Zambia Restructures Debt Owed to AVIC International Under G20 Framework
The Government of the Republic of Zambia has restructured its debt owed to AVIC International Project Engineering Company as part of its ongoing external debt resolution process under the G20 Common Framework for Debt Treatment.
On 13 January 2026, the Government and AVIC International signed an Amendment Agreement relating to financing for the Lusaka Urban Roads Programme under the L400 Phase II and Phase III projects. The agreement reflects Zambia’s commitment to orderly, transparent and good-faith engagement with its external creditors.
The original financing agreements were contracted in January 2017 and November 2018, amounting to US$36.18 million and US$36.17 million respectively, to support the construction and rehabilitation of selected urban roads in Lusaka.
Following a transfer by the original lenders, AVIC International — the contractor for the projects — assumed the outstanding debt associated with the financing. This led to a Debt Restructuring Agreement valued at US$56.3 million, which constitutes the first amendment covering these obligations.
According to the Ministry of Finance and National Planning, the restructuring is being implemented through a sequenced approach aimed at settling outstanding amounts owed to AVIC International in an orderly and sustainable manner.
The Government expressed appreciation for AVIC International’s continued cooperation and partnership, and reaffirmed its commitment to maintaining transparent and constructive relationships with all creditors as it advances its broader debt resolution and macro-fiscal sustainability agenda.
