Seite 1

GIZ Reform of the Water Sector in Zambia

OverviewWashington DC, Water Finance Conference

29.08.2018

Seite 2

About Zambia

Water Finance Conference, Washington DC 05.09.2018

Republic of Zambia

Capital: Lusaka

Population 16.5 million

Area 752,614 sq km (290,586 sqmiles)

Major languages English (official), Bemba, Lozi, Nyanja, Tonga

Life expectancy 59 years (men), 64 years (women)

Currency Kwacha

Source: Wikipedia

Seite 3

About Zambia

05.09.2018

Victoria Falls

Culture

WildlifeSource: VictoriaFalls24 Source: Daily Nation

Water Finance Conference, Washington DC

Source: ItsAllBee

Seite 4

The Water Sector Reforms

Water Policy 1994- Water Sector Principles

Water Act Cap 198 of 1948- Formation of Water Board

WSS Act No 28 of 1997- Formation of NWASCO (WSS Regulation)- Formation of CUs (WSS Service Provision)

Water Policy 2010- Comprehensive framework for

sustainable development, management & utilization of WR; Replaced Water Policy 1994

WRM Act No 21 of 2011- Repealed the Water Act of 1948- WARMA Formation (WR Regulation)National Urban Water Supply and Sanitation Programme (NUWSSP) (2011-2030)National Rural Water Supply and Sanitation Programme (NRWSSP) (2006-2015)

Water Supply. Sanitation and Solid Waste Management Policy (2016)National Water Supply and Sanitation Capacity Development Strategy (2015–2020)National Urban and Peri-Urban Sanitation Strategy (2015-2030)Open Defecation Free (ODF) Strategy (2016-2020)New NRWSSP (Approval stage) (2016-2030)

1990 to 2000 2000 to 2010 2010 to Date

Seite 5

Policy, Programmes and Strategies Regulation

WSS ServiceProvision

Minister -MWDSEP

Permanent Secretary

Dep. Plan. & Inform.

Dep. Envir. Mgt Dep. WRD Dep. WSS

WARMA(WRM)

ZEMA(Env.

Protection)

NWASCO(WSS)

Commercial Utilities

(Urban, Peri-urban & Rural

Growth Centres)

Minister –Local

Government

Local Authorities (Rural

Settlements WSS)

Permanent Secretary

Institutional Set-Up for Service Provision and Regulation of WSS-Ministry Water Development, Sanitation & Environmental Protection (MWDSEP)

LAs

shareholders

of CUs

05.09.2018 Water Finance Conference, Washington DC

Seite 6Water Finance Conference, Washington DC 05.09.2018

Urban Coverage 2017

11 Commercial Utilities (CUs)

Source: NWASCO

Seite 7

Situation Analysis – Commercial Utilities’ Activities (Jan 2017)

Commercial Utility (CU)

Start of operatio

ns*

Number of Water

Connections*

Number of towns serviced

*

Sanitation Coverage*

(%)

% served with

Sewerage (%)

Number of Tankers operated Estimated Annual Volume of effluent/sludge transported

(cubic meters)

Estimated Annual revenue generated (ZMW)

CU P0 discharging

into CU's WWTP CU

P0 discharging

into CU's WWTP

Total

Number Capacity

(litres) Number

Capacity (litres)

CU Private

Operator Total

Lusaka WSC 1989 92,440 7 75 15 - 20 None None

31 3,600 to 15,000

None

36,000

36,000 None

1,200,000

1,200,000

Nkana WSC 2000 53,499 3 67 67 1

10,000 Not

known 3,000 to

7000

1,440 Not Known

1,440

72,288 72,288

Kafubu WSC 2000 56,141 3 64 64 None None

1

10,000 None

1,800

1,800

None

27,000 27,000

Mulonga WSC 2000 49,535 3 85 85 1

7,000

2 Not

known

1,008

50

1,058 63,749

7,560

71,309

Lukanga WSC 2006 22,146 6 26 26 1

7,000 Not

known Not

known

588 Not Known

588

48,200 Not known 48,200

Southern WSC 2000 41,061 16 49 49 1

5,000

2

3,000 (in 2016)

and 5000

615

615

485,440

12,300 497,740

Chambeshi WSC 2003 16,438 12 20 20 None None None None None None None None None None

Northwestern WSC

2000 11,655 8 34 34 1

6,000 Not

known Not

known

1,152 Not Known

1,152

76,800

750 77,550

Eastern WSC 2009 15,534 8 39 39 Nil -

-

Western WSC 2000 12,015 7 47 47 1

5,000 None None

470

None

470 41,600 None 41,600

Luapula WSC 2009 5,312 7 16 16 None None None None None None None None None None

Seite 8

CU Challenges CU Priorities

Water Finance Conference, Washington DC

High NRW (Average 48.7%, NWASCO

2017)

Climate Change Effects

Water Security

Financing

Corporate Governance

Low Productivity and Cost Coverage

Inadequate Communication &

Customer Service

Low Coverage/ Revenue Base

Low Sanitation Coverage

Debt Management29.08.2018

NRW Reduction (NWASCO target -

25%)

Water Quality Assurance

Water Security Plans

Performance Improvement (PI)

Communication & Customer Service

Increasing Coverage/ Customer

Base

Sanitation Improvement

Seite 9

About GIZ Global

Water Finance Conference, Washington DC 05.09.2018

• Develop tailor-made solutions to challenging problems for our clients.

• Service provider in international cooperation, GIZ supports clients, mainly the German Government in achieving their objectives

• Fields of work: Sustainable development and international education

• Dedicated to shaping a future worth living around the world.

• Over 50 years of experience in a wide variety of areas, including economic development and employment promotion, energy and the environment, and peace and security.

