MORE than US$400 million from the US$1.25 billion Eurobond has been allocated for the improvement of road infrastructure countrywide, Parliament has heard.
Finance Deputy Minister Christopher Mvunga said the money would be channelled towards improving urban and rural roads.
Mr Mvunga was responding to UPND Milambo Member of Parliament (MP) Austin Milambo, who wanted to know which projects would be financed using the bond which was issued this year.
“The major allocations include $410.7 million for the improvement of road infrastructure, including rural roads,” Mr Mvunga said.
He said $268 million had been set aside for domestic debt swap and clearance while $40 million would be spent on the maintenance of canals and procurement of maritime equipment.
Mr Mvunga said $45.2 million and $20.3 million had been allocated towards infrastructure development in the education and health sectors, respectively.
“A total of $20 million has been allocated for water and sanitation projects. Other allocations include; $45.2 million for citizens and youth empowerment and $21 million and $15 million for the agriculture sector and on-lending to state-owned enterprises, respectively,” he said.
Mr Mvunga said the balance of the fund had been earmarked as part of financing for the 2016 National Budget.
On repayment, Mr Mvunga stated that the bond was structured to be redeemed in three equal instalments of US$416.7 million in July 2025, the same amount in July 2026 and July 2027.
“To ensure that Government does not default, a sinking fund shall be established in line with the requirements of the loans and guarantees authorisation Act Cap 66 to accumulate money to be used for the repayment of bonds at maturity,” he said.
Similar sinking funds have already been established through the issuance of Statutory Instrument (SI) 75 of 2015, to facilitate the repayment of the $750 million and $1 billion bonds which were issued in 2013 and 2014 respectively.
And how much ‘oiled’ the PF filthy imbecilic hands?
At least our Mongu Kalabo road is included in this euro fimo fimo. I don’t care about your township roads. Us in the rural areas are for the PF who who do not do a cost/benefit analysis before tarring a road. UPND will first do a cost/benefit analysis before doing anything. So they will just concentrate in towns
To Lusaka Times editor – the caption on the picture is misleading! That picture cannot be MPs listening to the 2015 budget as Edgar C Lungu and Guy L Scott no longer sit on the front benches. Lungu is President and no longer an MP, while Scott is now a backbench MP. Further, if the MPs are “listening” to the budget speech, the Minister of Finance would not be standing in the front bench area but would be delivering his speech from the Dispatch Box. In the picture, Chikwanda is clearly not delivering any budget!
Miles Sampa has absconded with the Euro bond. Remember he’s the one who secured the first. You’all been played!!!
Ati the Devil is in details i guess.
416.7+416.7+416.7 = US$1.25 Billion, this was the amount borrowed. Nomba where is the interest, because we know its quite substantial ?The first repayment of principal is in July 2025, however we are paying yearly or semi-yearly interest rate. How much is the country paying?
Our currency has lost 100% of its value since the last time we obtained the loan, meaning we shall need more Kwacha to repay the same amount we borrowed. How much more Kwacha Mr Minister and where is it coming from? borrow again?
Ba Minister come clean with the Zambian people, remember we just came from prayers the other week.
What it means, 330 million usd will be spent on 2016 budget to finance bloated state machinery?
Ba chikwanda Ziii, So I can’t believe you
Chikwanda is preparing for his exit. He wants and needs to rest.
It is always good to read that the govt has allocated funds for the improvement of healthcare and education sectors. But let us not just build infrastructures and fail to run the or keep them up the standards. I wish we could improve the current infrastructure in the healthcare and educational sectors before embarking on developing new ones. We as a country and not only the govt have failed to lamentably to take care of the current infrastructure and hence the need to change our attitudes before news ones. A lot of work to be done ahead and hopefully the govt is up to it.
hahaha kuyabebele
The POST goes ballistic?
2 BIG CASES against with ZRA and Rupiah Banda this week, 6 negative PHOTOS of ECL in the POST toady?
Instead of commenting on how your grandchildrens debt is being spent you’re talking about irrelevant issues!
@ Jay Jay
Do you think that 1mbecile with sick dream of becoming Luapula premier knows difference between relevant and irrelevant?
and a new power hydro stations? I would rather suspend most of those things to sort out the power problem. anyway continue waiting for the rains.
the devil is in the details. follow through his presentation and begin to ask questions like collerating his figures with what is exactly happening you will see that at least 50% could be true but the other 50% is just playing semantics. the PF is very good at pronouncements but very poor at implementation. the only thing they do is roads where they are getting big cuts. right now more than 400 million is owed to the road contractors in 2015 alone.
