ZESCO has signed a US$163 million loan agreement with Nordea Bank AB of Sweden and Standard Bank of South Africa.
The loan agreement will result in the connection of the entire North-Western Province and some parts of Western Province to the national electricity grid.
The project involves the construction of an extensive 132KV sub-transmission lines totalling 840kilometres as well as establishing 132/33/11KV bulk supply sub-stations to facilitate electrification of public facilities, schools, rural health centres, Government institutions and chiefs’ palaces.
The aforementioned transmission lines will link Mwinilunga, Kabompo, Mufumbwe, Mumbejhi, Chavuma, Zambezi and Lukulu District in Western Province.
ZESCO signed an Engineering and Procurement Contract with Eletel Networks TE AB of Sweden to execute the project in 24 months and the contractor is expected to be on site by the end of this month.
Speaking during the signing ceremony, ZESCO managing director Cyprian Chitundu said reliability and quality of power supply in North-Western Province had been very poor as the rest of the province was currently supplied using isolated diesel generator sets, except Solwezi and Kasempa.
“These generator sets are not only expensive to run but also very unreliable. ZESCO currently spends in excess of $6 million annually in procuring diesel fuel, not to mention other operation and maintenance related costs which also amount to millions of Kwacha,” he said.
Mr Chitundu said besides guaranteeing a good quality electricity supply in the beneficiary areas, the project would also stimulate economic growth and development thereby improving the lives of the people.
The extensive 132KV sub-transmission grid, Mr Chitundu said, would provide points for future interconnection with the Angolan grid which could lead to improved regional electricity trade opportunities for telecommunications business using optic fibre.
Nordea Bank export and project finance director Marie Vetland said her bank was one of the highly reputable financial institutions in Europe and was pleased to partner with ZESCO and looked forward to long lasting cooperation with the power utility company.
Ms Vetland was also optimistic that the project would greatly improve the livelihoods of the people in the beneficiary areas through increased economic activities, among others.
Standard Bank South Africa head of Export Credit Agency and cross-border finance Greg Fyfe assured that funds would be available shortly after certain conditions were met and wished the contractor success as it embarked on an ambitious project.
Mines, Energy and Water Development Deputy Minister Charles Zulu said Government was excited that the project was finally coming to fruition and was hopeful that it would put to rest concerns being raised by his fellow law-makers in Parliament.
Mr Zulu observed that there could be no meaningful development without electricity as industries or factories could not be established and thus deterring investment, no job-creation and revenue collection.
While we are at it, would someone please also get a loan to shine my shoes?
Too much dust and mud in these impoverished parts.
Who are they trying to f.o.o.l? Most us know that the money they are borrowing is for them to share just like they have shared €750 million bonds mean’t for the railway and yet nothing tangible has been done to improve our railways.
One day when all this circus is over, all fingers will point at Sata as the main culprit as Masebo has finally said to ease the burden on her because she has now realised the PF Boat is sinking fast.
This indeed is a step in the right direction for the people of western province to be on National grid. it will be a big stimulant for development in the province which has vast potential
Good! We need a ring network around the country going side by side with ring roads. The rest will follow naturally. This is what we need instead of singing about foreign reserves.
Atleast ba six koloko bwalacha. As for Lukulu those people have really suffered. its high time people of lukulu district are given a tarred road.
But where does the money we pay to Zesco for the electricity that we use go? cant this i.diots use some of that money than borrowing all the time?
in just 2 years, PF has borrowed more than what MMD borrowed in 20 years.
@mwaba , ikalafye kapoli iwe wabe fimina
You actuallly pay the least rates in southern Africa. in finance we say ”1bn dollars is a lot of money, but when put in infrastructure its like tryiing to empty a sea using a spoon.”
Atleast ba six koloko bwalacha. As for Lukulu those people have really suffered. its high time people of lukulu district are given a tarred road coz they struggle during the rain season. the distance of 198kms from Kaoma to Lukulu would take you 5hours
Am still wondering where the savings from fuel levy is going, I thought that was money that should go to infrastructure development as we were told by CNP.
These kinds loans from vultures will put Zambia as a Nation into big debts.
Please think before you get these loans.
No wonder someone who was headmaster 46 years ago, is now appointed headmaster……….Finance Minister.
VIVA—–UPND–fresh Blood…….HH…..HH…HH
Why are the whites not smiling and only zambians. Anything fish
But why all THESE LOAN imwe ba Sata u cant b doing all the PROJECTS at ONCE. This is mismanagemnt of its Kind!!!
Wrt because they know what they are sticking into these africans’ throats, borrowing
fever who is going to pay for all these loans, i feel for the people, our revenues for next 50 years will all be going to finance these loans
Where is the money from subsidies and fuel levy going to…why all these small loans?
@zemuntu mind the way you address us the people of north western. grow up and have some respect man.