Zambian water upgrade project to receive €75m loan from EIB

Mulonga Water and Sewerage Company will receive a €75m loan from the European Investment Bank (EIB) for the rehabilitation and expansion of water and wastewater services in Zambia.

The loan will used to fix and provide new water treatment plants, water intakes, boreholes, pump stations and water reservoirs in the country. The company will also examine ways to reduce dependence on water from the polluted Kafue River through the use of a new groundwater-based system.

It is expected that 25,000 households will gain access to clean water for the first time under the programme.

EIB vice president for Africa Pim van Ballekom said that access to clean water and the provision of adequate sewerage and sanitation is essential for human life and health.

"We recognise the important investment needs of the Zambian water sector and are pleased to embark on a new investment programme with a new partner, the Mulonga Water and Sewerage Company," he added.

"Increased access to clean water and improved water supply will improve living conditions in the Copperbelt in the years to come, improve resilience during the dry season and help Zambia achieve Millennium Development Goals."

The new water investment programme includes a specific focus on improving water and sanitation services in low-income areas and informal settlements. This will include working with local community groups and non-governmental bodies to provide water kiosks, new sanitation facilities and piped water connections.

The initiative is expected to take six years to implement and generate significant local employment.

French Development Agency AFD has also provided an additional €50m, while the ACP-EU Water Facility Pooling Mechanism will provide EU Grant support totalling €5m.