Maravi

(TIMES ZM) Zim pays $15m towards CAPCO debt

Zim pays $15m towards CAPCO debt
September 12, 2012
By Maimbolwa Mulikelela -

THE Zimbabwean Government has paid US$15 million towards the US$70 million it owes Zambia for the sale of the Central African Power Corporation (CAPCO) assets which were jointly owned by the two countries.

Recently, the Zimbabwe paid an instalment of US$5 million (about K25 billion) following an agreement which was made between the two countries in January this year.

Energy Minister Yamfwa Mukanga said in an interview in Kabwe that the Zimbabwean government had commenced payments towards the debt it owes Zambia and so far US$15 million has been paid.

Mr Mukanga said the Zimbabwean government would be making another installment soon.

“They have started making payment and they are expected to make another instalment by early next month. I know about their payments and I have been told that they are on schedule so we do not have any problems in as far as payments are concerned.

“I was even on a video conference with them last week on Thursday and we discussed with the minister of Zimbabwe the Batoka issue, and so everything is alright,” Mr Mukanga said.

He said they would soon be floating their advertisement in the national Press asking for would be contractors to bid for engineering services and construction services for the Batoka hydro power project.

“We want to do repairs on Kariba Dam so those advertisements will be floated soon,” Mr Mukanga said.

Recently, Zambia and Zimbabwe signed a memorandum of understanding (MoU) to jointly construct the 1,650 mega watts Batoka Hydro-power project which is estimated to cost in excess of US$4 billion.

The agreement was, however based on Zimbabwe’s commitment to pay off the debt it owed Zambia over the CAPCO.

It was agreed during the council of ministers which was held in Siavonga that Zimbabwe should settle US$70 million debt it owes Zambia for the sale of CAPCO asssets before the joint project commences.

Plans for the project were initially mooted in 1993, but the Zambian Government was reluctant because of the outstanding debts which it wanted Zimbabwe to clear first.

The debt was for the shared cost of the Kariba Dam construction and the associated infrastructure.

It also involved the sale of the CAPCO assets which both countries owned as members of the Federation of Rhodesia and Nyasaland, which was dissolved in 1963.

The proposed Batoka Power project site is located below the Victoria Falls on the Zambezi River and once completed would boost power supply in the two countries.

Labels: ENERGY

posted by MrK @ 2:35 PM