ZIM To Settle US$70mln Zambia DEBT

THE ZIMBABWEAN government has finally agreed to settle the outstanding $70 million asset debt owed to Zambia, paving way for the delayed construction of the joint 1,650 mega watts Batoka hydro power station.

The debt was for the shared costs of building the Kariba dam and associated infrastructure and sale of the Central African Power Corporation (CAPCO) which both countries owned.

Zambia’s Energy Minister, Christopher Yaluma said, at the time of the sale, Zimbabwe disposed of the assets but did not pay the principal debt amounting to US$ 70.8 million.

He said the Zimbabwe’s energy minister was recently in Zambia to discuss the issue while arrangements have been made for a second round of talks to formalise construction of the project.
The talks are scheduled to take place from January 22 and 23 in Siavonga.

“The total principal debt Zimbabwe owes Zambia is US$70.8, but it has over the years accrued some interest. We met with my counterpart from Zimbabwe recently who indicated that they were ready to pay off the debt,” Yaluma said.

CAPCO was jointly owned by Zambia and Zimbabwe but the southern neighbour sold it alone about 20 years ago without making any part-payments to Zambia.

The Batoka hydro- power station project was jointly mooted in 1993 but the Zambian government was reluctant to undertake the project because of the outstanding debt owed by Zimbabwe.

The agreement by Zimbabwe to pay the debt would now pave way for the construction of the strategic project located below the Victoria Falls.

Zambia has since agreed to cooperate in the construction process which will increase power generation capacity for both countries.

Posted by Editor on January 9, 2012. Filed under AROUND AFRICA. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

18 Responses to ZIM To Settle US$70mln Zambia DEBT

shu-shu @mushilika

January 9, 2012 at 2:42 pm

i believe if P.F. did not ascend to power,all this would have been buried go into oblivion..GOD does things at the appointed time and i feel this information has come to us at the appointed time..thumbs to you MCS for putting up this formidable of men and women who are carrying out these huges task…VIVA MINISTER OF ENERGY
Mukelabai

January 9, 2012 at 2:52 pm

Why praising them? they are just doing what they are supposed to do, period
corrector nox

January 9, 2012 at 3:07 pm

@mukelabai, they are doing wat others failed to do in many years,they deserve our praise.VIVA PF. i love these guys.atleast they are not like the educated fools who have failed zambians.
Gen.Gredenko

January 9, 2012 at 3:08 pm

How can a conmpany which is jointly owned be sold by one country without the other party input.Anyway thanx that Zim has decided to pay,but if it were Malawi i doubt.
Ndate

January 9, 2012 at 3:31 pm

@Mukelabai,it’s just as good as being in school,when you go to school,it is expected of you to pass your exams and if you pass you have done what you were supposed to do and therefore you deserve to be praised.So do the same to the PF for they have done what they were elected to do for the zambians,chapwa
nakferd

January 9, 2012 at 4:39 pm

Wait a minute,have they been convinced to pay or they have on their on decided to pay back? i need to understand on what merit after 2o years have they been compd5j to accept now.
mudenda

January 9, 2012 at 5:08 pm

@mukelabai??? come out of them.

LISTEN MY DEAR…don’t be like HH,
the guy is negative from the word go.So when when a good move is made,simply a thumb-UP…
Ricky Bobby?

January 9, 2012 at 5:27 pm

This issue was concluded before the elections and I totally disagree that Zim should only pay the principle when they have had beneficial use of the money realised from the sale for more than 20 years. It’s really nonsensical that Zim only offers to pay the debt when they want the Batoka project to take off cause that’s in their interest. If it was not for Batoka, Zim would still be refusing to pay this debt. The PF government should do the right thing and demand that interest should be paid by Zim. Why should we accept this nonsense from Zim!
Nedlog1

January 9, 2012 at 5:37 pm

@mukelebai chikala
Watchman over Watchdog-Galileo Galilei is back!

January 9, 2012 at 5:50 pm

I am not satisfied. $70,8m was the principle. But Zim has been dishonest on this one. For so long the principal plus interest rose to $250m. have we decided to waiver about $180m?

The Zim govt has only agreed because we argued that unless they pay what they owe us in the past for similar joint ownership of an asset they sold beka shall we agree to go ahead to develop another project jointly. why that small figure? Zim has benefitted from Zam a lot. Our copper money built Salsbury in the federation of Rhodesia and Nysaland.
Mr MWEWA

January 9, 2012 at 6:25 pm

Why US$70M last time its wwas about US$260M and can someone familiar with the issue shade more light how this money will benefit poor Zambians we mite be excited just to be shown papers without any benefit keep it up PF and get that money.
Watchman over Watchdog-Galileo Galilei is back!

January 9, 2012 at 6:44 pm

Zam dribbled by Zim. Obviously this same money will be our contribution towards the development of the joint Batoka lower gorge power station project. May be even more of the power to be generated will be going to Zim. And I am sure we will have to top up a lot on the ka $70m for this mammoth undertaking. We should learn to stand our ground. We are not so desperate for sites to develop Hydro Electric Power. We have so many on Kalungwishi river.

We should have held them to ransom until they pay the full amount!
aNe.

January 9, 2012 at 7:31 pm

Somebody must pay and soon before Dad says something we all can regret.
hary

January 9, 2012 at 8:13 pm

@mukelebai. U sack niggah! Get outta here!
Woviziba

January 9, 2012 at 10:34 pm

Rick Bobby I agree with you. A serious govt would demand all thats due to it. Zimbabwe should pay everything including interest at once
Rupiah B Banda

January 10, 2012 at 7:11 am

Fellow country men, it must be appreciated that my successor afuna dyamo naeve, so let him get the principle and he can share half and half with Bob Mugabe on the interest.

On a serious note, its a Non-starter, we need all our many back or don’t give into this Batoka project, Zim stands to benefit the most. Principle + interest, that’s what we want, if they can’t give us then fine, we’ll take them on at the ICB.

Your formal President,

RB – aka wisi mpundu.
REAL MAN

January 10, 2012 at 7:24 am

Release date
August 2, 2009

Summary

This 108 page investigative report to the Zambian Assembly, formally titled, PUBLIC ACCOUNTS COMMITTEE: REPORT OF THE AUDITOR – GENERAL ON THE REVIEW OF OPERATIONS OF THE ZAMBIA NATIONAL OIL COMPANY LIMITED., and dated Oct 2005, implicates the late Zambian President Levy Patrick Mwanawsa, his associates, and other members of the goverment in:

1. A direct theft on the Zambian Government treasury of K838.645 billion, the ZNOC factious debt that Miss Josephine Mapoma, Permanent Secretary in The Ministry of Energy and Water Development certified which debt the Zambian Government resolved to take over,
2. US$ 36 million value of ZNOC crude oil in TAZAMA Pipelines has not been accounted for
3. Very soon it will be four years since this scheme was executed and by which time US$ 240 million in form of ZNOC profits would have been siphoned out of Zambia through TST and Total Outre mer arrangements.

The report, while submitted to the Assembly (during the term of President Mwanawsa), has not previously been readily available to the public.
twiumfwako

January 10, 2012 at 8:30 am

You Zedians should learn from your mother Zed. Inkongole shapwa 20 year ukwabula ukupinda, ukwabula no kuti abantu beshibe. Nomba imwe umuntu akongola fye 50pin after 1 week ukumupinda no kumusebanya kwa katwishi. Cibi.