THE Biofuels Associations of Zambia (BAZ) has described the decision by a Chinese firm, Kaid Bio Mass to pull out of Zambia, as unfortunate because the move will deny the country of the immense economic benefits.
Kaid Biomass Zambia Limited was supposed to undertake a US$6 billion four-phased investment programme in Nakonde and Isoka but decided to pull out after four years in Zambia.
BAZ chairperson Thomson Sinkala said in an interview yesterday that it was saddening that the company had decided to pull out its investments from the country.
“It is unfortunate that KBZ has decided to pull the investment out of the country. It is sad because the project is something that people in Nakonde and Isoka accepted,” professor Sinkala said.
Professor Sinkala said the $6 billion investment was meant to benefit not only the people of Nakonde and Isoka but the rest of the country.
He said the benefits of the investment were going to accrue to the people as they were to be part of it in terms of participation.
Last week, KBZ executive vice-president Kumbukilina Phiri said the company was pulling out of Zambia because the amount of land which had been offered for the project was too small to justify the investment required and what had been spent.
Mr Phiri said that the company had decided to pull out of the country because the parent company felt that it was not possible to change the inititial plan considering that the investment was huge.
Mr Phiri also said the company felt that the project would not be viable considering the amount of land that had been offered.
KBZ is part of Suneshine Kaid New Energy Gruop of China that has been in the Renewable Energy business for over 20 years.
By 2010, the group had total assets to the tune of RMB 18 billion (US$2.7 billion) and sales revenue amounting to RMB 7 billion Yuan (US$1.1 billion).
Government and KBZ signed an investment Protection Agreement (IPPA) for the development of US$450 energy project.
The project which was expected to create 10,000 jobs in Nakonde and Isoka, was to cover about 1.8 million hectares of land.
Of the total investment, US$218 million was meant to be used in Isoka, while US$233 million was to be invested in the Nakonde project.