Zambia in a US$ 355 million US 5-year grant.

By John Chola Lusaka - March 23, 2012 If truly the PF government would translate its "immune" to corruption statements into ensuring prudence and commitment to developmental projects, then the wide spread inaccess to clean water and sanitation as well as the sturbon flooding that most Lusaka residents have come to know as the nomal way of living would soon be a thing of the past. This follows the announcement yesterday by the United States government through the Millennium Challenge Corporation (MCC) to give Zambia a US$ 355 million Compact grant translating into K1.9 trillion at the current prevailing exchange rate. The MCC Board of Directors chaired by U.S Secretary of State Hillary Clinton made the announcement yesterday and immediately communicated the decision to the Zambian government.US Ambassador to Zambia Mark Storella said the money was being given as a grant to lay the foundation for systemic and lasting change in Lusaka's water, sanitation and dranage system. And speaking when he announced the awarding of the grant, MCC Chief Executive Officer Daniel Yohannes said, "We congratulate the Zambian people and the government. MCC investments are expected to have a meaningful impact on the lives of more than one million Lusaka residents by improving their health and economic productivity and helping the country reduce poverty on a sustainable basis by enhancing water security." Ambassador Storella emphasised that relable water and sanitation and drainage systes were a vital components for sustainable development hence the grant given. With this high ammount of non repayable green backs granted to Zambia, the country would now be able to increase Lusaka's overal water supply, extend and provide city residents greater access to water and better water supply, sanitation and drainage services. Zambia does not also have to worry if it lacks technical capacity in improving citizen's access to clean running water, sanitation and state of the art drainage system as the Compact also comes with free technical assistance to deepen government-led sector reforms. The US government is especially intrested in seeing that the PF government ensures not the already privillaged communities but more women and the vulnerable populations benefit from its projecct investments. The MCC had been rendering constant support to Zambia for the past two years especially through the Ministry of Finance and National Planing to help the country meet stringent MCC Compact eligibility requirements. The US$355 million is under the five-year Compact agreement with Zambia. Ends...

LAP GreenN challenge the Zambian Government's action to seize its 75% share in Zamtel

By John Chola Monday 19 March, 2012 - LAP GreenN, the Libyan Investment Authority's international telecommunications arm, has today successfully filed court papers challenging the Zambian Government's action to seize LAP GreenN's 75 per cent share in Zamtel.In a petition filed before the Zambian High Court, LAP GreenN disputes the legality of the Zambian Government's claim that LAP GreenN's shares were taken for 'public purpose'.Wafik Al-Shater, Chairman of LAP GreenN, said: "LAP GreenN is very clear that the seizure of our shareholding in Zamtel by the Zambian Government was illegal and unconstitutional, and to the detriment of both Zamtel and its customers".Al-Shater said that in the 18 months that Zamtel was under LAP GreenN's management, the telecoms firm increased its total subscriber base by 600 per cent - to over one million at the start of 2012 - and significantly increased the company's market share, leading to a 50 per cent increase in revenues. He stated that the growth and prosperity seen in Zamtel was only recorded under LAP Green management.Mr Al-Shater said that through major improvements and upgrades in systems and infrastructure, including a 100 per cent increase in the number of base stantions, LAP GreenN improved network performance and established a far superior service for Zamtel's customers. "LAP GreenN took a bankrupt company and developed it into a strong telecommunications provider able to deliver real value to all shareholders, to serve the Zambian people and to contribute directly to the Zambian economy sustainably into the future."We are compelled to take this course of action as dictated by the procedure set out in Zambian law. Nevertheless, we sincerely hope that reason can prevail, and that LAP GreenN can resume making its important contribution to providing telecommunications services to the Zambian people. However, to recover the company's significant investment in Zamtel, LAP GreenN will consider any and all legal options available, if necessary, whether in Zambia or in other jurisdictions."The petition filed today outlines LAP GreenN's right to financial compensation for the value of the asset at the time of seizure should the shareholding not be restored to it, which is calculated to be US$480 million. In addition, LAP GreenN is claiming for the substantial losses it has suffered as a result of the seizure of the shares.In June 2010 LAP GreenN acquired a 75 per cent stake in Zamtel, the former state-owned Zambian telecommunications company, for US$ 257 million. The Government of Zambia retained a 25 per cent stake in the company.LAP GreenN is the telecommunications investment arm of Libyan African Investment Portfolio (LAP), focusing on the telecommunications sector in emerging markets. It operates mobile and ISP businesses in Uganda, Zambia, Ivory Coast and South Sudan. LAP GreenN is actively seeking to increase its footprint across Africa and the Middle East.ENDS