EMBATTLED ZIMBABWE OWES ZAMBIA MILLIONS OF DOLLARS

Zimbabwe has an outstanding 70.8 million dollars debt with Zambia over the Kariba South Hydro Power station.

The Zambia Parliamentary Public Accounts Committee has heard that the debt is over shares Zambia sold to its neighbouring country in 1987.

The respective power plant, which was jointly owned by Zambia and Zimbabwe when the two countries were jointly called Rhodesia, is located across the Zambezi River.

When the two countries became independent, the power plant was found to be in the Zimbabwe territory forcing Zambia to sale its shares to the latter at the cost of US$70.8 million which has remained unsettled to date.

Ministry of Energy and Water Development Permanent Secretary, George Zulu told the Public Accounts Committee that Zimbabwe has since assured that it will this year start offsetting the debt.

Mr. Zulu, however, noted that the debt has overstayed and accumulated interest of about 216 million dollars, which Zimbabwe will also have to pay on top of the actual debt.

The power plant used to supply power to both Zambia and Zimbabwe and was being run by the Central African Power Company before handing it over the government of Zimbabwe.