The Government of the Republic of Zambia and AVIC International Project Engineering Company (“AVIC International”) signed an Amendment Agreement on January 13, 2026, related to financing for the Lusaka Urban Roads Programme under the L400 Phase II and Phase III projects. This step is part of Zambia’s ongoing external debt restructuring process under the G20 Common Framework for Debt Treatment and demonstrates the Government’s commitment to transparent and orderly engagement with its external creditors.
The original financing agreements were signed in January 2017 and November 2018, amounting to US$36,177,000.00 and US$36,165,913.20, respectively. These funds supported the construction and rehabilitation of selected Lusaka urban roads under L400 Phase II and III. Following a transfer by the original lenders, AVIC International assumed the outstanding debt associated with the financing, becoming the key stakeholder in managing these obligations.
The newly signed Debt Restructuring Agreement totals US$56.3 million and represents the first Amendment Agreement addressing these financial obligations. The agreement is being implemented through a sequenced approach designed to resolve outstanding amounts owed to AVIC International in an orderly manner.
The Government expressed appreciation to AVIC International for its continued cooperation and partnership. It reaffirmed its commitment to maintaining transparent and constructive relationships with all creditors while advancing broader debt resolution efforts and macro-fiscal sustainability objectives.
This agreement signals progress in Zambia’s broader economic management strategy and highlights the importance of strategic partnerships in supporting urban infrastructure development. The L400 road projects remain a priority for improving transport efficiency and urban mobility in Lusaka, reflecting the Government’s dedication to sustainable urban development.