Zambia has signed a contract of more than $824 million with a subsidiary of China Railway Construction Corporation to upgrade a rail line, the company said on Wednesday.
China Civil Engineering Construction Corporation will rehabilitate the railway line in southern Zambia over a period of eight years, China Railway said in a statement.
The railway has a total length of 648.26 km (403 miles), the statement said, adding that the contract value of the project amounted to approximately $824.87 million, without saying how it will be financed.
If the government is planning on funding the rehabilitation project through borrowing, it could raise questions about the credibility of measures Zambia announced last month to cut foreign debt.
Zambia’s economy is straining under soaring liabilities, and S&P Global Ratings last month cut the nation’s credit rating to CCC, eight levels below investment grade.
That’s the lowest level for any African country it assesses.
Finance Minister Bwalya Ng’andu said last month the cabinet agreed to a moratorium on contracting external project loans.
Dr Ngandu said the government also planned to cancel or re-scope contracts to reduce its pipeline foreign debt by about $5 billion.
Finance and Transport Ministries didn’t immediately respond to requests for comment.
More debt. More money in your pockets!
Where did the $120 million allocation to ZRL go?
Ba LT please learn to attribute sources of such articles. Bloomberg reported on this.We have yet to hear what is Govt’s response.Given that Parliament is in session we expect questions to asked.
More money to be misused under the guise of Infrastructure development.How was the money from the Eurobond allocated to Zambia Railways used?? Now this time a huge chunck just before elections!!
That 400 million euro bond Sata stole & blamed prof Chirwa. YoYSouu all read it in madam drunkards expose. So these ones also want their share.
This website is seriously infected it needs maintenance it plays havoc to firewalls
Atleast $1 billion of Zambias debt should have been used to revamp and modernise ZR…….
But for PF building roads and buildings was a quicker way to steal as construction companies can be formed in a day , even without tools or marchinery….which they did , pf people without even a wheelbarrow had big construction contracts….
BTW were we not told construction of kavindelis railway was imminent with all materials already in the ground , how far has it progressed ???
Chriwa wanted us to invest the same amount with made in Zambia products for the whole ZRL network you laughed at him …here you are simply selling the southern province network to the Chinks so they can easily transport their goods then bring cheap goods because they know you can not pay back.
Show the tax payers the cost benefit analysis for this project.Where is the money coming from?How are we going to pay back? Nkongole again! Zambians need to know this information. We pay for these thing but the PF Gang thinks the money comes from their pockets. What’s in for the Chinese Government?
Borrowed money from Euro Bonds were supposed to be invested into ZRL and improve the railway lines but alas, it was more money borrowed and more money into their pockets. Now more borrowing to fill their insatiable pockets again. What have Zambians done to be saddled with these looters and plunderers?? S&P rating of CCC is the lowest for any African country but of course we have leaders who as long they are living in mansions and driving luxury cars, all from ill-gotten wealth, Zambians can go to H3LL!
Zambia in The Sun – There is no cost benefit analysis with these reckless people…its like the bank coming to your farm that is valued at $2million then the bank offering $1.5 million loan to develop the farm…the bank knows you can not pay back and you know that you wont pay back so the bank is merely buying your farm for cheap. Look at what John Magufuli did in Tanzania he halted a $400 million port development from China as his country was going to lose more. Here we have this lazy chap in State House all he is thinking of is money for the 2021 elections for his party anything after it will sort itself out.
Zambia in The Sun – There is no cost benefit analysis with these reck-less people…its like the bank coming to your farm that is valued at $2million then the bank offering $1.5 million loan to develop the farm…the bank knows you can not pay back and you know that you wont pay back so the bank is merely buying your farm for cheap. Look at what John Magufuli did in Tanzania he halted a $400 million port development from China as his country was going to lose more. Here we have this la zy chap in State House all he is thinking of is money for the 2021 elections for his party anything after it will sort itself out.
The poorly written stories in LT are done intentionally so as to divert our attention. The editor needs to be taken back to school. Ati to upgrade a railway line. How many railway lines do we have?
Just signing contracts without having any money should be a crime.
China has an interest in making sure thst this money is well-spent. If not, the money won’t be repaid.
Fantastic , the question is just how much money will disappear in PF and Lungu´s pockets ????? #FreeZambia #Notoocorruption #HH2021