ZESCO SETTLES $82 MILLION DEBT TO CHINA EXIM BANK FOR KARIBA NORTH BANK EXPANSION
By pumulo mubita – 15 December,2024.
The Zambian government has clarified that the $82 million paid by Zesco to China Exim Bank was part of a loan obtained to partially develop the $320 million, 360-megawatt Kariba North Bank Extension hydropower station.
According to the Ministry of Finance, the financing agreement, secured in November 2009, created an account to hold funds that would service the loan. Secretary to the Treasury Felix Nkulukusa explained that following approval by the Zesco Board in December 2022, the company transferred the accumulated $82 million as a principal prepayment to China Exim Bank.
This payment allowed Zesco to close off outstanding obligations under the facility and save on future interest rate costs. Nkulukusa noted that the payment was made before the government reached a debt treatment agreement with the Official Creditor Committee in June 2023.
The debt treatment agreement, reflected in the Memorandum of Understanding of October 14, 2023, is currently being formalized through bilateral agreements with respective creditors. The first agreement was signed with the Government of France on December 8, 2024.
Nkulukusa emphasized that Zesco will benefit from the agreed debt treatment, subject to ongoing discussions with the Official Creditor Committee. The payment was reflected in the Ministry of Finance and National Planning’s Quarterly Debt Statistical Bulletin for the period ending March 2023.
(C) KFT -PCT UPND MEDIA
ZESCO SETTLES $82 MILLION DEBT TO CHINA EXIM BANK FOR KARIBA NORTH BANK EXPANSION
