Govt, AVIC sign agreement to restructure financing for Lusaka urban roads programme

Government says it has signed an amendment agreement with AVIC International Project Engineering Company to restructure financing for the Lusaka Urban Roads Programme, as part of its ongoing external debt restructuring efforts.

According to a statement from the Office of the Secretary to the Treasury issued on Thursday, the agreement—signed on January 13, 2026—covered funding for the L400 Phase II and Phase III projects.

The move is part of Zambia’s debt treatment under the G20 Common Framework.

“The amendment demonstrates our commitment to orderly, transparent, and good-faith engagement with external creditors while working to restore macro-fiscal sustainability,” the statement stated.

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The original financing agreements, signed in January 2017 and November 2018, totaled US$36.18 million and US$36.17 million, respectively.

According to the treasury, the funds supported the construction and rehabilitation of selected urban roads in Lusaka under the L400 Phase II and Phase III projects.

After the original lenders transferred the debt, AVIC International—also the contractor for the projects—assumed the outstanding obligations.

“This led to a Debt Restructuring Agreement valued at approximately US$56.3 million,” the statement said.

The government noted that the latest amendment was the first formal modification of these obligations and represents a step in a sequenced approach to settling the amounts owed to AVIC International in an orderly manner.

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