens to the surplus if there are no defections?
Yes daddy, go and get some more, I miss the days when Zambia was a surname. Hipc Zambia.
$750 Million plus $50 Million = $800 Million.
How much borrowing will be enough, how much exactly do we need?
Little knowledge spells death!!! mwebantu this is a PPP project not a debt! Im surprised that even people in the diaspora knows nuts about the PPP/PPF, what do you spend your time doing in the foreign lands huh? working as cleaners and washing old butts???? shame, and who said $750m will solve all the electricity problems? did u not see how much was allocated to electricity? $180m and some of the $750m has gone to roads etc you fools!
This is a PPP yes, but at the end of the day, the debt is on the books of GrZ. The money must be used by ZESCO as equity contribution towards the project. Thank God it is being invested: that is why the project is economically viable. The Zambians will pay back through user chargers.
The 750m$ is a small amount by any standard and cannot do much for the overwhelming infrastructure needs of Zed. We need roads, airports, schools, hospitals, houses for civil servants, bridges, support for running the public sector in form of cars, computers, etc. \what can the 750m$ do?
amama ine and what mechanisms are in place to ensure we payback the debt…we never learn..yaba after that struggle to get that debt cancelled!ZESCO ni white elephant as long as domestic customers continue to pay higher tarriffs inorder to cushion our babies the mines!Zambia Zambia Zambia kanshi where are we goin in this boat? it seems to me that aba yashi ba P.L.Mwanawasa was the best president we had..atleast we had progressive policies..thanks to the likes of magande.then we were people…mhmm
It seems our current leadership have no vision for developing our nation?