Debates - Friday, 19th February, 2016

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Friday, 19th February, 2016 

The House met at 0900 hours

[MR SPEAKER in the Chair]

NATIONAL ANTHEM

PRAYER

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BUSINESS OF THE HOUSE

The Vice-President and Minister of Development Planning (Mrs Wina): Mr Speaker, I rise to give the House some idea of the business it will consider next week.

Sir, on Tuesday, 23rd February, 2016, the Business of the House will begin with questions, if there will be any. This will be followed by presentation of Government Bills, if there will be any. The House will, then, deal with the Second Reading Stages of the following Bills:

(a)    The Movable Property (Security Interest) Bill, 2015; and

(b)    The Financial Intelligence Centre (Amendment) Bill, 2015.

Mr Speaker, on Wednesday, 24th February, 2016, the Business of the House will start with questions, if there will be any. This will be followed by presentation of Government Bills, if there will be any. Thereafter, the House will consider a Private Member’s Motion entitled “Suspension of Standing Order 104: That, in accordance with Standing Order 214, Standing Order 104 be suspended to enable the House toconsider a Private Members’ Bill to amend Article 70(1) d, Article 81, Article 116(3) (e) and Article 153(4) (c) of the Constitution” to be presented by Mr G. Namulambe, hon. Member of Parliament for Mpongwe Constituency. 

Sir, on Thursday, 25th February, 2016, the Business of the House will commence with questions, if there will be any. This will, then, be followed by presentation of Government Bills, if there will be any. The House will, then, deal with the Second Reading Stage of the Civil Aviation Bill, 2015.

On Friday, 26th February, 2016, the Business of the House will begin with Her Honour the Vice-President’s Question Time. This will be followed by Questions to hon. Ministers, if there will be any. The House will, then, deal with presentation of Government Bills, if there will be any. Thereafter, the House will deal with the Second Reading Stage of the Layout-Designs of Integrated Circuits Bill, 2016.

I thank you, Sir.

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MINISTERIAL STATEMENT

FUEL PRICES

The Minister of Energy and Water Development (Ms Siliya): Mr Speaker, following the point of order by the Member of Parliament for Mazabuka Central, Hon. Gary Nkombo, on why the prices of fuel had not dropped in Zambia in spite of the low oil prices on the international market, I wish to state the following.

Sir, I thank you for the opportunity to make this statement and, through this august House, inform the nation on the modalities of pricing for petroleum products in Zambia. As hon. Members of the House may be aware, the international price of oil has been falling since mid-2015. However, despite the fall, the domestic pump price of fuel in Zambia has not been adjusted downwards in consistency with the fall in international oil prices.

Hon. Members of the House may wish to note that the Energy Regulation Board (ERB) determines wholesale and pump prices of petroleum products using the Cost-plus Price Model (CPM). The principle of the CPM is that the final price at the pump should cover all the costs incurred in the petroleum supply chain. Petroleum prices are reviewed for each petroleum feed stock cargo and finished petroleum products that are imported by the Government. The CPM, therefore, accounts for cost recovery from both imported crude feedstock and finished petroleum products. This is because 50 per cent of the petroleum products come in by pipeline as crude feedstock while the other 50 per cent is imported via road as finished products.

The starting point for the price review is an assessment of the profitability statement that is done by the Tanzania-Zambia Mafuta (TAZAMA) Pipelines Ltd and sent to the ERB. The profitability statement assesses whether the refined and finished petroleum products would make a profit or loss if they were to be sold to the market at the prevailing wholesale and pump prices. The profitability statement assumes an exchange rate that will enable the local currency revenues, resulting from sales, to be converted into foreign exchange and ascertain if the amount spent as foreign exchange on imports is fully realised. This is because petroleum importation is expected to be self-financing. A loss arises if less foreign exchange is realised from sales and vice versa. In the event of a loss being incurred, the Government has to look for extra resources to top-up and enable the purchase of the next petroleum feedstock cargo and finished petroleum products.

Mr Speaker, the ERB price review using the CPM is premised on ascertaining by how much the prevailing wholesale and pump prices should increase or reduce so that the amount spent on the purchase of the petroleum imports is fully realised at an assumed exchange rate. 

On average, seven petroleum feedstock cargos are imported each year, for which an assessment to adjust prices is always done. Once a price review assessment is done, prices are expected to be adjusted only if wholesale prices change by more than 2.5 per cent. This is to allow for price stability.

The two major determinants of wholesale and pump prices are international oil prices and the exchange rate of the kwacha to the United States (US) Dollar. Any significant changes in these two factors should trigger a price adjustment. Sometimes, the impact of the two determinants cancels out, resulting in minimal impact on the pump price.

Sir, the other factors that can trigger a price change are the ERB adjustments to petroleum value-chain fees and charges, such as pumping fees, processing fees and margins for transporters, oil marketing companies (OMCs) and dealers. 

Mr Speaker, allow me to enlighten this House on the trends in the exchange rate and international oil prices. International oil prices had experienced significant reductions throughout 2015. From January to December, 2015, the price of crude oil fell by 20 per cent, that is, from US$46.40 per barrel to US$37.25 per barrel. Zambia imports either Oman or Murban Crude Oil. 

Mr Speaker, during 2015, the kwacha experienced historically high depreciation against major international currencies. Specifically, between January and December, 2015, the kwacha depreciated by 69.71 per cent from K6.47 to the US Dollar to K10.98. By the end of January, 2016, the local currency was trading at K11.26 to a US Dollar. 

Sir, in the last upward fuel price adjustment in July, 2015, an exchange rate of K7.80 to a US Dollar was used in the pricing of petroleum feedstock cargo and imported finished petroleum products. Since this last price adjustment, the kwacha has been extremely volatile, especially in the third quarter, when it depreciated steeply by 58.5 per cent when the next feed stock cargo was purchased. 

Mr Speaker, in mid 2015, international oil prices had been on a downward trend while the exchange rate has been depreciating or on an upward trend. The movement of the international oil prices and exchange rate in the opposite direction means that the gains that would have resulted from falling international oil prices have been eroded by the weakening kwacha against the US Dollar. 

Mr Speaker, the factors explaining why fuel prices have remained unchanged are the following:

(i)    while international oil prices have significantly fallen, the kwacha, however, has undergone significant and unprecedented depreciation that has cancelled out any benefit or gains that could have reflected in reduced pump prices. Specifically, between the last price adjustment in July, 2015 and December, 2015, international oil prices fell by 35 per cent while the kwacha against the US Dollar depreciated by 58.5 per cent;

(ii)    in pricing petroleum products, the exchange rate and international oil prices that are used hold until petroleum feedstock cargo is depleted. This is usually over a period of six to seven weeks. This means that any benefit, such as the price reduction resulting from a positive change in the two fundamental determinants of pricing, is only passed on to the consumers on a cargo by cargo basis. The last crude oil importation was in September, 2015. In between, there was no importation of crude oil. The latest cargo was received in December, 2015, apparently, when there was extreme exchange rate volatility. With such volatility, it is not prudent to adjust prices in any direction until the direction of the exchange rate is certain and predictable;

(iii)    while the international prices of oil have fallen, other cost elements in the CPM that need to be fully accounted for ought to increase. For example, the ERB proposed to increase margins for the OMCs and dealers, and introduce the fuel marking fee. All these measures would translate into a price increase and, therefore, erode or moderate any gains resulting from falling international oil prices; and

(iv)    the commingled petroleum feedstock that Zambia imports typically comprises crude oil at 41 per cent, condensate at 0.35 per cent, Naphtha at 13 per cent and Gasoil (Diesel) at 46 per cent. On the international oil market, the cost of commingled feed stock is relatively higher than that of pure crude oil that is normally quoted on the world market. 

Mr Speaker, the above are the simple reasons the fuel pump price has remained the same in spite of the low international crude oil prices.

I thank you, Mr Speaker.

Hon. Government Members: Hear, hear!

Mr Speaker: Hon. Members are now free to ask questions on points of clarification on the statement given by the hon. Minister of Energy and Water Development.

Mr Nkombo (Mazabuka Central): Mr Speaker, I have to thank the hon. Minister for this statement. The motivation of the point of order that I raised was in appreciation of the challenges and difficulties that the Zambian people are facing economically today. The hon. Minister has tried to explain the cancelling out of what would have been the benefits or gains as a result of the drop of the crude oil price worldwide from a record high of US$110 barrel to below US$27 per barrel. Her reasons are that part of the cancelling out is occasioned by the depreciation of the Zambian Kwacha.

Mr Speaker, it is common knowledge that from time immemorial, the Government of the Republic of Zambia has been charging the oil marketing companies (OMCs) Import Duty on finished products. This has principally been for the reason of keeping INDENI afloat to bear the price of the processes that the hon. Minister explained, that is, of piping the oil from the ship into the pipe at Dar-es-Salaam all the way to Ndola and separating it. I would like to find out from the hon. Minister whether she does not see the prudence of removing that 25 per cent Import Duty on finished products in order for her to ease the pain that has been occasioned by the depreciation of the kwacha which has cancelled out what should have been the gain for the all-time low world crude oil prices.
Ms Siliya: Mr Speaker, I heard many of things from my colleague. I think he is mixing up the facts. I will attempt to give him clarification.

Mr Speaker, first of all, I want to put it on record that in spite of all the challenges this country is facing, it continues to be one of the countries in the region with the lowest price of fuel. Most of the average price per litre of the countries in the region is above a dollar, but we continue to be below that. I think we should give ourselves a pat on the back. Seriously, had the Government gone to cost reflective prices, the same argument that my colleague is advancing that Zambians would have been suffering would actually have been the reality. The Government is actually subsidising and cushioning the citizens against these price fluctuations. If you take a country like South Africa, where they price their fuel weekly, every Wednesday, based on the exchange rate fluctuations, at what price is their fuel per litre now? In this country, since July, last year, when the last adjustment was done, the Government has continued to be on the side of the people …

Hon. Government Members: Hear, hear!

Ms Siliya: ... and has recognised that they are going through difficult times. This is why the Government has continued to subsidise the citizens in spite of the fluctuations because if, indeed, we were going to use market forces, the price of fuel would actually be higher than it is.

The issue of the 25 per cent actually consolidates the point that if the OMCs were importing the fuel now, it would actually be at cost reflective prices because they would actually consider the exchange rate of the kwacha and the international oil prices. All things being equal, take away the 25 per cent, it would mean that the gains are eroded, anyway. So, if the private sector was importing the fuel, the price would go through the roof and the same argument that is being advanced would be defeated.

Mr Speaker, in this matter, I am convinced, as the Minister, that the Government has shown commitment to keep the private sector going, considering that one of the most important factors of driving the economy is fuel. This is why you have not seen an adjustment in the fuel price. In fact, again, we should pat ourselves on the back because of the resilience of this economy. With all the shocks, we still managed to get this far. I think that is the clear answer.

