The Zambia government has clinched an US$18 million loan agreement with the Indian government towards the construction of rural health posts.Minister of Health Chitalu Chilufya disclosed that a memorandum of understanding (MoU) over the same loan will be signed on January 30, 2018.
Dr. Chilufya said the two governments has approved the signing of the agreement this month to complete part of the 650 rural health posts.He said Chama district has been allocated 11 out of the 650 rural health centres.The Minister was briefing President Edgar Lungu in Chama today when he gave an update on the progress of constructing the rural health centres.He explained that the loan agreement was extended and the Ministry of Health would mobilise following the approval.
He said government had terminated the contract awarded to Angelic company to construct and complete the rural health centres had been terminated hence the construction stalled in Northern, Northwestern, Luapula and Muchinga provinces.Dr. Chilufya, however expressed gratitude that some of the rural health centres across the country have since been completed and are operational.
Last year, government acquired the U$D100 million from the same government through Exim Bank of India for the construction of hundreds of rural health in the country.Meanwhile, Ministry of Infrastructure Permanent Secretary Charles Mushota disclosed that government has released K14 million for the construction of the Chama-Matumbo road.
Mr. Mushota regretted that the road works had stalled because of financial constraints.