Monday, 3 September 2012

Gov't gives NCZ 42billion kwacha


The Ministry of Finance has released 42 Billion kwacha in the continued process of recapitalizing the Nitrogen Chemicals of Zambia.


Of the funds released, 25 Billion kwacha is strictly for the purpose of commencing the rehabilitation of the Kobe Ammonium Nitrate Plant 1, and for re-commissioning it in order to facilitate local production of industrial explosives.

This is in line with the PF Governments’ commitment towards improvement of local productive capacity and job creation through industrialization.

The remaining 17 Billion kwacha is targeted at making part payment of retirement packages to former employees of NCZ.

The Ministry of Finance is confident that this action will alleviate the suffering of NCZ retirees and give them the capacity to look after their families, pay school fees for their children and help them begin their own wealth creation projects.

The Ministry of Finance is delighted that after more than fifteen years [1996] of disuse, save for a short run in 2002, the NCZ Ammonium Nitrate Plant 1 will once again be cranking into life.

As a shareholder on behalf of Government, and in consultation with the relevant line Ministry, the ministry of finance will soon develop and sign performance contracts with NCZ to ensure that the expected outcomes from the recapitalization initiative are achieved.

The action has been taken pursuant to Cap 349 of the Laws of Zambia [Gazette Notice no. 1016 of 1965], Minister of Finance Incorporation Act, created as a corporation sole by that name, with perpetual succession and an official seal, and with power to acquire and hold in that name lands, Government Securities, Shares in any Company, Securities for money, and real and personal property of every description, so sue and be sued, to execute deeds, to enter into agreements binding on himself and his successors in office, and to do all other acts necessary or expedient to be done in respect of the above matters or any of them.

NCZ was earlier given 144 Billion kwacha under FISP for production of 30, 000 MT Compound D – Fertiliser for the 2012/2013 Season.

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