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Zambia receives a loan of 336 billion Kwacha from France to finance the rehabilitation of the Great East Road

Time Posted: July 5, 2012 4:00 pm
Minister of Finance and National Planning Alexander Chikwanda

Minister of Finance and National Planning Alexander Chikwanda

Zambia has received a loan of 336 billion Kwacha from France to finance the rehabilitation of the Great East Road. Finance Minister Alexander Chikwanda said that the total cost of rehabilitating the Great East Road is 1.5 trillion Kwacha.

He said this in Lusaka on Thursday after a signing ceremony for the loan with French Ambassador to Zambia, Marie Annick Bourdin. Mr Chikwanda said that the rehabilitation of the Great east road will be co-financed by European Investment bank which will contribute 505.6 billion Kwacha and the African Development Bank with 495.5 billion Kwacha.

The European Development Fund will contribute 240.1 billion Kwacha as a project grant to the rehabilitation of Great east road. France’s contribution to the project is made through the French development agency through a concessional loan of 336 billion Kwacha.

Mr chikwanda said that the Great East Road is an important road that will boost trade and investment in Eastern Province and Zambia in general. He also noted that it is an alternative route to the sea and to the promotion of regional trade through the nacala corridor.

And French Ambassador to Zambia, Marie Annick Bourdin said France is committed to providing oversees development assistance despite the eurozone debt crisis. She said the rehabilitation of the Great esst road will help in providing mobility for goods and services within zambia and the region.

Meanwhile the French development agency Regional Representative Jean Michel Debrat said the agency will extend its financing to the development of the Ithezhi Thezi power generation and transmission project.

ZNBC

42 Comments

  1. vote
    flag Nubian Princess says: Nubian Princess
    July 5, 2012 at 4:14 pm |

    More debt

    Reply
  2. vote
    flag Mwiponta Mukabwela says: Mwiponta Mukabwela
    July 5, 2012 at 4:16 pm |

    Good move infrastructure development creates jobs, now give jobs to youths, graduates to work on this project.

    Reply
  3. vote
    flag mumba says: mumba
    July 5, 2012 at 4:27 pm |

    good work bwana chikwanda

    Reply
  4. vote
    flag Truth hates says: Truth hates
    July 5, 2012 at 4:28 pm |

    Yes ..use the mone wisely. Dont steal it guys. You should employ the youths so that they have more money in their pockets.

    Reply
  5. vote
    flag 18 YEAR OLD IDEALIST. says: 18 YEAR OLD IDEALIST.
    July 5, 2012 at 4:33 pm |

    bullshit! f u c k them zambians!

    Reply
  6. vote
    flag Nine Chabe!! says: Nine Chabe!!
    July 5, 2012 at 4:36 pm |

    Ba Kabolala!!!!

    Reply
  7. vote
    flag polt1 says: polt1
    July 5, 2012 at 4:41 pm |

    by 2016 Zambia will have so much debt and will not be able to service the loans and thats when Europe shall take over Zambia again……!!!!!!

    Reply
  8. vote
    flag hahaha says: hahaha
    July 5, 2012 at 4:43 pm |

    please do not give the contract to sable.

    Reply
  9. vote
    flag Tell It Like It Is says: Tell It Like It Is
    July 5, 2012 at 4:44 pm |

    How about the Mongu-Kalabo road? No money ka?

    Reply
  10. vote
    flag Jay Jay says: Jay Jay
    July 5, 2012 at 4:46 pm |

    The National Debt continues to rise, even when the price of our copper is high on stock market…slowing heading back to the dependence syndrome…. so no more quoting in dollars or Euros to see how much we actually own them.

    Reply
    1. vote
      flag Jay Jay says: Jay Jay
      July 5, 2012 at 7:18 pm |

      *edit to ** how much we actually owe them.

  11. vote
    flag Jay Jay says: Jay Jay
    July 5, 2012 at 4:50 pm |

    Tell It Like It Is 

    Good point …yet Cashew Nuts and Rice are going to waste in Kalabo due to bad road transport links!!

    Reply
  12. vote
    flag Tekton says: Tekton
    July 5, 2012 at 4:51 pm |

    I thought proper english was supposed to be Zambia borrows from France for great east road rehabilitation. When you say Zambia receives it sound more like a grant. Well as others have said more debt, Infrastructure development only makes sense if it results in revenue generation, however since this is a rehabilitation of an old road, i see no revenue generation unless they are going to toll the road.

    Reply
    1. vote
      flag Talk sense says: Talk sense
      July 5, 2012 at 8:48 pm |

      You are 100% right !

    2. vote
      flag Enka Rasha says: Enka Rasha
      July 6, 2012 at 1:59 am |

      I also often find LT’s titles unnecessarily long.I’ve never come accross other online papers with such whole sentences as headline.

  13. vote
    flag fisenge says: fisenge
    July 5, 2012 at 4:56 pm |

    Shame!when will Mongu road be improved? useless tribalist! And pliz those trillions are confusing us can u quote in dollars period.

