Cabinet reforms Chinese financing  

Wed, 14 Feb 2018 07:54:44 +0000

By CHARLES MUSONDA

GOVERNMENT will now source financing directly from Chinese banks and not through contractors.  The move will reduce the cost of borrowing for developmental programmes.

This is one of the resolutions Cabinet made at its second meeting chaired by President Lungu at State House on Monday.

According to a statement issued by Special Assistant to the President for Press and Public Relations Amos Chanda, this is in line with Cabinet’s continued pursuit of better living standards of the people in line with the Patriotic Front manifesto.

“Cabinet approved the restructuring of the bilateral debt and bilateral cooperation with the Chinese Government in line with Cabinet’s earlier decision made at its 20th meeting held on 6th November, 2017, where the Minister of Finance was directed to engage the Chinese Government and other financiers to review all pipeline projects and to re-package the outstanding loans so as to re-align and re-prioritise them in line with the 7th National Development Plan (2017- 2021.

“Government will accelerate infrastructure through the construction of roads countrywide, building of universities, schools, hospitals, clinics, and health posts in line with the PF manifesto to improve lives of the people, especially the poor,” Mr. Chanda said.

He said Cabinet also resolved to make the tendering process competitive and cost effective to ensure wider participation of local business houses, adding that only projects with the highest economic returns should be prioritised for loans from China.

Mr. Chanda added that Cabinet also approved the signing of the Avoidance of Double Taxation Agreement re-negotiated between Zambia and Mauritius; and the ratification of the Customs Mutual Administrative Assistance Agreement with South Africa.

He said Cabinet also approved Zambia’s membership to the Africa Finance Corporation (AFC) through the Bank of Zambia and that at a later stage will consider shareholding in AFC.

Mr Chanda said Cabinet further approved the draft Heritage Conservation Policy 2018 and its implementation plan; the National Construction Authority Bill, 2018, and the Rating (Repeal) Bill 2018, which will repeal and replace the Rating Act, Cap 192 of the Laws of Zambia.