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ZIMBABWE AGREE To Pay 50 Year Old US$260m Debt Owed To Zambia
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.
Posted by
Papa
November 17, 2011 at 4:59 pm
the guys are positive and yes we can…
tommy.
November 17, 2011 at 5:18 pm
That’s good news money should be used building Hospitals.
Wanu Ngwee
November 17, 2011 at 5:19 pm
YOU SEE, ZIM IS NOW ABLE TO PAY US US$260m. This money is coming from their insistance on a 51% share ownership by indegenous Zimbabweans in every foreign company, plus the diamonds they’ve dicovered in Marange in eastern Zim. So, we also can benfit hugely from having a grip on our resources, so please let’s do it!!
Prof Zick
November 17, 2011 at 5:24 pm
Atleast Mr Mugabe is now considering good neighbour
mr. Wendo
November 17, 2011 at 5:28 pm
we need the interest too. If its me u charge me interest bt a country as s. Rhodesia u dont. Mpaka muti passe zonse
Dodo
November 17, 2011 at 5:46 pm
Thats what we expect of the Gov. We can surely make it to the end of the tunnel.
Wanu Ngwee
November 17, 2011 at 5:52 pm
TO US AS A COUNTRY, THIS MONEY IS OBVIOUSLY A BONUS AS IT WAS NOT PART OF THE FISCUS. SO, LET THERE BE A PUBLIC CALL FOR PROPOSALS ON HOW BEST TO UTILISE THIS MONEY. WE NEED TO HOLD OUR GOVT ACCOUNTABLE. BELOW IS MY PROPOSAL, PLEASE FOLKS SUGGEST OTHERS TOO: WITH US$260MILLION WE CAN DON ONE OF THE FOLLOWING:
1. Build one hospital like Lusaka General Hospital in each province.
2. Build a totally new univeristy offering courses that we do not have in Zambia, such as:
a) Actuarian sciences at degree level
b) Pharmacy degree
c) Nursing degree
d) B.Comm degree, etc
3. Build an ultra modern stadium with an office park (like SA’s 45k to 60k seater stadia like the one in PE, Nelspruit or Polokwane)
4. Build 4100 Medium cost houses for selected councils, each of these houses with (3 bedrooms, Living room, Kitchen, Toilet & Bathroom)
5. Convert 3 high trffice volume roads from single to dual carriageways; i.e. Chingola-Kitwe, Chingola-Solwezi and Chingola-Chililabombwe.
THE ABOVE EXAMPLES ARE JUST TO EMPHASISE THAT THIS IS A LOT OF MONEY. GOVT IS TELLING US ABOUT IT NOW BEFORE IT COMES, BUT THEY MIGHT JUST KEEP QUITE ONCE THEY RECEIVE IT. LET’S KEEP WATCHING THEM, AND ENSURE THEY ACCOUNT FOR IT.
RB Almost Sold the Entire ZED had IT NOT BEING FOR ME & MY WIFE's VOTE
November 17, 2011 at 5:58 pm
Wanu Ngwee, its good to dream the way you are doing but the big cheque question is ” What is the agreed mode of paying and is the money going to be paid all at once in one fiscal year?” If there is a 7 year payment plan, then HH and Chipomo should also be dreaming ahead, just in case..
Wanu Ngwee
November 17, 2011 at 6:08 pm
WHATEVER THE PAYMENT ARRANGEMENT MY BROTHER(SINCE YOU TALK ABOUT YOUR WIFE), THIS MONEY IS ALOT AND MUST BE COMMITTED TO SPECIFIC PROGRAMME. IN FACT THE MULTI-YEAR PAYMENT A POSSIBILITY YOU’RE SUGGESTING IS THE VERY REASON WHY ANY OTHER PRESIDENT MUST FIND IT ALREADY COMMITTED!!
Copala Swag
November 17, 2011 at 6:14 pm
Way to go i like that…..
