Wednesday, 27th January, 2021

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Wednesday, 27th January, 2021

                            

The House met at 1430 hours

 

[MADAM FIRST DEPUTY SPEAKER in the Chair]

 

NATIONAL ANTHEM

 

PRAYER

 

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ANNOUNCEMENT BY MADAM FIRST DEPUTY SPEAKER

 

Madam First Deputy Speaker: I would like to commend the hon. Members of Parliament whom I have seen singing the national anthem from their homes. That is very patriotic. Hon. Livune was one of those I noticed.

 

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MINISTERIAL STATEMENT

 

TRANSFER OF CARLISA INVESTMENTS SHARES IN THE MOPANI COPPER MINES PLC TO ZCCM-IH PLC

 

The Minister of Mines and Minerals Development (Mr Musukwa): Madam Speaker, I rise to give a statement on the transfer of Carlisa Investments shares in the Mopani Copper Mines (MCM) Plc to the Zambia Consolidated Copper Mines-Investment Holdings (ZCCM-IH) Plc. I thank you for giving me the opportunity to update the House and the nation at large on the transfer of the Carlisa Investments shares in the MCM Plc to the ZCCM-IH Plc.

 

Madam Speaker, the transfer of these shares to the ZCCM-IH is in line with Government policy of increasing Government stakes in some mine houses, as espoused in the Economic Recovery Programme that was launched by His Excellency the President of the Republic of Zambia, Mr Edgar Chagwa Lungu, on 17th December, 2020.

 

Madam Speaker, the action has been necessitated by the need to safeguard the jobs of over 15,000 employees, consisting of 6,000 local direct employees and 9,000 contractors as well as prevent the adverse impact of the mine closure, which may have a negative bearing on the social and economic welfare of the people of the Copperbelt Province and the nation at large, through the loss of revenue by the Government.

 

Madam Speaker, hon. Members of this august House may recall that the process leading to the transfer of the Carlisa Investments shares held in the MCM Plc started in April 2020 when Glencore International, the majority shareholder in the MCM Plc, announced its intention to place its mines at Nkana and Mufulira under care and maintenance citing force majeure arising from the Coronavirus Disease 2019 (COVID-19) pandemic and low copper prices on the London Metal Stock Exchange, among others. The company also cited a lack of international mobility of its experts due to COVID-19, non-payment of legally due value added tax (VAT) refunds by the Government, amounting to over US$451 million over the last seven years and a lack of sustainable third party financing for the operation.

 

Madam Speaker, the Government of the Republic of Zambia intervened and stopped the action in order to protect the many jobs that were at stake and, indeed, the economy. Further, the Government formed a team of senior Government officials from various Government entities to engage Glencore which, at that time, was the majority shareholder of Carlisa Investments and with controlling powers in the MCM Plc. The shareholding structure comprises Glencore International with 73.1 per cent, the First Quantum Minerals (FQM) Limited with 16.9 per cent and the ZCCM-IH Plc with 10 per cent.

 

Madam Speaker, the process of engagement with the stakeholders led to averting the mine from proceeding on care and maintenance and culminated in the ZCCM-IH Plc expressing interest to acquire additional shares in the MCM Plc. Glencore responded favourably to the request from the ZCCM-IH Plc and agreed to transfer all the 90 per cent shares held by Carlisa Investments to the ZCCM-IH Plc on 18th January, 2021, thus concluding the first phase of this transactional process.

 

Madam Speaker, the salient features of the transaction under Phase I are as follows:

 

  1. Carlisa Investments sold all its shares to the ZCCM-IH Plc at US$1. This means that the ZCCM-IH plc now holds 100 per cent shares in the MCM Plc;
  2. there is no money exchanging hands from this transaction, which was necessitated by the desire of Glencore to put the mine on care and maintenance. The Government, through its agents, negotiated this entire process to achieve stability at the mine and ensure its continued operation;
  3. the US$4.8 billion loan owed to Glencore, through various entities such as Glencore (Bermuda), Glencore International and Carlisa Investments by the MCM Plc was negotiated downwards to US$1.5 billion;
  4. the US$1.5 billion will be repaid through an off-take agreement granted to Glencore International using 10 per cent of the production over a period of ten to seventeen years, depending on the price of copper and the level of production at an interest rate of 3 per cent per annum plus three months libor. This 10 per cent off-take agreement already exists from the agreements previously signed by the MCM Plc and Glencore. Therefore, we just renewed their previous arrangement; 
  5. there are no separation packages for workers in Phase I, as this phase is meant to maintain the status quo on the operation of the mine, sustain production, support the business community and safeguard the jobs of our miners;
  6. In Phase II, the issues of terminal benefits for workers will be adequately addressed because we envisage that the ZCCM-IH Plc will get an equity partner. Among the critical issues that the equity partner will undertake is to ensure that terminal benefits are addressed in order for the new mine operations to restart without liabilities from workers; and
  7. prior to this transaction, Glencore had an off-take agreement with the MCM Plc, which ran from 2009. A fresh off-take agreement has since been signed, in line with the terms of the transaction.

 

Madam Speaker, following the successful conclusion of Phase I, the ZCCM-IH Plc is expected to attract a strategic equity partner to acquire a stake in the MCM Plc to raise additional finance to complete the projects which were started by Glencore aimed at boosting production and sustaining the operation as a profitable venture. It is important to note that all the shares previously held by Glencore are now held by the ZCCM-IH Plc which, going forward, will continue to retain a significant shareholding, in line with the Government policy of increasing its stake in some mining houses. The MCM Plc scenario certainly presents one such opportunity.

 

Madam Speaker, engagements to attract a strategic equity partner have already commenced and are yet to be finalised. Some of the companies which have expressed interest include, among others, companies from Turkey, Canada, the United Kingdom, the United States of America, China, Qatar and South Africa.

 

Madam Speaker, the strategic equity partner will be expected to help in ramping-up production by completing the following expansion projects at US$300 million:

 

  1. the Kitwe Synclinorium Shaft is 95 per cent complete with a shaft, ventilation shaft and a handling system already in place;
  2. the Mindola Sub-Vertical Shaft (MSV) is 30 per cent complete with only the shaft reaming done and all the requisite components are on site. In short, they were already procured and are just awaiting assembly;
  3. the Mufulira Henderson Shaft is 70 per cent complete with the shaft ventilation in place together with a temporary ore handling system. All associated equipment is on site awaiting completion; and
  4. the Synclinorium Concentrator in Kitwe is 99 per cent complete and merely awaiting commissioning.

 

Madam Speaker, the new infrastructure and the rehabilitation of the old infrastructure will extend the life of the MCM Plc by twenty to thirty-five years in addition to the increasing annual own resources of copper by about 40 per cent. The increase in production will not only make it easier to refund the loan quicker, but will also allow for the employment of more Zambians at the mine. Further, the Government will ensure that the separation packages are paid to all workers before they are re-engaged under the new framework of operation in Phase II. In short, the Government does not want the new entity to carry liabilities to the next level.

