Government signs for K573 million loan from European Investment Bank for water and sanitation deal

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Finance Minister Alexander Chikwanda
Finance Minister Alexander Chikwanda
Finance Minister Alexander Chikwnda
Finance Minister Alexander Chikwnda

Government has signed a finance contract of K573 Million with the European Investment Bank to finance the implementation of the Zambia Water and Sanitation Project.

Speaking during the signing ceremony in Lusaka today, Finance Minister, Alexander Chikwanda, said that the loan facility is intended to finance the improvement of Water supply and sanitation amenities in Mufulira, Chililabombwe and Chingola towns.

Mr. Chikwanda said that government appreciates the support it has continued to receive from the European Investment Bank in various areas of the country’s development such as agriculture, transport, energy, water and sanitation.

Mr. Chikwanda explained that the requirement of the Zambia Water and Sanitation project is 156 million euros to be arranged through a co-financing facility and government will provide 20 million euros while the agency Francaise De Development will provide 50 million euros.

He added that the European Investment Bank will provide the balance through the contract signed today.

Speaking at the same event, European Investment Bank (EIB) Head of Regional Representation, Carmelo Cocuzza, said that the contract signed today shows the cordial relationship the EIB shares with the Zambian government towards improving the water and sanitation sector.

Mr. Cocuzza is hopeful that the loan will go a long way in improving water and sanitation and eventually provide the people of Mufulira, Chingola and Chililabombwe safer water.

And Mulonga Water and Sewerage Company Acting Managing Director, Kanyembo Ndhlovu, said that one of the biggest challenges the three towns have been facing in terms of water reticulation is poor infrastructure.

Mr. Ndhlovu says the money will be used for the intended purpose and improve the water infrastructure of the company.

64 COMMENTS

  1. Water is life ! Well-done gentlemen ! This is money invested wisely ! This is one of the surest ways toward a healthy nation.Way to go !!!

    • “Better access to clean water, sanitation services and water management creates tremendous opportunity for the poor and is a progressive strategy for economic growth.”-World health organisation.

    • Funnily enough I always thought those towns had good water supply then I remembered it was a matter of where you lived and how much damage the mines got away with. As we will be a future ‘water tourism’ destination given the 45%of southern African supply let’s hope we do more across the country to harness what we seem to have been blessed with in abundance. Sanitation is a weakness we need to overcome and no doubt this helps. Not an economist so can’t do pros and cons. Lusaka has the US congress helping it so hope areas across Zed benefit long term.

    • Improved access to clean water and sanitation services improves the health of the populace and reduces healthy health care costs. It goes without saying that good management of water resources further brings more efficiency in productivity across economic sectors and also contributes to the health of the ecosystem. In a nutshell these interventions leads to immediate and long-term economic, social and environmental benefits.

    • @Saulosi, mwamonekeni. I could see you never wanted to defend Sata in last two days.
      Anyway, the water issue is important to borrow money for, not Railways, that was a worsted loan.
      People in copperbelt need clean water, and not forgetting gardening. People produce vegitables like “rape”, tomatoes and okra and resell at tu Ntemba in front of their houses, thus economical development.

    • @Nostradamus…natubwela bakamba.Lelo natukwata fi time fya blogging.Atishani uko kuntu mwalila ka ? Ala mwandi nifyofine one can`t do without water.Apa pena nabalasa.

    • @Nostradamus,
      why is impwa, bondwa, chibwabwa missing from your list of vegetables… mwati are you bemba? you,, at least you shouldnt have not missed impwa!!

      and dont say okra,, say umulemwe.. are you trying to sound american or bemba american?

      @Soulosi
      Great to see you back… yes water is life, maybe this project with work, seeing that those corrupt deputy ministers were fired.. the PF house is being cleaned, i must acknowledge that

    • @Ndobo, well tried its umulembwe. I also listed lepu, I wrote in English, but LT thinks am insulting.
      I was about to write about those PF MPs, but naba sebana ba PF.

