Minister of Finance and National Planning Alexander Chikwanda
Minister of Finance and National Planning Alexander Chikwanda

MINISTER of Finance Alexander Chikwanda says the US$750 million Eurobond is being wisely and properly utilised in sectors Government has invested in.

Mr Chikwanda said Zesco is using Eurobond money to develop Itezhi Tezhi and Kafue Gorge power projects.

“The Eurobond money is only used for growth generation projects, it is not used for recurrent projects, and it is not used to pay salaries for some people, it is all for development projects,” he said.

Mr Chikwanda said the US$120 million Eurobond money for Zambia Railways Limited (ZRL) deposited in a Zanaco bank account has earned lots of interest.

He said that several banks are now competing with each other to attract the ZRL money.

“They are fighting each other. By the time they have projects to finance, they will have earned quite a lot of interest from the Eurobond money they deposited. So, all the money is being used properly,” he said.

Mr Chikwanda said Government has started paying interest for the US$750 million Eurobond adding that it has a responsibility to pay back money with interest.

“It is important that the money is used, there is nothing secret. Zambians are entitled to know what is going on with the money we borrowed because at the end of the day you are going to pay back the money.

“So, you need to know. No secrecy, no mafia type of activities, there is total accountability, we have to account for the money,” he said.

As to whether Government would soon go back to the market to get more money, Mr Chikwanda said that was the preserve of the Ministry of Finance to know.

Meanwhile, the minister said the construction of extension power projects at Kariba North Bank Power is good and inspiring adding that Zesco will deliver an extra 280 Mega Watts (MW) of power by the end 2013to end power blues the country has been experiencing.

He said Zambia has an advantageous position and has no competitors in power generation in the region because of abundance of surface water which accounts for 40 percent of water in the sub region.

He advised Zesco to go flat out and finish the power projects saying the company will have no excuse if it fails because government has always supported the utility company.

Zesco managing director Cyprian Chitundu said the company will make sure that Zambia is turned into a hub for electricity trade in the sub-region.

“The line we are building to Tanzania will open up to the corridor to East Africa. Also we are going to connect to Mozambique, we are already in discussion with the Mozambican government,” he said.

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20 COMMENTS

    • ya ba! seems some people don’t have a learning curve. cant tell the difference between a bufi & something real. shame. no wander the majority of zambians are fooled by sweet small-talk by government of so-called ‘development’ which cant & will never be seen. shame. no wonder zambia will always remain backwards due to the many small minds filling their heads with bufi’s. imagining great development when they see nothing & getting high like a drug from sweet talk on development yet life is continually getting harder. open your eyes & stop living in the matrix

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    • seems some people don’t have a learning curve. cant tell the difference between a bufi & something real. shame. no wander the majority of Zambians are fooled by sweet small-talk by government of so-called ‘development’ which cant & will never be seen. shame. no wonder Zambia will always remain backwards due to the many small minds filling their heads with bufi’s. imagining great development when they see nothing & getting high like a drug from sweet talk on development yet life is continually getting harder. open your eyes & stop living in the matrix

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    • If we have 40% of the total water in the sub region why is our agriculture totally dependent on rains.

      We fail to utilize the water and deliver it into people’s home and hospitals yet 40% of the water in the SADCC region is in Zambia the same way we have failed to have the people benefit from copper, cobalt, emeralds etc

      In Zambia we would not benefit even if we discovered oil already processed into petrol, diesel kerosene, etc

      We have very poor managers for our natural resources…

      With all these abundant natural resources, by now we would have developed so much and cut down on borrowing for every project…..God help us

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  1. And I suppose Clive Chirwa has refunded all the money paid to him by Zambia Railways????????????

    Another PF LIE!

    Bufi !!!!!!!!!!!!!!!

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    • With 40% of the total water in the sub region why is our agriculture almost totally dependent on the rain only with virtually no agricultural activity off the rain season?

      We fail to utilize the water and deliver it into people’s home and hospitals yet 40% of the water in the SADCC region is in Zambia the same way we have failed to have the people benefit from copper, cobalt, emeralds etc

      In Zambia we would not benefit even if we discovered oil already processed into petrol, diesel kerosene, etc

      We indeed have very poor managers for our natural resources… Its unbelievable!!

      With all these abundant natural resources, by now we would have developed so much and cut down on borrowing for every project…..God help us, we need nothing short of a miracle!!

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    • @Kambwili, overdose on cholesterol, underdose on brains.
      You are correct, Zambia’s problems are not resources but management. This is a pity since Zambia boasts some of the brainiest people on the continent. Desert countries like south africa, botswana and namibia are thriving economies yet a country endowed with so much is forever at the bottom rung of the planets most impoverished nations. Maybe the leaders are not normal people. Not easy to reconcile this anomaly.

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  2. I have no problem with you big man Alex borrowing more money for capital projects, but use it as quickly as possible instead of keeping it in some account earning interest. Mr Chitundu please build as many power stations as possible and earn easy money for a long time to come, and don’t wait private investors. You have my support!

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  3. You’ve said you have started paying back the europond loan

    My question is where is the Money coming from to repay the loan ,since non of the projects you invested is yielding any fruit.

    Are you not digging a dich to bury another ditc. ?

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    • Of course Zesco will pay back in due course through increased dividends but projects like roads, hospitals etc don’t generate income directly like Zesco. So to answer your question, the loan + interest will be from money collected by ZRA.

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  4. With his bald head, How does Chikwanda get along with Sata? Or does one get a condonation if they are not completely bald headed ? Who is this presidential which doctor that keeps lying to Sata? Is it the same one that gave KK the white handkerchief ?

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  5. How about the ‘Chunk’ as per Miles Sampa that went to DBZ for Mmembe and Nchito to borrow? Is it the same chunk that is been used to buy Chinese buses for the Chitulika clan?

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  6. Growth generation projects he says but where is DBZ getting the money to buy 1000 useless Chinese Higer buses that have a lifespan of mere 2 years on our roads.

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    • bakalamba DBZ has been lending money to banks since ages, that is your account. read about how DBZ came to be, it is the same that has been financing direct individual programs through even through banks. that is how rich you are

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  7. Zambia cannot borrow money from a bank , BankEuro, and deposit it into another bank ,BankBufi, to earn more interest to service a loan from BankEuro and make a profit. Poor Zambia, using Pakonya Econimics and the masses are buying it.

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  8. the Eurobond is being used to buy gifts for a 22 year old girl who has rejected this old sugerless dady

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  9. Mr Chikwanda,
    For decades Zambians have been told sweet sounding stories such as this one you are now lecturing us on, yet the reality is that the truth and the whole truth is being concealed to cover up the abuse and thefts of these finances. For how long has the ‘development of Itezhi Tezhi and Kafue Gorge power projects’ chorus been repeated?
    Mr Chikwanda and Miles Sampa must come clean on the Euro bond and account for every cent, cheap and crafty talk won’t do. When public finances are utilised in an honest manner the people will see for themselves.

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  10. The buses you are condemning were just from being used to move heads of state from point A to B during the Au celebrations. It’s a good contingency plan if you ask me. Saves lot of money on fuel and a lot of convoys during major events. Just forward thinking…….

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  11. The buses you are condemning were just from being used to move heads of state from point A to B during the Au celebrations. It’s a good contingency plan if you ask me. Saves lot of money on fuel and a lot of convoys during major events. Just forward thinking.

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