ZAMBIA yesterday signed bilateral agreements on financial and technical cooperation with Germany worth Euros 120.5 million which will include concessional financing for the rehabilitation of Chishimba Falls hydro power station.
Out of the euros 120.5 million, euros 22.5 million is earmarked for technical cooperation while euros 54 million is for financial cooperation.
Speaking during the signing ceremony, Minister of Finance Alexander Chikwanda said the framework agreements for the techincal and financial cooperatiom was an affirmation and expression of partnership between Zambia and Germany.
Mr Chikwanda said the injection of the euros 120.5 million was timely and would help substantially fill some resource gaps.
He said a range of areas were coveverd including concenssional financing for Chishimba falls hydro power station amounting to euro 20 million.
He said some areas which would benefit from the two agreements include poverty reduction budget support, public financial management, water and sanitation.
“The challenges we face have a clear message to the effect that we should reduce the precarious dependence on the mineral sector for our foreign exchange resources,” he said.
Mr Chikwanda said Zambia could end the current misery of power deficit by promoting investment in the sources of energy and that Germany was a leader in that field who could invest in the sector.
“This partnership is a result of rigorous and fruitful bilateral cooperation negotiations that took place in November 2014 in Lusaka,” he said.
German ambassador to Zambia Mr Bernd Finke said he believed that German taxpayers’ money was well invested in Zambia.
Mr Finke said the goal of German development cooperation in Zambia was that German made itself redundant by taking the road from aid to trade.
“Germany supports central policy objectives of Zambian Government in strengthening democracy, reduction of poverty and malnutriction,” he said.
He said he wanted the Zambian Government to delete the projects it did not want, adding that Germany did not want to impose anything but concensus and accountability.
Mr Finke said Germany would continue to be a reliable partner in ‘‘both good and less good times’’ especially that Zambia was currently confronted by the tripple crisis of its economy.
“These are difficult times for Zambia which is confronted with tripple crisis of its economy, its finance and its energy.
‘‘I can assure you that Germany will continue to be a reliable partner in both good and less good times and we are confident that Zambia will manage the current challenges,” he said.