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Financial Restructuring and Funding Challenges for KGL

September 20, 2025

Financial Restructuring and Funding Challenges for KGL

The financial underpinnings of the Kafue Gorge Lower project have been under scrutiny, especially after EXIM Bank of China reportedly froze additional funding. In response, ZESCO has stepped forward, partly with internal revenues, to ensure continuity of remaining works for the 750 MW facility. Negotiations have been ongoing to restructure and reschedule debt obligations owed to China.

The financial underpinnings of the Kafue Gorge Lower project have been under scrutiny, especially after EXIM Bank of China reportedly froze additional funding. In response, ZESCO has stepped forward, partly with internal revenues, to ensure continuity of remaining works for the 750 MW facility. Negotiations have been ongoing to restructure and reschedule debt obligations owed to China. 

Officials involved have assured the public that despite financial challenges, there will be no compromises on safety, environmental compliance, or quality of work, and that efforts are being made to ensure that all turbines become fully operational as soon as possible.

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