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ZIMBABWE has settled the outstanding $30 million owed to Zambia as principal debt accrued through the acquisition of power generation equipment under the defunct Central African Power Corporation (Capco) which the two countries co-owned, Sunday Business has learnt.Although Energy and Power Development Minister Cde Dzikamai Mavhaire was not picking his phone to comment, his counterpart in Zambia was quoted by the Times of Zambia confirming that the money was paid.
Zambia Mines, Energy and Water Development Minister Mr Christopher Yaluma said the debt had been settled in full as agreed upon by the two governments.
Mr Yaluma, however, said both gilovernments reached a mutual agreement that the interest of $114 million accrued on the debt should be settled through a devised settlement plan.
“The Government of Zimbabwe has settled the remaining $30 million, completing the $70 million owed to Zambia after the dissolution of Capco which was reconstituted as the Zambezi River Authority,” Mr Yaluma said.
Zimbabwe owed Zambia $70 million after acquiring power generation assets when Capco was dissolved to form the Zambezi River Authority (ZRA).
The two countries had agreed that the debt be settled in instalments by not later than April 30, 2014.
ZRA was formed in 1987 after dissolving Capco and reconstituting it as Zambezi River Authority (ZRA).
Capco was divested of its electricity production and bulk distribution assets which were allocated to the national electricity undertakings of the two states.
ZRA was left with the responsibility of the operation and maintenance of Kariba Dam Complex, investigation and development of new dam sites on the Zambezi River and analysing and disseminating hydrological and environmental information pertaining to the Zambezi River and Lake Kariba.
ZRA has been given the mandate to spearhead the Batoka Power project located just below the Victoria Falls on the Zambezi River.
The project will boost power supply in the two countries upon its completion. — Business Reporter/Times of Zambia
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