Zambia Water Investment Programme 2022-2030 - Supporting the attainment of Vision 2030 towards prosperous middle-income status by 2030

1.1 Background 1

1.2 Development of the Zambia Water Investment Programme 2 2 SITUATIONAL ANALYSIS 3

2.1 Country Overview 3

2.2 Context of the Water Sector in Zambia 4

2.3 Development Context of Water Development and Sanitation 7

2.4 Institutional Arrangements 7

2.5 Role of Water in Attaining Vision 2030 and the 8th National Development Plan 9

2.5.1 Zambia Vision 2030 9

2.5.2 The Eighth National Development Plan 9 3 ZAMBIA WATER INVESTMENT PROGRAMME 10

3.1 Investment Focus Area 1: Water Investments to Support Economic Transformation 11

3.1.1 Component 1: Water Investments for Productive Use and Economic Growth 11

3.1.2 Component 2: Enhance Water Resources Management 13

3.2 Investment Focus Area 2: Enhancing Resilience Through Water 14

3.2.1 Component 3: Sustainable Water Supply and Sanitation for Community Resilience 14

3.2.2 Component 4: Building Climate Resilience 16

3.2.3 Component 5: Enhancing Environmental Sustainability 17

3.2.4 Component 6: Gender Equality and Social Inclusion 18 vi • Zambia Water Investment Programme

3.3 Investment Focus Area 3: Water and Sanitation Governance and Institutional Strengthening 19

3.3.1 Component 7: Institutional and Human Capacity Building 19

3.3.2 Component 8: Water Investment Scorecard, Financing and Resource 20

3.3.3 Component 9: Strengthening Public-Private Partnerships and International Cooperation in Water Investments 21 4 FINANCING AND IMPLEMENTATION STRATEGY 23

4.1 Financing 23

4.1.1 Investment areas 23

4.1.2 Financial Resource Requirements 24

4.2 Financing Strategy 27

4.3 Sources of funding for the Zambia Investment Programme 28

4.4 Implementation Arrangements 30

4.4 Monitoring and Reporting System 30 5 ANNEX 1: PROPOSED LOCATION, ACTIVITIES AND COST ESTIMATES FOR WATER SECURITY INVESTMENTS 31 6 ANNEX 2: AIP-PIDA WATER INVESTMENT SCORECARD INDICATORS FRAMEWORK 33 REFERENCES 34 Zambia Water Investment Programme • vii List of Tables TABLE 1: Overview of Component 1: Water Investments for Productive Use and Economic Growth 12 TABLE 2: Overview of Component 2: Enhance Water Resources Management 13 TABLE 3: Overview of Component 3: Sustainable Water Supply and Sanitation for Community Resilience 15 TABLE 4: Overview of Component 4: Building climate resilience 16 TABLE 5: Overview of Component 5: Environmental Sustainability 17 TABLE 6: Overview of Component 6: Gender Equality and Social Inclusion 18 TABLE 7: Overview of Component 7: Institutional and Human Capacity Building 19 TABLE 8: Overview of Component 8: Financing Water Investments and Resources Mobilisation 20 TABLE 9: Overview of Component 9: Strengthening Public-Private Partnerships in Water Investments 21 TABLE 10: Financial Resource Requirements for the Zambia Water Investment Programme 24 TABLE 11: Implementation Arrangements for the Zambia Water Investment Programme 27 TABLE 12: Proposed Location, Activities and Cost Estimates for Water Security Investments 29 viii • Zambia Water Investment Programme List of Figures FIGURE 1: Performance of the Zambian Economy Between 2006 and 2021 4 FIGURE 2: Surface Water Resources Potential by Catchment Area 5 FIGURE 3: Groundwater Resources Potential by Province 5 FIGURE 4: Water Resources Utilisation for the Period 2017–2020 (Linear Scale) 6 FIGURE 5: The Six Catchment Areas of Zambia 6 FIGURE 6: Schematic of Groundwater Resources Potential for Zambia 7 FIGURE 7: Schematic of Institutional Arrangements for Development Coordination 8 FIGURE 8: Investment Focus Areas and Components of the ZIP 10 FIGURE 9: Overview of the Zambia Water Investment Programme 24 FIGURE 10: Financial Resource Requirements for the Zambia Water Investment Programme by Percentage 27 Zambia Water Investment Programme • ix Glossary CLIMATE CHANGE ADAPTATION The taking of actions aimed at minimising the negative impacts of climate change. CLIMATE CHANGE MITIGATION Efforts aimed at reducing or preventing the emission of greenhouse gases such as carbon dioxide and methane, which are primarily responsible for increasing global average temperatures beyond pre- industrial levels. CLIMATE RESILIENCE The ability to forecast, prepare for and respond to climatic hazards. ENVIRONMENTAL RESILIENCE The capacity of the environment to resist damage and recover quickly from stresses caused by economic activities and other factors such as climate change. MULTI-STAKEHOLDER PLATFORM A voluntary or statutory decision-making body composed of different stakeholders who are organised around common resource management issues and depend on one another for solving the issues and formulating action strategies for solving the common problems. PUBLIC-PRIVATE PARTNERSHIP Long-term arrangement between two or more public- and private- sector entities typically involving private capital financing government projects and services upfront, and the drawing of profits from taxpayers or users over the duration of the public-private partnership arrangement. SANITATION Treatment and disposal of human excreta and sewage. TRANSBOUNDARY WATER Undertaking of measures aimed at deriving social and economic benefits INVESTMENTS from water resources that are shared by two or more countries. WATER DEVELOPMENT The process of developing water resources in order to ensure water availability for socio-economic productive use. WATER HAZARD Potential harmful effects on society and the environment associated with water. WATER QUALITY The condition of water in terms of chemical, physical and biological characteristics with regard to its applicability for various uses. WATER RESOURCE Natural resources of water with potential for multipurpose socio-economic utilisation. WATER RESOURCES The integrated process of planning and managing water resources MANAGEMENT in terms of water quantity and quality across all water uses. WATER SECURITY The capacity to ensure the availability of adequate quantities of water of sufficient quality and the ability to utilise the available water resources for multiple productive uses. WATER SUPPLY Provision of water that is safe to drink primarily to households and communities. x • Zambia Water Investment Programme List of Abbreviations and Acronyms 8NDP Eighth National Development Plan AIP Continental Africa Water Investment Programme CAG Cluster Advisory Group DDCC District Development Coordinating Committee GDP Gross Domestic Product IFA Investment Focus Area IWRM Integrated Water Resources Management MOFNP Ministry of Finance and National Planning MWDS Ministry of Water Development and Sanitation NAP National Adaptation Plan NDC Nationally Determined Contribution NDCC National Development Coordinating Committees NDP National Development Plan PDCC Provincial Development Coordinating Committee PIDA Programme for Infrastructure Development in Africa PPP Public-private Partnership SADC Southern African Development Community SDA Strategic Development Area SDG Sustainable Development Goal SME Small to Medium-sized Enterprise WASH Water, Sanitation and Hygiene WEF Water-Energy-Food ZIP Zambia Water Investment Programme Zambia Water Investment Programme • xi Executive Summary The goal of the Zambia Water Investment Programme (ZIP) from the pan-African AIP is the leveraging of Sustainable is to transform and improve the investment outlook for Development Goal (SDG) investments worth about US$30 water security and sustainable sanitation in Zambia in line billion annually by 2030 and the resultant creation of five with the national aspirations for a prosperous, peaceful, million jobs over the same period. The key results that are inclusive and equitable country by 2030. Thus, the goal expected from the formulation and implementation of the is for a water-secure Zambia by 2030. The main objective ZIP are the leveraging of about US$5.75 billion for water of the ZIP is to enhance job creation through gender- security investments and the creation of about 200,000 sensitive investments in water security, industrialisation formal jobs in Zambia by 2030. and climate-resilient development. The programme is The resource requirement for the successful implementation structured around three investment focus areas (IFAs): of the ZIP is estimated at about US$5.75 billion between water investments to support economic transformation; 2022 and 2030. This level of resources will be mobilised resilience building through water investment; and water and through a diversity of financing arrangements including sanitation governance and institutional strengthening. The grants, concessional financing, equity and other innovative coordination and management approach will be anchored in financing mechanisms. Key to this will be the effective existing national development coordination arrangements preparation of bankable project documents. under the Eighth National Development Plan (8NDP) and the existing coordination arrangements for dealing with climate change. However, the Ministry of Water Development and Sanitation (MWDS) will shoulder the primary responsibility of the ZIP. The ZIP is also a programme that falls within the Continental Africa Water Investment Programme (AIP) that was adopted by the African heads of state and government in February 2021 during the 34th Ordinary Session of the Assembly of the African Union. The main expected result xii • Zambia Water Investment Programme 1. Introduction

