Q FM Africa's Modern Radio
Cabinet has approved the contraction of four loans totaling US$541 million.
Speaking at a media briefing in Lusaka today following the 28th Cabinet meeting held yesterday, Acting Chief Government Spokesperson Vincent Mwale said cabinet approved the contraction of a loan from the Export and Import Bank of China amounting to US$128 million to support the implementation of the Kafue bulk water supply project which will facilitate the provision of clean water and sanitation facilities as well as mitigate health risks in Lusaka.
He says cabinet also approved the contraction of a loan from the industrial and commercial bank of China amounting to US$ 170 million to support the implementation of the Nkana water supply and sanitation project phase two.
Mr. Mwale says cabinet further approved the contraction of loans from the African Development Bank amounting to US$ 193 million and US$50 million on behalf of the Africa together Fund to support the implementation of the Chinsali-Nakonde road rehabilitation project.
And Cabinet has approved the conversion of all debt owed to Government by the four selected State owned enterprises amounting to over K3.4 billion equivalent to US$299 million as at 31st December, 2014 into equity.
Mr. Mwale named the four companies as Zambia Railways Limited, ZESCO, Zamtel and Nitrogen Chemicals of Zambia.
He says the decision by Cabinet to convert the debt into equity is to clean up the balance sheets of the companies so as to make them efficient profitable and attractive for investment thus facilitate creation of value for government investments.
Mr. Mwale says the decision will make these public companies more viable and attract new investment without relying on government guarantees for them to obtain financing for expansion.