UPND reveals reasons behind FTJ University construction cancellation

The governing United Party For National Development –UPND Spokesperson Cornelius Mweetwa has confirmed that the construction of FTJ Luapula University together with a host of other Chinese funded projects were cancelled or postponed because some of them were overpriced.

Speaking in an exclusive interview with the Zambian Business Times –ZBT, UPND Spokesperson said all the projects that were set aside were either overpriced or there was no readily available funding for such projects as continuing to subsist would cost the government more money.

He alleged that in the previous government, projects were overpriced in many instances and that is why government is strict on re-negotiating on the already existing projects to save more funds.

And a UPND insider who asked for their name to be withheld told ZBT that the FTJ University project was grossly overpriced. They stated that if one looks at University of Lusaka – UNILUS new campus, it was built at $20 million funding but FTJ university was contracted at over $200 million. But the structures that were to be constructed were questionable in terms of pricing.

Meanwhile, Mweetwa who is also Southern Province Minister under the new dawn government explained that if the government had continued sustaining these contracts on the ground when there is no money to complete and deliver the works within the given time, the contractors were going to claim payments for standing time.

He also indicated that the projects were not cancelled but postponed, stating that what was cancelled was funding to projects – where there was no readily available funding to ensure that they don’t continue pending thereby escalating the contract price.

“Some of the projects were deemed overpriced and were postponed so that they could be re-negotiated in the same way the Lusaka Ndola dual carriage way was cancelled and re-negotiated.” He stated.

Mweetwa further told ZBT that going forward, contracts will not be entered into simply because there is a requirement for a particular project or building, but they will only be entered when there is available funding.

He indicated that this new process will ensure that the contract sum on the contract remains the amount which should be paid unlike the current situation when there is no money and the contractor keeps on raising the contract sum citing lapse of time and devaluation of the contract sum. Mweetwa re-affirmed that government will only resume the contract once it have sourced the money.

The governing United Party For National Development

TAZARA capable of becoming main transporter of fuel – TAZARA MD

The Tanzania-Zambia Railway Authority Managing Director – MD has disclosed that the railway company is capable of becoming a cost effective and main the transporter of fuel during the closure of the Indeni Refinery plant.

Speaking in an Exclusive interview with the Zambian Business Times –ZBT, TAZARA Managing Director Bruno Chingandu said if capacitated, TAZARA can become a cost effective and the main transporter of fuel during the closure of indeni.

He said the gains from using the railway compared to road are enormous as the railways present many social and economic benefits. While the railway may not deliver door to door, the rates are generally cheaper than the trucks.

He explained that TAZARA has the advantage of economies of scales as it can move equivalent to 30 tanks in one train load. “It therefore saves roads from damage by taking away heavy and bulky cargo from the roads hence saving the governments funds in repair of damaged roads, contributes to reduction of road carnage.”

TAZARA Managing Director added that trains also take shorter periods than the trucks at the border thereby reducing delivery time and hence costs. He told ZBT that TAZARA has in place a revitalization plan that has been approved by the Board of Directors and awaits final approval by the Council of Ministers.

Chingandu explained that in the current capacity, TAZARA and Zambia railways can move about 10,000 liters per month and have in the past demonstrated the ability to move fuel to Zambia within the service level agreements.

He said what is needed is sufficient investment in rolling stock TAZARA in order to make it main transporter of fuel. About $560 million is needed to be invested to make the railway company capable of moving the country’s total requirements.

However said, if it is the national policy to move fuel by railway, the private sector or indeed the shareholding governments (Zambia & Tanzania) could invest in some rolling stock to enable the railways to move more of the products.

The Tanzania-Zambia Railway Authority Managing Director -

ZESCO infatuation with exports questioned as only 30% Zambians are connected to the grid

An energy expert has questioned the excitement and infatuation by power utility ZESCO to export electricity when only 30% of Zambians are connected to the national grid and have access to electricity.

Ideally, one would expect that the initial aim would be to get more citizens connected and have access to electricity via the national grid before thinking of exports, but there seems to be more focus on exporting and little to no mention on targets to increase local citizens connection and access to power from the national grid.

The energy expert  disclosed that about 70% of the population of Zambia have no access to the national grid and only about 30% are connected.  According to the Energy Minister Peter Kapala, Zambia is expected to export 180 MW to Namibia and further 100 MW to Zimbabwe following the enhanced generation capacity of 1,156mw.

ZESCO Managing Director Victor Mapani said currently the installed national generation capacity stands at 3,456.8MW against a peak national demand of approximately 2,300MW, giving the country an excess production of over 1,000 MW.

Speaking in an interview with the Zambian Business Times – ZBT, Energy expert Bornface Zulu said the exporting of electricity is more playing to the political side of things rather than a technical aspect, they are not putting Zambia and Zambian citizens first as a priority because this means that they are comfortable with what they are producing and whatever number or percentage of citizens that they are giving electricity to.

