By JAMES KUNDA –
THE K3 billion debt owed to Government by four selected State-Owned Enterprises (SOEs) has been converted into equity to create value for State investments.
Cabinet approved the conversion of the K3,492,350,021.41 debt owed collectively by Zambia Railways Limited (ZRL), Zesco, Nitrogen Chemicals of Zambia (NCZ) and Zamtel at its 28th meeting held at Mulungushi International Conference Centre in Lusaka on Monday, chaired by President Edgar Lungu.

. MWALE

Acting Chief Government spokesperson Vincent Mwale said this when he announced the Cabinet resolutions at a media briefing in Lusaka yesterday.
Zambia Railways owed K627, 046,920.46 (US$53,777,608.96), Zesco K1,170,117, 886.1 ($100,353,163.47), NCZ K191, 346, 971 ($16,410,546.40) and Zamtel K1, 503, 838, 243 ($128,974,120.40) as at December 2014.
“The decision by Cabinet to convert the debt into equity is to clean up the balance sheets so as to make Zambia Railways, Zesco, Nitrogen Chemicals and Zamtel efficient, profitable and attractive for investment.
“Government has continued to support the existence of these companies in view of their strategic nature to the development of this country and the decision will make them more viable and attract new investment without relying on Government guarantees for them to obtain financing for expansion,” Mr Mwale said.
Meanwhile, Cabinet approved the contraction of a $128 million loan from the Export Import Bank of China for the implementation of the Kafue bulk water supply project in Lusaka.
This would facilitate the provision of clean water and sanitation facilities to mitigate health risks in the capital city.
“It is in the interest of Government to borrow specifically for infrastructure development and not consumption,” Mr Mwale said.
He said Cabinet also approved the contraction of a $170 million loan from the Industrial and Commercial Bank of China for phase two of the Nkana water supply and sanitation project.
The project would have similar benefits for people on the Copperbelt as those of the Kafue bulk water supply scheme.
“Cabinet approved the contraction of a $193 million loan from the African Development Bank (AfDB) and $50 million from AfDB on behalf of the Africa Growing Together Fund for the rehabilitation of Chinsali-Nakonde Road.
“This is an economic road which facilitates business between Zambia, Tanzania and most countries in the COMESA and SADC regions. Therefore, the rehabilitation is important to allow for smooth flow of goods and services,” he said.
The meeting further approved that the Layout Designs of Integrated Circuits Bill be tabled in the next sitting of Parliament to protect the rights of qualified owners of topographies and integrated circuits.
Cabinet also approved the ratification of the Minamata convention on mercury to protect human health and the environment from anthropogenic and mercury-compound emissions.