News / National
Zimbabwe agrees to repay Rhodesian debt
21 Oct 2011 at 07:40hrs | Views
Government has agreed to clear decades long debt with Zambia for the shared Kariba infrastructure, paving the way for both countries to co-operate in constructing the 1 650 megawatt (MW) Batoka hydropower station.
The power project, first mooted in 1993, was meant to be a joint venture between Zimbabwe and Zambia. Lack of funding and reluctance by the Zambian government to start the project delayed its implementation.
Economic Planning and Investment Promotion minister Tapiwa Mashakada said the debt issue was extensively discussed during cabinet sessions, adding an agreement was reached to finance the debt.
Mashakada said the project had been stalled over the assets at Kariba. Zambia, according to Mashakada, said they would not partner Zimbabwe until the asset debt accrued during the Federation-era was cleared.
The amount owed is estimated at $260 million.
The power project, first mooted in 1993, was meant to be a joint venture between Zimbabwe and Zambia. Lack of funding and reluctance by the Zambian government to start the project delayed its implementation.
Mashakada said the project had been stalled over the assets at Kariba. Zambia, according to Mashakada, said they would not partner Zimbabwe until the asset debt accrued during the Federation-era was cleared.
The amount owed is estimated at $260 million.
Source - businessdigest
