1. Short title
This Act may be cited as the Central African Power Corporation (Financial Provisions) Act.
2. Government may guarantee liability of Corporation
(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.(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).(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.
3. Assumption of loan indebtedness
(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.(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.
4. Discharge of liabilities under agreements
(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.(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.