    • @Nostradamus
      lepu!! kekekekekekekeeke.. you have crack my ribss
      you remaind me of my past life in matero,, when those ladies would make the rounds in the mornings screaming for constomers… leeeepuu! leeepuu, leeeepuu, Then my mother would ask me to stop them so that she could buy some…

    • Zambia is at crossroads’
      They never say money has been borrowed for run the bye-elections and to cater for medal costs, Kaseba’s trips etc. All is mentioned is in good faith.
      Why did Yaluma boost of serving debts when we even borrow money. Is it the new culture in Zambia, where you get a loan to pay off another loan.

      Mother Zambia our children are in ShIITE

  2. Chililabombwe, Chingola and Mufurila, how about the other towns having similar water blues? lets hope PF cadres do not share the money with their relatives. There should be no politicizing of the funds and its development. please no giving of contracts to cadres too, let the money be used for its intended purpose.

    • Thought Mansa would be one of the recipients after MCS insulted them during the by-election when he wondered “loudly” how the people of Senama where still using pit latrines.

  3. The objective of the project is very very important. Will we be able to pay this back and when? The government’s drive for development is good, but we are a country with limited resources. Projects need to be prioritized and needless by elections stopped. What happened to the extra cash being raised from the removal of subsidies? Something is not adding up.

  6. Water improvement nizi pakuti tulenya bwino.Am tired of ukunyela mumpanga because of no water.Twatotela mwebuteko.

  13. I hope our dear president has more than 10years for the sake of development! This man will make sure atleast before 2016, Zambia smells all sorts of development. Am urging all of you diasporians to send more money to relatives back home so it can help pay the debts indirectly, there are all sorts of ways and means to help pay back.

    • @cindy
      iwe Cindy sending money to Zambia is suicidal.. there is alot of misapplication of funds,, abuse fund of funds etc.
      One of my house is still at foundation level, but i was being told its finished, platering and painting was what was remaining… just imagine!! i even paid for some expensive doors and window..
      so in february am going to sort out the mess.. i think mr mpombo will do with some company in jail

    • @ Ndobo,
      Am laughing so hard! Robbed at Gun point by family members ka? Hihihihihihihihi Nice! I heard some funny story were some get creative by faking funerals. Just buy a house in Europe and donate that Zambian one to them!

  15. This is not about improvement of sanitation facilities, its about more borrowing with a different label. Westerners will continue controlling Africans as long as we continue getting unsustainable loans from them. Development can not come through borrowing, it comes only through savings and hardwork. This is neo- colonialism…

  16. At lightening speed back into the bottomless abyss out of which we got rescued only a few years ago, thanks to PF’s ‘more money in our pockets policy.’

  17. Michael Mulenga Zondwa Sata CNP’s decision not to attend Nelson Mandela’s funeral was highly insensitivity and amounted to stinking plain stupidity. Sata’s persistent zigzagging and lack of diplomatic common sense have become very embarrassing to all Zambians. It is of no use for his minders to keep on claiming that he is healthy, we can all see his deteriorating state of physical appearing and mind. Sooner than later, there will be a funeral in Zambia and besides Mugabe, I wonder if any president will moan this wayward lumpen.

  18. For the first time, this government seems to be scoring more more +ves than -ves on LT.

    We, in Luapula, believe that if Zambia doesn’t borrow today we risk having a bleak future generation that shall blame this generation for having not prepared them adequately.
    The route our president has so far taken to build or invest so heavily now (unlike the past regimes who borrowed for consumption) in Zambia’s future, after years of dilapidation and neglect, is a good route and commendable.

    The following considerations are assisting LUAPULA and many people quoted below here to form an independent opinion as we approach 2016:

    1. Construction & rehab of the Kitwe, Ndola Central Hospitals, and UTH,
    2. Rehab of Zambia Railways Limited.

  19. 3. Tarring of the Mansa pedicle & Chipata-Vubwi and many township roads,
    4. Upgrade of schools to secondary schools like Mpande Primary School in Vubwi,
    5. Upgrade of villages like Vubwi & Chipili upgraded to districts,
    6. Construction of new universities,
    7. Construction of modern bridges,
    8. Construction of Mongu stadium,
    9. Upgrade of Kitwe-Chingola road to dual carriage way,
    10. Transfer of provincial HQ from Livingstone to Choma,
    11. Upgrade of Harry Mwaanga Nkumbula airport
    12. Construction of new International airport,

