By Staff reporter | 11 Aug 2019 at 18:56hrs
THE Export-Import Bank of China (China Exim Bank) has extended over $65 million-loan facility to the government for financing the NetOne National Mobile Broadband expansion project.
The loan is meant to upgrade NetOne's existing infrastructure and increase base stations to areas which have poor connectivity.
In a general notice in the government gazette published on Friday, Finance minister Mthuli Ncube said the agreement was finalised in June.
"It is hereby notified.. on June 26,2019 the Republic of Zimbabwe.. concluded a loan agreement with the Export-Import Bank of China on the following terms – the loan is the amount of renminbi four hundred and sixty-five million fifty thousand yuan… (US$65 844 999.18).
The period of the loan is 20 years with a grace period of five years at an interest rate of two percent (two percent) per annum and a management fee of zero point twenty-five per cent (0,25 percent) on the outstanding principal amount," said Ncube.
Ncube also revealed that the India Exim Bank also extended another US$23-million line of credit agreement for financing a fast-track renovation and upgrading of the Bulawayo Thermal Power Plant which can be an antidote to help ease the electricity deficit in the country.