1.1 Background ensuring resilience building with regard to climate and the environment. This is anchored in the Vision 2030, through which the people of Zambia aspire to live in a strong and The Zambia Water Investment Programme (ZIP) 2022–2030 dynamic middle-income industrial nation that provides was developed to support the attainment of Zambia Vision opportunities for all without leaving anyone behind. Key 2030 - a prosperous middle-income country by 2030. Thus, aspirations in this regard include opportunities for improving the ZIP will enhance the implementation of the National the wellbeing of all, and socio-economic justice anchored Development Plans (NDPs), the current one being the Eighth in gender and social inclusion. Furthermore, work towards National Development Plan (8NDP), as the primary means attaining Vision 2030 will be premised on the principles of of achieving Vision 2030. The primary goal for the ZIP is democracy, respect for human rights, good traditional and to enable the mobilisation of water security investments family values, a positive attitude towards work, peaceful aimed at advancing economic transformation and job coexistence and public-private partnerships (PPPs). A key creation, enhancing human and social development, and outcome in this sense is therefore that the Zambian economy Zambia Water Investment Programme • 1 should be competitive, self-sustaining, dynamic and resilient Office of the President for final endorsement. to shocks. Other outcomes include a resilient and sustainable The ZIP is aligned with the four strategic development areas natural environment and stable sociocultural systems that (SDAs) of the 8NDP (2022-2026). The four SDAs include: effectively support human capital development. a. economic transformation and job creation; The ZIP borrows inspiration from, and is a part of, the pan- b. human and social development; African Continental Africa Water Investment Programme c. environmental sustainability (including climate (AIP), but at country level. The key results that are expected resilience); and from the formulation and implementation of the ZIP are the leveraging of about US$5.75 billion for water security and d. good governance environment. sanitation investments and the creation of about 200,000 The ZIP is about making sure that the SDAs of the 8NDP formal jobs in Zambia by 2030. The expected impacts will mentioned above are successfully achieved through ensuring comprise the following: water security. This is mainly through recognising the critical a. At least US$5.75 billion will be mobilised and invested importance of water as an enabler to sustainable socio- in Sustainable Development Goals (SDGs) water economic development in Zambia. Accordingly, the ZIP is investments, climate-resilient and gender-transformative structured around the following three investment focus water investments, and transboundary water investments. areas (IFAs): a. water investment for economic transformation; b. At least two million Zambian citizens will benefit b. resilience building through water investment; and from economic opportunities generated through the investments mentioned above. c. water governance and institutional strengthening. c. At least 200,000 formal direct jobs will be created through The first IFA is expected to support the drive for economic the water investments mentioned above, with a special diversification and job creation. This will be achieved through focus on the youth, women and other marginalised investments aimed at addressing the specific water needs groups. of each of the economic drivers and water-dependent economic enablers. The second IFA is about making sure d. At least 800,000 indirect jobs will be created for vulnerable that water investments in Zambia are climate-resilient and and poor youth, women and other marginalised groups. inclusive. This will be achieved through implementing interventions on climate change adaptation, gender equality e. Bankable water infrastructure and related projects worth and social inclusion. The third IFA is about strengthening at least US$6 billion will be prepared and financing will the enabling environment for water investment in the be mobilised or leveraged. country. This will be achieved through interventions in capacity development and in governance systems, including

1.2 Development of the Zambia Water Investment participatory arrangements. Programme The process for developing the ZIP started in 2021 under the guidance and coordination of the Ministry of Water Development and Sanitation (MWDS). A technical team composed of various government institutions and partners was formed to draft the programme. The draft programme was then reviewed by various stakeholders in 2021 and part of 2022. The programme was then reviewed by the senior management team of the Ministry and presented for approval by the Cabinet before it was submitted to the 2 • Zambia Water Investment Programme 2. Situation Analysis

