By Nicholas Bariyo
KAMPALA, Uganda--The Zambian government said on Thursday that it
had secured a $163 million loan from Sweden's Nordea Bank AB
(NDA.SK) to extend the electricity network to its separatist
western and north western regions.
The Zambian presidency said in a statement that the loan would
fund the construction up to 840 kilometers of high voltage
transmission power lines to facilitate the electrification of
public facilities, such as schools, hospitals, and government
institutions, as well as premises of traditional chiefs in the
copper-rich but impoverished regions.
The investment is the government's latest attempt to assuage
separatist sentiments in the region which have threatened the
stability of Africa's second-largest copper producer in recent
years.
"I am determined to see our people's living standards improve
through our Government's implementation of sound and practical
development policies" President Michael Sata said in a
statement.
In August last year, the Zambian police arrested dozens of
separatist activists from western province, in a crackdown
triggered by the appointment of an independent administration by
the separatist group, known as Barotseland Royal establishment.
The separatists have been pushing for independence from Zambia
in recent years, accusing the central government of doing "little"
to develop the region, despite a copper export boom.
Government officials say that separatist tensions will subside,
once the region's economic challenges are addressed. Last year, the
government started construction work at a major soccer stadium in
the western province and several hospitals and water project are
also underway as Mr. Sata steps up efforts to deliver on campaign
promises that helped secure his election victory in 2011.
The North western province also hosts Kansanshi and Lumwana
Copper Mines, which account for more than 50% of the country's
total copper output. The two mines are owned by Toronto-listed
First Quantum Minerals Ltd. (FM.T) and Barrick Cold Corp.(ABX)
respectively.
Write to Nicholas Bariyo at nicholas.bariyo@wsj.com
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