Zambia and Kuwait have signed a K78 Million by Acting Secretary to the Treasury Mr. Felix Nkulukusa and on behalf of Kuwait by Mr. Hamad AI-Omar, Deputy Director-General of the Kuwait Fund for Arab Economic Development.
By YANDE SYAMPEYO
GOVERNMENT has signed a K78 million (US$14 million) loan agreement with Kuwait for the establishment of a modern teacher training college in North-Western Province.
The Kuwait Fund for Arab Economic Development will provide the loan for financing the establishment of the planned teacher training college which will specialise in science, mathematics and technology.
The total cost of the project, including contingencies for quantities and prices is estimated at K102.7 million (US$20 million).
The Kuwait fund will cover 70 percent of the total cost while the remaining costs will be covered by Government.
Acting Secretary to the Treasury Felix Nkulukusa signed on behalf of the Zambian government while Deputy Director General of the Kuwait Fund for Arab Economic Development Hamad Al-Omar signed for Kuwait.
This is according to a statement released in Lusaka yesterday by ministry of Finance spokesperson Chileshe Kandeta.
The loan agreement is for a period of 24 years, preceded by a four-year grace period.
And speaking after signing the agreement, Mr Nkulukusa said the aim of the project is to improve quality and increase access to teacher training education.
Construction of the college is expected to commence in the first half of this year and be completed by the end of next year.
“To adequately finance priority development projects such as the teacher’s training college in North-Western Province, the government contracts loans within the available borrowing space. Zambians should rest assured that the acquisition of this loan does not in any way expose the country to unsustainable debt burden,” Mr Nkulukusa said.
He said Government is mindful of the importance borrowing within national and international limits to ensure the country’s debt burden remains manageable.
Mr Nkulukusa said implementation of the project will reinforce the government’s nationwide economic programme which is aimed at creating one million jobs within five years from 2011 to 2015.
“The creation of these jobs is anchored on skills development and entrepreneurship training especially in growth-enhancing sectors such as agriculture, mining, tourism and energy,” he said.
And Mr AI-Omar said that the project does not only involve the construction of the college but also supply of furniture, educational equipment and tools.
“We are ready to finance and support the Zambian government’s development projects,” he said.
In the Sixth National Development Plan, Government has planned to increase investment in infrastructure in the education sector.