GovernmentZambia News

Government cancels $2 billion in projects

The government has made the decision to discontinue projects with a total loan funding of $2 billion.

FELIX NKULUKUSA, Secretary of the Treasury, stated in a statement that this is one of extra steps the government has taken, outside of the debt restructuring process, to address the current financial issues.

A few crucial projects, according to Mr. NKULUKUSA, are being re-scoped, he added, in order to simplify their completion with budgetary funds that would be granted over the medium term.

On Thursday, July 28, 2022, at its meeting, Cabinet, he claimed, made the choice.

According to Mr. NKULUKUSA, the government has already hired the appropriate contractors to execute the necessary paperwork to cancel work contracts, and ongoing PROJECTS that were formerly supported by commercial loans will now be financed over the medium term by government revenue.

According to him, the projects are being carried out in accordance with their significant social and economic impact and advanced state of completion.

According to Mr. NKULUKUSA, the government has already contacted lenders to help formalize the cancellation of the remaining loan balances on projects that were financed with loans; however, projects that were financed through concessionary sources would still be funded in this manner.

The Ministry of Information and Media of Zambia’s Digital Terrestrial Television Broadcasting Systems and FJT University are two examples of the projects that have been shelved. Under the Ministry of Education and the Ministry of Infrastructure and Urban Development’s Phase 3 Urban Road Rehabilitation program.

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