    Reply
  14. vote
    flag Prosperous says: Prosperous
    July 5, 2012 at 4:58 pm |

    Zambia is a loan lover or could this be some sort of addiction? What does this country do with all the loans it keeps acquiring in the name of development when no or just little development is seen from those huge loans? It surely is more money in some people’s pockets.

    Reply
  15. vote
    flag KACHIGAMBA says: KACHIGAMBA
    July 5, 2012 at 5:06 pm |

    PLZ MR CHIKWANDA MAKE SURE THAT SABLE TRANSPORT DOES NOT BRIBETHEIIR WAY TO GET THE CONTRACT FROM THE MINISTERY OF ROAD AND TRANSPORT LIKE HE WAS DOING IN THE RUPIA REGIME, THIS COMPANY ARE JUST TRANSPORTERS AND ARE NOT QUALIFIED TO DO ROAD WORKS.ONE MUST HAVE LOOK AT THE DODGY WORK THEY HAVE DONE ON CHIPATA ROAD FROM SINDA TO PETAUKE TO UNDERSTAND WHAT I AM SAYING. AND THE MMD PAID THEM BILLIONS OF KWACHAS JUST TO FILL UP POT HOLES WITH SAND AND STOBES. SABLE TRANSPORT ARE PLUNDERERS.OF ZAMBIAN TAX PAYERS MONEY.

    Reply
  16. vote
    flag Our American Friend says: Our American Friend
    July 5, 2012 at 5:07 pm |

    This story says the project costs K1.5 trillion. Grants and loans have been obtained for K1.5772 trillion. Where is the extra money (roughly US$13,111,111.11) going? That’s a lot of money for CocaCola I would say.

    My math ( in billions of kwacha):
    1,500 project cost
    Less
    336 loan from France
    505.6 EIB loan
    495.5 ADB loan
    240.1 EDF grant
    ———————
    1,577.2 amount amassed
    Leaving 77.2 over/5400 kwacha to the dollar is $13,111,111.11.
    Count your change Zambia!

    Reply
  17. vote
    flag South African says: South African
    July 5, 2012 at 5:11 pm |

    We should not be using loans to maintain roads. We should have enough revenue for us to annually budget for this expense

    Reply
  18. vote
    flag KACHIGAMBA says: KACHIGAMBA
    July 5, 2012 at 5:24 pm |

    SORRY FOR THE ERROR IN SPELLING STONES IT SHOULD BE READ AS SAND AND STONES ..

    Reply
  19. vote
    flag Ice_Road_Trucker says: Ice_Road_Trucker
    July 5, 2012 at 5:31 pm |

    Road maintenance is an expensive endeavour. Hope the money will be properly used and the repairs to last long.

    Reply
  20. vote
    flag Ba W.I.S.O. says: Ba W.I.S.O.
    July 5, 2012 at 5:38 pm |

    #12 Tekton, I couldn’t agree with you more on the Toll issue. RDA and government need to study how they can install a toll system for the major roads in Zambia. The revenue from the toll would be a source of funding for maintenance and rehab of these roads instead of reliance on loans/grants from foreign sources. This would free up alot of money the government allocates for road construction and rehab. Excess funds could be used to “tar” feeder roads, resulting in increased traffic to remote areas and thereby increasing total revenue for the mainline highways. That is the future of the Transportation Industry and Zambia should start on feasibility studies and make highways self reliant and a possible source of funds for the government.

    Reply
    1. vote
      flag Northerner says: Northerner
      July 6, 2012 at 10:12 am |

      Zambia charges fuel levy for the purpose of road maintenance. From what I hear, the charges are very high and much higher than what we would get from the Road Toll. Unless we are prepared for double payment.

  21. vote
    flag Masney says: Masney
    July 5, 2012 at 5:48 pm |

    This is the time to be constructing fresh routes to get to the East day directly from the Copperbelt or something and find alternative ways to maintain the existing roads.

    Reply
  22. vote
    flag Mr. Tembo says: Mr. Tembo
    July 5, 2012 at 6:03 pm |

    We as a country don’t in this day and age need European loans with a multitude of conditionality… These are the countries that devastated our economy during the 1980s and 1990s IMF and World Band structural Adjustments programs… They offer you loans based on a Western model( Imperialists).
    We just have to consolidate our Eastern ties(China) who renders and gives you loans at zero or very low interests rates without conditions.
    The WEST have always seen us as a people interior to them…. Its high time we embraced our ties with China!

    Reply
  23. vote
    flag THE SAINT says: THE SAINT
    July 5, 2012 at 6:03 pm |

    REHABILITATION? Olemekezeka a President Sata, akulu a gulu la Patritric Front, anati uza kuti azatipatsa DUAL CARRIAGE WAY ku dela la kum’mawa kwa Zambia.
    Another broken promise.
    Rehabilitation is not construction.

