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Harare Bureau
CHINA Export and Credit Insurance Corporation (Sinosure) has expressed interest to provide further comprehensive insurance cover to support bankable public and private sector projects in infrastructure development.
At the forefront of the government’s priorities with regard to co-operation with Chinese financial institutions is energy, also against the background of regional power deficit across the Sadc region.
Sadc is currently facing a power deficit upwards of 8 000MW which is expected to surge.
New power projects to commence in the next three year, are expected to add about 24,000MW to the amount of capacity under construction in the region.
In the next six months the region is planning to commission about 2,700MW in a bid to avert a crippling regional power shortage.
“Interventions in this area will also include support for bankable private sector projects in the area of energy,” Finance and Economic Development Minister Patrick Chinamasa said.
Minister Chinamasa said this after meeting Sinosure Chairman Wang Yi who is in the country for the first time. Wang is in the country this week to explore further co-operation between Zimbabwe and Chinese financial institutions.
Sinosure is a state owned insurance company that is mandated with providing insurance cover for Chinese exports and credit facilities offered to overseas clients by Chinese institutions.
Minister Chinamasa said further deepening of co-operation with Chinese financial institutions should also benefit from development of Project Based Financing Models, which take account of revenues from projects under consideration as part of the security and lending criteria; and capitalisation of interest, to allow for project cash flows to provide for loan repayments.
In the meeting with Wang, Minister Chinamasa acknowledged previous Sinosure insurance cover for the following loan facilities including towards ZiscoSteel facility; agricultural equipment and machinery; supply of medical equipment and rehabilitation and development of municipal water and sewage treatment works.
He also acknowledged that further co-operation with Sinosure will benefit from the signing of a Memorandum of Understanding between the government and Sinosure during the State Visit to China by President Mugabe last year.
The Minister took note of Sinosure’s expressed desire to deepen co-operation by way of providing a comprehensive insurance cover, at a time when the government is making notable progress with regards to initiatives that support funding of Zim-Asset priority projects towards development of energy, agriculture, infrastructure development, mineral exploration, and value addition and beneficiation.
Online Reporter