Finance Minister Alexander Chikwanda
Finance Minister Alexander ChikwandaFinance Minister Alexander Chikwanda

ZAMBIA and China Development Bank (CDB) has signed a loan agreement of US$418 million to finance the rehabilitation of roads on the Copperbelt under the C400 project.

The deal was signed here on the side lines of the Johannesburg Summit of the Forum on China-Africa Cooperation (FOCAC) which closed yesterday in Sandton City.

The whole project would cost US$492 million with CDB financing US$418 million while Zambia would foot the 15 per cent difference.

China Henan has been contracted to do the roads works which are expected to start in the first quarter of 2016 and completed two and half years.

The project would be undertaken in all districts including Kalulushi, Chambishi, Kitwe, Chingola, Mufulira, Ndola, Luanshya and Chililabombwe

Finance minister Alexander Chikwanda, who signed on behalf of Zambia, said the agreement said the Government valued the cooperation that existed between the two countries.

He said the modernisation of the roads on the Copperbelt was important because it the economic and political nerve center of the country despite the life span of most mining companies is nearing.

“Modernisation of the roads is one of the aspects of the Patriotic Front form of the development agenda,” Mr Chikwanda said.

Mr Chikwanda, who outlined the contribution of copper and other minierals to the economy, said the rehabilitation of the road network would reduce the cost of doing business and benefit the economy.

He said the project would also create more jobs for the youths during the construction phase and after.

The Finance minister, who appreciated CDB capital structure, said the Government would not hesitate to sign more finance agreements under well loan structured arrangements.

CDB Chairperson Hu Huaibang said China was keen to support Zambia and other countries to ensure they became self-sufficient in social and economic development.

He said the loan agreement was the bank’s top priority services to help African countries.

“This agreement would open more new areas of cooperation,” Mr Hu said

[Read 47 times, 1 reads today]
Loading...

52 COMMENTS

  1. There we go again. Edgar and his clueless Chikwanda. These guys knew months ago that the Mines would lay off workers. What i priority, plan for redundancies and invest money in productive sectors to absorb miners losing jobs and create more job opportunities or build roads to nowhere and appease voters?

    0

    0
    • Are these roads meant to ease access to new exploration projects that will need to new mine development and employ thousands of Copperbelt residents?
      If the answer is no which we know it is then this is just another heartless time bomb for our future generations that have pay back these unproductive loans.

      Meanwhile Alesia HH

      0

      0
    • These blind government fools. When you borrow money there has to be a measurable rate of return. If these roads are not related to mine development which is the mainstay of the Copperbelt economy then it’s a waste of money

      0

      0
    • I have said it before that PF will contract over $10billion debt within its 5 year term. Thats more than what UNIP contracted in its 27 years regn. Shane on PF!

      Work is going to stall on these roads again because PF wont have the 15% to initiate the projects.So far all billions borrowed ended up in their off shore accounts.

      Where are the solar hammer mills PF promised the people in CB? What has PF ‘s IDC achieved so far? I hear plans for airlines have been shelved as well. Has extension of the KK airport started? Has the University and Stadium in western province been started?

      PF minions please tell me, of all the promises Lungu and PF made , which one has been achieved so far?

      All I can see as Lungu ‘ s achievements are weak kwacha, very weak economy, police brutality ,…

      0

      0
    • The following are Lungu ‘ s achievements in power;

      1 Weak kwacha.
      2 Economy in intensive care
      3 Police brutality
      4 Massive corruption
      5 No freedom of expression
      6 No freedom of assembly
      7 No press freedom
      8 Continued abuse of POA
      9 Less money in people’s pockets.
      10 Mine worker retrenchent
      11 Very poor health facilities.
      12 Despicable Education system
      13 Corrupt justice system.
      14 Strengthening Mafia empire amongst PF ranks

      Oh the list is a very long one. I need help.

      2016 vote UPND.

      0

      0
    • At this critical point in the economy all borrowing should have a measurable rate of return which unfortunately Bashi Bwmbya and his team are unable to define. If the roads are just meant to beautify the neighbourhoods then we are headed for doom.
      Borrow in order to create wealth

      Meanwhile Alesia HH

      0

      0
    • Zambia will never recover from Debt. Our Leaders have a lust for borrowing and misusing the same money. Its a shame..

      0

      0
    • So we get loan to build roads and 2 to 5 years down the line roads start to get damaged and require maintenance then we go and get another loan again to maintain the roads. Awe kwena.. so what is the interest of this loan? Ba chikwanda balitemwa inkongole sana.

      0

      0
    • @housefly
      They are pumping 1/2 billion in urban roads yet not increasing expenditure to the municipal council for maintenance….how can one politician just wake up and say build roads in this town…what is the point of decentralization if central government is meddling in everything.

      0

      0
    • Political masturbation at best.
      Did Banda try this trick before?
      He still lost even as projects were going on.

