Press Release, June 20, 2000
Zambia Improves Water Supply in Mine Townships

Contact Person:
Media Contacts: In Washington: Sharon Cox
(202) 473-2035
e-mail:SCox1@worldbank.org
In Zambia: Liseli Simasiku (260-1) 252 811
e-mail: LSimasiku@worldbank.org
Operational Contact: In Washington: Jane Walker
(202) 458-2703

WASHINGTON, June 20, 2000--The World Bank today approved a US$37.7 million credit to assist the government of Zambia in the provision of a range of efficient and reliable water supply, waste water, and solid waste management services in the Copperbelt Region.

The Mine Township Services Project will facilitate the successful implementation of the government's mine privatization program by supporting vital urban services that had previously been provided by the Zambia Consolidated Copper Mines. This objective will be accomplished by:
· Introducing a performance-based management contract for a transition period that promotes private sector participation and commercialization in the sector;
· Rehabilitating selected existing assets, undertaking necessary improvements, and introducing new maintenance systems;
· Introducing cost reduction measures, a policy of cost recovery and demand management mechanisms;
· Developing a longer term strategy to integrate the transitional management of water, wastewater and solid waste in the mine townships with those of the corresponding municipal township; and,
· Supporting the Government's multi-sectoral and partnership program for the prevention and mitigation of HIV/AIDS.

Current water supply in the mine townships, whether through house connections, yard connections or communal standpipes, has been irregular mostly due to low pressure and leakage in the pipelines. The project will help ensure that approximately 320,000 people will have access to reliable and better quality of water services. The services provided will be made sustainable through repairing and rehabilitating the parts of the systems that require it and introducing cost recovery and cost containment mechanisms.

The Zambia Mine Township Services Project will be financed by a US$37.7 million credit from the International Development Association, the World Bank's lending arm for the poorest countries. The IDA credit is on standard terms of 40 years maturity, including 10 years grace. The government will finance the project with an additional US$300,000