 

Madam Speaker, as I conclude, allow me to inform this august House on the assets of the mine and its potential. The MCM Plc, a Zambian registered copper and cobalt mining company, has mine sites in Mufulira and Nkana, located on the Copperbelt Province. The Mufulira site has an underground mine operation, a concentrator, a smelter, an acid plant and a copper refinery while the Nkana site has four underground mines, a concentrator, a new state-of-the-art concentrator and other associated operations. The MCM Plc is one of the largest mines and exporters of copper and cobalt in Zambia, which currently has approximately 15,000 employees. The mine has proven copper resources at over 281 million tonnes at a grade of about 2 per cent with further potential for exploration and a mine life in excess of twenty-five years.

 

Madam Speaker, there is potential to increase production to over 150,000 tonnes per annum through the completion of these various projects which Glencore had initiated that added to the cost of doing business. The cost of doing business has since been reduced because of the new state-of-the-art equipment which includes the Synclinorium, the Synclinorium Concentrator, the Synclinorium Shaft, the Anderson Shaft in Mufulira and the Mindola Shaft in Kitwe.

 

Madam Speaker, the completion of these strategic projects will be done under Phase II when a strategic partner is engaged.

 

Madam Speaker, I will update the House further, in due course, on the key features of Phase II once a strategic partner has been found and signed. I will come back to the House, then, and provide further information.

 

I thank you, Madam Speaker.

 

Hon. Government Members: Hear, hear!

 

Mr Musukwa: (Sanitising his hands) perhaps, I could get kudos from Madam Speaker like Hon. Livune did for singing the national anthem, as I promote hygiene by sanitising and social distancing.

 

Laughter

 

Madam First Deputy Speaker: That is good practice.

 

Hon. Members, I see that we already have a long list of hon. Members wishing to ask questions. Therefore, I would like to urge you to be brief in your interventions so that we can accommodate as many of you as possible.

 

Hon. Members are now free to ask questions on points of clarification on the ministerial statement given by the hon. Minister.

 

Mr Chali (Nchanga): Madam Speaker, I heard an interview on Diamond Television where one Opposition party president was saying that Zambia is not ready to run the Mopani Copper Mines (MCM) Plc. What is the hon. Minister’s take on this issue? Is Zambia ready or not?

 

Mr Musukwa: Madam Speaker, I want to assure this House and the Zambian populous that the Zambian cadre of mining engineers, mining meteorologists, geologists and all schools of thought from the mining fraternity are ready to run and operate the mine.

 

Madam Speaker, I am sure that we have many doubting Thomases and doomsayers out there, but we can trust that the Zambian people are ready to run this mine. If you do not believe in Zambia, the Patriotic Front (PF) Government does, and this is an opportunity to show case Zambia’s opportunity and prowess.

 

Madam Speaker, I thank you.

 

Mr Lihefu (Manyinga): Madam Speaker, my question is on terminal benefits. Some of the people who have been working with the mine may have doubts since there has been a transfer of shares.

 

Madam Speaker, the Government has transferred shares from one person to the other. Will it not affect the people who have been working with the mine for a long period of time? What assurance is the Government giving the people who have been working at the mine that their terminal benefits will be given to them in due course?

 

Mr Musukwa: Madam Speaker, I want to assure the people of Zambia and the workers of MCM Plc that their terminal benefits are a priority in this process going from now on. The Government does not want miners and workers to carry liabilities in future. We have a history in the mining circle where most of the terminal benefits for the workers have been held in what is prominently called trust funds. However, when the workers have looked for their money in these so-called trust funds, it has never been found. That is why His Excellency the President has guided that during this process, the workers interest and their benefits are a priority. Therefore, in our quest to look for a strategic partner, one of the issues that we are determined to ensure is dealt with is that of terminal benefits.

 

Madam Speaker, the issue of an equity partner is a matter that is coming in the second phase. At the moment, the ZCCM-IH is operating the mine on its own, and it has been doing that in the last six months from the time Glencore Plc pulled out. So, our people must be sure that these benefits will be given to them.

 

Madam Speaker, I thank you.

 

Dr Musokotwane (Liuwa): Madam Speaker, last night, I listened to an interview on Diamond Television where a politician in the Opposition was talking about the mine. At no point during that interview did that Opposition Leader say that Zambians have no capacity to run the mine. However, he accused the Government of buying a shell because the Government is paying US$1.5 billion for the mine, yet Glencore Plc will be taking the copper to sale.

 

Madam Speaker, in light of the fact that the Government is now making false statements about what an Opposition Leader said, and in view of the fact that he has accused the Government of buying a shell, why should the Zambian people believe the Government, which can openly make a false statement and hide the reality of buying a shell? Why should the Zambian people believe the Government?

 

Mr Musukwa: Madam Speaker, I am struggling to follow his course of discussion on this matter because the Government of the Republic of Zambia has come to this House with a statement. However, before bringing this statement to the House, the Government issued a comprehensive statement a week ago. As a result of announcements of the stock exchange, Glencore Plc was announcing this process in Switzerland. The Government does not speak through social media and other platforms. It speaks through structured channels. Therefore, as I speak, I am giving the Government’s position. So, I do not know the false impression which the hon. Member of Parliament for Liuwa is referring to. In any case, I want to restate the Governments position, which is that, through the ZCCM-IH, the Government has acquired a 100 per cent share stake in the MCM Plc through the discharge of Carlisa Investments Corporation shares. This is open information that can be checked from other platforms, especially those which you exploit a lot globally. You can also check on the Glencore Plc website. This is the correct position.

 

Madam Speaker, the Government has not made any accusations against any politician over this process because it knows that most of the comments that are being issued by various people are welcome. The Government would like to get advice from well-meaning Zambians because this transaction is a well-thought-out structured transaction, which is premised on ensuring that the operation is sustained and, as such, is anchored by technical experts, including a consultant.

 

Madam Speaker, therefore, if the Government did not hire your firm as a consultant for this process, it does not mean that the Government has not done a thorough job. It has done a thorough job, and this is informed by technocrats and a consultant. These things are in the open for people to see. So, instead of Opposition political parties dramatising this on social media, it is important for them to come on the table and offer solutions on how best we can move the mining sector together. If one cannot go to the ministry, such a person can go the Vice-President, if not go to the Vice-President, they can go to the President. If one cannot go to all these entities, he or she can write a letter to the ministry, through the Speaker, and the Government will gladly heed the advice from well-meaning Opposition political parties.

 

Madam Speaker, I thank you.

 

Mr Kambita (Zambezi East): Madam Speaker, in his submission to this august House, the hon. Minister has kept us abreast with the history that led to where we are in the impasse that existed between the Government and Glencore Plc.

 

Madam Speaker, the hon. Minister mentioned some of the factors that led to the impasse, which included the unpaid Value Added Tax (VAT), among others. My question is based on the Government’s plans to get an equity partner. How much has the Government prepared, strategically, to avoid a situation where the equity partner who will come in will not have the same issues that Glencore Plc put across, hence coming up with the decision to compel the Government to put the mine under care and maintenance? What has the Government done to make us believe that there is light at the end of tunnel even as it plans to bring in an equity partner?

 

Mr Musukwa: Madam Speaker, I want to appreciate that the hon. Member was critically following my statement. I want to assure him that the issue of the US$451 million VAT was a matter of a court decision. The Government of the Republic of Zambia, through the Zambia Revenue Authority (ZRA), won the matter and that is why it is a non-issue. The Coronavirus Disease 2019 (COVID-19) pandemic and other associated issues were all discounted by the Director of Mines, who has the mandate over the licensing and operation of the mines. In the new normal, we are proceeding by ensuring that these processes progress. This is what has culminated in the favourable discussions with Glencore Plc in order to arrive at this process.