    Reply
  24. vote
    flag Distant Drums says: Distant Drums
    July 5, 2012 at 6:09 pm |

    More loans year in year out but projects for which they are meant do not get completed let alone get started, meanwhile the billions just disappear.

    Reply
  25. vote
    flag stray dog says: stray dog
    July 5, 2012 at 6:27 pm |

    Promote local contractors so that the dollar does not end up where it came from. Just insure the job is done properly and money is not stollen by both the govt officials like kapoko and the contractors themselves.

    Reply
  26. vote
    flag kajaja says: kajaja
    July 5, 2012 at 6:27 pm |

    Sable nafuti nafuti……

    Reply
  27. vote
    flag His Excellency Ukwa CNP says: His Excellency Ukwa CNP
    July 5, 2012 at 6:43 pm |

    And the K14 billion being kept by Mumembe and Nchito can go a long way in patching up pot holes in Livingstone.

    Reply
  28. vote
    flag Peace Maker says: Peace Maker
    July 5, 2012 at 6:44 pm |

    RBs initiative. No sane organisation can give PaFwaka (PF) such huge amount of money. I end here!

    Reply
  29. vote
    flag Muyanda Mwansa says: Muyanda Mwansa
    July 5, 2012 at 6:57 pm |

    Make it a dual carriage way to avoid those nasty accidents that take place all over the country. PF should be counted for some development. Making roads from Chipata to Mongu and Livingstone to Nakonde dual carriage roads will give them a boost of confidence and maybe win them the next election.

    Reply
  30. vote
    flag The Bricklayer says: The Bricklayer
    July 5, 2012 at 8:06 pm |

    Why is France lending money, when their economy is struggling. There is Irony in this question.

    Reply
  31. vote
    flag nshilimubemba says: nshilimubemba
    July 5, 2012 at 8:20 pm |

    Lending of money is business, they get returns from that there are more benefits to the lender than to the borrower,, that is these people make money when they lend money

    Reply
  32. vote
    flag [email protected] says: maikalange@zambia.co.zm
    July 5, 2012 at 8:54 pm |

    into debt we go. How does grz hope to service THIS loan? I would think that they would RAISE the money from the existing road taxes, etc.
    Back to HIPC we go.

    Reply
  33. vote
    flag THREE ZEROS says: THREE ZEROS
    July 5, 2012 at 9:28 pm |

    MORE DEBT,MAINTAINANCE COSTS WHO WILL DO THAT SINCE ZAMBIANS ARE ABD AT MAINTAINANCE,CHECK KAFUE TOAD FRO LINDA TOWNSHIP INTO LUSAKA TOWN?

    Reply
  34. vote
    flag MENYANI says: MENYANI
    July 5, 2012 at 10:09 pm |

    PLEASE PLEASE no part of contract should go to SABLE.A Company of transporters turned into road contractors overnight under RUPIAS regime.SABLE have no skill to contract road works.So sad to see SABLE still on the job in and around Chipata from contracts reaped by corrupting corrupt RUPIA BANDA.

    Reply
  35. vote
    flag MikeTe says: MikeTe
    July 6, 2012 at 3:34 am |

    Why borrow money whereas looters owe Zed hundreds of millions of dollars…?? very amazing from the the so-called anti-corruption govt
    MMD, UPND and PF are the same gang of crooks

    According to NGOs in its pilot audit by Grant Thornton, Zambia and Econ Poyry, Zambia lost an estimated income of USD 175 million in tax revenue between 2003 and 2008 from tax avoidance practices’ by Glencore AG International owned Mopani Copper Mines.

    copper from Mopani is sold under a contract with copper in one instance being sold at 25 per cent of official prices at LME. In other words, they are not paying taxes over 75% of the copper sold to Glencore.Moreover, in the report by Action Aid, which Mopani has described as flawed and incomplete draft added that the Zambian government (ZCCM-ih)

    Reply
  36. vote
    flag MikeTe says: MikeTe
    July 6, 2012 at 3:39 am |

    continued

    may probably be losing USD 50 million annually on dividend payments from its 10% stake in Mopani Copper Mines.”

    What a mess ! what a scam !

    Reply
  37. vote
    flag zam1 says: zam1
    July 6, 2012 at 8:05 am |

    we are now doing what kaunda did by making the loan which acculated to 7.3 billion dollas. the govt should be asking for grants not loan because we are required to pay back with interest

    Reply
  38. vote
    flag futureZed says: futureZed
    July 7, 2012 at 7:59 pm |

    You have trillions worth of copper being stolen in broad day light and the so called road and carbon tax going to pay for ministers cars and benefits. Have you no shame to borrow money from Europe to build a road? How come Zambian country lanes as they would call them in europe cost more than a european Motorway equivalent? These journalists needs to dig deeper cause this is how the young generation will be left with huge debts to pay off when these selfish politicians are long gone. This is how money is diverted on the pretence that it’s doing some good

    Reply

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