adminfunds for the Victoria Falls Airport expansion.
China Jiangsu International was contracted to carry out the US$150 million Victoria Falls Airport upgrade with funds sourced from the Import and Export Bank of China.
Minister Biti said Government had to settle some of its arrears with Beijing to unlock more credit.
“During the first quarter of 2013, Government has had to make US$76,5 million towards various external loans repayments, targeted at unlocking additional lines of credit,” Minister Biti said, adding: “The bulk of these loans have gone to China.”
Government paid US$27,1 million for farming equipment imported by Farmers’ World and the Industrial Development Corporation five years ago.
Minister Biti said, however, that a forensic audit would be conducted to establish how Farmers’ World, a private company, and the Government’s IDC ended up with such a huge debt.
But he said the State was obliged to pay because it guaranteed the transaction.
About US$4 million was paid to another Chinese company for supplies to Ziscosteel, now NewZim Steel, while US$10 million was paid for medical equipment.
Sino Hydro won a contract to build two additional units at Lake Kariba. But the company said it could not start the project because of the debt arising from farm equipment supplies.
The Kariba South expansion will add 300 megawatts to the national grid. The project will be completed in four years and would significantly narrow the gap between demand and supply.
Sino Hydro has been in contract negotiations with ZPC and has agreed to take up the role of engineering, procurement and construction of the Kariba 7 and 8 extension to boost the station’s power output.
Minister Biti said an agreement with another Chinese company for the expansion of Hwange Thermal Power Station would be concluded in the next two months.
Last week, Vice President Joice Mujuru commissioned the upgrade of Victoria Falls International Airport and the project is expected to be completed by December next year.
Online Reporter