      0

      0
    • These roads will be washed away in 2years time. Lets borrow for the right reasons. Why not get loans to build sustainable Hydro Power Stations at the following sites most of which are on rivers immune to drought (Luapula & N/W provinces). Feasibility studies have already been done & they’re just gathering dust while Zambians suffer in load-shedding:

      MUMBOTUTA & MAMBILIMA FALLS = 1000MW
      BATOKA GORGE = 800MW
      DEVILS GORGE = 800MW
      KABWELUME = 62MW
      KUNDABWIKA = 100MW
      KABOMPO GORGE = 35MW

      & many other sites too numerous to mention.

      0

      0
  2. Nkonogle after nkongole Govt. This dinosaur has really messed up our country in such a short time. We were liberated from debt thru HIPC now we are back to debt trap. After elections if PF wins, IMF will be brought in & Zambia will be another Zimbabwe.

    a) Foster the adding of value to copper instead of just cathodes. Exporting copper wires, pipes, etc will create jobs & double GDP.
    b) Agriculture – Construct more silos in each province in order to have at least 3 years grain reserves. Tractor assembly plant is urgently required to kick start mechanization of subsistence farmers. Cheap food means cheaper cost of production. China can afford to pay their workers peanuts because food prices are low. The opposite example is UK.
    c) Tourism –

    0

    0
  3. I pray to u God that look upon our suffering and treat Edgar the same way u treated Saddam,Gadaffi,chiluba,help us more

    0

    0
  4. When will this government stop borrowing? Do they even have a plan in place on how to pay back this money they keep borrowing?

    0

    0
  5. We need power generation stations, piped water snd flushing toilets (not pit latrines & soak aways in cities), clean drinking water,modern transport in cities such as electric trams NOT cosmetic roads that will wash away with rains!

    0

    0
    • Road construction creates quick causal jobs for kaponyas hence their insistence on go ahead with this 1/2 billion dollar project starting in an election year even when they don’t have money. They have not regards about repayments or interest rates…they are simply reckless.

      0

      0
  6. selective development by pf, just because of votes. The road to NWP is pathetic and deserves more attention than the C/B roads. Its the people mainly from c/b who die on the chingla-solwezi road as they go to look for emplyment in solwezi.

    0

    0
    • even that 15% the gov’t is contributing is borrowed money …thats how reckless these empty tins are!!

      0

      0
  7. When Mr Sata was sick Mr Chikwanda complained that things were not moving well in the country because there was an absentee landlord in state house. What is the new explanation now in view that we have a landlord who is present. Mr Chikwanda, please use this same forum to respond as I don’t listen to PF ZNBC news.

    0

    0
    • You took words out of my mouth. That’s what I was here to say. This landlord is worse than the absentee.

      Allow me to add: I once thought of ba late as the most criticized. I think Eddie will be the most disgraced.

      0

      0
  8. You zambians are not ashamed at all just begging for money,please do something on your own or take action that your situation will change for the better.

    0

    0
  9. The only time you see Chikwanda in the Newspaper is when he is signing loans (condemning the country to untold suffering). This man presided over dragging the economy down in UNIP ERA and he is doing exactly the same thing this time around. One would have thought the experience he gathered over the years would make him a better Minister of Finance.

    0

    0
  10. More money going back to China via China Henan paid for by Zambian taxpayer…this is like Shoprite giving you a loan in their shop vouchers in your name…this is clearly not a priority project more like a project to buy voters. Whats funny is that this gov’t okayed this project when they knew they didn’t have money to finance it.
    Surely how can you talk about development being a priority when you can not raise even 40% of the project cost; you are borrowing 85%…even a housewife who has never been to look will tell you that you are living beyond your means here; does Lazy Lungu and Fossil Chikwanda know what cost cutting is? What happened to the money saved from removal of subsidies?

    0

    0
  11. YES, AS LONG AS THE LOANS ARE FOR REAL INFRASTRUCTURE DEVELOPMENT THEY ARE MORE THAN WELCOME. INFRASTRUCTURE DEVELOPMENT SHOULDN’T HALT. IT SHOULD CONTINUE. AND I AM URGING THE GOVERNMENT TO SERIOUSLY CONSIDER THE CONSTRUCTION OF PROPER STATE-OF-THE-ART HARBOURS ON LAKES BANGWEULU TO CONNECT ALL THE ISLANDS ON THE LAKE AND TRIGGER THE MODERNIZATION OF SAMFYA, CHILUBI AND OTHER ISLANDS FOR TOURISM DRAMATIC SHOOT UP. AND ON LAKE MWERU AND MERU WANTIPA FOR SIMILAR INTENTIONS. CHILUBI ISLAND AND OTHER COULD HAVE BEEN PARADISES IF THEY WERE IN BOTSWANA. CAN’T OUR GOVERNMENTS SEE THESE THINGS/IDEAS?

    0

    0
    • They are spending more than 1/2 billion on urban roads surely is that a priority…there are hundreds of projects that money would have been invested in with tangible returns….but since its an election year they don’t care.

      0

      0
    • Your argument pales before Chirwa’s proposal to open a water way to the Indian ocean on the Zambezi.

      Think, baba!

