Central African Power Corporation (Financial Provisions) Act

The Laws of Zambia
Copyright Ministry of Legal Affairs, Government of the Republic of Zambia
REPUBLIC OF ZAMBIA
THE CENTRAL AFRICAN POWER CORPORATION
(FINANCIAL PROVISIONS) ACT
CHAPTER 374 OF THE LAWS OF ZAMBIA
CHAPTER 374 THE CENTRAL AFRICAN POWER CORPORATION (FINANCIAL
PROVISIONS) ACT
THE CENTRAL AFRICAN POWER CORPORATION
(FINANCIAL PROVISIONS) ACT
ARRANGEMENT OF SECTIONS
Section
1. Short title
2. Government may guarantee liability of Corporation
3. Assumption of loan indebtedness
4. Discharge of liabilities under agreements
F IRST SCHEDULE -Loan agreements
SECOND SCHEDULE -Clause in agreement with the International Bank for
Reconstruction and Development
T HIRD SCHEDULE -Loan indebtedness
CHAPTER 374

nts
SECOND SCHEDULE -Clause in agreement with the International Bank for
Reconstruction and Development
T HIRD SCHEDULE -Loan indebtedness
CHAPTER 374

The Laws of Zambia
Copyright Ministry of Legal Affairs, Government of the Republic of Zambia
CENTRAL AFRICAN POWER CORPORATION
(FINANCIAL PROVISIONS)
An Act to empower the Government to enter into agreements guaranteeing the
repayment by the Central African Power Corporation of certain sums; to
empower the Permanent Secretary, Ministry of Finance, to assume liability for
certain loan indebtedness; and to make provision in relation to the discharge
of liabilities under certain agreements. [20th December, 1963]
64 of 1963
Government Notices
438 of 1963
301 of 1964
Statutory Instrument
157 of 1965
1. This Act may be cited as the Central African Power Corporation (Financial
Provisions) Act. Short title
2.

of 1964
Statutory Instrument
157 of 1965
1. This Act may be cited as the Central African Power Corporation (Financial
Provisions) Act. Short title
2.

(1) The Government may by a representative in each case authorised for the
purpose by the President enter into agreements with the persons mentioned in the first
column of the First Schedule whereby the Government shall unconditionally guarantee as
primary obligor and not as surety merely the due and punctual payment by the
Corporation of one-half of any financial obligations to such persons assumed or to be
assumed by the Corporation from the Federal Power Board in respect of the loan
agreements mentioned in the second column of the said Schedule. Government may
guarantee liability of
Corporation
(2) Any agreement entered into with the International Bank for Reconstruction and
Development under the provisions of subsection (1) may include a clause substantially in
the form set out in the Second Schedule and on the effectiveness of such agreement such
clause shall have full force and effect in Zambia. (3) Nothing in this section shall be deemed to prohibit the inclusion of or to render
invalid any other provisions in any agreements entered into under the provisions of
subsection (1).

e deemed to prohibit the inclusion of or to render
invalid any other provisions in any agreements entered into under the provisions of
subsection (1).

(4) In this section, "Corporation" means the Central African Power Corporation
constituted by section 36 of the Federation of Rhodesia and Nyasaland (Dissolution)
Order in Council, 1963. (As amended by G.N. No. 438 of 1963
and S.I. No. 157 of 1965)
App. 1
3. (1) The Permanent Secretary, Ministry of Finance, may on behalf of the
Government assume towards the persons mentioned in the first column of the Third
Schedule the loan indebtedness mentioned in the second column of the said Schedule. Any loan indebtedness so assumed shall be a charge on the general revenues and assets
of the Republic. Assumption of loan
indebtedness

said Schedule. Any loan indebtedness so assumed shall be a charge on the general revenues and assets
of the Republic. Assumption of loan
indebtedness

The Laws of Zambia
Copyright Ministry of Legal Affairs, Government of the Republic of Zambia
(2) Where any agreement made in pursuance of the provisions of subsection (1)
provides for the issue of securities in the form of bonds, such bonds may be issued under
the provisions of the Local Loans (Registered Stock and Securities) Act as though they
were being issued to raise a loan of the amount represented by the loan indebtedness to
which the agreement relates. (As amended by S.I. No. 157 of 1965)
Cap. 353
4. (1) If at any time any payment by the Government becomes due under the
provisions of any agreement entered into under the provisions of subsection (1) of section
two, or if at any time the Minister certifies that in his opinion any payment should be made
by the Government in order to ensure the due and punctual payment of any obligation
guaranteed by the Government under any such agreement, the payment so due by the
Government, or the payment so certified by the Minister, as the case may be, shall be
made from the general revenues of the Republic which are hereby appropriated for the
purpose.

certified by the Minister, as the case may be, shall be
made from the general revenues of the Republic which are hereby appropriated for the
purpose.

