When it was issued in 2013, the US$750 million Euro
Bond became a controversial topic in Zambia as various people received it with
mixed reactions.
However, two years down the line, fruits of that Eurobond
are now visible.
Zambia Railways was allocated 120 million dollars from the
Eurobond and part of the money was channeled towards rehabilitating and
constructing new rail lines on the Copperbelt.
Zambia Railways Limited has completed rehabilitating and
constructing new rail lines in three districts of the Copperbelt to link
smelters and mines at the cost of K8.6 million.
The districts connected are Chingola, Chililabombwe and
Kitwe.
The railway firm has now finished connecting Konkola Deep
Mine in Chililabombwe to the smelter at Nchanga in Chingola and the refinery at
Nkana Plant in Kitwe.
This now means that raw copper can now be transported by
railway from Chililabombwe to the smelter in Chingola and later the anodes can
be moved from Chingola to be refined into cathodes in Kitwe before they are
exported abroad.
The project was funded using Zambia Railways’ allocation of US$120
million from the US$750 million Euro Bond which was over subscribed when the
Zambian government issued it on the international market in 2013.
Zambia Railways General Manager for Projects Fred Kaoma says
the company has now connected Konkola Deep Mine in Chililabombwe to Nchanga
Mine in Chingola and further to Nkana Refinery in Kitwe.
Mr Kaoma says the project will decongest roads and help the mines transport their
goods from one mine site to the other without more easily.
And Chairperson of the Parliamentary Committee on Estimates Highvie
Hamududu says works done so far are impressive as there is something tangible
can be see.
Mr Hamududu, who is also Bweengwa Member if Parliament, says
taxpayers want to see money from the Eurobond being utilized to the best
interest of the nation.
Members of the Parliamentary Committee on Estimates are on
the Copperbelt inspecting projects which were funded by US$ 750 million Eurobond.
The improvement of the railway infrastructure using the
Eurobond will now enhance trade between Zambia and her neighbours.
“Now we will be able to move cathodes from Kitwe to Durban,
Dar Es salaam or Beira or any other port. We have a good working relations in
South Africa now,” said Christopher Musonda, Zambia Railways Marketing Manager.
He further revealed that through this improved railway
system, exporting copper products through Zambia’s neighbours will be
guaranteed.
“Exporting copper through Durban takes 30 days to reach
China, but with our enhanced partnership with Tanzania, exporting through Dar
Es salaam will now only take 14 days,” added Mr Musonda.
Trade routes in Southern Africa |
This now means that trains from the state run Zambia
Railways Limited (ZRL) can freely transport goods from anywhere in Zambia up to
the port in Dar Es Salaam.
Currently, TAZARA trains come from Tanzania and end up at
Kapiri Mposhi while ZRL trains cant go beyond Kapiri Mposhi.
This new partnership plus the already established regional
agreements for the Nacala Corridor and the Walvis Bay arrangement will help
enhance trade between Zambia and her neighbours.
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