China’s EXIM Bank has halted funding towards the US$360 million expansion and modernization of the Kenneth Kaunda International Airport for fear that the Zambian government may not be able to pay back the loan.
This has forced government to move the completion date of the project to 20th April, 2021 from the initial date of 20th October, 2019.
Zambia’s external debt is currently about US$10.23 billion.
Housing and Infrastructure Development Minister Vincent Mwale has told Parliament the completion date has been rescheduled due to lack of funding after Exim Bank stopped sending money for fear that the Zambian government was not capable of paying back the loan.
In a Ministerial Statement to give an update on the expansion and modernization of the KK international airport and the Construction of the Copperbelt International Airport, Mr. Mwale says the total loan amount of US$360 million; US$265 million has so far been paid to the contractor.
Meanwhile Mr. Mwale says the Construction of the Copperbelt International Airports costing about 397 Million United States Dollars will be completed by October 2020.
He has explained that a total of 191 million United States Dollars has been certified and 182 million United States Dollars has been paid to the contractor.