Mr Speaker, I thank you.

Ms Imenda (Luena): Mr Speaker, the hon. Minister mentioned that commingled oil is more expensive than crude oil. When the Tanzania-Zambia Mafuta (TAZAMA) Pipelines and Indeni Petroleum Refinery Plant were established years back, I would like to believe and, in fact, know that our country used to import crude oil. I know this because I worked for what was then the Zambia National Energy Corporation (ZNEC) after I graduated from university. What necessitated the shift from buying crude oil, from Kuwait at that time, to buying commingled oil? Is it because the capacity of the Indeni Refinery Plant could not be sustained in terms of maintenance? 

Ms Siliya: Mr Speaker, this is an important question as it gives all of us an opportunity to appreciate the challenges the Indeni Petroleum Refinery Plant is faced with. Clearly, since the Indeni Petroleum Refinery Plant was commissioned, there has not been enough investment, over the years, to improve the technology there. At the moment, it has done the best it can, for example, in terms of processing diesel to ensure that it has about 0.5 per cent of sulphur. However, if it had the latest technology, it would actually go to international standards of about 0.05 per cent. To date, we import low sulphur diesel because it cannot be processed at the Indeni Petroleum Refinery Plant. So, this is the simple reason that necessitated the Government’s decision to begin to import commingled oil which was already pre-processed instead of the crude oil. It is purely an issue of technology. 

Mr Speaker, I thank you.

Brig-Gen. Dr Chituwo (Mumbwa): Mr Speaker, the hon. Minister mentioned that the two major components that determine the pump price are the international oil prices and the exchange rate. With the depreciation of the kwacha, does she not think that if we were to deal directly in the United States Dollar, we would have the gain because, then, the volatility in exchange rate would not suffice?

Ms Siliya: Mr Speaker, the legal tender of Zambia is the kwacha and fuel in Zambia is wholly imported. The international oil prices for fuel are denoted in the dollar. So, it means that we must always find the kwacha cover to procure fuel. Therefore, at any given time, we need to have enough kwacha to be able to cover the dollar price, which changes as we have seen now. 

Mr Speaker, as we have said, the volatility that we have seen in the economy is not unique to Zambia and I think this is not the norm. Under normal circumstances, we would be enjoying these gains from the low oil prices. I am hoping that sooner or later, this should actually be the situation.

Mr Speaker, I thank you.

Ms Namugala (Mafinga): Mr Speaker, it is true that, in fact, the Government is subsidising the pump price of fuel heavily. The ideal situation should be for us to expect a price increase and not a reduction because of the depreciating local currency, as the hon. Minister has elaborated. 

Mr Speaker, in her statement, the hon. Minister has indicated that there are cost elements in the Cost-plus Price Model that must be taken into account before determining the pump price. I am sure that the hon. Minister can confirm that one of those is the margin for the oil marketing companies (OMCs) and their dealers because they are key players in the supply chain. 

Sir, I would like to find out from the hon. Minister whether it is not now necessary to adjust the price of fuel at the pump or look at the taxes in the price structure so that the OMCs and their dealers can start operating profitably. 

Sir, the danger is that while the Government will subsidise the pump price of fuel, the OMCs and the dealers may not be able to meet the costs of running their businesses and, therefore, we will end up having shortages and queues at petrol stations. Can the hon. Minister indicate to us how she will ensure that the OMCs and the dealers continue to supply this very important commodity.

Ms Siliya: Mr Speaker, Hon. Namugala forgot to declare interest.

Laughter

Ms Namugala: I declare interest.

Ms Siliya: However, she raised a very important issue. Sir, it is not the intention of the Government to see those in business in the private sector, and especially Zambians, out of business. Not it at all. In fact, the Government’s intention is to see to it that these businesses grow so that they can provide jobs that Zambians need.

Mr Speaker, last year, there was a proposal from the oil dealers and transporters to adjust prices by about 36 per cent and 37 per cent, respectively. I know that in July or September, last year, the ERB awarded a 37 per cent increment to the transporters. The increase for the oil dealers was not awarded. 

Sir, clearly, everybody was expecting an adjustment in oil prices in December, 2015, but remember, like I said, this is when we experienced the highest volatility. It is not prudent to adjust prices at the time when you are not sure which direction you will go. This is why prices were not adjusted. However, the pricing adjustment is the responsibility of the ERB. We have a new board in place and will wait to hear its proposals. My responsibility, as Minister, is to ensure a balance between the interests of the private sector, whose morality is return on its investment, and on the expectations of the public.

Mr Speaker, I thank you.

Dr Musokotwane (Liuwa): Mr Speaker, the hon. Minister has told us that if the private sector was the one procuring fuel, the price of fuel, today, would have been higher than what it is. Contrary to that assertion, the oil marketing companies (OMCs) have said, over and over, that if they were given the permission to bring petroleum products in the country, they would be able to do so cheaply in comparison to the Government. This is because the OMCs would be able to get the oil from cheaper sources and control some of the inherent costs better than the Government does.

 In light of this, why does the hon. Minister not take the advice of the OMCs? By the way, the mining sector has also said the same thing over and over. Why does the Government not take the advice of the private sector to allow it to bring fuel at a cheaper cost? The hon. Minister’s solution of lowering the price of fuel through subsidies is not feasible. In one way or another, the consumers have to pay for that subsidy through higher inflation, as it is today, and through some other costs. 

Ms Siliya: Mr Speaker, sometimes, the Government moves at a very fast speed. We, as a Government, have been engaged in very serious negotiations with the OMCs because we are not averse to exploring any opportunity to ensure that we have consistent oil supply in the country at reasonable prices because oil is, obviously, wholly imported. In some instances, especially when we have had challenges, we have allowed the OMCs to import fuel in the country. We are doing this, at the moment, with Puma Energy. The Ministry of Finance has been gracious enough to waive the 25 per cent import duty on finished products. I do hope that you will not expect Puma Energy to sell fuel at a cheaper price. However, it is very concerned about the exchange rate and would only lower the price of fuel if the exchange rate remains stable. I think what is positive about this situation is that we are talking about it. 

Sir, as for the comment that the OMCs claim that they can source cheaper fuel from somewhere, I do not know where they would find it because the price of fuel is the same on the international market. So, I do not know that it is true that they would source cheaper oil. As a Government, we have been looking everywhere to see if we can find different international oil prices. 

I thank you, Sir. 

Mr Hamudulu (Siavonga): Mr Speaker, the hon. Minister has listed two factors that affect the price of fuel in the country and these are the international cost of oil and the exchange rate. However, the hon. Minister neglected to explain that our management of local factors in the supply chain of oil in the country also has an effect on the final pump price of oil products. For instance, at the moment, Indeni Petroleum Refinery Plant is shut down because the Government imported wrong crude oil. Can the hon. Minister explain how that bad decision is affecting the pump price of fuel in this country. 

Ms Siliya: Mr Speaker, the simple answer is that it is not affecting it at all. It is not the Government that made the decision to import contaminated oil. In fact, it is the Government that found out that the supplier had supplied contaminated oil and made the decision not to accept it. That is why Indeni Petroleum Refinery Plant shut down. You will recall that just a year ago, we had challenges in the supply of fuel because the same supplier had supplied another cargo of contaminated oil which caused problems for Indeni Petroleum Refinery Plant, forcing it to shut down. This time, Indeni Petroleum Refinery Plant has voluntarily shut down because it is not receiving any oil because the cargo it was supposed to receive is contaminated with organic chlorides of about 4 per cent, which is an unacceptable level. Therefore, it is awaiting the next supply of the cargo for it to re-open. However, the price of fuel is still the same and we have continued to supply fuel that is coming in as a finished product by road. So, that perception is absolutely wrong. 

I thank you, Sir. 

Mr Muchima (Ikeleng’i): Mr Speaker, we all depend on the oil that is imported to be mobile. I would like to find out from the hon. Minister whether it would not be prudent for the Government to take a deliberate move to invest in the outdated technology at Indeni Petroleum Refinery Plant to improve the services so that they can be in line with international standards. The machinery at Indeni Petroleum Refinery Plant is outdated. The fuel imported in the country generates a lot of money and the economy depends on this fuel. 

Ms Siliya: Mr Speaker, going forward, as a country, we have to make a decision on what kind of fuel infrastructure we wish to have. At the moment, we, in the ministry, are studying a report from 2013 which made various recommendations, including building new pipelines, especially from Tanzania, where we already have the infrastructure and the way leave to improve the fuel infrastructure. We are also having a healthy debate with all stakeholders on whether Zambia should continue to import commingled oil to refine at Indeni Petroleum Refinery Plant or whether we should just import finished products through a new, bigger pipeline, which will be 18 inches because the current one is between 8 and 12 inches. This is an active debate we are having in the ministry and I am sure that at an appropriate time, the Government will make a decision. 

I thank you, Sir. 

Mr Livune (Katombola): Mr Speaker, of late, we have had shortages of fuel in some parts of Lusaka and outside Lusaka. What is the problem causing this? Sometimes, it is frustrating to drive to a filling station only to find that the tanks are dry. Enlighten this House on what the challenge could be. 

Ms Siliya: Mr Speaker, in the recent past, there have been two reasons we have experienced disruption in the supply of fuel. The first one was the public strike by tanker drivers.

Interruptions

Mr Speaker: Order!

Ms Siliya: Mr Speaker, hon. Members recall that in December, last year, and in January, this year, we had a strike by the tanker drivers. Even though we had fuel stocks in the country, transportation was disrupted. Recently, we have experienced a few challenges because of the contaminated fuel. However, at the moment, I do not think that we are having any serious challenges in terms of fuel supply.

I thank you, Sir. 

Mr Kasonso (Solwezi West): Mr Speaker, I would like to find out from the hon. Minister whether we are up to date in paying the Preferential Trade Area (PTA) Bank which raises the letters of credit for the crude oil that is imported and some of the fuel that is delivered directly by some suppliers. If we are not up to date, how much do we owe?

Ms Siliya: Mr Speaker, the important thing is for me to assure hon. Members and the public that the Government is always committed to ensuring that this country has fuel so that the economy continues to move. The comfort you must have is that the Government always meets its obligations through the Ministry of Finance. 

I thank you, Sir. 

Mr Lufuma (Kabompo West): Mr Speaker, once beaten, twice shy. According to the hon. Minister, this is the second time that this supplier has supplied contaminated fuel. Why do we continue to import this commodity from the same supplier and what measures are being taken to ensure that this supplier is blacklisted? 

Ms Siliya: Mr Speaker, once beaten, twice shy is a very important point indeed. The good news is that the Government immediately terminated the contract and has since appointed another supplier. 

