ZAMBIA-ZIMBABWE AGREE JOINT HYDRO POWER PLANT PROJECT

Zambia and Zimbabwe have signed a memorandum of understanding to jointly construct a 1 650-megawatt Batoka hydro-power project, estimated in excess of 4 billion dollars.

Energy Minister, Christopher Yaluma has confirmed stating that the agreement was signed during the Council of Ministers, held at Kariba in Siavonga.
However, the project is subject to Zimbabwe paying an estimated 70 million dollars, plus interest at the current rate, a debt it owes Zambia for the sale of the Central African Power Corporation assets, which were jointly owned by the two countries.
Mr Yaluma has disclosed that the agreement for the project is in principle adding that the two countries also have to source for partners to bankroll the works.

And on the debt owed by Zimbabwe, Mr Yaluma has said the Harare government will have to pay without defaulting within a period of three years.

EXPECT SAME OVERSIGHT TENACITY TIZ PROMISES GOVERNMENT

Transparency International Zambia has emphasised the need for the PF Government to remain committed to the fight against corruption.

TIZ President, Rueben Lifuka has said in statement that the country has in the past suffered from too much political rhetoric, which was not accompanied with well articulated measures of reducing corruption especially in the public sector.

And Mr Lifuka has promised an enhanced 3.3 billion kwacha worth of national governance system track down between now and 2016.

This follows the watchdog organisation’s Memorandum of Agreement of support with the Dutch government.

Mr Lifuka has explained that the money is contribution for the implementation of the organisation’s 2012 – 2016 Strategic Plan.

The strategic plan will focus on institutional management and development, good governance, communication advocacy and Citizen’s Engagement in Domestic Accountability.

And not withstanding the change in government in the 2011 Elections, Mr Lifuka has promised continued checks and balances to the PF Government.

He has explained that this will be done with the same zeal and focus as it has done since its establishment in 2001.

NO NEED TO RENEGADE ON WINDFALL TAX SAYS OPPOSITION POLITICIAN

An opposition figure in Zambia has demanded for the restoration of windfall tax for the mining sector.

Elias Chipimo, President of the National Restoration Party, says it is unreasonable not to have the tax re-introduced.

The respective tax had been introduced by the previous regime, owing to public pressure, but the same government again reversed the decision in a manner described as an act of renegade.

And the new Patriotic Front government has hinted that it might bring back the windfall tax, but only when the copper prices soar on the global metal market.

But Mr Chipimo says there is no need to wait for the copper prices to increase, adding that there is no need to treat the mining houses with compromise.

He has explained that effecting the tax is the best option because it will only apply when necessary, depending on the obtaining metal prices.

Meanwhile, Mr Chipimo has welcomed the raise in mineral royalty explaining that the Zambian people need to benefit from the country’s resources.

EX-MINISTER DESCRIBES ZANACO PRIVATISATION VALUE AS INAPPROPRIATE

Former transport minister in the Frederick Chiluba regime, Andrew Kashita has argued that ZANACO was improperly valued prior to its 2007 sale to Rabo bank.

Dr Kashita, who is an economist by profession, has further hinted that even the 5.7 million Euros price tag put on ZANACO was very minimal compared to the net value of the financial institution then.

He has told a commission of Inquiry sitting in Lusaka that the valuation of ZANACO assets was done inappropriately since some of its properties were worth at least 14.15 million Euros as at December 2004.

Dr Kashita, who is also one of the minority shareholders in the institution, after privatisation, further said that it would be well to uncover how the 5.7 million Euros paid by Rabo bank was arrived at.

He therefore argued that minority shareholders demand to see the valuation report to understand how the value of shares was determined.

Dr Kashita also accused the then Rupiah Banda government, which adamantly privatised ZANACO, of being secretive about the transaction, which he described as full of irregularities.

President Michael Sata has ordered a probe into the privatisation of the bank, further constituting a commission of inquiry over the matter.

After the respective privatisation 2007, Rabo Financial Institution Development of the Netherlands took over the management and operations of ZANACO after it bought 49 percent of the shares in the bank.

Four percent of the shares were sold to the ZNFU and the Zambian government, under Mr Sata's predecessor Rupiah Banda, offloaded its 25.8 percent of shares on the Lusaka Stock Exchange.

WIND FALL TAX MAY REBOUND SAYS SIMUUSA

Mines Minister, Wilbur Simuusa says wind fall tax might be re-introduced.

According to the Reuters, Mr Simuusa says this is if copper prices hit the 10,000 dollars per tonne mark.

Currently, the copper prices on the London Metal Exchange is at 8,580 dollars per tonne.

Mr Simuusa has been quoted saying that the projections are that it will hit 10,000 dollars and at that time it may be necessary to sit around the table and discuss.

Zambia last scrapped the 25 percent windfall tax in 2009 following complaints from mining companies that it raised production costs and discouraged investment.

The government also doubled royalties on copper to six percent in the 2012 national budget, a move miners have warned may cause them to scale back operations.