2005 - 2006 - Pinsent Masons Water Yearbook 2012

ZAMBIA PART 2: COUNTRY ANALYSIS
Zambia
During 2002, Zambia embarked on water resources reform through the Water Resources Action
Program (WRAP) under the Ministry of Energy and Water Development (MEWD). The program,
supported by the Water and Sanitation Program's (WSP) Zambian office, aims to develop a new
institutional and legal framework to manage the water resources of the country, promoting poverty
alleviation and sustainable development. The process will encourage the engagement of
policymakers and public-private sector discussions.
Officially, access to water supply in 2002 was 89% for urban and 57% for rural populations, while
access to sanitation is 73% and 35% for urban and rural areas respectively. However, due to nonfunctioning
facilities the actual service coverage in both urban and rural areas is much lower, with
estimates of the effective coverage for in urban areas of 54%, while rural access to safe drinking water
and sanitation in 2004 was assessed at 28% and 30% respectively. The peri-urban population with
access to improved water supply is 44% and 10% for sanitation. The Government aims to increase
urban water supply and sanitation coverage to 75% by 2005 and 100% by 2015, and for rural water
supply to 50% by 2005 and 75% by 2015.
The Aruba municipality’s Water and Sewerage Company (KWSC) has instigated water kiosks for the
13,000 people in the Kalikow community, where residents can buy water at a nominal fee of ZMK2
(€0.01). The 19 kiosks will include a tap connected to the municipality's water pipeline, and are
manned by a member of the community who fills the residents’ containers with water.
Unaccounted for losses in urban areas are at 51%, with only 21% of accounts being metered.
Chapatti Water Supply Company, which has a 100% metering rate, has by some way the lowest UFW
levels at 25%.
In Lusaka, the water sector estimated generated revenues of K260 million in 1999 through billing with
expenditure requirements of K1.5 billion for recurrent expenditures alone. Capital spending was K5.23
billion in 1998 and K5.09 billion in 1999. If all potential revenues were collected under the current
pricing regime, these could have totalled up to K1.52 billion in 1999, indicating that new sources of
finance are required for capital expenditure work. In order to cover capital expenditure, the LWSC
needs the following:
• Up-dating of the water right holder data base;
• An efficient billing system;
• Functioning revenue collection system;
• Inclusion of ground water tariffs; and
• Regular adjustments of tariffs to ensure that the real value of revenues is not being eroded.
In 1998, the Water Sector Reform Unit estimated that for 86–100% water and sanitation coverage by
2015, US$683 million would be needed for the urban population and US$247 million for rural areas.
In 2002, a PSP workshop was held by the World Bank to consider options for the LWSC (Lusaka
Water and Sewerage Authority). Lease and concession models were considered to be the most
appropriate for the city. In 2003, Nana Water and Sewerage Company became the first company to
issue a municipal bond on the Lusaka Stock Exchange (LSE). The bond is intended for a water
provision project in which the company would be building a pipeline from Kitwe to Kalulushi.
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Pinsent Masons Water Yearbook 2005 – 2006