2.1 Country Overview eastern and southern parts of the country define distinctive escarpment systems and valley troughs, the most famous of which is the Muchinga Escarpment. From the human and Zambia is a landlocked country of southern Africa and is social development point of view, the country’s population located between geographic coordinates: 8°20’ and 18°S and grew on average by 2.8 percent between 2006 and 2020. 22°00’ and 33°45’ E. The nation shares its borders with eight Thus, in 2010 the population was about 13.1 million and in neighbouring countries, namely the Democratic Republic 2020 it was about 17.9 million. The rapid growth in population of Congo to the north, Tanzania to the north-east, Malawi is attributed to high fertility rates and reducing mortality to the east, Mozambique and Zimbabwe to the south-east, over the years. Nevertheless, incidences of poverty are very Namibia and Botswana to the south and Angola to the west. high, with rural poverty standing at 76.6 percent and urban The country spans a territorial area of 752,927 km2 and lies poverty standing at 54.5 percent as at 2015. This trend is on the Central Africa high plateau, with an average altitude expected to continue as the large youth population enters of 1,200 m above mean sea level. Rift valley formations in the reproductive age, which will put even more pressure on Zambia Water Investment Programme • 3 the demand for jobs, healthcare and other social services.1 and reached a high of 22.2 percent in February 20213, due to a prolonged fallout from COVID-19, increased fiscal and Real gross domestic product (GDP) growth over the period domestic liquidity challenges and the length of time for 2006 to 2021 averaged 5.2 percent. During the period 2017 Zambia to embark on key macroeconomic and structural to 2021 this declined to an average of 1.4 percent, with reforms. Rainfall variability also remains a key structural a recession of 2.8 percent recorded in 2020. This was an risk to Zambia’s sustainable growth, affecting key sectors unfavourable outcome in terms of national economic out- like agriculture and electricity, and highlights the need to turn, given that the Vision 2030 target was to attain and incorporate climate-smart solutions in Zambia’s long-term sustain annual economic growth rates of between 6 and 10 growth strategy.4 percent. Therefore, in order to keep the trajectory of attaining Vision 2030, significantly high growth rates will have to be Furthermore, significant progress was made towards sustained in successive NDPs. This will not be an easy task increasing access to water and sanitation between 2007 because with the national debt standing at 119 percent and 2018, but this fell short of attaining universal access of GDP as at 2021, public expenditure for development to improved water sources and sanitation facilities. Access investments will be severely constrained. Recourse to to improved water sources increased from 41.1 percent in alternative financing approaches such as private-sector 2007 to 72.3 percent in 2018, whereas access to improved financing will therefore become key. sanitation also increased, from 35.5 percent in 2007 to 54.4 percent in 2018. Regarding the governance environment, the focus going forward will be on decentralisation by devolution in line with the Constitution of the Republic of Zambia, subordinate 2.2 Context of the Water Sector in Zambia legislation and the revised decentralisation of policy of 2013. Furthermore, the focus will also be on addressing corruption, which worsened from 38/100 in 2013 to 33/100 The total renewable surface water resources potential in 2020, according to the Corruption Perceptions Index of for Zambia is estimated at about 144 km3/annum. This Transparency International.2 Key measures in this regard will comprises 86.6 km3 of surface water resources and 57.4 include strengthening integrity committees and enhancing km3 of groundwater resources. On the other hand, the water electronic financial systems. The COVID-19 pandemic pushed resources utilisation is estimated at 77.77 km3/annum. This into contraction an economy that was already weakened represents a water resources utilisation rate of 54 percent by recent persistent droughts, falling copper prices and of renewable water resources. Figures 2 to 5 below indicate unsustainable fiscal policies. Overall, the economy is the surface and groundwater resources potential, as well as estimated to have contracted by 1.2 percent in 2020 - the the average country water resources utilisation. first recession for Zambia since 1998. Inflation remained in double digits throughout 2020, averaging 15.7 percent, FIGU RE 1: PERF ORM A N CE O F T HE Z A M BIA N EC ON OM Y B E T WE E N 2006 AN D 2021 25 20 15 VALUES 10 5 0 -5 2006 2008 2010 2012 2014 2016 2018 2020 2021 YEAR GDP Target Growth (%) GDP Real Growth (%) Fiscal Deficit (Target) % Fiscal Deficit (Real) % Inflation (%) 4 • Zambia Water Investment Programme FIGU RE 2: SURF ACE W A TE R RE S O U RCE S P O TEN T I AL ( K M 3 / AN N U M ) B Y C AT C H M E N T AR E A 25 21.87 20.86 20 19.74 VO L UME (KM 3 ) 15 10.84 10 8.74 5 3.66 0.9 0 Upper Kafue Luangwa Chambeshi Luapula Lake Others Zambezi Tanganyika CAT CH M E N T ARE A FIGU RE 3: GROUND W A T E R RE S O U RCE S PO TE NT I AL ( K M 3 / AN N U M ) B Y P R OV I N C E 14 12 11.4 11.5 10 VOLU ME (KM 3 ) 8 7.7 7 6.1 6 4 5.7 2.6 2 1.5 3.9 0 Lusaka Copperbelt Central Northwestern Western Southern Luapula Northern* Eastern* *Part of the territory now belongs to the 10th Province of Zambia, Muchinga Zambia Water Investment Programme • 5 FIGU RE 4: W ATER RE S O U RCE S U TIL IS A T IO N FOR T H E P E R I OD 2017– 2020 ( L I N E AR S C AL E ) 90 000 80 000 VO L U M E (M I L L I O N M 3 ) 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 2017 2018 2019 2020 YEAR Agriculture Mining Energy Water supply Other industry Households Total Furthermore, maps showing the water resources potential of the country are provided in Figures 5 and 6. FIGU RE 5: THE SIX CA T CHM E N T A RE A S O F Z AM B I A 6 • Zambia Water Investment Programme FIGU RE 6: SCHE MA T IC O F GRO U N D W A T E R RE S OU R C E S P OT E N T I AL F OR ZAM B I A