 

Madam Speaker, you will recall that I talked about the 10 per cent takeoff which Glencore Plc is getting from the production as a result of the payment process. All these are processes that culminated in the discussion.

 

Madam Speaker, I thank you.

 

Mr Nanjuwa (Mumbwa): Madam Speaker, I was following the issue of the Value Added Tax (VAT), which was mentioned by Glencore Plc. In his own words, the hon. Minister has mentioned that it was a court issue in which the Zambia Revenue Authority (ZRA) emerged victorious. Would the hon. Minister confirm that this US$451 million, which is owed as VAT, is no longer an outstanding amount that is supposed to be paid to the mines? Is that the position now?

 

Mr Musukwa: Madam Speaker, indeed, it is no longer an amount that is owed because it was expunged. This process was discharged because the ZRA was on firm ground.

 

I thank you, Madam Speaker.

 

Mr Miyanda (Mapatizya): Madam Speaker, the hon. Minister has clearly indicated that a thorough job was done, going by the way the consultants were selected. I want to find out who the consultant was and how much was paid towards the consultancy.

 

Madam First Deputy Speaker: The hon. Minister did not mention payments of any kind. Remember, this is time to seek clarification on the ministerial statement.

 

Mr Siwale (Mafinga): Madam Speaker, first of all, I want to commend the Government, under the leadership of His Excellency the President, Mr Edgar Chagwa Lungu, for taking a bold step in giving back the mines to the Zambians. That shows that he has love for the people of Zambia.

 

Madam Speaker, now that the mine will be run by the able people of Zambia, what measures has the Government put in place to see to it that the Zambian people benefit economically and also that those who are employed do not lose their jobs?

 

Mr Musukwa: Madam Speaker, indeed, the President of the Republic of Zambia, Mr Edgar Chagwa Lungu, during this entire process, has guided that the Zambian workers and the people at large should be our focal point. The Government, through the ZCCM-IH, will ensure that the plight of workers and their interests are protected. As a Government, we are motivated to undertake this process purely on the score of ensuring that over 15,000 workers, the entire Copperbelt economy and Zambia in general are protected.

 

Madam Speaker, further, contractors and suppliers, who, for a long time have been short changed in preference for foreign entities, will have an opportunity to execute works and supply at the MCM Plc. Our caution, as the Government, to our contractors, suppliers and the workers is that this is the time to rise up and prove ourselves able to run and operate this entire process. It is not going to be business as usual. This requires Zambians to get on top of things in order to ensure that we increase production and that contractors and suppliers supply quality and credible services to the mining industry.

 

I thank you, Madam Speaker.

 

Mr Mbulakulima (Milenge): Madam Speaker, my question is on the management structure. There can be no meaningful ownership if Zambians do not take part in the management of the company. What is the management structure likely to be, especially on the Chief Executive Officer (CEO)? Is it going to follow the Indeni model or has the Government not given it a thought? Seriously speaking, at what level will the Zambians participate in the management of the affairs?

 

Mr Musukwa: Madam Speaker, indeed, among the critical issues that the ZCCM-IH and the Government are undertaking is to ensure that we restructure the entire operation in order to make it viable and profitable. The past seven months when the MCM Plc has been operating on its own, it has undertaken processes of ensuring that the cost of doing business is reduced. It has also made a number of decisions by reducing many contracts for expatriates. I want to confirm with the hon. Member that in the last nine months of this operation, this has been run by a Zambian CEO, a team of Zambians and a lean number of expatriates, where they are needed. We hope that this is a process that is going to continue.

 

I thank you, Madam Speaker.

 

Mr Chishala (Roan): Madam Speaker, in his statement, the hon. Minister indicated that employees will be paid their dues before being re-engaged by the new administration. Could the hon. Minister assure the workers, through this House, that they will be paid a lump sum instead of being paid in installments, as the case is with Konkola Copper Mines (KCM)?

 

Mr Musukwa: Madam Speaker, the hon. Member of Parliament for Roan reminds us of the atrocities our workers in Luanshya went through as a result of processes such as this. That is why among the lessons on our learning curve was not to allow care and maintenance, as was allowed in Luanshya, where the mine was flooded in the process. It poses a huge cost for us to restart the process. This answers the question posed by many people on the Government moving in where there is no profit.

 

Madam Speaker, we have seen all these facets and the Luanshya scenario is a sad story that we do not want to be replicated in another area. The Government will ensure that terminal benefits for its people at the MCM Plc are addressed and the comparison between the KCM and MCM Plc does not arise at this time.

 

Madam Speaker, I will come with a comprehensive statement over the KCM, which is undergoing a liquidation process, which is a share transfer. We are hoping that we can take away all the liabilities to do with the workers’ benefits at the MCM Plc in order to start afresh. In terms of a one-off payment or a two-staged payment, as it is at the KCM, it has to do with mobilisation of resources.

 

Madam Speaker, you are aware that the former workers at the Roan Antelope Mining Corporation of Zambia (RAMCOZ) Plc in Luanshya have not gotten their terminal benefits to date. We know the people who were in the forefront of the RAMCOZ transaction.

 

I thank you, Madam Speaker.

 

Mr Fungulwe (Lufwanyama): Madam Speaker, my question has been overtaken.

 

Mr Kakubo (Kapiri Mposhi): Madam Speaker, I would like to find out from the hon. Minister whether it is possible for his office to avail hon. Members with the terms of the transaction that he has carried out with Glencore. In his ministerial statement, he said he would mention, but in part, certain parts of the agreement. Therefore, would it be possible for him to give us the whole document so that we can scrutinise it and provide full oversight, as we are mandated by the Constitution?

 

Mr Musukwa: Madam Speaker, this is an open and transparent transaction. More importantly, the ZCCM-IH Plc is a listed company and, by virtue of it being listed, is required by the Security Exchange Commission of Zambia to file and issue a statement to that effect. So, indeed, the public and hon. Members can have access to this document. We will be too glad to ensure that once all the processes which are consistent with the stock exchange are concluded, it is availed to members of the public and hon. Members.

 

I thank you, Madam Speaker.

 

Mr Mwila (Chimwemwe): Madam Speaker, the hon. Minister stated that the Mopani Copper Mines (MCM) Plc initially owed Glencore US$4.8 billion, which was negotiated down to US$1.5 billion. I would like to find out whether Government technocrats were involved at this stage of negotiating this debt downwards from US$4.8 billion to US$1.5 billion. If not, how would we be sure that even this US$1.5 billion has not been over priced or over stated by Glencore? With that said, I would like to thank the hon. Minister and the ministry for the effort this far. 

 

Mr Musukwa: Madam Speaker, indeed, the US$4.8 billion was negotiated to US$1.2 billion. As you know, during this process, there were senior Government technocrats at various platforms across the Government together with a consultant who was hired to undertake this process. They followed the debt process in terms of viability and payment from the entire production and operation. I think that this is what necessitated this reduction and we can confirm that the Henderson Shaft, the Synclinorium, the concentrator Synclinorium, the Mindola shaft, the equipment and logistics were procured at an amount in excess of US$2 billion. We think that our technical team, not comprising hon. Ministers or Government officials, of independent senior Government officials with independent stakeholders and an international consultant, who was hired to oversee this process, can confirm that this is the value that we came to. This is owing to liabilities and other processes that have been necessitated by the arms-length negotiation with Glencore and the Government team.