• Registered offices of GIZ are in Bonn and Eschborn

• In 2017, we generated a business volume of around 2.6 billion euros

• 19,506 employees; Work in around 120 countries

Seite 10

GIZ Reform of the Water Sector ZambiaOrganisation of the German Support

05.09.2018 Water Finance Conference, Washington DC

GDC(BMZ, Embassy)

BGRTA-Groundwater

GIZTA WSS + WRM

KfWInfrastructure-Inv.

RWS(BMZ)

NUWSSPNRWSSP

CC(ECF)

WSS WRM Partners: MLG, MWDSEP, NWASCO, CU, LAs, WARMA, …

CFS-LUS(BMZ/DKTI)

IWASP(BMZ/DFID) LSP

We promote the improved access to drinking water and sanitation for the rural and urban population and we support reform processes for sustainable water resource management while taking into account the impacts of climate change.

Seite 11

Strategic Overview – Reform of the Water Quick Facts – Water Supply & Sanitation

Timeframe: July 2015 – August 2019Volume: € 4,5 million (German Contribution)Focus: Institutional frameworks for urban

and rural Water Supply and Sanitation

Main Partners:

MWDSEP, MLG, NWASCO, CUs, Provincial and District Administrations

Location: Lusaka, N-Western P, Eastern P, Southern P, Luapula P

Quick Facts – Water Resources Management

Timeframe: July 2015 – August 2019Volume: €6,2 million (German Contribution)Focus: National and decentralized Water

Resources Management and climate-change adaptation

Main Partners:

MWDSEP (DWR, DPI), MoA (DoA), WARMA

Location: Lusaka, Mazabuka, Magoye, Monze

Quick Facts – Climate Friendly Sanitation

Timeframe: November 2016 – August 2019Volume: €5 million (German Contribution)Focus: Climate-friendly sanitation services

in Peri-urban areas of Lusaka

Main Partners:

MLG, MWDSEP, NWASCO, LWSC and LCC

Location: Lusaka

Quick Facts – International Water StewardshipProgramme (IWASP)

Timeframe: December 2012 – December 2019Volume: ca € 1 million p.a. (BMZ & DFID)Focus: Supporting multi-stakeholder

partnerships to improve water security for people, businesses and the environment

Main Partners:

MWDSEP, WARMA, NWASCO, etcprivate sector (ZB, FB, etc), CSOs

Location: Lusaka, Ndola, Northern P, Muchinga P

Seite 12

Achievements

▪ Over 60,000 people benefit directly from improved water security.▪ More than 200,000 people benefit indirectly from water security activities in Ndola,

Lusaka and Chambeshi Catchment. ▪ More than 13m ZMW mobilised from private sector for water stewardship activities within

multi-stakeholder partnerships.▪ Development of Urban Sanitation & National WSS Capacity Development Strategy▪ Joint Water Sector & Environment Review support▪ Peer review of NRWSSP II & support for WSS Technical Assistance Plan ▪ NWASCO support – recently launched regulatory framework & guidelines▪ Upgrade of NWASCO Information System support (web based)▪ NWASCO Water Data Centre support – GIS mapping of 35 out of 90 towns ▪ CU BoD governance training materials development & implementation for 4 BoDs; ToT

done▪ District Sanitation Planning in 4 Provinces & 44 Districts (involving CUs & LAs)▪ City Wide Sanitation infrastructure planning (4 Provinces)▪ Review and approval procedure for TEVETA to evaluate the FSM training materials.▪ Establishment of Water Resources Management Authority (WARMA)

Seite 1305.09.2018

GIZ Reform of the Water Sector Programmewww.giz.de

Charity Tuseko Muwowo Sindano

Senior Capacity Development Advisor

tuseko.sindano@giz.de

+260 976203457

http://www.giz.de/mailto:Tuseko.sindano@giz.de

Seite 14

CU Challenges

Water Finance Conference, Washington DC

Low Productivity and Cost Coverage• Low staff efficiency• Inadequate reporting & reporting

management• Lack of IT infrastructure

Inadequate Communication & Customer Service• Inadequate customer care and

communication (internal & external)

Low Coverage/ Revenue Base• Inadequate infrastructure• Low cost coverage by collection

Low Sanitation Coverage• Dilapidated infrastructure

Debt Management• Unpaid debt• Debt management in low cost and peri-

urban areas.

High NRW (Average 48.7%, NWASCO)Commercial losses• Aged metersPhysical Losses• Dilapidated infrastructure, and aged meters• Inadequate maintenance

Climate Change Effects• Water sources frequently dry up. E.g. dams in

Zimba, Pemba, Gwembe, Choma & Chipata• Electricity supply instability/ load shadingWater Security• Groundwater water is not an alternative for

most of the towns in some regions• Increasing water demandFinancing• Low investment in CUs• Economic changes affect value of KwachaCorporate Governance• Governance e.g. delays in placement of

Boards

Seite 15

CU Priorities

Water Finance Conference, Washington DC

Performance Improvement (PI)• Enhancement of PI system• Reporting and Reporting Management• Training of staff• Corporate Governance• Cost reduction & collection efficiency

improvement

Communication & Customer Service• Training relevant staff in customer care• Communication policy implementation• Increase supply hours

Increasing Coverage/ Customer Base• Extend services to un-serviced areas• Financing for growth centres

Sanitation Improvement• Rehabilitation of infrastructure

NRW Reduction (NWASCO target - 25%)Reduction of Commercial losses• Database clean up• Metering• Prepaid meters• Installation of lockable valvesReduction of Physical Losses• Equip Water Demand Management Unit• Maintenance management system• Rehabilitate/replacement of network• Asset Management• Leak repairs

Water Quality Assurance• Achieve & maintain 100% water quality

compliance

Water Security Plans• Climate resilience & mitigation programmes