2.3 Development Context of Water Coordination of the ZIP will be applied within the context of Development and Sanitation the NDP coordination arrangements. This comprises three structures, namely oversight structures; policy, coordination and implementation structures; and advisory/decision- The development context for the ZIP is the Vision 2030 making structures. The oversight structures comprise and the intermediary NDPs. The current NDP is the 8NDP, the National Assembly, the Office of the Auditor General whose implementation period is 2022–2026. The next NDP, and the House of Chiefs. The policy, coordination and which will be formulated in 2027, will carry forward the implementation structures, on the other hand, comprise developmental objectives aimed at attaining Vision 2030. Cabinet Office at the apex, Government Ministries and Institutions, and Provincial and District Administration. The 8NDP was formulated on the basis of one key SDA Within the context of coordinating the 8NDP, the Ministry and three supporting SDAs. The key SDA is economic of Finance and National Planning (MOFNP), in collaboration transformation and job creation, whereas the supporting with Cabinet Office, will play a key role in terms of effecting SDAs are human and social development, environmental the coordination arrangements and financing the plan. In sustainability and good governance environment. addition, within the context of the ZIP, the MWDS will play Progress was made towards increasing access to water a key role in leading the implementation and execution and sanitation between 2007 and 2018, but this fell short of the ZIP. of attaining universal access to improved water sources and sanitation facilities. Access to improved water sources increased from 41.1 percent in 2007 to 72.3 percent in 2018, The final structures of the coordination arrangements and access to improved sanitation also increased - from 35.5 are those that are responsible for advisory functions and percent in 2007 to 54.4 percent in 2018. decision-making. These comprise the National Development Coordinating Committees (NDCCs), the Cluster Advisory

2.4 Institutional Groups (CAGs), the Provincial Development Coordinating Arrangements Committees (PDCCs), the District Development Coordinating Zambia Water Investment Programme • 7 Committees (DDCCs) and the local authorities. A schematic of the development coordinating arrangements is shown below in Figure 7. FIGURE 7: SCHEMATIC OF INSTITUTIONAL ARRANGEMENTS FOR DEVELOPMENT COORDINATION OVERSIGHT PO LICY , CO O R DI N AT I ON ADV I S OR Y / DE C I S I ON STRUCTURES A N D IM P L E M E N T AT I ON M AK I N G S T R U C T U R E S National Cabinet Assembly OAG Cabinet Office N DC C MFNP C AG s House of chiefs MWD’S and other Ministries Provincial P DC C MLGRD Administration DDC C District Local Authorities Administration WDC I N F OR M AT I ON F L OW OVE RSIGHT A D V IS O RY FLO W P OL I C Y DI R E C T I ON R E P OR T I N G F L OW CAGs Cluster Advisory Groups NDCC National Development Coordinating Committee DDCC District Development Coordinating Committee OAG Office of the Auditor General MFNP Ministry of Finance and National Planning PDCC Provincial Development Coordinating Committee MLGRD Ministry of Local Government and Rural Development WDC Ward Development Committee MWDS Ministry of Water Development and Sanitation 8 • Zambia Water Investment Programme

2.5 Role of Water in Attaining Vision 2030 and the for sustainable socio-economic development in Zambia. 8th National Development Plan The role of water in the attainment of Vision 2030 and implementation of the 8NDP was well recognised, and a number of programmes were included in the 8NDP under

2.5.1 Zambia Vision 2030 the different SDAs. Some of them are mentioned below: Zambia aspires to become “a prosperous middle-income SDA 1: Economic diversification and job creation. nation by 2030”. By 2030, Zambians look forward to living Strategy No. 8, “Enhancing Management and Productive Use in a strong, dynamic, competitive and self-sustaining of Water Resources”, has six programmes: (i) Transboundary middle-income industrial nation that is resilient to external Water Cooperation and Benefit Sharing, (ii) Water Harvesting, shocks and provides opportunities for improving the well- (iii) Groundwater Resources Development, (iv) Water being of all. The Vision coincides with the 2030 Agenda for Resources Management, (v) Inter- and Intra-Basin Water Sustainable Development, which aims to end poverty, fight Transfers and (vi) Aquifer and Water Source Protection. inequality and injustice, and tackle climate change through the pursuance of the SDGs. By 2030, the country should SDA 2: Human and social development. Strategy have made substantial progress towards the attainment No. 1, “Improving Access to Clean and Safe Water Supply”, of these global goals. and Strategy No. 2, “Improving Sanitation Services”, have six programmes. The programmes under Strategy No. 1 are Water is critical for achieving Vision 2030. It is a critical enabler Infrastructure Development and Water Quality Monitoring, for sustainable socio-economic development. Ensuring water and under Strategy No. 2 the programmes comprise security for economic growth, environmental sustainability Infrastructure Development, Solid Waste Management, and social equity is critical for achieving Vision 2030.5 Sanitation and Hygiene Promotion, and Investment Promotion.

2.5.2 The Eighth National Development Plan SDA 3: Environmental sustainability. A number The 8NDP provides an avenue for catalysing the nation’s of programmes around climate change mitigation and response to addressing the developmental challenges over adaptation; sustainable environment and natural resources the 2022-2026 period in the quest to attain the Vision 2030, management. Under Development Objective (DO) 1 of SDGs and other regional and international commitments. SDA 3, the key strategies are: strengthen climate change The 8NDP has four SDAs, namely: adaptation; enhance disaster risk reduction and response; • economic transformation and job creation; promote integrated environment management; and enhance • human and social development; natural resources management. • environmental sustainability (including climate resilience); and • good governance environment. Water is the critical factor for the successful implementation of the 8NDP, as water is needed for economic growth; for building resilience of the economy, the people and social systems; and for social inclusion and sustainability. Water is the overall enabler Zambia Water Investment Programme • 9 3. Zambia Water Investment Programme The ZIP is structured around three IFAs and nine components, as illustrated below in Figure 8. FIGU RE 8: IN VE STME N T FO CU S A RE A S A N D COM P ON E N T S OF T HE ZI P IFA 1: Water Investments IFA 2: Enhancing Resilience IFA 3: Water and Sanitation to Support Economic through Water Governance and Institutional Transformation Strengthening Component 1: Water investments Component 3: Component 7: Human and for productive use and economic Sustainable water supply and institutional capacity building growth sanitation for community resilience Component 8: Financing Component 2: Enhance water Component 4: water investments and resources resources management Building climate resilience mobilisation Component 9: Strengthening Component 5: Public-Private Partnerships and Enhancing environmental International Cooperation in Water sustainability Investments Component 6: Gender equality and social inclusion 10 • Zambia Water Investment Programme

