The Ministry of Local Government and Rural Development (MLGRD), has disbursed a total of K256 Million Capital Grant to 95 Local Authorities as part of the financial support towards implementation of the Zambia Devolution Support Programme (ZDSP).
ZDSP is a Government-led programme supported by the World Bank, and is aimed at supporting some components of the National Decentralization Policy, through MLGRD, and runs from the period 2023 to 2028.
MLGRD Permanent Secretary (Administration) Mr. Maambo Haamaundu announced that, of the disbursed funding, it translates to each of the benefiting Local Authority receiving K2,694,736.84.
Mr Haamaundu said the K256 million disbursed is part of the total US$210 Million that the World Bank is supporting the Government of the Republic of Zambia in the implementation of ZDSP.
The Permanent Secretary stated that the capital grant disbursed to the Local Authorities will be utilised in financing capital investment activities as well as other development-oriented activities such as local infrastructure projects.
He said the grants can further be utilized towards the purchase of equipment necessary for local service delivery in Local Authorities in order to supplement what is already being financed from other sources.
Mr Haamaundu highlighted that the objectives of ZDSP is to strengthen the financing, institutional performance, and accountability of Local Authorities in the rural parts of Zambia.
“With Local Authorities having more funding for development, we are expecting to see better infrastructure and better service delivery to the satisfaction of the community members and the general public within our Country,” he stated.
Mr Haamaundu implored the Local Authorities to utilise the resources received prudently, and also ensure that the local people are benefiting from the funds through local employment by the contractors.
The Permanent Secretary, however, advised Local Authorities to ensure that they follow the set grant utilisation conditions, including the environmental and social conditions, in order to avoid any implication which would come with non-compliance.
In terms of the significance of ZDSP, the Programme is aimed at strengthening financing, institutional performance and accountability of rural Local Authorities in Zambia.
Mr Haamaundu stated that ZDSP is designed to be implemented through a combination of the Programme for Results (PforR) at US$200 million, and Investment Project Financing (IPF) at US$10 million.
The initial design of ZDSP had only 96 Town Councils in the Country benefiting out of the 116 Local Authorities. The four (4) key result areas of the Programme include:
· Capital grants for Local Authorities
· Strengthened Public Financial Management in Local Authorities
· Strengthened Fiscal Framework for Devolution and
· Capacity building for Local Authorities