The Zambian government plans to repay the $103 million loan that Libya's Lap Green Networks obtained from ZTE for the expansion of Zambia Telecommunication Company (Zamtel) network.

The loan was secured by Lap Green Networks in 2011 from ZTE in order to implement Zambia's Global System for Mobile Communication (GSM) phase IV and Universal Mobile Telecommunication System (UMTS) projects.

Zamtel was sold to the Libyan company in 2010 for $257 million by the previous Movement for Multiparty Democracy (MMD) government because it had allegedly failed to recapitalise the company to make it viable in order to compete with private operators.

The Libyan company owned 75% shares in Zamtel while the Zambian government owned 25% shares.

However, the current Patriotic Front (PF) government, which came into office in 2011, repossessed Zamtel, a state-run mobile operator from Lap Green Networks in 2012 on the grounds that the company was illegally sold by the previous administration.

The current Zambian government claimed Zamtel was a company owned by the Zambian people and should not have been sold to the Libyan company. It added that Zamtel was still viable and able to compete with private operators.

Now the Zambian government wants to pay back the loan to ZTE on behalf of Lap Green Networks.

According to correspondence between Secretary to Cabinet and Secretary to the Treasury, the Zambian government wants to secure a loan from China's Import and Export Bank to repay the outstanding Lap Green Networks loan.

When contacted by ITWeb Africa for comment on the plans, Secretary to Cabinet Rowland Msiska said, "we do not discuss some government plans and programmes in the media."

Lap Green Networks has already sued the Zambian government over the repossession of Zamtel.

The Libyan company wants the court to force the Zambian government to reverse its decision to take ownership of the company.

However, the Zambian government has insisted that it can only compensate Lap Green Networks for its investment in Zamtel as opposed to transferring ownership of the company.