Kennedy Chanda
November 17, 2011 at 7:13 pm
Efyo Ifyofine Twatotela. MR SATA is also an excellent debt collector. VIVA Zambia
Lungowe
November 17, 2011 at 7:38 pm
*nods in agreement*
tumone tata
November 17, 2011 at 7:47 pm
Thanks PF GVT. there could be other countries that still owe us.We need to know ka.Why it has to take the PF gvt to reach an agreement.Thanks otherwise the money would have gone to Gwanda.
pf the boat peddler
November 17, 2011 at 8:01 pm
awe tata ba sata mwabombeni, apa there is nothing like UPND OR HH OR MMD we are all going to benefit.. yaba twabombako ba pf atlist no mba ba HE sata mulefula ama appointments twapapata.. lets build on this,, awe bane hh mutashe sata naiwe
AKRRAL
November 17, 2011 at 8:15 pm
LET COLLECT THAT DEBT SO THAT WE BUILD BOTTOM ROAD TO SHAME UPND
Tumbwe
November 17, 2011 at 8:18 pm
iwe we have all those degree courses in Zambia..atase kolwestan!
realmondo
November 17, 2011 at 8:29 pm
Don’t collect that money without the interest please., after such a long time, the interest is the essence of the entire transaction.
Who gives conditions, borrower or lender? They think we are desperate and shallow, enough of being a good neighbour.
The more they delay the bigger the cheque when its finally collected. Never tolerate a long term payment plan unless it will attract surcharges.
If Zimbabwe think they can refuse to pay, then we can engage them with the International Court of Justice with competent lawyers like Kawimbe. We should not be mediocre in all our undertakings.
The only reason they are willing to offset this balance is because they really want input from us yet again to construct this new power generation plant to benefit them
This New Project is a no go until we have closed the Kariba project. Guys check how many years its been, 50. We borrow from IMF and paying back we do and so should they.
Arrogance with hunger!
VIVA PF GRZ!!!!
a salt with a deadly pepa
November 17, 2011 at 8:30 pm
I have a full budget of we will spend this money wisely…will send it to parliament before they make mistakes…!!!
Wanu Ngwee
November 17, 2011 at 10:25 pm
IWE TUMBWE, I HOPE YOU’RE NOT TALKING ABOUT THESE BACKDOOR “UNIVERSITIES” THAT HAVE SPUNG UP EVERWHERE. MWALYONAULA SANA ISUKULU PA ZED, KUTI LYONSE NGA ULETAMBA NEWS TETUMA ADVERTS OF FUNNY INSTITUTIONS ONE AFTER THE OTHER. I BELEIVE IN THE CONSERVATIVE EDUCATION SYSTEM THAT PRODUCES NATIONALLY AND INTERNATIONALLY ACCLAIMED QUALIFICATIONS FROM INSTITUTIONS WHICH ARE WELL REGULATED, EVALUATED AND MONITORED & EVERYBODY IN THE COUNTRY RECOGNISES AND ACCEPTS. THE MOMENT YOU FIND YOURSELF EXPLAINING THE EXISTENCE OF YOUR COLLEGE OR UNIVERSITY, JUST KNOW IT’S A GONG’A!
Mwitwa
November 17, 2011 at 10:53 pm
Tumbwe which learnin institution is offerin arts and fimo fimo?
Snipper
November 18, 2011 at 12:14 am
Where is that chap who thought Mugabe had COMPLETELY nothing between his ears?!
Mukelebai
November 18, 2011 at 1:21 am
so for all the past decades it was fine to keep quiet about our money.We have been ruled by punks until now.Power to the people
mwewa
November 18, 2011 at 2:44 am
@wanu ngwee,we have degree courses in nursing and pharmacy at ridgeway campus,which zambia do u liv in?
Don't mess with Mossad
November 18, 2011 at 6:25 am
We need interest on top.Zim got diamonds
Wanu Ngwee
November 18, 2011 at 6:45 am
MWEWA, Okay boyi wanjikata – ala tulimachona!
That’s good to know, thanks.
Don Corleone
November 18, 2011 at 7:10 am
Nga bafikala nani wabeba ukuti interest tatuleifwaya? We get no exemptions from them!!!!!!!!!!
montenzuma
November 18, 2011 at 7:52 am
PF at work.
Anani Koffi
November 18, 2011 at 8:19 am
why build a hospital just give sata to buy flats like RnB didi
Kyle
November 18, 2011 at 8:45 am
more money in ‘em pockets of current political regime, such are the monies which go unaccounted for because it was never anticipated and so goes sleek through and quietly into the pockets of the very few. So this news isn’t making me any happier at all!!
mengo
November 18, 2011 at 9:21 am
Kyle! try to be positive in life.
Moneyman Eagle.
November 18, 2011 at 9:49 am
This money should be directed to recontraction of Wider feeder roads.Please,Mr President.MCS,we are highly banking on you to curb corruption.The late President Mr Mwanawasa,MHSRIEP highly emphasised on fight against corruption even in his will, as this would result in the development of our beloved mother country Zambia.