 

I thank you, Madam Speaker.

 

Mr Kamboni (Kalomo Central): Madam Speaker, there are many suppliers and contractors who are owed money. What plan does the hon. Minister have to dismantle this debt and what assurance does he have for the same Zambian suppliers and contractors?

 

Mr Musukwa: Madam Speaker, the ZCCM-IH Plc and the MCM Plc are, currently, putting together all the debt owed to local contractors and suppliers. The debt will be liquidated as and when it falls due. In fact, the thrust of the MCMM Plc in the last couple of months it has been operating has been to ensure that it engages local contractors and promote local business.

 

Madam Speaker, our focus, as the Government, is to ensure that local contractors are helped to build capacity in order for them to continue operating the mine. In fact, they know it all because they have been operating it for many years. So, our people and contractors can be sure that once again, they are getting back to the olden days of providing service to the mine. However, it will not be business as usual or ati niva Boma, meaning that this is for the Government. No. This is a business entity on the platform of the ZCCM-IH Plc and we expect professionalism from all technical experts that are running and operating this mine. We want to show, as an example, that unlike other doomsayers, Zambians are, indeed, ready to run and operate the mines.

 

I thank you, Madam Speaker.

 

Mr Kabanda (Serenje): Madam Speaker, I would like to thank the hon. Minister for a very informative statement. The Mopani Copper Mines (MCM) Plc is on record as having said that it was not profitable to run the mine. I would like the hon. Minister to clarify why the Government decided to inherit the MCM Plc debts. This is in light of the raging Konkola Copper Mines (KCM) saga where the Government is trying to liquidate a company which the investors maintain is a going concern. I want to seek clarification on why the Government did not liquidate the MCM Plc as well.

 

The First Deputy Speaker: Hon. Minister of Mines and Minerals Development, did you get the question?

 

Mr Musukwa: Madam Speaker, I hope I got the question, but let me try to answer.

 

Madam Speaker, let me first say that I have been asked this question several times. Several players and commentators on various platforms are asking why the Government had to buy or get a mine which Glencore had declined to continue operating.

 

Madam Speaker, I am the Minister of Mines and Minerals Development for the Republic of Zambia. Therefore, I do not speak for Glencore, but for the Government. As the Government, we have a duty to protect the interests of over 15,000 workers and our economy.

 

Madam Speaker, in this regard, the investment that Glencore has put in the Synclinorium and the smelter in the Mindola Shaft is in excess of US$4.8 billion. This information is from Glencore. We are sure, from the receipts, that they spent in excess of US$1.2 billion in ensuring that they strategically placed the mine for a time when there would be a rebound in the copper price, as we can see.

 

So, for us, as the Government, this is a sure opportunity that our colleagues in Glencore changed their business plan. The Government has to ensure that the mine is protected. If it does not come to the aid of our people and our economy, who will? We have to take the mantle and ensure that we provide direction.

 

 Madam Speaker, I want to inform the hon. Member for Serenje that for a long time, the MCM Plc has been posting about 30,000 tonnes of copper production. The figure it is producing, currently, amidst the Coronavirus Disease 2019 (COVID-19) challenges, is in excess of 34,000 metric tonnes.

 

Madam Speaker, if this is not progress, then, I do not know what we are talking about. As for us, we see this as a positive trajectory. In fact, among the critical issues tackled by our negotiating team when Glencore came back at the last instance before we concluded was that Glencore was asking what had changed with the teams at the MCM Plc that they had started producing better than they were when it was around. So, for me, Zambians rose to the occasion because they know that this is their survival.

 

 I thank you, Madam.

 

Madam First Deputy Speaker gave the Floor to Dr Kalila, but he was not available. 

 

Madam First Deputy Speaker:  I will allow two more hon. Members and, then, we close.

 

 Mr Mung’andu (Chama South): Madam Speaker, I would like to thank the hon. Minister for that wonderful statement.

 

Madam Speaker, there are assertions that Zambians cannot run the mines. I would like to find out from the hon. Minister who was running the mines during the times of the Zambia Consolidated Copper Mines (ZCCM) until privatisation? If the answer is that it was Zambians, then, my next question is, have they changed? I would like the hon. Minister to give a comment on this issue because there is misinformation going out there that Zambians cannot run the mines.

 

Mr Musukwa: Madam Speaker, to insinuate that Zambians cannot run a mine is actually to doubt the intelligence of the Zambian people. Unfortunately, the Zambian economy hinges on the mining sector. For a long time, and even when we talk about privatisation, mining will continue to be Zambia’s comparative advantage.

 

 Madam Speaker, I have said, many times, that in Zambia, mining is like football. Everyone in Zambia is a coach. The same applies to mining. Everyone in Zambia knows about mining. Therefore, to insinuate that Zambians cannot run a mine is an understatement which I think must be dispelled with the contempt it deserves. Zambians ran mines before and are currently doing so. They will continue to run and operate the mines.

 

Madam Speaker, you will be interested to know that apart from just running and operating local mines, Zambians run international mines where they are actually at the helm of operations. So, we think that time has come for Zambians to come back home and help rebuild our mining industry. We invite all the doubting Thomases to offer objective solutions. They should partner with the Government and support what it is doing. Where there is good and credible advice, it will be the first to jump for it. People cannot wait to come into Government to implement measures or undo what we are doing. They are not going anywhere or undoing anything because we are in charge and will be in Government even after 12th August, 2021.

 

 I thank you, Madam Speaker.

 

Hon. Government Members: Hear, hear!

 

 Mr Muchima (Ikeleng’i): Madam Speaker, I would like to thank the hon. Minister for the statement and for being very clear on the operation of issues except that he is getting a bit political.

 

Madam Speaker, I have heard what he mentioned on the asset side, but have not clearly heard the aspect of the total liability. Further, when it comes to the question of paying off these liabilities, he said that he would mobilise resources. How much is the total liability and how has the ministry strategically put it in place measures to dismantle what the company owes?

 

Mr Musukwa: Madam Speaker, I would like to thank the hon. Member for Ikeleng’i, one of our distinguished senior hon. Members of Parliament, for that question. Indeed, the biggest liability that the mine has had has been the debt owed to contractors and suppliers. The biggest challenge has been the dismantling of this debt. However, a comparison of the MCM Plc profile with other mine entities shows that it was actually among the best contractor/supplier payers.

 

Madam Speaker, the biggest challenge our people have been complaining about on that score has been job and supply opportunity for our local contractors and suppliers, which was heavily carried out by foreigners. So, the huge liability which actually increased the cost of doing business at the MCM Plc was the payment to foreign contractors as opposed to local contractors and that is what built up the cost of operating to in excess of US$7,000 per metric tonne. So, for us, this did not make sense. That is why the Government implored the interim management of the MCM Plc to carry out a cost analysis and ensure that we reduced the indebtedness.

 

Madam Speaker, like I indicated, there is really no physical exchange of money because this mine is being procured at US$1. Going forward, the MCM Plc will ensure to provide business to local people.

