PARLIAMENT yesterday heard that over K400 billion has been pledged by cooperating partners for road projects this year.
Deputy Minister of Finance and National Planning, David Phiri said last year, cooperating partners pledged over K600 billion of which over K105 billion was released.
Mr Phiri said this in response to a question by Kanchibiya member of Parliament Davies Mwango (PF) during questions for oral answer.
Mr Mwango asked how much has been pledged by donors for road projects this year.
He further wanted to know how much was released to the National Road Fund Agency (NRFA) for road projects last year and how much was contributed by cooperating partners.
Mr Phiri said in 2009, K1,336.27 billion was approved for the road sector of which Government funds accounted for K715.45 billion and cooperating partners K620.82 billion.
He said as of December 31, 2009, K882.34 billion was released, representing 66 percent.
Mr Phiri said further, a supplementary budget of K63.4 billion was approved and K61.14 billion was released, representing 96 percent.
He said this effort reflects Government’s commitment to develop the road sector.
Mr Phiri said it is unfortunate that cooperating partners did not manage to fulfill funds pledged as only 17 percent was released.
And Minister of Finance and National Planning, Situmbeko Musokotwane informed the house that no funds have been released so far out of this year’s pledges by cooperating partners.
Dr Musokotawane said this is because of the audit report by the office of the auditor general, which has cited financial mis-management and poor quality of work in the road sector.
He said cooperating partners suspended funding until such a time that concerns raised in the audit report are addressed.
Dr Musokotawane said this in response to a follow up question by Chipili MP Davies Mwila (PF) who asked if the suspension of funds is related to the recent auditor general’s report on the Road Development Agency.
Dr Musokotwane said discussions between Government and cooperating partners regarding the resumption of funding have reached an advanced stage.
He said the State and donors are agreeing on the road map and Government is hopeful that it will start receiving funds soon.
And Dr Musokotwane said over K400 billion from the fuel and other road user charges was released as part of Government’s budget for road projects in 2009.
He said this in response to a question by Kabwata MP Given Lubinda (PF) who asked how much of Government’s budget for road projects in 2009 was from road user charges.
He said of the total budget, K299.3 billion was directly from treasury.
And Deputy Minister of Finance and National Planning, Chileshe Kapwepwe told the House that the only European countries Government owes money are Russia and Bulgaria.
Ms Kapwepwe said Government owes Russia US$110 million and Bulgaria US$8 million, adding that this debt was contracted before 2006 and is subject to treatment under the Highly Indebted Poor Countries initiative.
She said this in response to a question by Chilubi MP Obius Chisala (PF) who wanted to know which European countries Zambia has borrowed from since 2006 and how much it owes.
Ms Kapwepwe said the debt from Russia has been cancelled, adding that the two countries are yet to agree on a debt swap agreement.
She said Government is further finalising the process of liquidating the money it owes Bulgaria but that this will not go beyond 2013.
Ms Kapwepwe said this in response to a follow up question by Mr Chisala who asked when Government will liquidate the debt.
Deputy Minister of Energy and Water Development, Lubinda Imasiku said Government, through the Ministry of Finance and National Planning, is carrying out studies to determine the best option for supplying petroleum products to the country.
Mr Imasiku said Government is looking at options of whether to build a new oil refinery, modernise the current infrastructure at the refinery at Indeni or import finished products.
He said the study of the various options is expected to be completed by the end of this year.
Mr Imasiku said in response to a question by Choma Central MP George Chazanga (UPND) who wanted to know whether Government is considering setting up another modern petroleum refinery plant capable of refining any type of crude oil.
And Minister of Energy and Water Development, Kenneth Konga said Government has allowed the importation of finished petroleum products to supplement the petroleum products produced by Indeni.
He said this in a follow up question by Mr Mwila who wanted to know why Government has allowed the importation of finished petroleum products.
Mr Konga said indeni is expected to be shut down in October for routine maintenance.