3.1 Investment Focus Area 1: Water Investments to Support Economic Component 1: Transformation Water investments for productive use and economic growth; and Component 2: Zambia aspires to be a prosperous middle-income country by 2030. Economic transformation and job creation has 3.1.1 Component Enhance 1: Water water resources Investments for management. been identified as the primary means though which the Productive Use and Economic Growth aspirations of the Vision 2030 can be attained. This will entail In order to support the attainment and maintenance of diversifying the economy from the traditional dominant economic growth in terms of GDP of between 6 and 10 sectors of wholesale and retail trade, mining and quarrying, percent that is necessary for the attainment of Vision 2030, and construction, which among them accounted for about this component will prioritise water investments in the 50 percent of GDP, to other sectors with potential for driving energy and food sectors though the Water-Energy-Food significant economic growth. These include agriculture, (WEF) nexus approach. Key interventions in this regard will tourism and manufacturing. Thus, collectively, the economic include irrigation development, fish farming and aquaculture drivers that will be the engine of economic growth for the development, and energy development. Zambian economy in the pursuit of prosperous middle- Furthermore, the component will also marshal key income-country status by 2030 will be agriculture, investments in the other economic drivers and water- manufacturing, mining and tourism. The aforementioned dependent economic enablers as follows: economic drivers are in turn dependent on the economic enablers, which comprise energy, transport and logistics, 1. Tourism development. Here the priority will be on the technology, water, infrastructure and skills. In addition, some development of climate-resilient water infrastructure of the economic enablers are also dependent on water aimed at the promotion of tourism. such as energy, transport and logistics, and infrastructure. In this regard, investments in water are crucial if Zambia is 2. Water investments for mining development aimed to succeed in its economic diversification and job creation at supporting dewatering requirements for small- agenda. scale artisanal mining and water supply for mineral beneficiation and value addition. Water Investments to Support Economic Transformation (IFA 1) will support the drive for economic diversification and 3. Water investments for transport and logistics. This will job creation in two principal ways. The first will be through comprise investments in water for navigation purposes investments aimed at addressing the specific water needs and inland waterway development and maintenance. of each of the economic drivers and water-dependent economic enablers mentioned above. The second will be through direct investments in water that are aimed at enhancing the utilisation of water resources for multiple productive purposes. These key objectives for IFA 1 will be achieved through the following components: Zambia Water Investment Programme • 11 Table 1: Overview of Component 1 Water Investments for Productive Use and Economic Growth The main objective of this component is to enable economic diversification and job creation through water investments in the economic sectors identified as economic drivers such as agriculture, manufacturing, mining and OBJECTIVES : tourism. Furthermore, similar investments in water-dependent economic enablers such as energy as well as transport and logistics will also be prioritised. Investment priorities and Expected Outputs: The investment priorities required to enable economic diversification and job creation through water investments are outlined below. Investment Intervention Expected Outputs priorities 1. Water investment Enhance irrigated agriculture systems • 70,000 hectares of arable land for small-scale farmers brought under irrigation countrywide for energy and food security • 200,000 hectares of land for emergent and large-scale farmers brought under irrigation countrywide • 83 weirs for multipurpose use rehabilitated • 27 weirs for multipurpose use constructed • 18 dams for multipurpose use constructed • 52 dams for multipurpose use rehabilitated • Long-term irrigation master plan formulated Develop and strengthen fisheries and • Fish production from aquaculture increased from 30,258 metric tons/ aquaculture systems annum to 225,000 metric tons/annum countrywide • Fish production from capture fisheries increased from 85,000 metric tons/annum to 120,000 MT/annum Develop climate-resilient energy • 13 climate-resilient hydropower plants above 20 megawatts capacity developed • 10 climate-resilient hydropower plants below 20 megawatts capacity developed • Total generation capacity from hydropower increased from 2,714 megawatts to 3,747 megawatts 2. Water investments Water infrastructure for tourism • Water resources developed to support: development for tourism - new private tourism investments - seven in the development northern circuit and ten in the southern circuit; - five self-sustaining national parks; and - ten heritage sites around the country. • Develop ten water parks for tourism and education (one per province) • Water investments to provide for an overall increase in annual tourist arrivals from 2.6 percent to 50 percent of pre-COVID numbers by 2030 3. Water investments Develop and implement strategies for • Capacity building in mine dewatering for 50 percent of licensed sustainable dewatering and tailing small-scale and artisanal miners active in mining minerals for mining disposal targeted at small-scale artisan countrywide development mining • Support enforcement of identified strategies Water supply for mineral beneficiation • Investments in water for mineral beneficiation in the processing of and value addition gemstones, industrial minerals, base metals and precious minerals by 50 percent of licensed small-scale and artisanal miners countrywide 4. Water investments Water for navigation • Dredging of 7,500 km of canals per annum in Western and Luapula provinces for transport and logistics Inland waterways development and • Development of five modern harbours in key strategic locations maintenance 12 • Zambia Water Investment Programme river sections; the de-risking and provision of water use

3.1.2 Component 2: Enhance Water facilities for economic and productive use of water resources; Resources Management the establishment and maintenance of supply chains and As a means of ensuring adequate and reliable availability value chains associated with water-dependent economic of water resources for economic diversification and job activities; and the development of water transfer schemes creation, this component will focus on direct water resource from regions of abundant water resources to productive investments through transboundary water cooperation and areas experiencing water scarcity. The inter-basin transfers benefit sharing, water harvesting, groundwater resources will improve availability in the water-scarce but economically development and inter- and intra-basin water transfer productive regions of the country in light of climate change. schemes. Key interventions in this regard will include the development of cooperative arrangements for the economic utilisation of shared water resources such as aquifers and Table 2: Overview of Component 2: Enhance Water Resources Management The key objective of this component is to ensure sustainable water resources management in order to ensure OBJECTIVES : adequate availability of water resources in Zambia. Investment priorities and Expected Outputs: The investment priorities required to enable economic diversification and job creation through water investments are outlined below. Investment Intervention Expected Outputs priorities 1. Transboundary International water cooperation and • Establishment of operational arrangements for transboundary water resources management international water cooperation and the governance and water cooperation management of shared water resources in relation to the and benefit sharing Congo River Basin and the UN Water Convention • Strengthening of national participation, capacity and support with regard to the governance and management of shared water resources in the Zambezi River Basin • Domestication of the Zambezi Strategic Plan and alignment of national development interventions with international initiatives on water security investments at the global, pan- African and Southern African Development Community (SADC)/Common Market for Eastern and Southern Africa levels, including the Congo River Basin, Lake Tanganyika and Lake Mweru • Formulation of transboundary water investments around shared aquifers and river segments for multipurpose economic activities in agriculture, tourism, mining, manufacturing, transport and logistics, and energy • Enhancing national capacity to mobilise resources for water security investments through engagements with UN Water, the African Ministers’ Council on Water, SADC and others • Establishment of the Luapula River Authority to provide for cooperation between Zambia and the DRC with regard to joint investments in agriculture, energy, transport, manufacturing, tourism and mining in respect of the portion of the Luapula River and the associated catchment area that is shared between Zambia and the DRC 2. Water resources National programme on water resources • A holistic and long-term national plan for water resources development and management development and management for Zambia planning • Review the Integrated Water Resources Management (IWRM) Water Efficiency Implementation Plan Strengthening water information systems to • Enhanced groundwater and surface water monitoring support decision-making systems Zambia Water Investment Programme • 13 3. Water transfers for Inter- and intra-basin water transfer schemes • Feasibility studies (including environmental and social assessments, financial assessments and technical studies) economic production on the proposed transfer scheme developed. Focus will be on the Congo-Zambezi water transfer schemes • Water transfer schemes from water surplus areas (northern parts of the country) to areas experiencing water scarcity owing to climate change (southern parts of the country) established and operationalised 4. Groundwater Countrywide development of wellfields for • Studies to identify groundwater resources with significant multipurpose economic/productive utilisation of economic potential or ecological importance development water resources • Studies to map and characterise identified groundwater resources. Development of wellfields for the economic utilisation of groundwater resources • Priority action plan for the protection of groundwater resources of ecological importance developed and implemented.