I thank you, Sir.

Mr Miyutu (Kalabo Central): Mr Speaker, I believe that there is not one definite right answer to any question, and so, finding a cheaper source of fuel is a responsibility that still rests on the shoulders of the Government. It should go deeper in finding the cheapest way of sourcing fuel. 

In her statement, the hon. Minister indicated that the Government is the main provider of fuel and crude oil. Currently, as explained by the hon. Minister, Indeni Petroleum Refinery Plant has shut down because of the contaminated oil which was imported.  

Mr Speaker, the hon. Minister has, however, moved away from the Government’s responsibility of importing crude oil and blamed the supplier, ... 

Interruptions

Mr Miyutu: …who was contracted by the Government.  

Hon. Government Members: Aah!

Hon. Opposition Members: Hear, hear!

Mr Speaker: Order!

Mr Miyutu: So, my question in brief is: Who should we blame here? Who is at fault? Is it the supplier contracted by the Government or the Government which contracted the supplier?

Hon. Opposition Members: Hear, hear!

Ms Siliya: Mr Speaker, we, on this side of the House, believe that it is important to be factual and to tell things as they are because we owe it to the citizens. 

Interruptions

Mr Speaker: Order!

Let us have some order, please.

Ms Siliya: Following all the necessary procedures, the Government contracted a supplier to supply commingled oil. Early last year, this commingled oil found itself at Indeni Petroleum Refinery Plant through the oil pipeline and caused damage. Consequently, processes were put in place to ensure that testing is done in Tanzania at the port before it even goes into our pipeline. This is why, this time around, we found out about this contamination before the oil even went through the pipeline. We found out about it at port in Tanzania and refused to allow it to go through our pipeline so that we could save Indeni. 

Mr Speaker, Indeni’s shutting down now is not because of problems, but because of not receiving any fuel. It is for this reason that we quickly terminated the contract. As the hon. Member for Kabompo West rightly put it, once beaten, twice shy. We did not want to experience any more damages and disruption of fuel supply at Indeni Petroleum Refinery Plant because of contaminated oil. So, we terminated the contract and quickly appointed another supplier. When this supplier is ready to supply, hopefully by the end of this month, Indeni will resume operations. 

However, this is only 50 per cent of the fuel consumed in the country. The other 50 per cent comes by road as finished products. This is why we have continued to have fuel supply in the country. Yes, it might not be at levels that we want it to be because Indeni Petroleum Refinery Plant, at the moment, is not receiving any fue. However, it was the right decision to make because if that contaminated fuel had found its way at Indeni Petroleum Refinery, we would already have had problems now of cleaning it up and removing it out of the pipeline. We would have been experiencing serious problems now because this oil has a lead time of about six to seven weeks. 

Mr Speaker, I want to reiterate that we, on this side, believe in being factual and telling the story as it is. 

I thank you, Sir.  

Hon. Government Members: Hear, hear!

Ms Lubezhi (Namwala): Mr Speaker, we are being told that Indeni Petroleum Refinery Plant has shut down because it was supplied with contaminated oil, hence it has no feedstock. I know for sure that when a plant shuts down, there are costs incurred. Hon. Minister, do you not think that when Indeni re-opens it will pass this cost on to the consumers?

Ms Siliya: Mr Speaker, let me try to provide further clarification on this issue. 

The Government made a deliberate decision to refuse to accept contaminated fuel. If this fuel had gone through the pipeline to Indeni Petroleum Refinery Plant, there would have been a six to seven weeks lead time before the situation could be resolved. That cost is bigger than any cost we have incurred by shutting down now and continuing to receive finished products by road. It is hoped that two to three weeks, we will get fuel coming into Indeni Petroleum Refinery Plant. I hope the answer is clear now. 

I thank you, Sir. 

Mr Mutelo (Lukulu West): Mr Speaker, the two major issues here are the low fuel price worldwide and the depreciation of the kwacha, which, at the moment, is at K11.4 to a United States (US) Dollar. Some time back, the kwacha was at K14 or K15 to a US Dollar and when it dropped to below K10, people in this House celebrated. 

Since the volatility affects the pump price, did we not have some gain when our kwacha had appreciated because the major thing here is only depreciation and the end-user would want the pump price to be low? If the Government is not listening, let the pump price be high and then the end-user will know what to do with it. 

Laughter 

Hon. Opposition Members: Hear, hear!

Mr Speaker: The difficulty I have is that there is no question. It is just a comment.

Laughter 

Ms Sayifwanda (Zambezi East): Mr Speaker, how long is the current stock of fuel going to last? The nation needs to be informed so that there is no panic? 

Ms Siliya: Mr Speaker, I can assure the nation that there is no reason to panic. If there were any changes in circumstances, I would have been the first person to let you know. We have enough fuel, at the moment, and business is going on as usual.

I thank you, Sir.

Mr Muntanga (Kalomo Central): Mr Speaker, the ordering of crude oil has been going on for a long time. However, when there was a change to commingled oil, we now hear stories of contaminated oil being imported. 

Sir, a procurement officer’s order states the fuel specifications needed. We seem to now check the oil we receive at the border after the supplier has supplied it, but how sure are we that procurement officers have ordered the correct oil?

Ms Siliya: Mr Speaker, what I got from the statement made by the hon. Minister of Foreign Affairs yesterday was that we need to learn to believe in ourselves. It is in our interest to order the right type of fuel. The Government has to put in place checks and balances when procuring fuel because it is aware that there are crooks out there. The fact that we received contaminated fuel is one of the reasons we put measures in place to test the fuel at the port before it enters our pipeline ...

Mr Lubinda: Yes!

Ms Siliya: ... because once it does, then, it is too late. 

Sir, it is in the interest of the taxpayers and hon. Members who provide oversight to ensure that we test this fuel in order to save the country from those people who intend to sell us contaminated fuel. 

Mr Speaker, these individuals may carry out a test and give us a certificate which states the quality of the fuel, but why should we believe them? We have engaged our own testers in Dar-es-Salaam to ensure that we retest the fuel and make sure that we get the right type. We believe that this is the right thing to do.

I thank you, Sir.

Hon. Government Members: Hear, hear!

Mr Ng’onga: Ema Minister aya!

Mrs Masebo (Chongwe): Mr Speaker, I commend the Government for the steps it took to ensure that it corrected the situation.

Mr Mwamba: Thank you!

Mrs Masebo: Sir, Government procurement seems to experience problems in all sectors. We have heard of fertiliser being sourced from the highest bidders which, in turn, passes the cost onto the customers. Therefore, what is the Government doing to ensure that what we procure is what we receive and that the officers in charge are carrying out their duties correctly so that the mishaps in procurement do not become a culture?

Ms Siliya: Mr Speaker, we provide potential suppliers of fuel with the specifications that Indeni Petroleum Refinery Plant requires. If the supplier does not meet those specifications, then, they will not qualify to supply the fuel. There are officers within the procurement process whose responsibility it is to test the fuel. The procurement process comprises those that give the specifications and those that ensure the specifications are met. We want to make sure that the fuel we are paying for with taxpayers’ money is what is delivered.

I thank you, Sir. 

Mr Mufalali (Senanga): Mr Speaker, the hon. Minister was asked who was bearing the cost of the closure of Indeni Petroleum Refinery Plant to which she responded that there was no crude oil coming in at the moment. How long will the stock of diesel, kerosene and petrol we have last?

Ms Siliya: Mr Speaker, we have about fifteen days worth of petrol, thirty-eight days worth of diesel and fifty to sixty days worth of kerosene, on average. Obviously, the stock levels will differ depending on consumption levels and on the prevailing situation. What is important to note is that we have fuel in the country and there is no reason for the public to panic.

Hon. Government Members: Hear, hear!

Mr Speaker: What about the cost of running Indeni?

Mr Livune: Hear, hear!

Ms Siliya: Mr Speaker, Indeni has shut down because we calculated that the cost of receiving the contaminated fuel would be more than it would cost to shut down for two to three weeks in order to get clean contaminated fuel. If we had received contaminated fuel, the lead time would have been about six to seven weeks.

Sir, in terms of the price adjustment of fuel, the most important contributors are the international oil prices and the exchange rate. There are a number of cost centres within the country, but I do not believe oil prices are adjusted just because Indeni Petroleum Refinery Plant has shut down for two to three weeks. I hope it is now extremely clear.

Interruptions

Mr Speaker: I would like to put this matter to rest, hon. Minister. As I understand the question, currently, Indeni Petroleum Refinery Plant has costs to meet in spite of the fact that it is not functioning. The question is: How are the costs of keeping it running in the interim borne?

Ms Siliya: Mr Speaker, Indeni Petroleum Refinery Plant is a business with operational costs. It has to take into consideration that it faces challenges at times. For instance, it usually closes once a year for maintenance. As part of its budget, Indeni has to ensure that it meets these costs. 

Sir, there are two issues here. The cost of Indeni Petroleum Refinery Plant closing because it is not getting fuel is cheaper than it would be for us to get contaminated fuel.

Interruptions 

Mr Speaker: Order!

Ms Siliya: However, the cost of the closure falls under the operational costs that Indeni Petroleum Refinery Plant will meet because it does this on a regular basis.

I thank you, Sir.

Hon. Members: Hear, hear!

__________

HER HONOUR THE VICE-PRESIDENT’S QUESTION TIME

Mr Namulambe (Mpongwe): Mr Speaker, last Saturday, we were burying Prof. Nkanza. According to the statements that were given during the funeral service, he was a person who distinguished himself by saving the lives of Zambian people. Why did the Government not consider giving him a State funeral owing to the services that he rendered to Zambians, especially that the institution which he has left behind will continue to serve many Zambians? Why did this Government not recognise Prof. Nkanza by giving him an Order of Distinguished Service like it does for others whose contribution to this nation has not been as much as his? 

Hon. Opposition Members: Hear, hear!

The Vice-President and Minister of Development Planning (Mrs Wina): Mr Speaker, Prof. Nkanza was one of the most distinguished scientists that Zambia has ever produced. His service to this country is well-known by everyone. The Nkanza Laboratories have contributed and still continue to contribute to saving lives in our country. The Government supported the family of Prof. Nkanza during the funeral. There are many ways that the Government of the Republic of Zambia accords respect to its leaders. There are many ways that the Zambian Government recognises the services that a distinguished Zambian renders to the country and it does not end at State funerals. There are many other ways that Prof. Nkanza will be remembered for the service he rendered to our country.

I thank you, Sir.

Mr Musonda (Kapiri Mposhi): Mr Speaker, sometime last year, Her Honour the Vice-President and Minister of Development Planning launched the Roadside Market Project at John Chinena, in Chibombo District. What is the progress on that project and what benefits do people expect to derive from it?

