The Ministry of Finance has released K42 billion in the continued process of recapitalizing the Nitrogen Chemicals of Zambia.
Ministry of finance public relations officer Chileshe Kandeta in a statement released to the media today said of the funds released, K25 billion is strictly for the purpose of commencing the rehabilitation of the Kobe Ammonium Nitrate Plant 1, and for re-commissioning it in order to facilitate local production of industrial explosives.
Mr Kandeta said that this was in line with the PF Governments’ commitment towards improvement of local productive capacity and job creation through industrialization.
He said that the remaining K17 billion is targeted at making part payment of retirement packages to former employees of NCZ.
He added that the Ministry of Finance is confident that this action will alleviate the suffering of NCZ retirees and give them the capacity to look after their families, pay school fees for their children and help them begin their own wealth creation projects.
Mr Kandeta said that the Ministry of Finance is delighted that after more than fifteen years of disuse, the NCZ Ammonium Nitrate Plant 1 will once again be cranking into life.
He explained that as a shareholder on behalf of Government, and in consultation with the relevant line Ministry, the ministry of finance will soon develop and sign performance contracts with NCZ to ensure that the expected outcomes from the recapitalization initiative are achieved.
QFM
Should this also not be accompanied by a re-capitalising management? If there is not change in the management of this facility then we are counting another 25bn thrown in the sewage.
This is what I voted for on that september day.
This is good. This is what government should be concentrating on. Not Tribal appointments and harassment of Oposition leaders. Do 20 more of these types of projects and you will be well on your way to success. Simple.
Good ! This government is working.It cant get better than this.
How many times have we been told of recapitalising NCZ mwebantu? We are now confused, because the company has been on and off, and sometimes we are not told when it is off; only to hear that it will be cranking to life after 15 years or chakuti. Only last year, it was making some fertiliser for distribution to famers, and now we are made to believe as if it was not cranking at all. Confusing. And what about KTZ and MTZ? We are tired of salaula!
This is good news as the Ammonium Nitrate plant has a ready market from Africa Explosives BUT why drip feed it with funding when you can rehabilitate of the whole plant at the cost of K200bn to improve its current operations.
Lets not forget that NCZ needs about K1.6 trillion to revamp it to 132,000 tonnes production potential….why does GRZ invest this sum the potential for a health return on investment is feasible if the firm is managed prudently.
Why doesn’t GRZ……..
You call it recapitalising!!! The statement is very clear that the part of NCZ to be rehabilitated is for making explosives not fertilisers. Who is going to benefit from explosives? Wake up my friends and stop praising the rubbish PF government are doing. This is is misappropriated priority, explosives what for? For Chinese miners?Â
This NCZ story has always been headline story. The revamping story seems to be like investing in a bottomless pit. Where is the problem for it to be this famous yet without success? It seems to be a very good political ball which everyone can kick. Please lets try to be serious and make things real. Otherwise its too much of this story of NCZ without any tangible results.
well done PF for the first time I will give credit where it’s due.
Hope you monitor the progress at NCZ.
Please do same Mulungushi textiles and other viable closed
industries .
KBM – Compound D Fertiliser Production is different from Ammonium Nitrate Production. K144 Billion was given for production of 30, 000 MT Compound D Fertiliser. In this case, K25 Billion is for production of Ammonium Sulphate Solution for production of explosives by Africa Explosives. Be knowing as well that NCZ has 5 plants but only one [Fertiliser] has been working, the second one [Ammonium Nitrate 1] will now come-onstream. Dont mix things. Jay Jay, wer did u get the figures u r quoting? NCZ does not need K200 Billion for the ammonium Nitrate Plant, MWILAKONCLUDA IFYABUFI AWE!
MotomotoÂ
What ifyabufi?
AGRICULTURE minister Emmanuel Chenda stated recently that the government cannot afford to revamp operations of the Nitrogen Chemicals of Zambia because the undertaking is very expensive during his tour of the plant. for the figures please for this post link below 12th April 2012.
postzambia.com/post-read_article.php?articleId=26982
Actually the government is talking to investors from RSA and Norway on the possibility of investing in NCZ, true they can’t afford it, but this effort to initiate the production of explosives for plant no. 2 is very welcome and i commend the PF government
Great start to industrialize Zambia again. Sad that we let thugs of the MMD ruin our country while the citizens were reduced to cheer-leaders for foreigners.
this is once again a bad for the economy. its insane to be doing the same thing and hoping to get different results. this NCZ should have been sold not given our money. this money should have been take to fund small business which will directly create worth and job. this UNIP mentality should come to a close otherwise we’ll continue to be economic dwarfsÂ
private sector jobs is what zambia needs not unsustainable government induced jobs and we wonder why our debt continues to grow
Insanity is doing the same thing over and over again and expecting different results.
As long as the real problem is not solved at NCZ then this money is going into the usual bottomless pit.
An equity partner could have come with profit making ideas rather just supporting employment.
WHY NCZ GOT THE MONEY…[1]…It will improve the companys cash flow as sales of explosives will be throughout the year unlike the current situation where Compound D Fertiliser requirements are seasonal…[2]…It will provide a financial basis for rehabilitation of all other plants at NCZ…[3]…It will contribute to reduction of the company’s indebtedness…[4]…it will improve NCZs’ product offering, diversification and competitiveness…[5]…It will forestall degradation of machinery and loss of skills…THE MOVE IS NON-CONTROVERSIAL AND MUST BE SUPPORTED.
Motomoto
You asked for  source the figures and I have supplied; still waiting for an apology…its so easy to discredit others in anonymity BUT twice as difficult to issue a humble apology.