Zulu said Government should explain what percentage and cost is the country doing this, what is the money coming in as foreign exchange etc used for, is it just for paying workers or maintenance of system.

“The population is growing and there is a huge demand on the local market already. The National grid only supply the electricity to 30% of the population when the other 70% have not had access to electricity.” This should be prioritized as access to electricity is part of development, He said.

He observed that there is already a shortage within the local system, since connection and coverage has not been optimized, there is need to extend the grid to cover the other other 70% of Zambians who are not on the grid. Will Zambia still have a surplus if the other 70% of the population is connected to the grid? or will the country linger back  in darkness or load shedding?

He however said exporting of power is a good for the country as it brings improved bilateral relations by selling the power to neighbours but it will be very much better to prioritise our very own local people, our citizens and local businesses in Zambia before we concentrate on exports.

An energy expert has questioned the excitement

ZICTA grants further commencement extension to Beeline to 2023

The Ministry of Science and Technology has disclosed that the commencement of operation for Zambia’s 4th mobile network operator which had been extended to 30^th June 2022 as earlier announced by ZICTA for Beeline Telecoms has been further extended to January 2023.

This is a follows an earlier article published by the Zambian Business Times –ZBT, where the Zambia Consumer Association – ZACA expressed concern over the continued delay and soft stance by state ICT regulator ZICTA to give Zambian consumers a  4^th mobile phone operator which has now by passed the expected timelines.

Speaking in an exclusive interview during an ongoing Agriculture and Commercial show, Ministry of Technology Permanent Secretary Brilliant Habeenzu said Beeline stated to ZICTA that they were not going to make the first call according to the initial time table due to a number of reasons.

He said according to the information the ministry received from ZICTA, Beeline attributed among other challenges associated with the COVID 19 pandemic. He said ZICTA – ICT the regulator understood the circumstances hence revising the date for commencement of operation.

Habeenzu could however not tell the actual revised date of January when Beeline is expected to make the first call. Efforts to engage Beeline directly proved futile as the company contact details or physical set up office could not be found by ZBT.

The Zambia Information and Communication Technology Authority – ZICTA – had in 2021 indicated that it had granted a local firm Beeline Telecom Limited a license to commence mobile phone operations in the country within the period of 6 months. This timeline was extended and a new deadline was given to Beeline to commence operations by 30^th June 2022, and this has also not materialized.

Habeenzu was certain that ZICTA analysed the situation and had a lot of issues which they considered before arriving to that extension stating that ZICTA was in a better position to give more details. But consumers in zambia have been calling for the market to have more options but the country has failed to attract credible global operators.

The Ministry of Science and Technology has

Govt abolishes FTJ University construction project

After initially raising corruption allegations over the payment of the initial 15% counterpart funding towards the construction of the $223 million FTJ Luapula University, Government has now officially canceled the contract together with a host of other Chinese funded projects.

According to a statement issued by Secretary to the Treasury Felix Nkulukusa, the FTJ Luapula University Project which was supposed to be completed with 85% funding amounting to US$191 million from the Industrial Commercial Bank of China with the Ministry of Education as the implementing agency.

The FTJ University construction project together with a host of other Chinese funded projects have been put on ice and included on a comprehensive list that has been made available to the Zambian Business Times – ZBT.

Other notable projects that have been cancelled include phase 2 of Smart Zambia, the Chalala Barack which will he scaled down into a military officers housing complex, suspension of modernization of the local terminal (which used to be the main terminal), rehabilitation of urban roads phase 3.

Former Secretary to Cabinet Fredson Yamba and former Permanent Secretary at the Ministry of Education have all been dragged to court on corruption and procedural related charges after the change of government.

The two were accused of diverting the funds but it later emerged that the payments were done by the central bank – BOZ which confirmed that they had all the details on which entity and the respective bank details to which the funds were remitted to. It remains to be seen now that the contract has been cancelled whether these accusations were only meant to justify this cancellation.

See earlier article done by ZBT on the FTJ Universiry which was meant to be built under government plans to have at least one public university in each of the ten provinces to provide equal opportunities for all citizens residing in any of the provinces as far as higher education opportunities are concerned. See link BOZ can reveal who received FTJ University payment , Former Secretary to the treasury Yamba to give his side of the story concerning FTJ university in Court and Former Finance Minister Mutati backed FTJ university payment

Instead of abandoning projects such as FTJ University, the new dawn administration should have instead proceeded to build or upgrade existing institutions into public universities in the other provinces such as the planned King Lewanika University in Western Province and plan for new public universities in Southern, North Western and Eastern Provinces.

After initially raising corruption allegations over the