ZESCO Refutes Reports Works At Kafue Gorge Lower Hydropower Station Have Stalled

By Logic Lukwanda

Zesco Limited has refuted reports that the construction of the $2 billion Kafue gorge lower hydropower station, which was expected to start generating power this year, has stalled after failure to secure further financing.

According to Africa Confidential in its latest edition, Zesco had created a special purpose vehicle through which to borrow for the project, with more than $1.2billion already disbursed but that Chinese insurer, Sinosure has refused to underwrite a further loan, leaving the project in limbo.

Sources dealing closely with the Chinese companies say Zambia’s financial predicament is causing tension between them and their insurers and lenders.

But Zesco National Spokesperson Henry Kapata has told Phoenix News that works at the Kafue Gorge Lower Hydro power station are on schedule and has advised that information on Africa Confidential should be ignored because it is incorrect.

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