Interruptions

Mr Speaker: Which project? There seems to be a lot of murmurs, and so, you did not communicate.

Mr Musonda: Mr Speaker, I am talking about the Roadside Market Project.

Hon. Members: Where?

Mr Musonda: At John Chinena, in Chibombo District.

Laughter

The Vice-President and Minister of Development Planning: Mr Speaker, a lot of progress has been achieved at this particular site. 

Interruptions

The Vice-President and Minister of Development Planning: I am talking about the J. C. Market.

Laughter

Mr Speaker: I think let us be earnest.

Laughter

Mr Speaker: May Her Honour the Vice-President and Minister of Development Planning continue.

The Vice-President and Minister of Development Planning: Mr Speaker, since this market will house more than 1,600 marketeers, it needs a structure that will require adequate land to accommodate all the facilities that will be accommodated there. As such, the co-operative had to obtain title of the land that was offered to the marketeers by the chief, but this has taken long to be accomplished. However, I can assure the hon. members that some boreholes will be sunk there in the next few weeks and the title deed is expected in the next few days. The construction of the market structure may start as soon as possible. A lot of interest that has been generated in the community for construction of such markets all over the country. When funds are available, this idea will be taken to all provinces because our women, in particular, are spending days on the roadside selling their merchandise in makeshift places where sanitation is not guaranteed. We, therefore, want this concept to be spread throughout the country. However, firstly, we want to see the success of this market in Chibombo, which will be a flagship for all these markets that we plan to construct in the country.

I thank you, Sir.

Mr Shakafuswa (Katuba): Mr Speaker, 26 per cent of Zambia is electrified and out of this, only 5 per cent accounts for rural areas. We have been talking about the effect of the lack of rains, especially as it relates to electricity generation at the Kariba Dam, which has necessitated the importation of electricity. In the long run, what is the justification of continuing to subsidise electricity supply, especially in the rural areas, at the expense of other developmental agendas? What is the impact of this electricity importation to our country? Is it real or imaginary?

The Vice-President and Minister of Development Planning: Mr Speaker, this is a question that could ably be responded to by the hon. Minister of Energy and Water Development. This is an issue of national importance and interest. Every Zambian should take an interest in what is happening to the country today. The impact of the El Niño phenomenon has been so negative on the development of our country because it has affected the energy and agriculture sectors, the livelihoods of the people and literally every aspect of life in this county. As a result of what has happened, we have seen the impact of this climate change on the water availability in the country and on water bodies such as the Kariba Dam, on which we depend for generation of electricity. As a result of the low levels or volumes of water in the Kariba Dam, we could not generate enough electricity to support our development. 

Sir, consequently, the Government has had to fall back on certain measures and options to ensure that the country receives adequate electricity to sustain our industries and promote the agriculture sector. The cost of this emergency power importation has been very high. On average, the Government spends almost US$25 million per month to import energy from Mozambique. This was unbudgeted for. 

We know that if the Ministry of Finance has to source for this money, it has to mobilise resources from within the country that could have gone to finance other development sectors such as education, health, provision of water and many other services. However, since this Government is concerned about the welfare of its people, it wants to ensure that productivity continues and, therefore, had to go to the extent of importing energy from the neighbouring country of Mozambique. Suffice to say that the impact of climate change on the Zambian economy has been devastating.

 Mr Speaker, I thank you.

Mr Muchima (Ikeleng’i): Mr Speaker, in the first place, I would like to thank Her Honour the Vice-President and Minister of Development Planning for having attended Prof. Nkaza’s funeral, as a church mate, and also for observing a minute of silence in honour of the late Mr David Kambilombilo, former hon. Deputy Minister for the North-Western Province.

Mr Speaker, I want to find out from Her Honour the Vice-President and Minister of Development Planning how ready our country is in terms of resources for elections, more especially that exercises like voter registration have been done away with. Further, resources will be outstretched since the forthcoming elections will go hand-in-hand with a referendum. Is the Government ready and, if so, is there any co-operating partner which will assist us in terms of finances so that we can rest assured as a nation?

 The Vice-President and Minister of Development Planning: Mr Speaker, holding elections every five years is a mandate that the Constitution of Zambia has given to the Zambian people. Since, we know that we are going to have elections every five years, definitely, the Government budgets for that. 

Sir, we are experiencing challenges, as an economy, but we know and knew that we were going to hold elections and, therefore, we were prepared for that. We budgeted for the holding of elections in August, 2016, and they will be held when time comes.

Mr Speaker, as for support from our co-operating partners, yes, we have engaged some co-operating partners to support Zambia in this very serious endeavour. After all, we have to undergo elections because Zambia’s democratic credentials will be judged on the basis of the elections that we hold, how free and fair they will be and also the adequate preparations we put into the election processes. Therefore, I want to assure the hon. Member for Ikeleng’i that, as a Government, we are ready to hold the elections.

 I thank you, Sir.

Mr Muntanga (Kalomo Central): Mr Speaker, during the Assenting to the Constitution Bill Signing Ceremony, there was a lot of talk on the cost of ferrying people to witness the signing ceremony. When queried, the answer was that it was an in-party arrangement. However, there were costs that were associated with the rehearsals by the military personnel, the fly past and the actual event. Would Her Honour the Vice-President and Minister of Development Planning care to quantify and avail to the House the cost of holding that event at the Heroes Stadium as compared to the signing of any Bill at State House.

 The Vice-President and Minister of Development Planning: Mr Speaker, a constitution of any country is the supreme law of a nation because the governance of a country hinges on a good constitution 

 Hon. Government Members: Hear, Hear!

 The Vice-President and Minister of Development Planning: The Constitution of Zambia has been on the cards for a number of years.

Hon. Government Members: Hear, Hear!

The Vice-President and Minister of Development Planning: Sir, the country made many attempts to produce a Constitution and this exercise has been ongoing for many years. In 2015, the current Sixth President of the Republic of Zambia, Mr Edgar Chagwa Lungu, …

Mr Livune: Question!

The Vice-President and Minister of Development Planning: … mastered enough courage to give Zambians what they have been asking for for so many years.

Hon. Government Members: Hear, Hear!

The Vice-President and Minister of Development Planning: Definitely, this was an occasion to celebrate and we cerebrated in it in style.

 I thank you, Sir.

Hon. Government Members: Hear, Hear!

Mr Speaker: Order!

Is Her Honour the Vice-President and Minister of Development Planning able to apprise the House on the cost of the event in due course? 

Mr Muntanga: Yes!

The Vice-President and Minister of Development Planning: Mr Speaker, we would appreciate it if the hon. Member for Kalomo Central could bring a question to the House.

 I thank you, Sir.

Mr Speaker: Anyway, the figure will be availed to the House.

Mr L. Ngoma (Sinda): Mr Speaker, the Minister of Information and Broadcasting, Hon. Chishimba Kambwili, is on record as having stated that he was to undertake a countrywide tour to collect views on whether the people in this country want the Grade 12 requirement in order for aspiring candidates to contest the forthcoming elections. Further, he indicated that should the majority of the citizens indicate that they do not want this requirement, the Patriotic Front (PF) Government would bring an amendment before this House. Before he could conclude his nationwide tour, His Excellency the Republican President, Mr Edgar Chagwa Lungu, is on record as having said that those who do not have a Grade 12 certificate should probably start night school and that if this House proceeds to have that clause amended, then, he will not sign it. 

Now that there is a very clear conflict, may Her Honour the Vice-President and Minister of Development Planning, who is also Leader of Government Business in the House, categorically inform this House and the nation at large whether the Government will bring an amendment or not.

 Hon. Opposition Members: Hear, hear!

 The Vice-President and Minister of Development Planning: Mr Speaker, Hon. Kambwili did not undertake a tour to explain the Grade 12 qualification.

 Hon. Opposing Members: Aah!

The Vice-President and Minister of Development Planning: He took a tour to explain the new Constitution and its provisions.

Laughter

Mr Speaker: Order!

The Vice-President and Minister of Development Planning: Sir, in passing, he mentioned the issue of Grade 12 which was of concern to many people as well as political parties, Opposition political parties included.

 Mr Livune: Question!

 Hon. Government Members: Hear, hear!

The Vice-President and Minister of Development Planning: Mr Speaker, the people of Zambia requested for that provision to be inserted in the new Constitution …

Interruptions

The Vice-President and Minister of Development Planning: … and His Excellency the President, Mr Lungu, assented to the Constitution. Had we, as a political party, changed that provision, it would have caused another situation in the House …

Hon. Government Members: Hear, hear!

The Vice-President and Minister of Development Planning: … among those who oppose what the Patriotic Front (PF) stands for …

Hon. Government Members: Hear, hear!

The Vice-President and Minister of Development Planning: … because we would have been accused of manipulating the Constitution.

Hon. Government Members: Hear, hear!

The Vice-President and Minister of Development Planning: So, His Excellency the President assented to the Constitution on the basis of what the people of Zambia had asked for and wanted to be put in that Constitution. As such, I do not think that, as a Government, we can bring a Motion to Parliament thereon.

Hon. Government Members: Hear, hear!

The Vice-President and Minister of Development Planning: I thank you, Sir.

Ms Sayifwanda (Zambezi East): Mr Speaker, what message does Her Honour the Vice-President and Minister of Development Planning have for the good people of Zambezi East on the incomplete projects? I have in mind the Kanitota and Milamba school projects and Zambezi/Nyakuleng’a/Katontu and Zambezi/Chitokoloki/Mwembezhi road projects. The Zambezi/Nyakuleng’a/Katontu road project was even allocated K2.7 billion in the 2013 Yellow Book and Zambezi/Chitokoloki/Mwembezhi road project was allocated money in the 2015 Yellow Book.

The Vice-President and Minister of Development Planning: Mr Speaker, the message I have for the people of Zambezi East and other parts of Zambia where projects were not completed is that these projects will be completed when the resources are available.

I thank you, Mr Speaker.

Mr Livune (Katombola): Mr Speaker, Chief Moomba of Kazungula District has been unwell for some time and is in hospital, yet the Government has not cared to pay attention. Yesterday, Her Honour the Vice-President and Minister of Development Planning was in Livingstone, but she never cared to visit him. Why is this Government neglecting to care for my beloved Chief Moomba?

Hon. Opposition Members: Hear, hear!

The Vice-President and Minister of Development Planning: Mr Speaker, if there has been any government that has cared for the chiefs in this country, it is the PF Government.

Hon. Government Members: Hear, hear!

Mr Mwila: We even established a ministry for them.