 

Madam Speaker, to the hon. Member of Parliament for Ikeleng’i, yes, as much as possible, I would not like to invite any political discourse in the mining sector, but ensure that it is run and operated at a professional level. However, as Minister of Mines and Minerals Development, I have a duty to respond when I hear several political players with the appetite to mislead Zambians.

 

 I thank you, Madam.

 

 Madam First Deputy Speaker: I will allow the only female hon. Member indicating to speak.

 

 Ms Tambatamba (Kasempa): Madam Speaker, I would like thank you for giving me this opportunity to speak on behalf of the women of Zambia.

 

Madam Speaker, listening to the hon. Minister, clearly, the intent about all the changes and the processes as are being referred to, is to produce a good quality or profitable business entity. I would like find out the turnkey milestones that delivered a credible due diligence which would assure us that there would be a turnaround.          

             

Mr Musukwa: Madam Speaker, the Government and the ZCCM-IH envisage an immediate turnaround to the processes at the MCM Plc, and the key to the immediate turnaround is to ensure that all the facets which promote production and all associated operations that I have spoken to begin. In short, when the Synclinorium Shaft, the Henderson Shaft and the Mindola Shaft are all synchronised and start operating, the turnaround in terms of increased production in excess of 150,000 metric tonnes per year will be achieved. I am sure that our technocrats from the ZCCM-IH and the MCM Plc will be able to provide the speed that will enable Zambia to realise her dream.

 

I thank you, Madam.

 

______

 

QUESTIONS FOR ORAL ANSWER

 

NABWALYA SECONDARY SCHOOL CONSTRUCTION

 

89. Mr Mukosa (Chinsali) asked the Minister of General Education:

 

  1. when the construction of Nabwalya Secondary School in Mfuwe Parliamentary Constituency will commence;
  2. who the contractor for the project is; and
  3. what the time frame for the completion of the project is.

 

The Minister of General Education (Dr Wanchinga): Madam Speaker, due to non-availability of funds, the Government is focusing on those projects that are above 80 per cent completion rate.

 

Madam, the contract has not been tendered since there is no project in place. Therefore, there is no contractor. Once funds are available, the Government will consider the construction of Nabwalya Secondary School in Mfuwe.

 

I thank you, Madam.

 

Mr Lihefu (Manyinga): Madam Speaker, I want clarification over the school in question. Was there any promise by the Government that the mentioned school would be constructed in the area?

 

Dr Wanchinga: Madam Speaker, I will find out if there was a specific promise made by any specific hon. Minister that the school would be constructed in the area. However, what I would like to mention is that it is Government policy to ensure that there is access to secondary education by our children in every part of our country. So, in terms of our nationwide plan, the area has been covered. As regards whether a specific promise was made for this school, that is something I have to find out.

 

I thank you, Madam.

 

Mr Michelo (Bweengwa): Madam Speaker, in his response to part (c) of the question, the hon. Minister said that the school would be constructed when funds are available. I request the hon. Minister to try to be specific. The answer “when funds will be available” has become a tradition for Patriotic Front (PF) hon. Ministers. The hon. Minister should be specific as to when the funds to construct Nabwalya Secondary School will be available.

 

Dr Wanchinga: Madam Speaker, the hon. Member wants me to be very specific. Let me mention that, at the moment, the Government has a programme to construct 116 secondary schools countrywide. We have been able to complete sixty-five of these. Under the World Bank facility, we are constructing eighty-three secondary schools scattered throughout the country. Under the World Bank facility where we are constructing eight-three secondary schools countrywide, we are currently negotiating for an extension of this loan facility where we hope to build additional secondary schools around the country. Therefore, if this arrangement works out, it is possible that Nabwalya Secondary School would be one of the schools to be constructed under this facility. That is how specific I can be.

 

I thank you, Madam.

 

Mr Mukosa: Madam Speaker, is the hon. Minister of General Education aware that there was K160,000, which was released by the ministry to the school that we are talking about, and that works have started and are at foundation level?

 

Dr Wanchinga: Madam Speaker, if that is the case, I am answering the wrong question. The hon. Member should have asked when the school would be completed. The current question is when the construction of Nabwalya Secondary School will commence. If it is already on foundation level, perhaps, the Government has already made a lot of progress on this issue.

 

I thank you, Madam.

JIFUMPA MINE LABOUR INSPECTIONS

 

90. Ms Tambatamba (Kasempa) asked the Minister of Labour and Social Security:

 

  1. whether the Government conducted any labour inspections at Jifumpa Mine in Kasempa District from 2016 to 2019;
  2.  if so, how many inspections were conducted;
  3. when the inspections were conducted;
  4. what the results of the inspections were; and
  5. what measures are being taken to ensure that the mine owners comply with the Zambian labour laws.

 

The Minister of Labour and Social (Mrs Simukoko): Madam Speaker, the Government, through the Ministry of Labour and Social Security, had conducted over 5,604 inspections in the period 2016 to 2018 throughout the country. In respect of Jifumpa Mine, also known as Ruida Investments in Kasempa District, the Ministry conducted a labour inspection on 4th February, 2019. The House may wish to note that the Jifumpa inspection was conducted jointly involving the Ministry of Labour and Social Security from Lusaka, the Zambia Institute of Human Resource Management (ZIHRM) from Lusaka and the Zambia Police based in Kasempa.

 

Madam, as indicated, in response to part (a) of the question, only one labour inspection was conducted at Jifumpa Mine in Kasempa on 4th February, 2019.

 

Madam Speaker, the joint inspection conducted revealed the following:

 

  1. most of the employees were unionised with the Mine Workers’ Union of Zambia;
  2. there was a small number of employees who were on fixed-term contracts;
  3. management declared a total number of about 231 Zambian employees and twenty-one Chinese employees;
  4. the company had no qualified human resource officer;
  5. some non-unionised employees did not have written contracts spelling out their conditions of service, and as a result, they were denied conditions of service that are prescribed by the law;
  6. the employees at the company were paid very low salaries. In some instances, employees were paid as little as K800, especially the ones who were not unionised. Furthermore, most of the employees were on the same salary scale regardless of the different jobs that were being performed at the mine. For example, guards, drivers, machine operators and miners were all paid the same basic salary of K1,050 as was negotiated by the union; and
  7. inadequate compliance with safety standards.

 

Madam Speaker, on the measures taken, the mine management was instructed to:

 

  1. immediately prepare and give to non-unionised employees written contracts with clear conditions of service;
  2. immediately increase the salaries of all non-unionised protected employees who were being paid below the minimum wage and pay arrears to those who were being underpaid;
  3. immediately put in place a safety policy and provide all employees with adequate protective clothing;
  4. immediately proceed to employ a qualified Zambian human resource manager;
  5. the ministry engaged union executives and directed them to effectively represent and protect the interests of their members. The House may wish to note that the union has since renegotiated for better conditions of service, including safety measures and all employees are now unionised;
  6. the National Pension Scheme Authority and the Workers Compensation Fund Control Board have since visited the mining firm;
  7. the ministry has continued to monitor the mining firm through the office of the labour department in Solwezi; and
  8. a joint follow-up inspection with the Department of Immigration, the National Pension Scheme Authority, the Workers Compensation Fund Control Board, the Zambia Institute of Human Resource Management, the Zambia Police and Mine Workers’ Union of Zambia is scheduled to be undertaken soon.

 

I thank you, Madam Speaker.