  20. 25. LT Construction of Mongu Kalabo road impresses residents. Ms M Tukamone, a Mongu resident at LEALUI fishing Camp, has thanked the GRZ for the tremendous road works it has taken in the province saying this will enhance sustainable development in the area. LT
    26. Marrapodi UCZ minister in charge Royd Sikaundi thanked the PF grz for the MUSHROOMING development in Mandevu. LT
    27. Chief Mwangala of the Chewa people in Chadiza thanked GRZ for the developmental projects that were being carried out in the two districts. LT
    28. Fight against corruption : Dismissal of deputy ministers pending investigations.
    29. There is an increase in Entrepreneurship in Zambia according to PACRA. LT
    30. Improvement & implementation of H2O supply & sanitation in Mufulira, Chililabombwe & Chingola.

  21. All the three towns mentioned are mining towns. In as much that water is definately key, why borrow when we can tax the mines in the same area through windfall tax and raise the same money without borrowing yet achieving the same purpose? This borrowing in the long term will have adversity effect that has potential to cripple the same said towns more worse than the current. These mines must not be treated with kid gloves, they are taking so much from us, at least ZCCM used to maintain roads, water etc. What are we benefiting from them?

    • @ Steve I like you…If only we had a hundred people who looked at issues from your perceptive and saw th bigger picture; Zambia would be developed. …most bloggers seem to forget this very simple point that those 3 towns produce more in copper than than the pantry sum this fossil Chikwanda is borrowing here…..moreover the European Investment Bank is lending with one hand and taking out with the other through transfer pricing fees and taxes they get from these mining companies selling via their stock markets. They are probably lending us our own money and laughing at our stup*dity.

  22. The water supply is heavily contaminated with sulphur from KCM and Glencore owned mines…where do you think these multi-national obtained their funding to invest in their Zambian operations in the first place? EEC meaning the selfsame people handing out loans to you today are also major stakeholders in these mining firms; no wonder these politicans can’t introduce windfall tax as they are already comprised.
    You people need to wake up and incorporate a bit of critical thinking and analysis. …look at the bigger picture for christ’s sake.

    Wake up people! from your docility !

  23. If we have to borrow to improve water and sanitation issues for rich mining towns, how much more do we borrow for the same projects in poorer towns?
    I smell the Chitotela and Mwewa formula here!
    Typical CNP approach as usual!

  24. What’s the work of the city council in these towns.if money was needed for the project. It’s the councils job to plan for these projects. You live n a country that has a toothless governor, mayor and council.

  25. POMPWE YOU ARE RIGHT. ICHI CHITATA ECHASHILE BIG NKONGOLE MULI KAUNDA WAMUYAYAYA. CHILESAINA AMA LOAN TO LEAVE KA 1% FOR EACH LOAN KU BESHIKULU. THEY CANT RETIRE THESE FELLOWS KA? BIG PROBLEM.

  26. 49 years of indigenous governmants, billions of dollars budgeted and misapropriated, and still need to beg for a glass of clean drinking water and basic sanitation?
    Well done to all politicians!!!

  27. ZIMBABWEEAN BANKS & ZIMBABWE have just run out of cash.
    Europe and everyone else has pulled out Malawi – Malawi has no forex. The European Investment Bank etc can only give money when they have accessed your development potential and ability to repay.

    UK, like Kenya do not have minerals but many universities and educated brains.

    P F philosophy : More schools and more universities = more skills = widened tax revenue base to repay any loan commitment in future.
    M M D philosophy : Invest in leaders’ and their kids’ suits, shoes, guest houses, flats.
    U P N D philosophy : None

    Do you want us and our future generation to be walking streets with shoe brushes in jackets? NAY.

    LUAPULA will vote PF en-mass whether or not leaders are car washers or toilet cleaners.