3.2 Investment Focus Area 2: Enhancing Resilience Resilience Through Water This component aims at addressing the water supply and sanitation needs of the country in line with SDG number six targets 6.1 (Drinking Water) and 6.2 (Sanitation). Thus, the In order to safeguard the investments in water targeted at key objectives of this component are to achieve equitable economic diversification and job creation, and to ensure a and inclusive access to safe and affordable drinking water more sustainable and inclusive development pathway, the requirement for resilience against water-related hazards for all citizens by 2030 without leaving anyone behind; and and climatic shocks cannot be overemphasised. Equally to achieve access to adequate and equitable sanitation and important is the sustainable utilisation of natural resources hygiene for all citizens in a gender-equal and socially inclusive and preservation of vital water-related ecosystems and manner. In addition, this component also aims at ending ecosystem services. Furthermore, economic development the practice of open defection in the country. This is in line that leaves no one behind also entails deliberate effort being with the national objective of increasing access to safe water made to enhance livelihoods and eliminate poverty by, from 58 percent (2018 baseline) to 67 percent by 2026 for among other measures, ensuring access to adequate and rural areas; and from 91.8 percent (2018 baseline) to 98 safe water supply and sanitation services. Thus, IFA 2 aims percent by 2026 for urban areas. Furthermore, this also fits to ensure that the economic water investments that will be in well with the country’s aim of increasing the proportion undertaken also advance human and social development of households with access to improved sanitation from 37.2 without leaving anyone behind. In addition, IFA 2 aims to percent (2018 baseline) to 55 percent by 2026 for rural areas ensure environmental sustainability and that communities, and from 77.7 percent (2018 baseline) to 90 percent by investments and water infrastructure are resilient to the negative impacts of climate change. The primary objectives 2026 for urban areas. of IFA 2 will be attained through four components, as follows: Descriptions of each of the four components are outlined below.

3.2.1 Component 3: Sustainable Water Supply and Sanitation for Community Component 3: Sustainable water supply and sanitation for community resilience; Component 4: Building climate resilience; Component 5: Enhancing environmental sustainability; and Component 6: Gender equality and social inclusion. 14 • Zambia Water Investment Programme Table 3: Overview of Component 3: Sustainable Water Supply and Sanitation for Community Resilience The objective of this component is to ensure universal access to clean and safe water supply and sanitation services for all. OBJECTIVES: Investment priorities and Expected Outputs: The investment priorities required to enable economic diversification and job creation through water investments are outlined below. Investment Intervention Expected Outputs priorities 1. Urban water Strengthening of water quality • 20 additional water quality assurance facilities established countrywide systems in urban areas supply and • Increase in the percentage of commercial water utility companies meeting sanitation national and international drinking water standards from 36 to 100 Improvement of water supply • Baseline on urban water supply service coverage established services in urban areas through • Improved water supply services for five border towns rehabilitation and construction • Improved water supply infrastructure availability for 11 water utilities countrywide of climate-resilient water supply infrastructure • Increase in the percentage of urban population with access to basic drinking water service6 • Increase in the percentage of the urban population with access to safely managed drinking water service7 Improvement of sanitation • Baseline on urban sanitation and hygiene service coverage established services and hygiene promotion • Improved sanitation and hygiene services for five border towns in urban areas through the • Improved sanitation infrastructure availability for 11 water utilities countrywide. rehabilitation and construction of climate-resilient sanitation • Increase in the percentage of urban population with access to basic sanitation infrastructure service8 • Increase in the percentage of the urban population with access to safely managed sanitation service9 • Reduce percentage of people practising open defecation Promote efficiency in the • Reduce non-revenue water to less than 25 percent provision of water supply and sanitation services • Reduce sewerage flooding from 13 percent to 0.5 percent Development and improvement • Baseline on sanitation coverage in rural areas established of sanitation services in rural • Improved availability of sanitation infrastructure in rural areas of areas through the construction 116 districts and rehabilitation of climate- smart sanitation infrastructure • Increase the percentage of the rural population with access to basic sanitation services • Increase the percentage of the rural population with access to safely managed sanitation services • Increase the percentage of health facilities with basic sanitation services • Increase the percentage of schools with access to basic sanitation • Reduce the percentage of people practising open defecation in rural areas 2. Rural water Development and improvement • Baseline on water supply coverage in rural areas established of water supply in rural areas supply and • Improved availability of water supply infrastructure in rural areas of 116 districts through construction and sanitation • Increase the percentage of the rural population with access to basic drinking rehabilitation of climate-smart water source water supply infrastructure • Increase the percentage of the rural population with access to safely managed drinking water source Improvement of hygiene • Baseline on hygiene service coverage in rural areas established practices in households and • Increase in the percentage of the population having a hand-washing facility with communities in rural areas soap and water • Increase in the percentage of health facilities with access to basic drinking water source • Increase in the percentage of schools with access to basic drinking water source Promote efficiency in the • Community-led total sanitation adopted and practised in villages provision of water supply and sanitation services in rural areas Zambia Water Investment Programme • 15 water use; and improvement of water storage and water