 

Ms Tambatamba: Madam Speaker, is the ministry satisfied that Ruida Investments, which runs the mine is compliant with the human rights prescribed for all employees, beyond labour rights, (inaudible) this would also include access to decent housing?

 

Madam First Deputy Speaker: You have to repeat that question. You were not audible.

 

Ms Tambatamba: Madam, during the visit to the mine, was the ministry satisfied that the operation is also compliant with other human rights for workers, which rights include access to decent housing?

 

Mrs Simukoko: Madam Speaker, when we carry out inspections, we may or may not be satisfied with what we find. We listen to what the employer has to say and give instructions where they are failing on how best they should handle the institution. However, the mine has since been subcontracted to another Chinese company –

 

Madam First Deputy Speaker: Order!

 

Hon. Minister, is it possible for you to speak with your mask on.

 

Mrs Simukoko: Madam Speaker, unfortunately, when I do that, I cannot breathe properly.

 

Madam First Deputy Speaker: We also have shields. Have they not been distributed? Not yet? You may proceed, hon. Minister.

 

Mrs Simukoko: There are still concerns that not all labour issues have been addressed at the mine, as indicated by the ministry after the inspection. However, when an institution fails to adhere to certain issues that have been raised, we give them time, especially when they have financial challenges, to make good on what we have pointed out. As per our report, there are certain issues that came to light during the inspection and those issues are still being addressed.

We will be monitoring the mine until all the issues raised are done away with, in accordance with the conditions of service.

 

I thank you, Madam.

 

Mr Lihefu: Madam Speaker, I had an opportunity to visit the area on my own, and saw that the working conditions are not good. Do we, as a country, have enough laws to protect our workers who are being abused by the so-called investors?

 

Mrs Simukoko: Madam Speaker, I must put on record that Zambia ranks amongst countries that have the best labour laws in the African region. However, the problem that we have is that our people do not read to empower themselves with the knowledge of what is contained in the labour laws.

 

Madam Speaker, I have always appealed to Zambian workers to read the Employment Code Act so that they know their rights and obligations. When their rights are violated, they have an obligation, as workers, to report to the Ministry of Labour and Social Security, where there is no union. If there is a union, it takes charge. That is the law. The union will go through the procedure and, where it fails, there is a point where the Ministry of Labour and Social Security can come in. If it also fails, a matter can go to court. The procedure is there, but the challenge we have in the ministry is that our people have chosen not to read the labour laws so that they empower themselves with knowledge.

 

Madam Speaker, I also want to emphasise that the Ministry of Labour is not present in all provinces. However, where it is not present, District Commissioners (DCs) have assisted to attend to some of the grievances that may arise in particular places. Therefore, my appeal, as I have done all the time, is that people should take time to read the labour laws in the Employment Code Act. In reading that document, we will know our rights and obligations. We will know when we are being ill treated by the employer and will follow the channel to report. However, if we refuse to read, we will have this problem. God has said, “My people perish because of a lack of knowledge.”

 

Madam Speaker, my appeal to hon. Members of Parliament present is that as they visit their constituencies, they should take keen interest and ensure that people or workers in their areas adhere to the labours laws that are in place. That would be helpful.

 

Madam Speaker, I thank you.

 

REHABILITATION OF LUNCHU BRIDGE IN KAPIRI-MPOSHI PARLIAMENTARY CONSTITUENCY

 

 91. Mr Kakubo (Kapiri Mposhi) asked the Minister of Housing and Infrastructure Development:

 

  1. when the rehabilitation of Lunchu Bridge in Kapiri Mposhi Parliamentary Constituency, which is in a deplorable state, will commence;
  2. what the cause of the delay in undertaking the rehabilitation works is;
  3. who the contractor for the project is; 
  4. what the total cost of the project is; and
  5. what the time frame for completion of the project is. 

 

The Minister of Works and Supply (Ms Chalikosa) (on behalf of the Minister of Housing and Infrastructure Development (Mr Mwale)): Madam Speaker, the rehabilitation of Lunchu Bridge is, currently, ongoing.

 

Madam Speaker, the project did not delay as normal procedures had to be followed prior to the commencement of works.

 

Madam Speaker, the Road Development Agency (RDA) is currently carrying out works on the Lunchu Bridge under force account.

 

 Madam, the total cost of the project is K3,070,975.56 and the time frame of the project is three months, but subject to the availability of funds.

 

Madam Speaker, I thank you.

 

Mr Kambita (Zambezi East): Madam Speaker, in the hon. Minister’s response, I heard her talk about the force accounting approach that the Road Development Agency (RDA) has used to actually implement this project in Kapiri Mposhi Constituency.

 

Madam Speaker, a couple of months ago, her ministry circulated to hon. Members a list of such projects, especially related to those Acrow bridges that are already made and are only supposed to be fixed. Could this be one such bridge, like the Makondwi Bridge in Zambezi East Constituency, where force accounting will be used and which we are still awaiting to be implemented countrywide?

 

Ms Chalikosa: Madam Speaker, I am not clear about the question because I have already said that this is the bridge which is, currently, being undertaken under the force account. I was not clear. Is he asking whether it is the same bridge that is being considered under the force account? I am not clear about the question.

 

Madam First Deputy Speaker: Hon. Member for Zambezi East, would you like to repeat briefly.

 

Mr Kambita: Madam Speaker, I will be quick for the sake of time. What I wanted to know was whether it is one of the bridges on the schedule that was circulated to hon. Members of Parliament. I am asking because I have an interest on account of a bridge called Makondwi in my Constituency, which is similar to the one in question, and would like to know whether or not mine is also in the same series. I would like to find out whether they are the same bridges which are being implemented using force accounting.

 

Mr Chalikosa: Madam Speaker, I am not too sure whether it is one of the bridges that were listed. However, bridges that require urgent works and do not go through the tender process are the ones that we use the force account on. Whether it was listed as one of those, I am not too sure, but can get clarification at a later date.

 

Mr Kakubo: Madam Speaker, is the hon. Minister aware that the Road Development Agency (RDA) was on site and constructed two pillars, but has since completely demobilised the equipment it came with and left site in the last few days? I want to know whether the hon. Minister is aware of that. Is she giving us an assurance that the RDA has not gone for good?

 

Ms Chalikosa: Madam Speaker, yes, we are aware that the two abasements have since been complemented and only the earth works are remaining to complete the project. However, this can only be done after the rains.

 

Madam Speaker, I thank you.

 

Mr Kakubo: Madam Speaker, the substantive hon. Minister had initially assured the House that Lunchu Bridge in Kapiri-Mposhi Parliamentary Constituency would be one of those that would be given an Acrow Bridge. I just want the hon. Minister to confirm whether the works that are being undertaken by the RDA will result into an Acrow bridge being fixed there or we are now being given a completely new type of bridge so that the people can know exactly what to expect.

 

Ms Chalikosa: Madam Speaker, the reconstruction of the Lunchu Bridge is not one of those that were listed under the Acrow bridges. It is a completely new bridge, hence the need for design and assessment.

 

I thank you, Madam Speaker.

 

Mr Kakubo: Madam Speaker, the information that has been given is clear and I do not have any further questions.

 

I thank you, Madam Speaker.