The Vice-President and Minister of Development Planning: Mr Speaker, apart from establishing the Ministry of Chiefs and Traditional Affairs, the PF Government has increased allowances for chiefs, it has taken care of the chiefs in terms of illness and bereavement, has also taken the chiefs outside this country for treatment and is building palaces for them. I mean, what else can one ask for under these prevailing economic conditions?

Sir, whenever a chief is in hospital, we request for this information from the Ministry of Chiefs and Traditional Affairs and Provincial and District Administration. However, if this information is not given to us in Lusaka, it may not be possible for us to guess who, among the chiefs, is ill in any hospital. So, had I known that Chief Moomba is in hospital, definitely, I would have visited him.

I thank you, Sir.

Brig-Gen. Dr Chituwo (Mumbwa): Mr Speaker, it has been nearly two weeks since the Copperbelt University (CBU) and University of Zambia (UNZA) were closed due to the inability of the Government to pay students meal allowances.

Hon. Opposition Members: Hear, hear!

Brig-Gen. Dr Chituwo: Sir, the hon. Minister said that students were paid their allowances, but the students said that they did not receive them. We heard pronouncements that the students are not the Government’s children and so, somebody else must look after them. The underlying problem is finances. Could Her Honour the Vice-President and Minister of Development Planning assure the nation and the students that when the Bursary Scheme is converted into a loan scheme, money shall be made available timely.

The Vice-President and Minister of Development Planning: Mr Speaker, children in schools, colleges and universities are all our children and we worry about their future and the conditions under which they study. I had said earlier that this Government does not take delight in closing these universities. However, sometimes, there are compelling reasons for the Government to take such drastic measures. What happened at the University of Zambia (UNZA) and Copperbelt University (CBU) is of major concern and that is why the Government acted the way it did.

Sir, as for the lack of funds to meet the obligation of meal allowances, the hon. Member knows very well that meal allowances were provided although not in full. As a result, the students rioted before the whole obligation could be met. When loan schemes will be introduced, definitely, the Government will have to find money to ensure that the loans are honoured timely. This is a commitment that the Government is making and I am sure it will be followed.

Mr Speaker, the young people in Zambia are, in fact, lucky to get semi-free education in higher institutions of learning because in other countries, parents have to pay a full fee. However, in Zambia, at taxpayers’ expense, our children receive the best education that they can acquire from a university. We hope it will not be too long before those institutions of higher learning are opened once again so that our children can continue with their education.

I thank you, Sir.

Mr Mufalali (Senanga): Mr Speaker, the Zambia Police Force Spokesperson was saying that the use of tear gas is minimum force. According to the Patriotic Front (PF) Government, what weapon is used when maximum force is applied?

The Vice-President and Minister of Development Planning: Mr Speaker, a ministerial statement was issued on this subject in this House just two days ago and I think the definition of maximum force was given.

I thank you, Sir.

Mr Lufuma (Kabompo West): Mr Speaker, critics, ...

Mr Speaker:  Her Honour the Vice-President’s Time has elapsed.

_______

QUESTIONS FOR ORAL ANSWER

COMMUNITY SCHOOLS IN KALABO DISTRICT

311. Mr Miyutu (Kalabo Central) asked the Minister of Works and Supply:

(a)    how many community schools were in Kalabo as of 1st September, 2015;

(b)    how many community schools at (a), were taken over by the Government from 2011 to 2014, year by year;

(c)    if none, why, and

(d)    when the Government would take over all the community schools in the district considering that local communities were finding it difficult to run the schools.

The Deputy Minister of General Education (Mr Mabumba): Mr Speaker, as at 1st September, 2015, Kalabo District had twenty-three community schools, none of which have been taken over by the Government. However, the process of gazetting some of the community schools in the district had started. In addition, some Government salaried teachers have been deployed to community schools such as Siyongo, Yeta and Maoma. The Government is also constructing infrastructure at Yeta and Chilele.

Sir, the delay in gazetting or taking over the community schools is due to a lack of Payroll Management Establishment Control (PEMC) vacancies coupled with a lack of Treasury authority to create staff establishment. 

Mr Speaker, in the provision of education to the nation, the Government allows for the participation of all stakeholders, including communities, hence the opening up of community schools. The Government’s long-term strategic focus is to eventually take over community schools in a phased approach. You may also wish to note that while this process is being done, new community schools will continue to open up and as such, it is difficult to state when this entire process will be fully completed. However, the Government will continue deploying trained teachers and providing school grants and teaching materials to these community schools to supplement the communities’ efforts.

I thank you, Sir.

Mr Miyutu: Mr Speaker, twenty-three schools are currently being run by the poor communities of Kalabo District. During its campaigns, the Patriotic Front (PF) Government told the people of Kalabo that after forming Government, it would take over the running of all community schools in the twinkling of an eye.

Laughter 

Mr Miyutu: Mr Speaker, the hon. Deputy Minister now says that none of the schools have been taken over by the Government. Why did the PF tell the people that it would take over the schools when it formed Government?

Mr Mabumba: Mr Speaker, I do not even know whether Hon. Miyutu has evidence of our saying we would take over all the schools within a short period of time of forming Government. However, there has been commitment from the Government. For example, I have said that there are twenty-three schools in Kalabo. Just as I indicated earlier, we have deployed twenty teachers to some of these schools. We are also upgrading the infrastructure at schools like Yeta and Chilele. The hon. Member needs to recognise that there is a procedure that is followed when upgrading these community schools into fully pledged primary or basic schools.

Sir, I want Hon. Miyutu to help the people of Kalabo District, particularly the communities in which those schools exist, to liaise with our District Education Board Secretary (DEBS). If they do not provide this information, it becomes difficult for the Government to upgrade them or to provide the facilities that they require, including teaching and learning materials. So, Hon. Miyutu, I want to request you to go back to help these people. If they do not know the procedure, they should go to the DEBS office which will avail them information on the procedure of how to solicit support.

I thank you, Sir.

Mr Hamusonde (Nangoma): Mr Speaker, may I find out what difficulties the Government has in improving community schools in terms of providing them with teachers and improving infrastructure.

Mr Mabumba: Mr Speaker, we do not have any difficulties improving community schools. Maybe, for the information of hon. Members of Parliament, the community schools across this country account for 32 per cent of educational infrastructure. So, that goes to demonstrate the number of schools that we have across the country. So, if you have a community school in your constituency, bear in mind that it is part of the 32 per cent. In terms of statistics, we have about 2,600 community schools spread across Zambia. So, it is not an easy thing to allocate resources in one budget year to complete the upgrading of these community schools or even provide them with teachers.

 However, Sir, there has been a commitment on the part of the Government. For example, since we came into power in 2011, we have been progressively upgrading these community schools into fully fledged primary schools. The statistics are there. For example, in 2011, we upgraded about 236 and the same number in 2012 and 2013. So, that demonstrates our commitment, except that, like I have said, we have 32 per cent of community schools offering access to education in this country.

Mr Speaker, I thank you.

Mr Muchima (Ikeleng’i): Mr Speaker, it is the responsibility of the Government to provide education. The community is extending a hand to open up community schools because it has seen a need and has the desire to educate the Zambian population. The Government is training so many teachers, but is unable to employ all of them at a given time. Therefore, the communities have taken up the responsibility of running these schools themselves. The Government has shied away from extending a hand to help the communities further this goal. 

Sir, what plans does the Government have for these community schools by assisting them with the provision of teachers which the Government has trained, but failed to employ? Does the Government also have plans of starting to pay people helping the Ministry of General Education by working in community schools?

Mr Mabumba: Mr Speaker, I thank Hon. Muchima for his question. The Ministry of General Education is a key stakeholder in the operational management of the community schools. Like I have said, we have over 2,600 community schools spread across Zambia. If a community school follows the procedure of registration, basically being known at our DEBS, it becomes easier for us to provide trained teachers, teaching and learning materials and also becomes easier for those schools to be upgraded. 

However, Sir, what happens in many instances is that the communities establish a school because of the need for education, which they are entitled to but, unfortunately, do so without informing our relevant authorities. By the time our relevant authorities are provided with that information, it is very late for the Government to provide the necessary requisites to that particular school. However, it has been much easier for the Government to provide requisites to those schools that have followed the procedure. For example, I have just said that almost close to 800 community schools have been upgraded. We have also provided trained teachers to those community schools that we have upgraded. Apart from that, the schools are also receiving a grant and learning and teaching materials. 

Sir, my humble plea to hon. Members is to help us identify community schools in their constituencies that may have teething problems, probably, because they are not known by our respective institutions in particular districts. I urge them to see our DEBS so that we can establish the schools’ levels of need as regards teachers and learning and teaching materials.

Mr Speaker, as regards the unemployed teachers in community schools, it is not just a question of us taking them on board. We need to get Treasury authority from the Ministry of Finance for it to provide budget support. Moreover, the budget support which comes to the Ministry of General Education is approved by this House. We normally employ 5,000 teachers per year. Therefore, if we have to employ more than 5,000 teachers, we need to ask for extra funding from the Ministry of Finance. Nonetheless, our commitment is to continue supporting the community schools as we have done in the past.

I thank you, Sir.

Dr Musokotwane (Liuwa): Sir, community members and hon. Members of Parliament know the procedures with regard to registration of community schools. When we want to establish a community school, we inform the office of the District Education Board Secretary (DEBS). Thereafter, we construct the school through resources such as the Constituency Development Fund (CDF). When the school is completed, it is handed over to the DEBS office. 

However, the DEBS office fails to provide teachers in these schools. The DEBS office also fails to provide even things like chalk. We do not blame the DEBS because the same situation is prevailing even in Government schools. Therefore, what other excuse can the hon. Minister give us for the Government’s failure to take over community schools because the reason he has given us this morning is not true as far as the Western Province and Liuwa in particular are concerned?

Mr Mabumba: Mr Speaker, as I said, a community school will be assisted if the registration procedure has been followed. Obviously, I have not said that everything is rosy. There will be operational challenges that some of these community schools will continue facing. I have not said that we are going to provide all the teachers and teaching and learning materials at once. What I have said is that the Government is committed to supporting community schools as long as they follow the procedure of registration. If they have followed the procedure and they have not been supported, then, that is just an operational lapse on the part of our area DEBS. 

Mr Speaker, last year when we were recruiting 5,000 teachers, I expected the DEBS for Kalabo, for example, to know how many community schools are in the area so that some of the teachers in these community schools would be profiled and included in the recruitment. If that did not happen, then, it was probably just an operational lapse on our part as an institution. Nevertheless, these are issues that we will continue following up. We would like to work together with hon. Members and ensure that the community school concept is successful. The number of children that are accessing education through community schools in this country is quite large.

I thank you, Sir.

