Government to spend over $200 million on nationwide solar energy rollout

Government to spend over $200 million on nationwide solar energy rollout

Government will channel more than 200 million US dollars approximately 4.6 billion Kwacha into a nationwide solar energy project under the new Presidential Constituency Energy Initiative (PCEI).

The Ministry of Local Government and Rural Development Permanent Secretary for Technical Services, Nicholas Phiri, says an initial 100 million US dollars (2.3 billion Kwacha) has already been secured to launch the programme.

Mr. Phiri explains that 40 million dollars (920 million Kwacha) of the initial funding will come from the Constituency Development Fund (CDF), while 60 million dollars (1.38 billion Kwacha) will be injected as equity by ZCCM–IH.

He adds that the remaining 100 million dollars needed to meet the full project cost will be mobilised from financial institutions and commercial banks.

To generate the CDF component, Mr. Phiri says the Government has restructured the 2026 CDF, releasing 35.9 million dollars (826 million Kwacha) from the loan and disaster response components. However, this still leaves a 94-million-Kwacha shortfall toward the CDF’s required equity.

He notes that the gap will be bridged through community contributions, with each constituency expected to raise about 5.9 million Kwacha, although only 603,000 Kwacha will come directly from community projects.

Mr. Phiri told ZNBC News that the restructuring will not affect any ongoing or planned CDF projects such as chiefs’ palaces, maternity annexes, water and sanitation facilities.

He further stated that Local Authorities will directly benefit from the solar investment, as all 156 councils will earn dividends from their equity in the project boosting their own-source revenue.

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