      0

      0
  12. Please look at the detail of this loan. ALL roads will be done by China Henan. Essentially means all the dollars will go back to China. Apart from a bundle of non-priority roads and a huge debt hanging over the shoulders of our children, Zambia will be left with nothing – no inherent local contractor financial and technical capacity development. South Africa has more meaning econonmic cooperation and technical assistance engagements with China that has put them in win-win position. At the very least they would used this money on a renewal energy project. Shame on you Ba Chikwanda and you will be haunted even in your own grave for bringing pain on our next generation.

    0

    0
    • Fossil Chikwanda is over 75 in 10 years he will be snoozing in his cosy platinum coffin like deadwood Sata..our children and us are left to mop up this selfsame mess….this is an out dated route for technical assistance as the construction firm do not add any value to the domestic construction sector as the simply move on when the project is completed. These projects benefits China in turns of skilled job creation via project management positions…so long as we have politician negotiating these deals we will forever lose out like is the case here and countless projects…there is simply nothing to be proud of here when we can not even raise 40% of project costs but we insist on going ahead.

      0

      0
  13. This is were PF steal from—over priced roads and pocket the difference.
    When will they stop borrowing to steal ? when we reach $10 , $15, $20 billion dept ? now they are in a rush to borrow to steal before the IMF comes. Pleas hurry up IMF, poor Zambia we needs protection from these reckless thieves.

    0

    0
    • How can they steal when the money goes straight to China Henan contractor chosen by the Chinese…this is worse than stealing as they are simply going ahead with this to buy votes on CB with no regard costs or for our grand children who will be left to pay out all these huge sums back to China.

      0

      0
    • they steal because they over priced the roads, the Chinese are complicit in this and give PF the difference. That is how they steal.

      0

      0
  14. Zambia is very much under- developed and as long as the money is used prudently the loan is welcome.
    The regionalists have also benefitted from the Bottom Road. Project but of course they will never ever appreciate.
    And the most expensive Road project will benefit the Western Provincince. But of course some people just ignore such milestone events. They only see what they want to see.

    0

    0
    • Arm Chair ,

      Denial is dangerous. I know you like the ruling party but no one will change the facts that our economy has gone down because of poor decisions processes like signing for loans without calculating how to pay back. Therefore, my advice is that , If you want to have an independent mind on the performance of the Zambian economy under the PF government, you must read reports from World bank and other international economic observers.

      One of the waste things happening is the blame game by our leaders…… no water in lake Kariba is low…… No its global………No zambians are lazy………….. southern benefited bottomm thats why the coperbelt should also have their roads.

      The Bembas say” Ukilinganya ama to…kula ponwesha”

      0

      0
  15. Equal distribution of wealth in the whole country would logically require the govt to borrow that equal amount for roads in all provinces! But since politicians believe in appeasing the people, they will spend where their popularity is in danger: the Copperbelt!

    0

    0
  16. The roads are just meant to politely reduce a MINER to a temporal CASUAL WORKER as daka boy on the roads in the name of having been re-employed.And after elections ,the roads will have been completed kick them back into the streets by colopaling dem dot com as a don’t kubeba strategy.

    0

    0
  17. ..another heart-breaking part is when these guys ‘borrow’ a chunk of this money to pay delayed civil servant salaries but in long run fail to ‘repay’ back…

    0

    0
  18. IN 2014,GOVT REMOVED SUBSIDES ON FUEL AND MAIZE AND TOLD US THRU BOB SHI NONO THAT THEY WILL SAVE TRILLIONS/UNREBASED KWACHA WHERE IS IT,,HON KAMBWILI GIVE US DE BREAKDOWN,,, NEXT MONTH/YEAR YU WILL BE FORCED TO EXPLAIN,. LEVY WAS CALLED CABBAGE,HE RULED, RB WAS CALLED NYAMA SOYA,HE RULED,, SATA WAS CALLED SATANIST/SADIST,ALAS HE RULED, ANOTHER “WAS” CALLED CHAKOLWA,HE ALSO “RULED”! TODAY I HEAR THEY ARE CALLING SOMEONE: SATANIST,BITTER,UNDERFIVE,INEXPERIENCED,, WATCH THIS SPACE HE WILL SOON RULE, AM JUST THINKING LOUDLY!!

    0

    0
  19. pipo are we going to be eating the roads? !this money was supposed to help famers so that they can produce more. you borrow from china then you contract the same china meaning the money is going back to china or was this the condition? by the way did they even bid? chingola -chililabombwe for now the road is ok, chingola -kitwe they are working. kitwe – ndola the road is ok. kalulushi roads are very fine. in short lungu and his *****s want to hook the voters by faking this.
    hh as you form the next govt. pls we dont want kongole this country has the potential to stand on its on. we cant keep on borrowing from independence to date.

    0

    0
  20. A government that asks graduates to innovate yet it’s only innovation is borrowing and not borrowing well thought out projects but consumption with no idea of how Zambia is going to pay back. Koma Twalobele ilyauma, ni loss nalesa teti atwafye. Ubukopo President wesu!!!

    0

    0
  21. Why don’t ypu spend on Kazungula bridge. Is it being built or not. I prefer new roads to new economic prospects than same roads without any additional value.

    It is a no no, if on borrowed money please…

    0

    0

Comments are closed.