3.2.2 Component 4: Building Climate transfer schemes aimed at addressing climate-induced Resilience water scarcity. Zambia is party to the Paris Climate Accords (the Paris Agreement), which make provision for climate change Furthermore, within the context of the Paris Agreement, mitigation, adaptation and finance. The agreement developed countries committed to mobilising US$100 established an international mechanism to help countries billion annually in climate finance until 2025 in order to cope with the negative impacts of climate change and support climate change adaptation and mitigation efforts to mobilise the financing necessary for effective climate by developing countries. The primary mechanisms of action. Thus, all state parties to the Paris Agreement are financing are international financing mechanisms such as required to decide, plan for and regularly report on voluntary the Green Climate Fund and other public and private funds. commitments aimed at contributing to the global fight Thus, Zambia needs a structured approach in order to make against anthropogenically induced climate change. This use of the opportunities that are available under the Paris is done through the Nationally Determined Contributions Agreement to fulfil and implement its obligations as stated (NDCs) to climate change. In 2016, Zambia submitted its in the NDCs. The objective of this component is therefore first NDCs to the United Nations Framework Convention on to support the implementation of Zambia’s NDCs that are Climate Change and has updated them twice since then, related to water security as well as other measures aimed at with the current update having been done in 2021. Among addressing the climate resilience elements of water security. the measures of climate action that Zambia has committed itself to in the NDCs are adaptation measures that relate to water security. These include protection and conservation of water-catchment areas; water technologies for efficient Table 4: Overview of Component 4: Building Climate Resilience The objective of this component is therefore to support the implementation of Zambia’s NDCs that are related to OBJECTIVES : water security as well as other measures aimed at addressing the climate resilience elements of water security. Investment priorities and Expected Outputs: The investment priorities required to enable economic diversification and job creation through water investments are outlined below. Investment Intervention Expected Outputs priorities 1. Augmenting water Water technologies for saving, recycling, • Water deficit/availability assessments in agro-ecological irrigation and sustainable management for regions I and II resources household, agriculture and industrial purposes • Water technologies based on the assessment results adopted and promoted Improve water storage through artificial • Water storage systems for climate resilience established recharge countrywide 2. Long-term Formulation of a long-term National Adaptation • Lon- term NAP for water formulated Plan (NAP) for water adaptation planning • Resources mobilised and partnerships established for long- for water term implementation of the water NAP 3. Climate change Promotion of carbon-neutral sanitation • Guidelines and standards for reducing greenhouse gas emissions from sewage treatment and on-site sanitation mitigation facilities formulated • Technologies for carbon-neutral sanitation identified and promoted 4. Climate- National programme for climate-proofing of • Standards and guidelines for climate-proofing water water and sanitation infrastructure infrastructure proofing for water infrastructure • 50 percent of water and sanitation infrastructure climate- proofed by 2030 5. Water-related Risk reduction and preparedness • Climate information services hazards • Early-warning systems • Disaster preparedness 16 • Zambia Water Investment Programme of future generations to meet their needs. The aim of this

3.2.3 Component 5: Enhancing component is to ensure that the environment remains Environmental Sustainability resilient even as the economic transformation agenda for It is important that socio-economic development does the country is pursued. This will be achieved through climate not result in the depletion or degradation of the water change mitigation measures that can be addressed through environment and ecosystems associated with it. This calls water, integrated environmental management and natural for the responsible utilisation of natural resources, in this resources management focused on water. case water, in a manner that does not compromise the ability Table 5: Overview of Component 5: Environmental Sustainability The aim of this component is to ensure water investments for the environmental integrity and resilience of OBJECTIVES : ecosystems. Investment priorities and Expected Outputs: The investment priorities required to enable economic diversification and job creation through water investments are outlined below. Investment Intervention Expected Outputs priorities 1. Promoting nature- Preservation and conservation of wetlands and • Baselines on the status of wetlands countrywide established related ecosystems based solutions • Conservation and sustainable utilisation of wetlands promoted. Payment schemes for ecosystem services established Protection and conservation of water • Protection of catchment forests promoted in the Zambezi, catchment areas Kafue and Luangwa watersheds • Development and implementation of management plans for the Zambezi, Kafue and Luangwa watersheds • Rainwater harvesting in the Zambezi, Kafue and Luangwa watersheds promoted • Reforestation and afforestation of water catchment areas for dams countrywide 2. Strengthening Natural capital accounting for water • International recommendations on water statistics domesticated water information systems for the • National and subnational water statistics based on the readily environmental and available and accessible data and information economic accounting • Annual national and subnational water accounts following of water the System of Environmental-Economic Accounting for Water (SEEA-Water), published annually • Water accounting and water indicators mainstreamed and institutionalised 3. Integrated Water pollution prevention and control • Reduction in pollution of surface and groundwater resources from anthropogenic causes catchment management • Monitoring and tracking of the water quality status of water resources Sustainable land, forest and water management • Partnerships with utilities and authorities established for sustainable land, forest and water management • Land, forest and water resources sustainably utilised, conserved and preserved for future generations Strengthening community participation in • Catchment and sub-catchment councils operationalised sustainable land, forest and water management • Water user associations at catchment and sub-catchment level operationalised Catchment management water resources • Decision support systems for water resources planning and planning and policy formulation policy formulation established • Catchment and sub-catchment management plans formulated and updated periodically • Establishment and maintenance of hydrological cycle observation stations Zambia Water Investment Programme • 17 focus of this component is therefore on addressing gender

