AfDB and Zambia sign US$55 million loan agreement for hydropower project

afbdThe agreement was signed by the Zambian minister of finance, Alexander Chikwanda, and AfBD resident representative to Zambia Freddie Kwesiga. (Image source: African Development Bank)The African Development Bank (AfBD) has signed a loan agreement worth US$55mn with the Zambian government to support the Itezhi-Tezhi Hydro Power and Transmission Line Project

The project will entail the construction of a 120MW hydropower plant at Itezhi-Tezhi dam along the Kafue River. The loan was approved by the bank’s board of executive directors in June 2012.

The loan agreement was signed by the Zambian minister of finance, Alexander Chikwanda, on behalf of the Zambian government, and Freddie Kwesiga, the AfBD resident representative to Zambia. Gilbert Mbesherubusa, AfDB vice-president of regional integration and trade operations, was also present during the signing of the agreement.

“AfDB has been a significant partner to Zambia, providing support in infrastructure, and strengthening management systems in various sectors,” said Chikwanda.

Chikwanda stressed that the Zambian government “continues to value these contributions and expects that the partnership between the bank and Zambia will grow and that opportunities to further this cooperation will present themselves”.

Mbesherubusa highlighted the importance of the agreement describing it as one of Zambia’s first Public Private Partnerships in the energy sector and reiterated that the project would improve the reliability of electricity supply and enhance energy security in Zambia.

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