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contribution to the construction of Kariba South Power Station, paving way for co-operation on the $4 billion Batoka hydropower project.
The 25-year-old debt also includes proceeds of the sale of assets belonging to former Central African Power Corporation (Capco) disbanded in 1987, where Zimbabwe reportedly benefited more.
Capco was running the Kariba power project for the two countries during the Federation of Rhodesia and Nyasaland era.
Speaking during the 16th Zimbabwe-Zambia Joint Permanent Commission meeting in Masvingo on Wednesday, Foreign Affairs Minister Simbarashe Mumbengegwi, said the payment of the $15m would unlock more areas of co-operation in the energy sector between the two countries.
“As our population and industries continue to grow, so does the need for energy requirements. The energy sector is a key enabler for economic growth in both Zimbabwe and Zambia, hence the need for more co-operation in that area.”
The settlement agreement regarding the debt signed on 9 February this year wherein Zimbabwe committed to settle the principal amount of $70,807 million by 31 March 2014 was indeed an important milestone in cementing our relations in the energy sector. Zimbabwe has since paid $15 million under the agreed payment plan,” said Minister Mumbengegwi.
The debt is threatening the construction of the $4 billion 1 600 MW Batoka hydropower project along the Zambezi River.
The massive project will alleviate power deficiencies in the two southern African neighbours. Minister Mumbengegwi said the Batoka hydropower project implementation team that was formed after the signing of the Capco debt settlement agreement should speed up its work so that work on the hydropower plant could begin.
Zambian Foreign Affairs Minister Given Lubinda emphasised the need for increased co-operation between his country and Zimbabwe in the energy sector. Minister Lubinda said the settlement agreement on the ex-Capco assets would pave way for increased co-operation in bigger projects in the energy sector between the two countries.
He was happy that a committee to steer the implementation of the Batoka power project involving companies from his country and Zimbabwe was formed. Earlier, the two foreign affairs ministers had witnessed the signing of two memoranda of understanding in Science and Technology and Small to Medium Scale Enterprises.
Online Reporter