“$80m was a debt payment for a loan to finance Kariba North Bank expansion”

By Masauso Mkwayaya

Government says the 82 million U.S Dollars that Zesco paid to China Exim Bank was part of a loan that was acquired to partially develop the 320 million Dollars 360 Megawatts Kariba North Bank Extension hydropower station.

The Ministry of Finance says the financing agreement secured in November 2009, created an account to hold funds that would service the loan.

Secretary to the Treasury FELIX NKULUKUSA says following an approval by the ZESCO Board in December 2022, the company transferred 82 million dollars that had accumulated in the account as a principal prepayment to China Exim Bank.

Mr. NKULUKUSA says the payment allowed ZESCO to close off outstanding obligations under the facility and save on future interest rate costs.

He says the payment was made prior to Government reaching debt treatment agreement with the Official Creditor Committee, which was achieved in June 2023 and reflected in the Memorandum of Understanding of October 14, 2023.

He adds that the MoU is in the process of being formalised through bilateral agreements with the respective creditors, the first of which was the Government of the Republic of FRANCE and was signed on 8th December, 2024.

Mr. NKULUKUSA says the terms of the MoU, will see Zesco benefit from the agreed debt treatment, subject to ongoing discussions with the Official Creditor Committee.

He says the payment was reflected in the Ministry of Finance and National Planning Quarterly Debt Statistical Bulletin for End March 2023.

This is according to a statement issued to ZNBC News by the Office of the Secretary to the Treasury.