    • But they also should consider upgrading the water supply system in Luapula. How the hell does Luapula have poor water supply when we have such abundant water bodies. Take for example Mansa, the Luapula Water and Sanitation Company was established years ago, But what has it achieved to show for it? Nothing. Why fund these mentioned towns when they do already have a somewhat functional Mulonga water utility company. It beats me. Priorities have always been a challenge for our leaders.

  28. If I was made president I can also borrow even $1 trillion dollars and replace all the gravel roads with tarred ones and provide treated water infrastructure to all. Is getting nkongole difficult and is it sustainable? No! It is managing with the “limited resources” that we have with moderate nkongole but at the same time provide for roads and other infrastructure. The interest we are paying on these UNIP-like PF nkongoles is not sustainable. It demonstrtes a lack of leadership and prudent strategic planning ability. Meanwhile their children have been sorted out with RDA corruption money at state house and wont feel the pinch.

  29. @ Ndeloleshafye AND @ Bufi, Bboza, Kubeja

    Like HH observed, Luapula has an abundance of water supply. What we might need are purification and sanitation facilities which are already planned for PF second term.

    If $1T loan is investment in my children and grand kid’s future, I will go for it.
    “PF nkongoles is not sustainable?” Please read BOZ report and why anyone like the European Investment Bank could even dare part with or risk their trillions..

  30. Chikwanda is a minister always borrowing money for consumption rather than for investments….kk style of management will ruin Zambia for sure!!

  31. Chikwanda is a useless minister -always borrowing money for consumption rather than for investments….kk style of management will ruin Zambia for sure!!

  32. @ franswa

    “Chikwanda is a minister always borrowing money for consumption???????”

    Do you call investment in new universities, roads, bridges, clinics, power stations, water, sanitation etc for consumption? What level of education is yours?
    You might surely need university tutorials!

    Please read my earlier postings.

  34. The Government of the republic of Zambia has accrued debts amount to US$3.7bn in just two years the Pf has been in power, i guess this is progressive indeed

  35. The new deal govt under Mwanawasa did alot of infrastructure developments ranging from roads,hospitals,clinics,houses,Markets,water & sanitation e.g in Matero constituency and managed to bring down foreign debt from $7 billion to $500m ..No borrowing was initiated during all the developments.Why borrow now for water & sanitation?

  36. Why not get good taxes from the mines in Mufulira, Chililabombwe and Chingola towns to improve the water supply in those mining towns>

  37. @alela

    “The new deal govt under Mwanawasa did a lot of infrastructure developments ranging from roads,hospitals,clinics,houses,Markets,water & sanitation”. Please name them! Because we are still moving around with shoe brushes in our pockets because of dirt and dust in our roads.

    “Managed to bring down foreign debt?” How? Not from taxes. But it was negotiated for and as a reward for good stewardship, good financial management, for investing in viable projects like universities, period.

  38. Sustainable borrowing for good cause its true township like the one opposite the barracks in muf then kamuchanga kalukanya,in ndola township like Chinese kx masala and part of lubuto kantolomba big and other towns The project is enormous

    Its therefore wise to borrow stratergically with options at hand preferably on lent to a ultility for recouping though a well mgt meter prepayment with cashflow pay back arrangement carefully with each customer factored in the loan and its interest costs per head.May be before we borrow we look at the options on reinvestments of the borrowed and carefully align cashflows to project

  39. You also have townships like nyamuna senama,buchi,matero,kamitondo,kamirenda,bush baby,zambia compound in solwezi,choma,namwala,itezhi including chogwe and chipata.Its therefore important to get feed back from nwasco and local gov to effectively have a master plan and borrow intelligently with assets arising from the same carefully alined towards the payments.Then you have utilities in operation do they make a return not to undertake For these town there was a ZCCM/IH company formed and it borrowed heavily to operationalize the sanitation at privatization what happened before being intergrated into Nkana water or is it mulonga.

    But above all its better from EIB than pure commercial lenders

  40. WE ARE TIRED OF NKANI YA BORROWING, WHY CANT YOU BORROW TRILLION DOLLARS AT ONCE AND ONCE FOR ALL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    EVERYDAY BORROWING. BORROW ENOUGH TO AVOID BEGGING DOLLARS EVERYDAY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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