 

CONSTRUCTION OF HYDRO POWER STATIONS AT KUNDABWIKA IN LUAPULA PROVINCE AND KABWELUME IN NORTHERN PROVINCE

 

92. Mr Mecha (Chifunabuli) asked the Minister of Energy:

 

  1. when the construction of hydro power stations at the following water falls on the Kalungwishi River will commence:

 

  1. Kundabwika in Luapula Province; and

 

  1. Kabwelume in Northern Province.

 

       b. how many megawatts of power will be generated at each power station;

       c. who the developer for each project is;

       d. what incentives are being offered to the developers; and

       e. whether the Government has any plans to expedite the commencement of the projects in order to                        increase power generation and supply in the Northern and Luapula provinces.

 

The Minister of Mines and Minerals Development (Mr Nkhuwa): Madam Speaker, the construction of the hydro power stations at the Kundabwika Falls and Kabwelume Falls is pending the finalisation of the arbitration process between the Government and the previous developer, Lunzua Power Authority.

 

Madam Speaker, the Kabwelume Falls Hydro Power Station is expected to generate in excess of 62 MW while the one at the Kundabwika Falls is expected to generate in excess of 101 MW of installed capacity.

Madam Speaker, currently, the arbitration process is underway in respect of the implementation agreement that was signed between the Government and the previous developer. The Government will procure another developer once the arbitration process is exhausted.

 

Madam Speaker, the energy sector is a priority sector. So, the Government, through the Zambia Development Agency Act, provides for investment thresholds that have to be met to qualify for fiscal and non-fiscal incentives. Investors that invest not less than US$500,000 in a Multi-Facility Economic Zone (MFEZ), an industrial park, a priority sector or in a rural area are entitled to the following fiscal incentives:

  1. accelerated  depreciation on capital equipment; and
  2. duty free import of equipment and machinery.

 

Madam Speaker, in addition to fiscal incentives, the above category of investors is entitled to the following non-fiscal incentives:

 

  1. investment guarantees and protection against expropriation;
  2. free facilitation of immigration permits, secondary licenses, land acquisition and utilities; and
  3. investors that invest an amount of not less than US$250,000 in any sector are entitled to non-fiscal incentives as follows:  

         (I) investment guarantees and protection against expropriation; and

          (II) free facilitation of immigration permits, secondary licenses, land acquisition and utilities.

Madam Speaker, the Government is expeditiously working on various power projects across the country. It is collaborating with public and private institutions that are currently undertaking feasibility studies for various projects in Luapula and the Northern provinces.

 

Madam Speaker, I thank you. 

 

Mr S. Banda (Kasenengwa): Madam Speaker, I wish to thank the hon. Minister for clarifying matters surrounding the issues which were raised. The hon. Minister mentioned that the new developer will be acquired subject to the completion of arbitration. Is there a time frame within which that arbitration ought to be done, considering that the Government is in a hurry to ensure that it narrows the gap in terms of the short fall in power generation?

 

Mr Nkhuwa: Madam Speaker, unfortunately, we do not have a time frame. When these issues get to the legal fraternity, the Government does not really want to interfere. So, we leave that to the third arm of the Government to arbitrate and move on.

 

I thank you, Madam Speaker.

 

Mr Mecha: Madam Speaker, as you may be aware, the hydro power project is something which is at the tip of the heart of the people of Luapula Province. We know that following the Luapula Expo and Investment Conference, a lot of interest has been generated among various companies to actually invest in Luapula, but one of the limiting factors is power.

 

Madam Speaker, not long ago, there was an indication from a Zambian company owned by Zambian shareholders. I am aware that this same company actually obtained water rights through the Water Resources Management Authority (WARMA) and has already completed the Environmental and Social Impact Assessment (ESIA) as well as an upfront feasibility study. This has already demonstrated that it is a company capable of making an investment. However, I have been taken aback to hear that this issue is now in court. What has gone wrong? Why could we not settle this issue out of court? I know that by May 2021, Parliament will be dissolved and the people of Luapula are waiting for the Patriotic Front (PF) Government to deliver this project, especially the Kundabwika Project, so that it can help them expedite the investment process in the area.

 

Mr Nkhuwa: Madam Speaker, this process is as a result of the implementation agreement which was signed and provided for arbitration to be carried out. The issue of arbitration is really not in the courts. This is where you pick members to arbitrate on your behalf and they do so. So, it is part of the contract.

 

Madam Speaker, I really do not know whether I should comment on issues as regards the other company. As far as the ministry is concerned, there is a company which has approached us, and, unfortunately, obtained water rights first. However, according to procedure, if a company wants to come up with a hydro power plant of any sort, it is supposed to go to the Ministry of Energy. In this vein, the Ministry of Energy has not given any feasibility study rights to any other company apart from the Lunzua Hydro Power Station that it is dealing with. So, if this company was conducting feasibility studies, it was doing so without the authority and permission of the Minister of Energy, which is charged with the responsibility to take care of such feasibility studies. Therefore, I cannot really comment on the company.

 

Madam Speaker, we have seen their letters in our office and have responded to them. At the moment, we are where we are with the arbitration in court.

 

I thank you, Madam Speaker.

 

Ms Katuta (Chienge): Madam Speaker, the hon. Member for Chifunabuli’s concern is about Luapula Province. I take it that the hon. Minister is aware that this is a critical year for the Patriotic Front (PF) Government, the Ruling Party. We would like to see Luapula industrialised, especially that it hosted the Luapula Expo and Investment Conference. I would like to find out what the hon. Minister will do for the people of Luapula because the lack of energy has been a source of discouragement for many investors. So, I would like to know the Government’s position on what I have said.

 

Mr Nkhuwa: Madam Speaker, the intention of the Government was to speed up this process. That is why we actually terminated the other implementation agreement. The other implementation agreement was renewed several times, but the people that had the implementation agreement were not serious. We decided to terminate the agreement so that we can get a more serious investor to work on the project.

 

Madam Speaker, we are in a hurry, but unfortunately we are caught up in arbitration. The only thing we can do is to try and plead with the people doing the arbitration to speed up the works. Otherwise, once we complete that process, we will be on the spot. However, I must say that I cannot see it happening before May.

 

I thank you, Madam Speaker.

 

Mr A. Mumba (Kantanshi): Madam Speaker, I would like to seek clarification from the hon. Minister on whether it is the Government that has been taken for arbitration or the company that has taken the Government into arbitration. This is because 99 per cent of the time, when the Government is taken into arbitration, it always loses and ends up paying a lot of taxpayers’ money. Could the hon. Minister clarify that for the benefit of our country.

 

Mr Nkhuwa: Madam Speaker, firstly, I said that we renewed the implementation agreement several times. It actually lapsed, and we did not renew it. It is the developer that has taken the Government for arbitration. That is the position.

 

I thank you, Madam Speaker.

 

FREE EDUCATION IMPLEMENTATION POLICY

 

(Debate resumed)

 

87 Mr Simbao (Senga Hill) asked the Minister of General Education:

 

  1. whether the Government is implementing the free education policy;
  2. if so, which grades are benefiting from the policy;
  3. what the benefits of the policy are; and
  4. whether the policy has yielded the intended results so far.

 

Dr Wanchinga: Madam Speaker, the central issue raised by the hon. Member for Chembe was whether it was possible for the hon. Minister to indicate the average cost of education per child under the scenario of free education, as described by the Ministry of General Education. I had just mentioned that in the country, we have about 4.3 million children who go to school and out of that, 2,457,000 are children who are attending Grade 1 to Grade 7 in various schools. The average cost for a child, as has been calculated, is about K26.28 per child every year.

