REHABILITATION of the Chinsali-Nakonde road has been guaranteed following the signing, yesterday, of two agreements worth US$243 million between the Zambian government and the African Development Bank (AfDB).
Minister of Finance Alexander Chikwanda said the two loans will see AfDB and the Africa Growing Together Fund provide two highly concessional loans to finance the project.
Mr Chikwanda was speaking at the signing ceremony for the two agreements in Lusaka yesterday.
â€œThe two loan agreements will see the AfDB and the Africa Growing Together Fund provide two highly concessional loans to finance the Chinsali-Nakonde road rehabilitation project,â€ Mr Chikwanda said.
He said AfDB will provide US$193 million while the Africa Growing Together Fund will give the government US$50 million.
He said the project will help the government in its efforts to improve key infrastructure projects such as feeder roads and accelerate infrastructure development.
Mr Chikwanda said the loans are highly concessional with an interest rate of about one percent and a repayment period of 20 years.
AfDB resident representative Damoni Kitabire said the fund will contribute towards achieving the projectâ€™s objective of establishing an efficient transport system.
He said it will also provide efficient, cost-effective and fully integrated infrastructure and operations that address the needs of users and promote socio-economic development as it provides a critical link between Zambia and Tanzania.