The European Investment Bank (EIB) says it is in discussion with the Zambian government over the financing of hydro-power extension to alleviate the energy problem in the country.

EIB head of division for Southern and Indian Ocean Serge-Arno Klumper said here on Thursday the Zambian government approached the bank over the funding to the program and EIB is willing to fund the project.

Klumper however noted that the bank's financing to the project would depend on competition from other bidders and international tender procedure.

He said Zambia has the potential to satisfy the energy demand locally and export to other African countries in the region only if it gets enough funding and support from cooperating partners.

EIB has since the 1980s participated in various sectors in Zambia ranging from agriculture, tourism, mining, transportation and manufacturing.

Klumper said two thirds of EIB's funding went to agriculture and financed irrigation systems, dams, equipment and machinery purchases throughout Zambia.

Source: Xinhua