China Squeezes Bankrupt Mugabe Govt

China has imposed tough restrictions on a crucial $300 million-dollar loan advanced to Zimbabwe for expanding the Kariba South power station.
Under the agreement sighted by NOW DAILY Thursday, the near-bankrupt Zimbabwean government of president Robert Mugabe will be required to secure all materials and resources under the loan from China.
The material clause reads:
“The goods, technologies and services purchased by using the proceeds of Facility shall be purchased from China preferentially.”
Zimbabwe has already paid a management fee of nearly $1 million to activate the controversial loan and will be required to match Chinese contributions along the way.
The so-called “preferential buyer credit loan agreement on Zimbabwe Kariba South Hydro Power Extension Project” is being bankrolled by the Export-Import Bank of China. It was signed by finance minister Patrick Chinamasa on 11 November 2013. However, it was only circulated to legislators this year but has not been publicly debated.
The US$319 455 920,70 loan is filed as China Eximbank PBC No. (2013) Total 45 No. (289) No. 1420303052013212386.
Zimbabwe has since created the Kariba South Extension Company to administer the loan. The energy ministry recently announced a board to run the joint operation between the Zimbabwe Power Company (Pvt) Ltd and Sinohydro Corporation Ltd, the Chinese supplier.


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