Mr Sing’ombe (Dundumwezi): Mr Speaker, the hon. Minister has indicated that there are twenty-three community schools in Kalabo and in the same breath said that the District Education Board Secretary’s (DEBS) office would have taken these schools on board if they were known. Therefore, who gave the hon. Minister the number of community schools in Kalabo if they are not known by the DEBS’s office?

Mr Mabumba: Mr Speaker, this information came from the DEBS’s office in Kalabo based on the question that was asked. However, the question is: Are these schools officially registered with the DEBS’s office? I do not have an answer to that. 

I thank you, Sir.

Mr Speaker: Order!

Business was suspended from 1045 hours until 1100 hours.

[MR DEPUTY SPEAKER in the Chair]

Mr Lufuma (Kabompo West): Mr Speaker, the most persistent complaint coming from community schools is essentially on the inability by community members to pay the teachers at community schools. Is the Government thinking of assisting these schools in any way such as by giving them a monthly grant so that the teachers can, at least, continue to teach the pupils?

Mr Mabumba: Mr Speaker, like I have always been saying, those community schools that are registered and gazetted receive a grant. They can use this for their operations. Those that have not been registered may not receive a school grant, but may be supported in different ways such as with the provision of teaching and learning materials and qualified teachers. 

Sir, I would like to take this opportunity to thank our co-operating partners and members of the community. Most community schools would not have been a success story if our co-operating partners and members of the community were not participating in the management of these schools. On the other hand, I want to repeat my plea to hon. Members of Parliament to make sure that every community school in their area is known and registered at the DEBS’s office because, then, it becomes easy for the Government to help them. We may not help all the community schools, but those that meet the benchmark will be supported in terms of provision of teaching and learning materials, teachers and grants. If they are not registered, it becomes a problem because, then, how do we give them a school grant?

I thank you, Sir.

POOR QUALITY ROAD MARKINGS AND INADEQUATE DISTANCE INDICATORS

312. Mr Mutale (Kwacha) asked the Minister of Works and Supply:

(a)    why the paint used for road markings easily faded away;

(b)    what measures were being taken to ensure that good quality paint was used; and

(c)    why the distance indicators on the roads were inadequate, countrywide.

The Deputy Minister of Works and Supply (Dr Mwali): Mr Speaker, the Road Development Agency (RDA) has noted, with concern, the fading road markings on some roads and this is attributed to poor quality paints used by some contractors. The RDA has since restricted the road marking paint to be used on all new road projects to thermal plastic paint, which is more durable. In addition to that, road studs are being installed to assist with the illumination of the carriageways. The distance indicators are not adequate on the roads as a result of vandalism and inadequate maintenance due to limited funds.

Mr Speaker, I thank you.

Mr Mutale: Mr Speaker, a lot of accidents occur in the night because of poor visibility on our roads. How urgently can the road markings be improved upon to the level of the road from Livingstone to Pemba which has very nice reflective road markings?

Dr Mwali: Mr Speaker, we agree with the hon. Member and that is the reason we are now insisting that correct paint is used on all new road projects. We have also directed that thermal plastic paint be used for road markings under routine maintenance.

I thank you, Mr Speaker.

Mr Mbulakulima (Chembe): Mr Speaker, firstly, let me thank Hon. Mutale, Member of Parliament for Kwacha Parliamentary Constituency, for being very consistent with regard to the road markings. His question has moved from Livingstone to Zimba. 

Sir, not long ago, Hon. Mutale asked why there were no road markings between Kapiri Mposhi and the Copperbelt, which is a heavily congested road. As the hon. Member has said, it is extremely dangerous to drive during the night, as accidents happen then, and during the rainy season. Hon. Minister, it has now been six months since you gave an indication that you would look into the issue of road markings on the stretch from Kapiri Mposhi to the Copperbelt. When do we expect an improvement on the road markings on this road?

The Minister of Works and Supply (Mr Mukanga): Mr Speaker, I think we will be able to address the issue. In as far as road markings between Kapiri Mposhi and Lusaka are concerned, there have been some improvements. However, there is still room for more improvement as issues such as cat’s eyes, whose absence on the roads make driving in the night difficult, have to be looked into. We will try to see if our agents can move in quickly and see what they can do to resolve the matter urgently. By urgent, I mean they should survey and ascertain if they have enough resources to work on the markings by the second quarter of the year. If that will be case, this matter will be resolved.

I thank you, Sir.

Mr Hamusonde: Mr Speaker, I think road markings are very important. When you travel from Lusaka to Mongu, animals cross the entire way. Is the hon. Minister considering putting up road markings on, at least, the road between Lusaka and Mumbwa, especially at places at which animals cross the road?

Mr Mukanga: Mr Speaker, we are thinking of going back to most of the roads that have no road markings during routine maintenance to ensure that we put in place road markings because they are a very important feature of road safety. Trying to establish exactly where the animals cross the road from might be a problem, but I think we can put some road signs on the stretch indicating that there are some animals crossing. We will do that because it will be easier for us.

I thank you, Mr Speaker.

GOVERNMENT’S FINANCIAL AND MATERIAL SUPPORT TO THE ZAMBIA NATIONAL FOOTBALL TEAM DURING THE AFCON 2012
313. Mr Lufuma asked the Minister of Youth, Sport and Child Development:

(a)    how much financial and material support the Government gave the Zambia National Football Team during the 2012 Africa Cup of Nations;

(b)    how much money Zambia received for winning the 2012 Africa Cup of Nations; and

(c)    how the money at (b) was used.
The Deputy Minister of Youth, Sport and Development (Mr Chitotela): Mr Speaker, the hon. Member of Parliament may wish to know that the Government spent a total amount of K1,233,170,000.00 (unrebased) in terms of financial and material support to the National Football Team during the preparations for the 2012 Africa Cup of Nations, broken down as follows:

Activity    Amount (ZMW)

Board and lodge    524,188,108.00

Daily allowances    650,715,892.00

Air tickets    58,266,000.00

Total    1,233,170,000.00

Mr Speaker, I wish to inform the hon. Member of Parliament that during the tournament, the Government spent K1,228,683,100 towards the upkeep of the team and K10,279,800,150 was spent on winning bonuses. The total came to K11,508,483,250.00. 

Mr Speaker, the expenditure was broken down as follows:

Stage    Winning bonus    Daily upkeep allowances    Total (ZMW)
                     and other expenses

Group stage    1,809,300,000.00    762,405,000.00    2,569,705,000.00

Quarter finals    2,316,100,000.00    261,396,000.00    2,577,496,000.00

Semi finals    2,851,400,150.00    204,882,100.00    3,056,282,250.00

Winning the
Cup    3,305,000,000.00    3,305,000,000.00

Total    10,279,800,150.00    1,228,683,100.00    11,508,483,250.00

Mr Speaker, therefore, the Government spent K12,741,653,250.00 towards support to the National Football Team during the 2012 Africa Cup of Nations.

Mr Speaker, the hon. Member may wish to know that the Zambian Government received an amount of US$1.2 million for winning the 2012 Africa Cup of Nations in Libreville, Gabon.

Sir, the US$1.2 million was spent as follows:

Activity    Amount (US$)

Executive members payment    44,750.00

Capacity building payments    76,502.83

Association operational payments    418,774.17

Share of prize money to clubs    209,455.96

Payments to the AFCON Team    456,883.41

Total    1,206,366.37

I thank you, Mr Speaker.

POLICE STATION ESTABLISMENT IN LUKONA
314. Mr Miyutu: to ask the Minister of Home Affairs:

(a)    whether the Government had any plans to establish a police station in Lukona area in Kalabo Central Parliamentary Constituency to curb the escalating crime levels;

(b)    if so, when the plans would be implemented;

(c)    if there are no such plans, why; and

(d)    what plans the Government had, in the interim, to maintain law and order in the area.
The Deputy Minister of Home Affairs (Col. Kaunda): Mr Speaker, the Government is aware of the escalating crime levels in Lukona Area, in Kalabo Central Parliamentary Constituency. However, it has no immediate plans to construct a police station because of limited funds. In future, the Government may consider constructing a police station when funds are available. 

Sir, in the interim, the area is being policed by Kalabo Police Station. The community has offered accommodation for the officers who will be exchanging on a monthly basis. We have given them a motorbike for patrols in the area.

Mr Speaker, I thank you.

Mr Miyutu: Mr Speaker, the deployment of these officers is still pending even when accommodation is ready. What measures will be put in place to enhance the deployment?

Col. Kaunda: Sir, as of this morning, after a meeting with the command, we can assure the hon. Member that the officers will be deployed before the month end of February, 2016, and the motorbike will also be dispatched. 

Mr Speaker, I thank you.

Mr Antonio (Kaoma Central): Mr Speaker, the hon. Minister said that a motor bike has been given to Lukona. How many officers can use a motor bike? Why not consider sending a reliable vehicle to the area?

Col. Kaunda: Sir, I did not say that we have sent a motorbike, but that we are about to. However, let me state that we have tricycles that can carry two officers at a time. It was a bit of a problem to send a vehicle because, as you know, we have a shortage of vehicles in the police force. When available, we shall send one.

Mr Speaker, I thank you.

COMMENCEMENT OF SOLAR POWER PROJECTS ON NATIONAL GRID

315. Mrs Masebo (Chongwe) asked the Minister of Energy and Water Development when the solar power projects being promoted by the Industrial Development Corporation (IDC) and the International Finance Corporation (IFC) would begin to produce and supply electricity to the national electricity grid.

The Deputy Minister of Energy and Water Development (Mr Zulu): Mr Speaker, solar power projects being promoted by the Industrial Development Corporation (Zambia) Limited (IDC) and the International Finance Corporation (IFC) are expected to begin producing and supplying electricity to the national grid before the end of this year. The programme will begin with round one with a target of 100 MW divided into two projects of 50 MW each.

Mr Speaker, I thank you.

Mrs Masebo: Mr Speaker, before I ask my question, I would like to say that my name is Silvia and not Silivia. 

Laughter

Mrs Masebo: It is spelt with Sy and not Si.

Mr Deputy Speaker: I am sure that is ...

Laughter

Mrs Masebo: Mr Speaker, what will be the impact once the project in question is fully implemented? I ask because for some time now, people have been hoping that the situation of power supply in the country will improve by August, this year.

Mr Speaker, you can see that, this morning, I came with a dress that is not ironed because when I woke up at 06 00 hours, there was no electricity. This is the case every morning. The Minister, Hon. Dora Siliya, is saying that we should acquire generators, but we cannot afford them due to their high cost. What will be the impact when this project commences so that we can come to the House with ironed dresses?

Laughter

Mr Deputy Speaker: You should have asked me to assist you to iron the dress.

Laughter

Hon. Members: Hear, hear!

Mr Zulu: Mr Speaker, I thank Hon. Sylvia and not Silivia Masebo.

