Denmark loans Zambia $104.1 million for water, sanitation project
Lusaka, December 16, ZANIS–Government has signed a $104.1 million loan and grant agreement with Denmark to support the Kafubu sustainable water and sanitation improvement project.
As part of the financing, Nordea Bank of Denmark has provided a loan facility of US$70.1 million while the Danish Agency for International Development (DANIDA) has contributed a grant amounting to US$34 million.
Minister of Finance Alexander Chikwanda signed on behalf of the Zambian government while Nordea Bank Vice President Henrik Brink signed on behalf of the Danish government.
Speaking during the signing ceremony in Lusaka today, Mr. Chikwanda said the loan will aid the provision of water and sanitation infrastructure as well as develop skills to ensure effective water resources management.
Mr. Chikwanda said government is committed to improving the provision of clean water and sanitation for economic growth and improved livelihoods in the country.
He further said the project will improve water services to an additional 100,000 people where the water and waste water facilities are either non-existing or in a progressive state of physical depreciation.
The developmental project will target Ndola, Luanshya and Masaiti districts on the Copperbelt province and it will be implemented by the Kafubu Water and Sewerage Company limited.
And Mr. Chikwanda thanked Nordea Bank for the loan facility and DANIDA for the grant which he said will recapitalise Kafubu water and sewerage company.
He said the development will also enable the company to enhance its income generating capacity while providing clean water and sanitation for the people.