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“The settlement agreement regarding the debt signed on February 9 this year wherein Zimbabwe committed to settle the principal amount of US$70,807 million by March 31, 2014 was indeed an important milestone in cementing our relations in the energy sector.
“Zimbabwe has since paid US$15 million under the agreed payment plan,” said Minister Mumbengegwi. The debt is threatening the construction of the US$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.
The two foreign affairs ministers had also earlier on witnessed the signing of two memorandums of understanding (MoUs) in Science and Technology and Small to Medium Scale Enterprises (SMEs).
Minister Mumbengegwi signed the MoU on Science and Technology on behalf of Zimbabwe, while Minister Lubinda signed on behalf of Zambia.
SMEs and Co-operative Development Minister Sithembiso Nyoni signed the MoU on SMEs on behalf of Zimbabwe, while Minister Lubinda signed for Zambia.
The CAPCO was dissolved and had its assets subsequently sold in 1987 following a decision to split the utility.
Zambian officials said the Batoka hydropower project is conditional on Zimbabwe completing the payment.
Online Reporter