By John Chola
The government of Zambia and Federal German of German through it’s KfW Development Bank have signed four grant agreements worth over 35.8 million Euro equivalent to K750 million.
The joint projects will support Zambia to transparently procure low-cost private sector investment in the renewable energy sector as well as increase access to water supply and sanitation in Eastern and Southern province.
Minister of Finance and National Planning (MoFNP) Situmbeko Musokotwane signed on behalf of Zambia.
The first grant agreement of over 10 million Euro supports the Zambian Government, in particular be channeled to the Ministry of Energy and ZESCO, for the overall objective to improve the framework conditions for private sector investments in renewable energy.
“It aims to transparently procure up to 220 MW of low cost electricity through a competitive bidding process from Independent Power Producer (IPP).
The Global Energy Transfer Feed in Tarif program (GET FiT Zambia), now being funded with a total of 41 million Euro, seeks to contribute to a climate-friendly development path and sustainable growth in Zambia,” stated the Ministry of Finance.
The funding will also go towards the procurement and support of 220 MW renewable energy capacity which is at the core of the programme, divided into a 120 MW solar PV tender, and a 100 MW small hydro power tender.
Dr. Bernhard Traunter, Head of Development Cooperation at the German Embassy said, “Our joint GET FiT programme is indeed very timely to address the needs for transparent procurement of more renewable energy via private sector participation”.
The other three grant agreements over 25.8 million Euro concern additional support to the water and sanitation sector in Eastern and Southern province, beefing up Germany’s ongoing support tothe water sector to 120 million Euros.
The agreements cover the Urban Water Supply and Sanitation Company in Chipata, is receiving an additional 3.5 million Euro.
Dr. Bernhard Traunter added that the project was previously granted 10 million Euro and will see improvement works being implemented in Chipata and reinforcement works at the dam in Katete, both to secure better and safe water provision.
“The other two agreements, totaling 22.3 million Euroes, cover Southern Water Supply and Sanitation Company (SWSC) and address the current challenges in Choma and Livingstone on water supply and sanitation resulting from climate
change, rapidly growing urban population as well as deterioration of the overaged infrastructure,” said Dr. Traunter.
He added that investment measures, amounting to 20.3 million Euro, aim at improving water supply and sanitation in Choma as well as at enhancing climate resilience of Livingstone’s water intake.
The sanitation component in Choma will follow an innovative approach new to Zambia: Scheduled emptying of on-site containment systems sanitation service solution for peri-urban areas that also provides opportunities for private sector involvement and will contribute to reducing ground water contamination.
Additional 2 million Euro for accompanying measures will further strengthen SWSC’s capacities in community sensitive planning and implementation of the innovative sanitation component.
“KfW has been a long standing partner of the Zambian government in improving access to water and sanitation, both in urban and rural areas. We are
commited to help improving the lifes for the Zambian people with our expertise and financing”, said Stefan Lutz, Director of KfW office Zambia.
KfW Bankengruppe, founded in 1948, is the German promotional bank and celebrates its 75th anniversary as one of the world’s leading promotional banks.
It is 80 percent owned by the Federal Government and 20 percent by the federal states.
The business sector KfW Development Bank carries out Financial Cooperation (FC) projects with developing countries and emerging economies on
behalf of the German Federal Government.
The Bank’s objective is to combat poverty, secure peace, protect the environment and the climate as well as ensure fair globalization.
KfW has supported Zambia since 1965 on behalf of the German Federal Government with nearly 1 billion Euro, mainly financing infrastructure projects, improving access to water and sanitation, transport, basic infrastructure in provinces and more recently also in the energy sector as well as support to social sectors.