Zesco Settles $82 Million Loan Prepayment to China Exim Bank for Kariba North Bank Extension
The Zambian government has clarified that the $82 million paid by Zesco to China Exim Bank is part of a loan obtained to help develop the $320 million, 360-megawatt Kariba North Bank Extension hydropower station.
According to the Ministry of Finance, the financing agreement, secured in November 2009, established an account to manage funds for servicing the loan.
Secretary to the Treasury, Felix Nkulukusa, explained that following approval from the Zesco Board in December 2022, the company transferred the accumulated $82 million as a principal prepayment to China Exim Bank. This payment enabled Zesco to close outstanding obligations and reduce future interest costs.
The payment was made before the government reached a debt treatment agreement with the Official Creditor Committee in June 2023, which was reflected in the Memorandum of Understanding (MoU) signed on October 14, 2023.
The MoU, currently being formalized through bilateral agreements with creditors, includes an agreement with the Government of France, signed on December 8, 2024.
Mr. Nkulukusa confirmed that Zesco will benefit from the agreed debt treatment, contingent on ongoing discussions with the Official Creditor Committee.
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He added that the payment was also reflected in the Ministry of Finance and National Planning’s Quarterly Debt Statistical Bulletin for the period ending March 2023.
This statement was issued by the Office of the Secretary to the Treasury.
SOURCE:znbc
