By CHILA NAMAIKO –
FINANCE Minister Felix Mutati has said the Government is doing its best to transform the country’s current power deficit into a surplus and is happy that increased investment in new power projects is leading to improved livelihood among citizens.
Mr Mutati said the Government, in its quest to create a diversified energy sector, would this Friday sign a Financial Closure Agreement for investing more than US$120 million in the Scaling Solar model project of 100 megawatts (MW).
The minister said the project would enable the country have the lowest power tariffs of about 6.4 kilowatt per hour, making Zambia the first African country to implement the model.
Appearing before a Parliamentary Expanded Budget Committee yesterday on Estimates of Revenue and Expenditure for the financial years ending December, 2018, Mr Mutati said the private sector-driven project was supported by the Industrial Development Cooperation and the World Bank.
“The financing has already been put together and so on Friday this week it will be signing the financial closure agreement so that we can be able to start construction as quickly as possible,” Mr Mutati said.
He told the committee chaired by Patriotic Front (PF) Mbala Member of Parliament (MP) Mwalimu Simfukwe that part of the solar project would be set up at the Lusaka South Multi-facility Economic Zone.
Mr Mutati said the Government would continue to walk-the-talk by creating a diversified energy sector.
Meanwhile, Mr Mutati assured the committee of Government studying concerns regarding the need to increase the Constituency Development Fund (CDF) from the current allocation of K1.4 million per constituency.
This followed concerns raised by, among other committee members, Elijah Muchima (Ikelengi, UPND), who bemoaned the low CDF allocation when it was a key funding in undertaking community projects.
Mr Simfukwe told Mr Mutati that the committee was of the view that allocations to certain ministries and departments be redirected to increase CDF allocation to about K5 million.
He said rebounding of the economy was bearing fruit through improved livelihood, a move that had cheered cooperating partners to double financial and technical support.
Mr Mutati reaffirmed the Government’s agenda to ensure the macro-economic objectives of 2018 were attainable with key interventions outlined in the National Budget of K71.6 billion significantly unlocking the country’s growth potential.