By Cecilia Chiluba/Zambia/Lusaka
Government of Zambia has signed an Amendment Agreement with AVIC International Project Engineering Company to restructure debt linked to the Lusaka Urban Roads Programme.
This step forms part of Zambia’s ongoing external debt restructuring process under the G20 Common Framework for Debt Treatment.
The agreement, was signed on January 13, 2026, and it relates to financing contracted in 2017 and 2018 for the L400 Phase II and Phase III road projects, initially valued at over US$72 million.
The Ministry of Finance and National Planning revealed that following the transfer of the loans from the original lenders, AVIC International assumed the outstanding debt, which now stands at about US$56.3 million under the first amendment arrangement.
“In January 2017 and November 2018, the Government entered into Financing Agreements in the amounts of US$36,177,000.00 and US$36,165,913.20, respectively, to support the construction and rehabilitation of selected Lusaka urban roads under L400 Phase II and L400 Phase III,” it said.
“Following a transfer by the original lenders, AVIC International, as the contractor on the projects, assumed the outstanding debt associated with the financing. The resulting Debt Restructuring Agreement in the amount of US$56.3 million constitutes the first Amendment Agreement in respect of these obligations and is being implemented within a sequenced approach aimed at addressing outstanding amounts owed to AVIC International, in an orderly manner.”
According to the Ministry, the move reflects Zambia’s commitment to transparent, orderly and good-faith engagement with creditors, as it advances its broader macro-fiscal sustainability and debt restructuring agenda.
The government expressed gratitude to AVIC International for its continued cooperation and partnership.
“The Government of the Republic of Zambia reaffirms its commitment to maintaining transparent and constructive relationships with all its creditors as Zambia advances its broader debt resolution and macro-fiscal sustainability agenda,” it stated.
