President HICHILEMA confers with World Bank

(ZANIS) President HAKAINDE HICHILEMA has urged the World Bank Group to take necessary steps to help countries like Zambia avoid going into economic shutdown.

President HICHILEMA says there is need for the World Bank Group to make a decision on the Catastrophe Deferred Drawdown Option -Cat DDO- so as to help Zambia avoid an economic shutdown.

The Cat DDO is a contingent credit line that provides immediate liquidity to International Bank for Reconstruction and Development –IBRD- member countries in the aftermath of a natural disaster.

President HICHILEMA says climate change has brought a new dimension which the government did not fuse into its debt restructuring and sustainability programme, and has consequently affected the country’s 2024 growth projection of 4.7 percent.

ZANIS reports that President HICHILEMA was speaking when the World Bank team led by Regional Vice President for Southern and Eastern Africa VICTORIA KWAKWA, paid a courtesy call on him at State House.

At the same meeting, Secretary to the Treasury FELIX NKULUKUSA said the government is working with the World Bank on the National Energy Advancement and Transformational project -NEAT.

Mr. NKULUKUSA said the 700 Million United States dollar project will run from 2023 to 2033 and is aimed at making ZESCO sustainable and attract new private sector investment.

And World Bank delegation leader VICTORIA KWAKWA disclosed that the Bank is bringing a new instrument to Zambia called the Cat DDO and the project will be tabled by the World Bank board before the end of the year.

She explained that the Cat DDO is a form of contingent financing offered to help countries take a proactive stand towards reducing exposure to catastrophic risk and access to funds immediately after a natural disaster.