Laughter

Mr Zulu: Let me take you through what we have done. We have done the preparation of key permitting documents, particularly the Power Purchase Agreements (PPA), the selection to locate the plants, pre-qualification of the potential power producers through a transparent and competitive bidding and request for the qualification process. There are five processes to undertake and we are now at number four. We are selecting the winnings. We shortlisted eleven and will pick the cheapest. Thereafter, constructing and commissioning will be done. 

Mr Speaker, as for her dress, I would advise the hon. Member to buy wash and wear outfits.

Laughter

Mr Zulu: Mr Speaker, the benefits of the solar power projects when completed are numerous. Obviously, economic activity will improve as the power deficit has affected the country negatively. So, when the 100 MW gets into the grid, we will see a lot of improvement in the delivery of health services. Children in the education sector will be able to study and the mines will improve as we will be able to send more power to the mining companies. It is obvious that economic activities will improve.

Mr Speaker, I thank you.

Mr Muchima: Mr Speaker, the solar power project is a welcome alternative, especially after learning a lesson the hard way. Zambia is gifted with enough sunshine. Solar power will help as an alternative source of energy as opposed to dependence on hydro power. 

Sir, why, then, is the Government being restrictive on the many who can compete favourably in this sector? Why is it stiffening the conditions for the signing of the Power Purchase Agreements (PPAs)? Why can it not make the sector liberal for people to compete like the Movement for Multi-party Democracy (MMD) Government did with the transport sector and resolved transport problems in Zambia?

The Minister of Energy and Water Development (Ms Siliya): Mr Speaker, there are a number of issues that we have to take into consideration. Firstly, we have to assess the capability of these independent power producers to walk their talk because, in the past, we have had some of them ask for Power Purchase Agreements (PPAs), yet are not even able to generate resources. They begin to ask for sovereign guarantees once contracted and these are not good for the country.

Secondly, evacuation of power in this country can only be done by the Zambia Electricity Supply Corporation (ZESCO). So, we have to depend on ZESCO’s grid infrastructure capacity to evacuate the power. You need a clean wave of solar, which is a technical issue. Some companies have the technical ability to produce a clean wave while others do not.

Ultimately, this power has to be paid for. If the only evacuating company is ZESCO, it means that it has to afford this power as well. So, there are issues of tariffs to be negotiated because we cannot buy all the power available. Of course, currently, as an emergency measure, we have been buying expensive power, but as far as solar power is concerned, we are happy to see that the trend in tariffs is downwards. So, all those are issues that we have to take into consideration before we are able to give a PPA.

Mr Speaker, I thank you.

Mr Mbewe (Chadiza): Mr Speaker, I thank the hon. Deputy Minister for his good answer. He is looking at me and smiling.

Laughter

Mr Mbewe: Mr Speaker, may I find out why the Government does not liberalise ZESCO so that it can operate as an independent power utility instead of its being a monopoly. 

Ms Siliya: Mr Speaker, I do not think that the time of a crisis is the time to make long-impacting decisions. We appreciate the issues surrounding ZESCO, but I think our immediate priority, at the moment, is to ensure that we maintain the current level of power in the country and hopefully begin to resolve the issue so that we can see reduced load shedding and, ultimately, none at all. Then, we can address all the issues at ZESCO, especially the inefficiency issues, in terms of delivery of power. At the moment, our priority is to ensure that we maintain the current level of power.

I thank you, Sir. 

Mr Namulambe (Mpongwe): Mr Speaker, how much will this project cost? 

Ms Siliya: Mr Speaker, the solar power project that is being procured through the Industrial Development Corporation (IDC) and supported by the World Bank, through the International Finance Corporation (IFC), is going to cost about US$1.2 million for 600 MW. Two companies will be selected from the eleven that have been shortlisted to supply 600 MW. There was a lot of interest generated by our advertisement and about forty-eight companies came forward. I just have to make sure that I know the correct figure of the cost of the solar power to be supplied, if the US$1.2 million I have given is not correct. 

I thank you, Sir. 

SOCIAL VULNERABILITY INDEX IN CHADIZA DISTRICT

316. Mr Mbewe asked the Minister of Community Development and Social Welfare:

(a)    whether any research was conducted to determine the Social Vulnerability Index in Chadiza District between 2011 and 2014;

(b)    if so, what the Social Vulnerability rate in the district was; and 

(c)    what measures the Government had taken to reduce the poverty levels in the district. 

The Deputy Minister of Community Development and Social Welfare (Mr Chisala): Mr Speaker, the ministry did not undertake any research to determine the Social Vulnerability Index in Chadiza District between 2011 and 2014. However, the ministry relies on the Living Conditions Monitoring Survey, the 2015 Mapping of Sub-National Poverty in Zambia Report and the Vulnerability Assessment conducted by the District Disaster Management and Mitigation Unit to determine the poverty and vulnerability rate in the district. 

Sir, in terms of poverty and vulnerability, Chadiza stands at 60 per cent and the vulnerability rate is at 5.0.

Mr Speaker, the ministry is implementing the Women Empowerment Expanded Food Security Pack and the Public Welfare Assistance Scheme to reduce the poverty levels in Chadiza District. 

I thank you, Sir. 

Mr Mbewe: Mr Speaker, it is unfortunate that the ministry did not undertake the Social Vulnerability Index in Chadiza. One of the ways the Government can help the poor people in Chadiza is by implementing the Social Cash Transfer Scheme. The ministry has been going round and round over this issue. When will the ministry start solving this problem of poverty by implementing the Social Cash Transfer Scheme for the people in Chadiza? 

Mr Chisala: Mr Speaker, as the hon. Member has pointed out, our ministry has been sending officers round the country with a view to capture beneficiaries for the Social Cash Transfer Scheme. So, the scheme will start by April, 2016. 

I thank you, Sir. 

Mr Muchima: Mr Speaker, the Social Vulnerability Rate for Chadiza is known. What is the purpose of this Social Vulnerability Index? It gives us a yardstick we use to apply Government resources when assisting poor people, especially those who are failing to pay school fees for their secondary and primary school going children. Their children are constantly being chased away from schools because of the failure to pay school fees. What is the Ministry of Community Development and Social Welfare doing to alleviate the problems of the poor people in Chadiza and Ikeleng’i who cannot afford to pay their children’s school fees? Why is the ministry allowing its colleagues in the Ministry of General Education to continue chasing pupils who have not paid school fees away from schools?

The Minister of Community Development and Social Welfare (Ms Kabanshi): Mr Speaker, we have not undertaken the Social Vulnerability Index in Chadiza, but are using the 5.0 vulnerability rate for Chadiza which was arrived at by the District Disaster Management and Mitigation Unit. The poverty levels are very high. Therefore, the ministry is implementing programmes like the Women Empowerment Expanded Food Security Pack, which has empowered 3,000 farming households in Chadiza. That is the way we thought we could alleviate poverty in this district. 

I thank you, Sir. 

RURAL WATER AND SANITATION PROJECT IN MITETE DISTRICT

317. Mr Mutelo (Lukulu West) asked the Minister of Local Government and Housing: 

(a)    when the Rural Water and Sanitation Project launched by the hon. Minister in Mitete District would commence;

(b)    what the cost of the project was;

(c)    whether the money for the project had been remitted to Mitete District Council; and 

(d)    whether a similar project had commenced in any other part of the Western Province.

The Deputy Minister of Local Government and Housing (Mr N. Banda): Mr Speaker, the Rural Water and Sanitation Project funded by the African Development Bank (ADB) has already commenced in Mitete District. Preparations for actual water supply and sanitation infrastructure development will start this year. 

Sir, the cost of the entire project for the Western Province, including Mitete District, is US$38.23 million. 

Mr Speaker, the money will be remitted to the district councils, including Mitete District Council, as soon as the funds are disbursed by the ADB to the Ministry of Local Government and Housing.  
    
Sir, I would like to take advantage of this opportunity to indicate that at the time that this response was prepared, the process had not yet taken place. However, the money has now been released to Ministry of Finance and is in the process of being sent to districts. 

Mr Speaker, no other district in the Western Province has started implementing the water supply and sanitation infrastructure development project. Bank accounts for each district, including Mitete, in which funds will be disbursed for this project have been opened.  

I thank you, Sir. 

Mr Mutelo: Mr Speaker, the launch of this project was in Maungu, in the Western Province.  Hon. Minister, this money which has already been released to the Ministry of Finance might get stuck there. When will it hit the accounts of the Western Province districts? 

Mr N. Banda: Mr Speaker, the disbursement of these funds is a process. The money which was released to the Ministry of Finance is actually in the Bank of Zambia. The process is taking place now. We expect that these monies will be in the right accounts as soon as this process is completed. 

I thank you, Sir.

LUSAKA CITY MAJOR EXIT ROADS EXPANSION

318. Mr Mutale asked the Ministry of Works and Supply:

(a)    whether the Government had any plans to expand the following major exit roads in Lusaka City, in order to reduce traffic congestion:

(i)    Lusaka/Kafue Road;

(ii)    Great East Road;

(iii)    Lusaka/Kabwe Road; and

(iv)    Mumbwa Road;

(b)    if so, when the plans would be implemented; and

(c)    if there were no such plans, why. 

Mr Mwali: Mr Speaker, yes, the Government has plans to expand the major exit roads in Lusaka City, as outlined in part (a) of the question, in order to reduce traffic congestion.

Expansion of the Lusaka/Kafue Road to a dual carriageway will be carried out under the public-private partnership (PPP) approach which is currently under procurement. Works are expected to commence within the second quarter of 2016. Expansion of the Great East Road will be considered in future work plans, subject to availability of funds.

Mr Speaker, an addendum to include an expansion of 6 km of the Lusaka/Kabwe Road, from Mandevu Junction towards Kabwe, under the Lusaka 400 (L-400) Road Project, has been signed and commencement of works awaits confirmation of availability of funds by the Ministry of Finance. 

In addition to this, the Lusaka/Ndola Road is one of the roads earmarked for upgrading to dual carriageway under the PPP arrangement, which is currently under procurement. Works for the PPP projects are scheduled to commence in the second quarter of 2016.

Lastly, the expansion from two lanes to four lanes of the Mwamba Road, from its junction with Lumumba Road to 9.4 km, has already been completed under the L-400 Project and has since been opened to traffic. 

Mr Speaker, I thank you. 

Mr Mutale: Mr Speaker, I have seen the works on the Mumbwa Road and driven on it. Hon. Minister, the Mandevu Turn-off going towards Kabwe is a big headache for people travelling into and out of Lusaka for business because of much delay. You mentioned that the project will be undertaken in the second quarter of 2016, but what immediate temporal measures will be put in place to decongest the area so that the flow of traffic is enhanced?  