The deputy minister must report monetary figures accurately to the cent, it raises lots of suspicion to casually say ‘more than US$400 million has been allocated to improvement of road infrastructure’. Is there a problem reporting the exact figure? Miles Sampa did the same, over a year ago he reported on his famous Facebook account that ‘a big chunk of the Euro bond was allocated to Zesco’, no figures given. This kind of ‘clever’ reporting on public finances is simply a smart way of channeling some monies into private accounts. This trend must be investigated and have it stopped.
Govt is easy to run. just get loans and allocate here and there. chapwa!
It is true.
Even Chinama cases, senile fossils and alcoholics can run a Government.
Which is what we have now. Sorry that prices have DOUBLED, there is no Zesco power or water in the CAPITAL CITY and we have the WORST PERFORMING CURRENCY IN THE WORLD!
That is all due to external factors!
Pls pf. Not just the roads look power issue and the dollar and its time the President showed leadership come. Out talktalk to your people
Like we have stated these empty tins borrowed to pay off loans…surely how do you used kaloba to balance a budget even a housewife who has never been to school knows when its time to cut back and eat beans instead of chicken.
These thieves will always favour road construction as its easy to steal and foxl the docile voters large chunks should be going into agricultural sector but the bums can plan hence stay clear.
Kauke inoosha mu zulamu ng’anda ka lilaho! Ki kozi ya kamunda ya ku ishangumuneka ka maboomu! MaMbunda ba ikale ne baize: “Mangoma akulishakila, lelo amililela tate”.
the rains are here and the farmers are not paid except in regions where the number of voters is high so that they create an impression that PF is good at maize buying (i dont want to call it agriculture because we’ve been a mono cropping ministry for a long time)
Interesting. Sinking Fund… what exactly is this? Is it like “save while you are broke”?
@ Kalok
Nope. It is “borrow” today, misappropriate tomorrow, hope not to be around to repay.
Nothing allocated to power generation. A paltry 20m for water and sanitation and yet urban and rural populations ate growing and having to rely on sewer systems left by colonial masters in 1964! Every new compound it’s now pit latrines & soak aways even in the so called cities. What a country! What use is bituminous road that will be potholed in a year versus 24hrs power supply, piped running water in homes schools hospitals and flushing toilets. God help us!
Theives, no money allocated for manufacturing facilitation and enhancement. Most money to roads where it is easier to steal by overcharging. Where are the investors we were promised will come when we have roads. The roads could have waited until manufacturing and production was enhanced. The situation we have now is akin to a farmer with leaking roofs where his machinery is being destroyed while he concentrates on long term crops.
Figures do not match!!!
Where is 120 million dollars spent to “stabilize” kwacha?
Already in foreign private accounts or “invested” in real estate in RSA?
The only time the people of Zambia will be fully involved in this all thing is when the time comes to repay these huge loans, they will be asked to tighten their belts and NGOs will be asked to start crying for debt cancellation.
Right now its just this poorly presented reports, why not produce a ditailed account statement, i thought there are accountants at the bank of Zambia.
These are just bull.shit made-up figures! Another dose of PF lies.
Can we have a complete AUDIT of the borrowing and have the THE TRUTH from an INDEPENDENT source.
Enough PF bufi!
HH you and your MP s are complicite in corruption. You are supposed to be an economist yet you and your MP s seem satisfied with this account that is full of holes. I am beginning to think you are just providing cover for the looting and missmangment going on and you and your team share the loot with PF.
what dull MPs how can they agree to borrow money to cover budget. The minister was supposed to be asked for a detailed breakdown e.g the $150 million that was paid to the companies that organised the bond. Muvunga is a shareholder in one of the companies in South Africa and Chikwanda son is MD for the Insurance company that insured the bond at a fee of US$30 million. Check Wikileaks website . Foolish MPs who dont research before asking questions.
they all seem get a cuts from the stealing, including HH, why is he quiet if he says he is good at financial management ?. the opposition PMs seem complicit in the theft, there fore they will not be getting my vote
When you look at the UK budget, the biggest % goes to health followed by education and then other areas, looking at our budget it looks like these are not priority areas compared to roads.As much as roads are important, the gap in between allocations is too huge. I think we have got our priorities wrong but we know why. These kickbacks on road contracts are the reason.
What about the $192m that Lungu didn’t want people to know about? Where is it? Lungu was so angry that the was disclosed to the public. Thieves.
What about the $192m that Lungu didn’t want people to know about? Where is it? Lungu was so angry that the loan was disclosed to the public. Thieves.