Saint
November 18, 2011 at 10:56 am
This is a very positive development for our great nation. Let us support the effects been made by the govt. If this matter was not brought to light maybe others would have pocketed the money. Bravo PF
Dododo!
November 18, 2011 at 11:18 am
Ba Kyle mufwile mwalibelela ukumilila amasuku pamutwe and care less for zambia’s future, how can this not be good news??
ba Tumbwe naimwe mufwile mwali pa Greenwood institute… what course was that?
Bakulu
November 18, 2011 at 11:48 am
There was the MMD, they knew about this issue but kept queit, the PF have unearthed the issue for the benefit of all Zambians, why cant we recommend them? Sata is for all Zambians.
wapyamunzi
November 18, 2011 at 12:30 pm
Awe ba Zim tulaseni ama ngwe yesu,we dont know what tomorow may bring for Mugabe who knows the issue.
MUCHENDE
November 18, 2011 at 12:34 pm
@ Wanu ngwe, we have Pharmacy degrees being offered at UNZA and Nursing degree to. I can help you register if you want. UTH/UNZA offers both bursing and pharmacy degrees. The rest of the points are valid, especially housing and road networks and hospitals.
mwamba
November 18, 2011 at 1:23 pm
that is enuff money to buy rupiah banda more LEXUS cars
Zibwidi
November 18, 2011 at 1:42 pm
Ba tommy utulo…read before you yap. it is said the money will be used to construct the Batoka dam…not hospitals
Framuka
November 18, 2011 at 1:45 pm
Whatever PF is doing in terms of fighting corruption is being considered as witch-hunt. I hope the revelation by PF of debts Zimbabwe owes Zambia won,t be taken as witch-hunt but ………….. Can UPND and MMD say something please!
Dominic John
November 18, 2011 at 1:50 pm
Viva Sata viva Mugabe.What was the money still doing in Zimbabwe.Whey is Zimbabwe asking Zambia 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?Zimbabwe should just pay all the amount due.Please we also want Zambia to be like Zimbabwe at one time.THERE IS A BEMBA SAYING”APAKWAKANA UBUNGA TAPABE INSONI” SORRY IF BEMBA IS NOT CORRECT AM FROM CHIPATA-EASTERN PROVINCE.CAN SOMEONE EDUCATE ME ON THIS ISSUE.IS IT FAIR FRO ZIMBABWE TO ASK FOR THAT?
Inaluya
November 18, 2011 at 3:00 pm
Sata is also willing to pay 78 million pounds owed to Barotseland. This is also goodnews
What is Ice in chiBemba or Tonga?
November 18, 2011 at 3:01 pm
This is good news from the zezulus. Even better, funds are coming after $ na bamwana Banda have left. Nasho nga balilya.
Zambia Yandi
November 18, 2011 at 5:03 pm
Ba Inahuya sorry sir But I must say Mulichipuba Sana! People are busy talkin sense Imwe ati Baroste! Listen, Zambia has had 4 Presidents,Sata is fifth. U think all these leaders did not know the Barotse Agreement??? Ba SATA na PF mwabombeni.. Shame these devils. Let them Know that you u were chosen by God to rule Zambia.
Inaluya
November 19, 2011 at 2:21 pm
Zambia yandi
Kongole ni Kongole. A Debt has to be paid even after 50 years. Sorry Zambia yandi , We even paid Vault funds, Good Zambia.
Nathi
November 22, 2011 at 11:30 pm
There are millions of Zambians children born by Zambians migrant workers who are now citizens of Zimbabwe. My grandmon was a Lozwi from Barotsoland and Iam benefiting from what ever investment and infrastructurethat was born from labour that came from the Federation. If this money could be paid I fear Mugabe madness as we have seen someone of our relatives though born in Zimbabwe to Zimbabwean women and fathers from the so called Rhodesian Federation are forced to surrender citizens of their fathers and this is real crazy. Mugabe himself is a son of Malawean. There are millions of descendents from the Federations who populate Zimbabwe today. Lets get over madness and move forward. I fear having my citizen revoked because my granny was from Barotsoland Zambia.
mwenya ngaluka
January 18, 2012 at 11:36 am
more kwacha menia kabili lyapuma kubena zedy. We trust pf GRZ to put the mony to good use. Takuli ukulumina mate or think of burrying it under ground.We are hungry for development in magine ukulachita compete na balusaka kwati ebamano, ala na parural paliba un tapped orignal brain bankers
Nak
January 24, 2012 at 2:18 pm
MCS the man of the people. Uushitasha mwana wandoshi. eeeee.