The Millennium Challenge Corp. signed May 10 its latest funding commitment: a $354.8 million compact to improve water, sanitation and drainage services in Zambia.
The five-year compact will support the Water Supply, Sanitation and Drainage Project, a two-component initiative that covers infrastructure and capacity-building activities in Zambia’s capital city. The infrastructure component includes the rehabilitation and expansion of Lusaka’s water supply and sewer systems, and the improvement of urban drainage facilities. The compact will also support related engineering and resettlement activities.
For the institutional strengthening component, MCC will invest in technical assistance to help the Lusaka Water and Sewerage Co. and Lusaka City Council continue ongoing water sector reform efforts. Both agencies will also receive support to pursue new reforms to further improve sector management, gender mainstreaming strategic planning and environmental management.
The signing of the compact, however, does not necessarily mean it will be enforced. MCC and the Millennium Challenge Account-Zambia have yet to select fiscal and procurement agents and establish a bank account, among other pre-implementation activities outlined in the MCC compact development guidelines. MCA-Zambia is the main entity that will oversee, manage and implement the compact.
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