Discharge of liabilities
under agreements
(2) The payment of interest, the repayment of capital and any payments into sinking
funds provided for in any agreement made in pursuance of the provisions of subsection
(1) of section three shall be made from the general revenues of the Republic which are
hereby appropriated for the purpose. (As amended by S.I. No. 157 of 1965)
FIRST SCHEDULE
(Section 2)
LOAN AGREEMENTS
Person Agreement
1. The International Bank for Re- 1. Agreement dated 21st June, 1956, between the International
construction and Development. Bank for Reconstruction and Development and the Federal Power Board
for the loan of an amount in various currencies equivalent to eighty million
dollars. 2. The Commonwealth Development 2. Agreement dated 12th July, 1956, between the Commonwealth
Corporation. Development Corporation, the Federal Power Board and the Government
of the Federation of Rhodesia and Nyasaland for the loan of fifteen million
pounds sterling. 3. The Commonwealth Development 2. Agreement dated 12th July, 1956, between the Commonwealth
Finance Company Limited.

fifteen million
pounds sterling. 3. The Commonwealth Development 2. Agreement dated 12th July, 1956, between the Commonwealth
Finance Company Limited.

Development Finance Company Limited, the Federal Power Board and
the Federation of Rhodesia and Nyasaland for the loan of three million
pounds sterling. SECOND SCHEDULE
(Section 2)

mited, the Federal Power Board and
the Federation of Rhodesia and Nyasaland for the loan of three million
pounds sterling. SECOND SCHEDULE
(Section 2)

The Laws of Zambia
Copyright Ministry of Legal Affairs, Government of the Republic of Zambia
CLAUSE IN AGREEMENT WITH THE INTERNATIONAL BANK FOR RECONSTRUCTION AND
DEVELOPMENT
Section 3.01. It is the mutual intention of the Government and the Bank that no external debt shall
enjoy any priority over the Loan by way of a lien on governmental assets.

mutual intention of the Government and the Bank that no external debt shall
enjoy any priority over the Loan by way of a lien on governmental assets.

To that end the
Government undertakes that, except as the Bank shall otherwise agree, if any lien shall be created
on any assets of the Republic as security for any external debt, such lien shal ipso facto equally and
rateably secure the payment of one-half of the principal of, and one-half of the interest and other
charges on, the Loan and the Bonds, and that in the creation of any such lien express provision will
be made to that effect; provided, however, that the foregoing provisions of this section shall not apply
to: (i) any lien created on property, at the time of purchase thereof, solely as security for the payment
of the purchase price of such property; (ii) any lien on commercial goods to secure a debt maturing
not more than one year after the date on which it is originally incurred and to be paid out of the
proceeds of sale of such commercial goods; or (iii) any lien arising in the ordinary course of banking
transactions and securing a debt maturing not more than one year after its date.

al goods; or (iii) any lien arising in the ordinary course of banking
transactions and securing a debt maturing not more than one year after its date.

The term "assets of the Republic" as used in this section includes assets of the Republic or of any
of its political subdivisions or of any agency of the Republic or of any such political subdivision,
including its share of the assets of the Bank of Rhodesia and Nyasaland or of any successor agency
fulfilling similar functions in the Republic. The term "lien" shall include mortgages, pledges, charges, privileges and priorities of any kind. (As amended by S.I. No. 157 of 1965)
THIRD SCHEDULE
(Section 3)
LOAN INDEBTEDNESS
Loan
Indebteness
Person (in local
currency)
K
1. Barclays Bank D.C. and O. . . . . . . . . . . 2,000,000
2. Indaba Investments . . . . . . . . . . 4,000,000
3. Mufulira Copper Mines Limited . . . . . . . . . . 4,412,000
4. Nchanga Consolidated Copper Mines Limited. . . . . . . . 6,759,000
5. Roan Selection Trust Limited . . . . . . . . 3,401,000
6. Rhokana Corporation Limited .. . . . . . . . . 3,522,000
7. Standard Bank Limited . . . . . . . . . . 2,000,000