Zambia+Infrastructure+Projects


 * It Is Highly Likely China Will Continue To Invest In Zambia Infrastructure Projects, Especially In The Mining Sector **

It is highly China will continue to invest in Zambia infrastructure projects, especially in the mining sector. There have been a total of 16 infrastructure projects totaling USD 6.8 billion that include various infrastructure developments. Of this money, China’s primary focus has been on mining with the country’s minerals. Of those 16, 8 of them correspond to mining and total USD 4.7 billion. Due to Tanzania’s performance in PNGSM, the Chinese are highly likely to invest in infrastructure projects that coincide with minerals; however the Chinese will not invest in petroleum and natural gas infrastructure projects because there are no proven oil and natural gas reserves.
 * Executive Summary: **

In Zambia, infrastructure investment and development is integrated into the government’s broader economic growth objectives under its 5-year national development plan. Under the country’s sixth national development plan (2011–15), infrastructure development will focus on roads, railways, schools, health facilities and public–private partnerships (PPP). Of those 16 total projects, 8 of them correspond to Zambia's mining sector and the following projects represent the most significant investments from China. In March 2012 China's Nonferrous Metals Co. Ltd. (CNMC) pledged USD 400 million into the Mulyashi mining project in Luanshya and is expected to create more jobs for the locals. In May 2011 Zhonghui Mining Group of China invested USD 690 million in Zambia's Copper and Cobalt Ichumpe Mine in Kalulushi and is expected to produce 35,000 tons of copper and 2,000 tons of cobalt per year. In July 2009 the Zambian government signed an agreement with a private Chinese firm, Zhonghui, to invest in copper exploration and mining in Zambia worth USD 3.6 billion to be invested between 2009 and 2014. The firm also plans to construct a copper smelter in Kitwe, 350 km north of Lusaka, to produce 300,000 tons per year . In 2010 CNMC agreed to invest USD 600 million in Zambia’s mining industries; of that half will be used at the Luanshya Copper Mine and USD 270 million will be used at the Mulyanshi copper projects. The remaining funds will be used for developing the Chambishi Copper mines and the Chambishi Copper Smelter.
 * Discussion: **

The list below outlines miscellaneous infrastructure projects in Zambia that do not correspond to petroleum, natural gas and strategic mineral investments. These infrastructure projects total USD 2.1 billion and include a variety of projects such as road networks, steel manufacturing plants, optic fiber networks, hydro power plants and the expansion of a power plant

(USD) || Location || Key Chinese Companies Involved || Description || Corresponds To || million || Mansa || China Henan International Corporation, China Development Bank || Construction of a highway || Misc. || million || Unknown || Chinese government, Eximbank,China CAMC Engineering || Construction of a road || Misc. || thousand || Lusaka || Good Time Steel Limited || Building of a 1 billion ZMW steel manufacturing plant || Misc. || million || Southern tip of Lake Tanganyika || Eximbank, China CAMC Engineering || Road upgrades || Misc. || billion || Unknown || China's Sinohydro Company, China Africa Development Fund, Eximbank || Construction of a 600 mW power plant in Zambia || Misc. || million || Unknown || ZTE Corporation of China, Bank of China || Construction of optic fiber network for communications || Misc. || million || Lunzua || Eximbank || Construction of a hydro power plant to provide 15.3 MW of power || Misc. || million || Siavonga || Sino Hydro, Eximbank || Expansion of power station; installing two generators with a total capacity of 360 mW of power || Misc. ||
 * Date || Price
 * 2012 || 207
 * 2013 || 194
 * 2012 || 192
 * 2011 || 149
 * 2010 || 1.25
 * 2010 || 31
 * 2009 || 32
 * 2009 || 315

** Analytic Confidence: **
Analytic confidence is high. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise on the subject, worked alone while also collaborating with a group, and did not use a structured analytic method. The subject is moderately complex and the deadline was moderately easy to meet.


 * Analyst: ** James Gibson