Zambia: Kafue Gorge borrowing adds to debt fears

Zambia’s Zesco has announced plans to raise up to $1.4bn on international financial markets for the $2bn, 750MW Kafue Gorge Lower hydro project, raising concerns about government debt. “We are expected to go on the open market with the help of transaction advisers and talk to sovereign countries on financing the $1.4bn,” managing director Cyprian Chitundu told a parliamentary committee. Speaking shortly before he was moved to the Ministry of Energy and Water Development, Chitundu said the transaction was planned for June. Zesco planned to issue a construction tender in around two months.