 

I thank you, Madam Speaker.

 

LIUWA NATIONAL PARK ROAD CONSTRUCTION

 

88 Dr Musokotwane (Liuwa): asked the Minister of Housing and Infrastructure Development:

 

  1. whether the Government has any plans to construct roads in the Liuwa National Park in order to spur investment and boost tourism in the Park;
  2. if so, when the plans will be implemented; and
  3. if there are no such plans, why.

 

Ms Chalikosa: Madam Speaker, the Government does have plans to construct roads in the Liuwa National Park.

 

Madam, the immediate plans are to design and construct a bridge across Luanginga River between Kalabo and Liuwa to create access to the other roads earmarked for construction in the Liuwa National Park. The design for the bridge has been included in the 2021 Road Sector Annual Work Plan. So, the Government has plans, as indicated.

 

I thank you, Madam Speaker.

 

Dr Musokotwane: Madam Speaker, the hon. Minister said that the designs for the bridge are included in the 2021 Budget. I would like to find out from the hon. Minister when the construction will be undertaken after those designs have been made and submitted.

 

Ms Chalikosa: Madam Speaker, the procurement of the consultant to prepare the designs will commence during the first quarter of 2021. In the annual plan, we have allocated K2,000,000 towards the design of the bridge. The cost estimates of the construction of the bridge will only be known once the design is completed, and that will be in the first quarter of 2021.

 

I thank you, Madam Speaker.

 

Mr Ndalamei (Sikongo): Madam Speaker, after constructing the bridge, how many roads will be constructed in Liuwa National Park?

 

Ms Chalikosa: Madam Speaker, it is a network of roads. So, there is no specific number. However, the plan is to make all these roads all weather so that they can be serviceable during the wet and dry seasons. So, it is a network of roads.

 

I thank you, Madam Speaker.

 

Dr Musokotwane: Madam Speaker, the hon. Minister answered a question I did not ask. My question was that since the designs are being undertaken in the financial and calendar year 2021, could she, please, shed some light when the bridge will be constructed not designed.

 

Ms Chalikosa: Madam Speaker, I think I was very clear. I said that since the design of the bridge is going to be undertaken in 2021, after which the cost estimate of the construction of the bridge will be known, only after that, will we know when the construction will start. I cannot be any clearer than that.

 

Madam, Speaker, I thank you.

 

Madam First Deputy Speaker: Is the hon. Member for Liuwa still indicating on e-Chamber?

 

Ms Tambatamba: Madam Speaker, could the hon. Minister clarify whether the project for the bridge will be funded from the US$400 Coronavirus Disease 2019 (COVID-19) Fund for roads.

 

Ms Chalikosa: Madam Speaker, since the K2 million allocated for the initial design is included in the annual work plan, I take it that it will be part of the budget allocation.

 

I thank you, Madam.

 

 Madam First Deputy Speaker: I will allow three questions from the hon. Members for Kanchibiya, Kalabo Central and I will end with the hon. Member for Mwandi.

 

Dr Malama (Kanchibiya): Madam Speaker, Liuwa National Park is a very important asset to the country and, indeed, to the people of the Western Province.

 

Madam, when considering the setting up of the bridge and, indeed, the road network, is there any consideration that the strategic partners such as African Parks, Community Resource Board and the traditional leadership could be closely consulted so that when the full package is made, it will boost tourism in the area?

 

Ms Chalikosa: Madam Speaker, indeed, all stakeholders have to be consulted for the project to be successful. So, yes, all the people who stand to benefit from this road network will be part of the process.

 

I thank you, Madam Speaker.

 

Mr Miyutu (Kalabo Central): Madam Speaker, although the hon. Minister has not stated the names of the roads which are to be constructed in Liuwa National Park, I would like to seek clarification on how many kilometers the Government intends to embark on as it constructs the bridge and other roads.

 

Madam First Deputy Speaker: Order!

 

I will allow that question only if the hon. Minister has the information. Hon. Minister, do you have the information?

 

Ms Chalikosa: Madam Speaker, I do not have the actual kilometers, but like I indicated earlier, it is a network of roads. So, this will be established at the time the process is being undertaken. So, I do not have a fixed amount.

 

Madam, I thank you.

 

Mr Mutaba (Mwandi): Madam Speaker, just for record’s sake, does it mean that the people of Liuwa should only wait to see the designs of the bridge and not the construction of roads because that has not been budgeted for?

 

 Ms Chalikosa: Madam Speaker, I am just from stating that the design has been budgeted for in the work plan. So, when the cost estimate is undertaken, then, we will get to the issue of construction. We will deal with the issue as it comes.

 

 I thank you, Madam.

 

_______

 

BILLS

 

FIRST READINGS

 

THE DATA PROTECTION BILL, 2020

 

The Minister of Transport and Communication (Mr Kafwaya): Madam Speaker, I beg to present a Bill entitled the Data Protection, 2020. The objects of the Bill are to:

 

  1. provide for an effective system for the use and protection of personal data;
  2. regulate the collection, use, transmission, storage and otherwise processing of personal data;
  3. establish the Office of the Data Protection Commissioner and provide for its functions;
  4. provide for the registration of data controllers and licensing of data auditors;
  5. provide for the duties of data controllers and data processors;
  6. provide for the rights of data subjects; and
  7. provide for matters connected with, or incidental to, the foregoing.

 

Madam Speaker, I thank you.

 

Madam First Deputy Speaker: The Bill stand referred to the Committee on Media, Information and Communication Technologies. The Committee is required to submit its report on the Bill to the House by Tuesday, 9th February, 2021. Hon. Members who wish to make submissions on the Bill are free to do so within the programme of work of the Committee.

 

Thank you.

 

THE ELECTRONIC COMMUNICATIONS AND TRANSACTIONS BILL, 2020

 

The Minister of Transport and Communication (Mr Kafwaya): Madam Speaker, I beg to present a Bill entitled the Electronic Communications and Transactions Bill, 2020. The objects of this Bill are to:

 

  1. provide a safe and effective environment for electronic transactions;
  2. promote secure electronic signatures;
  3. facilitate electronic filling of documents by public authorities;
  4. provide for the use, security, facilitation and regulation of electronic communications and transactions;
  5. promote legal certainty and confidence, and encourage investment and innovation in relation to electronic transactions;
  6. regulate the National Public Key Infrastructure;
  7. repeal and replace the Electronic Communications and Transactions Act, 2009; and
  8. provide for matters connected with, or incidental, to the foregoing.

 

Thank you, Madam.

 

Madam First Deputy Speaker: The Bill stands referred to the Committee on Media, Information and Communication Technologies. The Committee is required to submit its report on the Bill to the House by Tuesday, 9th February, 2021. Hon. Members who wish to make submissions on the Bill are free to do so within the programme of work of the Committee.

 

Thank you.

 

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MOTION

 

ADJOURNMENT

 

The Vice-President (Mrs Wina): Madam Speaker, I beg to move that the House do now adjourn.

 

Question put and agreed to.

 

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The House adjourned at 1631 hours until 1430 hours on Thursday, 28th January, 2021.

 

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