The European Union (EU) has said the continuing appreciation of kwacha against major foreign currencies has resulted in 36 percent shortfall in its funding of development programs in Zambia, Zambia Daily Mail reported Wednesday.

The EU has set aside 138 million euros for four on-going projects and two others that are yet to start in the southern African country.

This shortfall translates into about 49.878 million euros ( about 60 million U.S. dollars).

The on-going projects include the rehabilitation of Lusaka and Livingstone airports, eight urban markets and periodic maintenance of trunk and district roads.

EU official Juergen Kettner said here Tuesday that funds for the development programs came in euros while payments to local contractors are in kwacha.

"We are trying our best to raise funds to meet the shortfall," the official said at a press briefing held to commemorate the Europe Day.

Earlier, Head of the European Commission delegation in Zambia Henry Sprietsma said modern infrastructure plays a crucial role in economic and social development because local and foreign investors usually shun investing in the areas which have poor infrastructure.

He said the EU is therefore keen to see the country develop infrastructure.

Kwacha to the U.S. dollar has appreciated to 3,000 against one dollar now compared with 4,800 to one dollars in February 2005.

Source: Xinhua