The World Bank Board of Executive Directors has approved a US$23 million credit to assist the Government of Zambia to consolidate on-going reforms in the water sector, by improving access and sustainability of water and sanitation for consumers in Lusaka.

The project also provides funding that will lead to a more coordinated approach for water and sanitation investments country wide.
 
The Water Sector Performance Improvement Project complements Lusaka Water and Sewerage Companys (LWSC) own efforts to improve efficiency, and supports its goals of financial recovery, and robust commercial and technical performance improvements. The heart of the project is a performance enhancement agreement with the Government of Zambia that sets out specific improvement targets that will be met over a 3 year period.  This agreement covers areas of consumer service improvements and optimization of operations.
 
The specific improvements, for example, increases in the number of kiosks and installation of new meters and connections, are linked to funding under the credit.  These efforts will generate resources for LWSC to increase access to peri-urban settlements and new development areas, to facilitate Zambia's efforts towards meeting the Millennium Development Goals (MDGs).
 
LWSC provides water supply and sewerage services for Lusaka and is currently in process of working out a program to roll out on-site sanitation in the peri-urban areas. Coverage for water supply is about 83% through house connections, yard connections and standpipes. Service is irregular and there are significant leakages. Further, only about 33% of consumers are metered. Sewerage coverage is much lower with only 12% coverage. The project will concentrate on improving Lusaka's commercial performance so that it can improve services and raise efficiency of operations, as well as providing funding for emergency works to increase bulk water production and improve sewage treatment capacity.
 
The project also provides funding to help the Government plan for a coordinated approach in the water supply and sanitation sector for policy and investment. This funding is directed to the Ministry of Local Government and Housing.