Dr Mwali: Mr Speaker, the good thing is that we have added an addendum to a running contract. Once availability of funds is confirmed, the contractor will speedily work on this stretch.

I thank you, Sir. 

Mr Musonda: (Kapiri Mposhi): Mr Speaker, I have noted that it is very easy for Lusaka roads to be expanded. Does the hon. Minister have plans to expand roads in other towns?

Dr Mwali: Mr Speaker, we do have plans to work on other roads. However, currently, we are giving priority to areas that have serious problems. 

I thank you, Sir. 

Mr Shakafuswa (Katuba): Mr Speaker, the hon. Minister said that funds allowing, the project to expand the Great North Road from Heroes Stadium to Katuba Constituency will be undertaken. 

Hon. Minister, do you not see the urgency for this expansion, considering that the population is moving away from the city to the peripherals, which has resulted in people waking up at 4 am to take their children to school, failure to which they will be late? Are you not looking at such a project as very urgent to ease the movement of people who are coming from the Copperbelt and those of us in Katuba and other areas? 

Dr Mwali: Mr Speaker, I did indicate that the Government is treating the expansion of this stretch as an urgent matter, hence the attachment of an addendum to a running contract. 

I thank you, Sir. 

Prof. Lungwangwa (Nalikwanda): Mr Speaker, can the hon. Minister enlighten the House on why the dual carriageway on Mumbwa Road ends at the point where Los Angeles joins it, instead of extending it to Nampundwe Turn-off, given the traffic congestion along this increasingly busy road?

Dr Mwali: Mr Speaker, the designs of those works were informed by a very extensive study which included traffic counts. This is why the alignment ends where it does.  

I thank you, Sir.

FISH FEED PRICE

319. Mr Namulambe asked the Minister of Fisheries and Livestock:

(a)    what measures the Government had taken to ensure affordable price of feed for fish; and

(b)    whether there were any plans to subsidise the imported raw materials used in the production of the feed.

The Deputy Minister of Fisheries and Livestock (Mr Evans): Mr Speaker, the Government, through the Department of Fisheries, trains fish farmers in the production of fish feed using raw materials available locally. The National Aquaculture Research and Development Centre at Mwekera, in Kitwe has developed a soya bean-based fish feed which is lower in cost compared to fish meal-based fish feeds. Training of extension officers is being conducted at Mwekera so that the technology can be shared with fish farmers across the country. Additionally, some of the mills acquired by the Government will be dedicated to the processing and making of low cost fish feed in selected parts of the country.

Sir, the Government has no immediate plans to subsidise raw materials used in the production of fish feed.

I thank you, Sir.

Mr Namulambe: Mr Speaker, how will the Government ensure that the fish farmers get that technology because, currently, even the fisheries officers dotted around the districts do not move around and do not know about this research?

The Minister of Fisheries and Livestock (Mr Monde): Mr Speaker, we have some of the raw materials that are needed to make fish feed within the country. The Government is trying to see how it can get the concentrates. The raw materials in question are, for example, concentrates in vitamins, which can be sourced from lemons, and concentrates in protein which can be sourced from soya beans and cotton cake. The Government is carrying out training workshops for our fish farmers to enable them to engage in on-farm fish meal production. After the training, farmers will be able to mix maize bran with available materials to make fish meal.

Sir, last month, we had a training workshop with 817 fish farmers from the North-Western and Copperbelt provinces on how to produce fish feed at affordable prices.

I thank you, Sir.

Prof. Lungwangwa: Mr Speaker, I had a short discussion with the hon. Minister of Fisheries and Livestock before this question came up and he mentioned that he was looking forward to challenging questions on this particular issue. 

Sir, what the hon. Minister outlined in his response is the challenge of industrialisation in the fish industry. The poultry industry has entrepreneurs who have established feed industries for the sector. What steps has the Government taken, so far, to ensure that it attracts entrepreneurs who can establish industries in the country to produce stock feed which farmers can buy locally?

Mr Deputy Speaker: Hon. Minister, since you were looking forward to more challenging questions, there you are. 

Laughter

Mr Monde: Mr Speaker, I thank Hon. Prof. Lungwangwa for that very simple question.

Prof. Lungwangwa: Aah!

Laughter 

Mr Monde: Sir, the Government places a lot of emphasis on the fish industry. We need to create a market in order to attract manufactures of fish feed. This can only happen when we have more people engaging in fish farming. Fish farming is quite a new phenomenon to this country and there are large numbers of people who want to venture into it. 

Mr Speaker, fish feed is closely related to chicken feed. The only differences between the two are the mixtures and also what type of fish, for example, fingerlings, fliers or big fish, you are feeding. The formulae are quite similar and this is why the companies that are producing fish feed, such as National Milling, Novatek and Tiger Feed, are the same ones that produce chicken feed. 

Sir, as a result of this high demand and the creation of numerous fish farms such as Yalelo, Lake Harvest and Mpende Fisheries dotted throughout the country, there are many more companies that are interested in entering the market. We also have an expression of interest by one of the biggest fish feed companies in Africa regarding setting up a fish feed production company in Siavonga. Discussions are still ongoing, but this shows that Zambia is an attractive destination for such levels of investment. 

I thank you, Sir.

SUPPORT TO RESEARCH ACTIVITIES AT TERTIARY INSTITUTIONS 

320.    Mr Musonda asked the Minister of Higher Education:
(a)    what plans the Government had to promote research activities at tertiary institutions; and 

(b)    if there were no such plans, why.

The Deputy Minister of Higher Education (Mr Mushanga): Mr Speaker, the Government, through the Ministry of Higher Education, recognises the important role research plays, especially at tertiary education level. The Government, through the Ministry of Higher Education and other ministries, has put measures in place measures to promote research, which include:
(a)    developing a critical mass of research personnel in universities through retraining;

(b)    embarking on infrastructure development, renovating already existing infrastructure and equipping institutions with current equipment; and 

(c)    supporting research and development activities through established research and development funds.

So far, through the Ministry of Higher Education, two funds have been put in place and these are the Strategic Research Fund and the Science, Technology and Innovation Youth Fund. 

I thank you, Sir. 

IMPLEMENTATION OF WARD DEVELOPMENT COMMITTEES’ CREATION DIRECTIVE

321. Mr Mutelo (on behalf of Mr Chitafu) (Kafulafuta) asked the Minister of Local Government and Housing:
(a)    what had caused the delay in implementing the Government directive to create ward development committees; and

(b)    when the directive would be implemented. 
The Deputy Minister of Local Government and Housing (Mr Kafwaya): Mr Speaker, I wish to inform the House that the delay in implementing the Government directive to create ward development committees (WDCs) is due to budgetary constraints which affected the councils.

Sir, however, the Government has directed councils to seek Treasury authority to use the Local Government Equalisation Fund (LGEFs) to form the WDCs. The directive is currently being implemented. 

I thank you, Sir.

Mr Mutelo: Mr Speaker, does it mean that the authority has been granted and that it is just the funds which are not there? 

The Minister of Local Government and Housing (Mr Kampyongo): Mr Speaker, the hon. Deputy Minister indicated that the delay was as a result of the financial constraints. He has also indicated that the councils have been requested to seek Treasury authority to apply part of the LGEF to ensure that the implementation goes on.

I thank you, Sir.
CO-OPERATIVE BANK RE-OPENING

322.  Mr Mbewe asked the Minister of Commerce, Trade and Industry:
(a)    whether the Government had any plans to re-open the Co-operative Bank to support agricultural investments; and

(b)    if so, when the plans would be implemented.
The Deputy Minister of Commerce, Trade and Industry (Mr Mpundu): Mr Speaker, the Co-operative Bank was not owned by the Government. It was owned by the co-operative movement comprising primary co-operative societies, District Co-operative Unions (DCUs), Provincial Co-operative Unions (PCUs), the Zambia Co-operative Federation (ZCF) and the Credit Union and Savings Associates (CUSA). Therefore, any decision to re-open the bank would be dependent on the co-operative movement itself. 

Sir, as already indicated, the Co-operative Bank was owned by the co-operative movement. However, if the co-operative movement resolves to re-open the bank at any time in the future, the Government will render the necessary support. The Government’s objective is to support the growth of co-operatives in all key sectors, including the financial sector. However, it is important that the growth and drive of the co-operative movement is member-driven.

I thank you, Sir.

Mr Mbewe: Mr Speaker, …

Mr Mutelo: On a point of order, Mr Speaker.

Mr Deputy Speaker: A point of order is raised.

Mr Mutelo: Mr Speaker, were the bride and bridegroom, Mr and Mrs Muliokela, in order not to invite me to their wedding? 

I seek your serious ruling, Sir.

Laughter

Mr Deputy Speaker: I see no relevance in that point of order to what we are discussing. 

Can the hon. Member for Chadiza Continue. 

Mr Mbewe: Mr Speaker, it is true that the Co-operative Bank was assisting farmers and co-operatives. Now that most of the co-operatives which have been moved to the Ministry of Commerce, Trade and Industry will need assistance in terms of loans and access to other services, what measures has this Government put in place to enable people to access these facilities?

The Minister of Commerce, Trade and Industry (Mrs Mwanakatwe): Mr Speaker, that is a pertinent question because we, as a ministry, are reviewing the whole co-operative movement, restructuring it and ensuring that we have a co-operative movement that is workable. We want to move away from thinking that co-operatives are agriculture-based. Co-operatives are every part of business. So, I would like to ask that I am given the opportunity to come back to this House with a proper ministerial statement to answer all issues pertinent to co-operatives and share our thinking on the way forward.

 I thank you, Sir.

Prof. Lungwangwa: Mr Speaker, in response to the question, the hon. Minister has told the House that it is not the responsibility of the ministry or the Government to establish co-operative banks, but that the responsibility squarely lies on the co-operatives themselves. Given the important role of our agriculture sector in our development aspirations, is the ministry not contemplating coming up with strategies that will act as a catalyst that will prompt the co-operative movements to think about the establishment of these banks in different parts of the country?

Mrs Mwanakatwe: Mr Speaker, like I said earlier, I would like to seek your indulgence because we are thinking through the strategy for co-operatives. Yes, agriculture is a very important aspect of this movement and funding of the co-operatives has to be a part of the strategy. We have more than 30,000 co-operatives in Zambia of which nearly half are not operating. We are scrutinising each one of them and deregistering quite a few that have been moribund for quite a few years. I would really like to seek your indulgence again because this is in the process and our strategy will be disclosed to this House.

I thank you, Sir.

_______

MOTION

ADJOURNMENT

The Vice-President and Minister of Development Planning (Mrs Wina): Mr Speaker, I beg to move that the House do now adjourn.

Question put and agreed to.

_______

The House adjourned at 1203 hours until 1430 hours on Tuesday, 23rd February, 2016.