3.2.4 Component 6: Gender Equality and equality; youth and child development and empowerment Social Inclusion through water investments; and ensuring that the water, The core elements of the ZIP are economic growth, sanitation and hygiene needs of people living with disabilities environmental sustainability and social inclusion. This are adequately addressed when investing in water security component addresses aspects of gender equality and and sanitation. social inclusion in relation to water security investments. The Table 6: Overview of Component 6: Gender Equality and Social Inclusion The objective of this component is to address aspects of gender equality and social inclusion within the context of OBJECTIVES: water security investments. This entails addressing the special and specific needs regarding water and sanitation for women, men, girls, boys, youths, children and people living with disabilities. Investment priorities and Expected Outputs: The investment priorities required to enable economic diversification and job creation through water investments are outlined below. Investment priorities Intervention Expected Outputs 1. Gender equality in Strengthen capacity for gender equality in water • Understanding and appreciation of gender equality and climate issues in water security, and climate resilience building water security and increase climate resilience building • At least 100 government staff trained on how to integrate gender issues into water-related initiatives • Establish tools/guidelines for conducting • At least 100 staff trained on how to conduct gender gender analysis analysis • Train staff on gender inequality issues relating • Gender analysis conducted on investments and to water security and climate resilience initiatives, and key gender inequalities and gaps • Conduct gender analysis on investments for identified water security and climate resilience building • Develop gender action plan • Action plans for addressing gender inequalities • Implement gender action plans developed • Action plans implemented 2. Youth development Business and career pathways and vocational • Life skills development and resilience building for the options for youths related to water security youths and empowerment through water security • Youth entrepreneurship and vocational skills training and sanitation • Advanced water education for youths investments • Business linkages for youth-led water-related enterprises 3. Child development Ensuring child-sensitive and child-inclusive • Enabling environment for water, sanitation and related policy, planning and interventions in water interventions that promote child safety, health, education through water and security and sanitation investments and development sanitation • Promotion of children’s voices in dialogues on water security, sanitation environment and climate change • Enhanced curriculum for children with regard to water security, sanitation, hygiene, environment and climate change 4. Social inclusion Water security for people living with disabilities • Formulation of standards and regulations to ensure easy access to water and sanitation services by people living programmes for people with disabilities living with disabilities related to water and • Strategy for mainstreaming provisions for people living with disabilities regarding water and sanitation measures sanitation • Multi-stakeholder platforms established for addressing water security and climate-resilient issues affecting people living with disabilities 18 • Zambia Water Investment Programme

3.3 Investment Focus Area 3: Water and sector and other financing arrangements. Furthermore, this Sanitation Governance and Institutional IFA also aims at strengthening water sector institutions Strengthening through human and institutional capacity building and strengthening PPPs for water investments. Good water governance is a central feature of water security 3.3.1 Component 7: Institutional and alongside peace and political stability, water cooperation Human Capacity Building and financing. This is because if any meaningful outcomes Adequate human and institutional capacity are critical for arising out of measures to attain water security are to be ensuring ownership and sustainability of the interventions realised, there need to be adequate legal and institutional under the ZIP and any other similar initiatives on water frameworks in place that are operationalised through security and sanitation. However, it is not clear whether competent institutions. The reason for this is that water Zambia has the full complement of human capital in terms scarcity can be exacerbated by challenges associated with the of skills, specialised competencies and the critical mass for capacity of water sector institutions to perform as expected, the same. Therefore, strong measures to address the human thereby leading to the so-called institutional water scarcity. capital gap with regard to water resources development A key constraint in this regard is financing. According to and management, water supply and sanitation, and the Zambia Country Survey Instrument for SDG National transboundary water cooperation are among the primary Reporting on Status of IWRM Implementation 2020, financing objectives of this component. The other objectives include for IWRM was ranked at 40 on a scale of 100. Other water strengthening the existing policy, legal, institutional and governance-related indicators on implementation of IWRM management frameworks and tools for water and sanitation in Zambia fared better. The enabling environment had a governance, and promoting water education and research. score of 67/100, institutions and participation scored 75/100 These objectives are critical for strong institutions and and management instruments scored 49/100. This gave effective water governance, which is necessary to address the country an overall score of 58/100 in terms of overall aspects of water security that hinge on economic water implementation of IWRM. Thus, it is clear that greater efforts scarcity and institutional water scarcity. have to be applied to ensure better financing for water security interventions and also to improve the management instruments as the key entry points for improved water governance and stronger water sector institutions. This IFA therefore focuses on mobilising financing for water security investments, particularly from nontraditional sources of financing for water and sanitation such as from the private Table 7: Overview of Component 7: Institutional and Human Capacity Building The primary goal of this component is to address the human capital gap with regard to water resources development and management, water supply and sanitation, and transboundary water cooperation. The other OBJECTIVES: objectives include strengthening the existing policy, legal, institutional and management frameworks and tools for water and sanitation governance, and promoting water education and research. Investment priorities and Expected Outputs: The investment priorities required to enable economic diversification and job creation through water investments are outlined below. Investment priorities Intervention Expected Outputs 1. Human capacity Formulate and implement a capacity • Strengthening partnerships between the water sector and learning and competence development institutions building for water programme for water security • A national competence framework for water professionals at various resources development and management, levels established and water supply and • Professional competence training programmes in line with the sanitation national competence framework for water professionals developed • Professional competence training programmes for water professionals established at various public and private institutions Zambia Water Investment Programme • 19 • Forward and backward linkages established between the industry and training institutions in order to enhance employability of water professionals and the efficiency of the water industry and related industries • At least 75 percent increase in the number of women and men with professional competencies in water and sanitation at various levels (craft, diploma, degree, master’s and Ph.D.) • Human capital account of water professionals published periodically 2. Capacity building for Strengthening of existing policy, • Undertake reforms in the water and sanitation sector legal and institutional frameworks water sector institutions • Revised and more efficient institutional arrangements for water supply and sanitation implemented • Revised and more efficient institutional arrangements for water resources development and management implemented • Water policy analysis think tank institute established and operationalised • Multi-stakeholder platforms for water governance, water investments and IWRM strengthened • Water sector coordination mechanisms strengthened 3. Support to water Formulate and implement a • National Water Education and Research Institute established and water research and development operationalised education and research programme • Mechanisms for sustainable financing of water education and research instituted • Policy measures on water education formulated • National strategy on water education and research formulated • National innovation hub for water and sanitation established and operationalised in order to come up with bankable documents for project

3.3.2 Component 8: Water Investment financing and implementation will also be facilitated. Scorecard, Financing and Resource Currently, the resource envelope in Zambia is constrained Mobilisation and limited investments can be made from public funding. This component aims to track water investment using the Thus, in order to complement the traditional sources for AIP-PIDA Water Investment Scorecard and developing the attainment of Vision 2030, the 8NDP will promote response strategies with partners. This component will resource mobilization from non-traditional sources such also focus on mobilizing financing for water security and as public private partnerships, local capital markets, crowd sanitation investments. Furthermore, this component will investments, and venture capital to mention but a few. also foster the development of a resource mobilization strategy for the investments to be undertaken under the ZIP. Support for project preparation and proposal development Table 8: Overview of Component 8: Water Investment Scorecard, Financing and Resource Mobilization This component aims at tracking water investments and mobilising financing for water security and sanitation OBJECTIVES: investments. Investment priorities and Expected Outputs: The investment priorities required to enable economic diversification and job creation through water investments are outlined below. Investment priorities Intervention Expected Outputs 1. Mobilising water Develop and implement a water • Zambia water investment scorecard with the following elements: investment scorecard investments and finance - Enabling environment for water investments for water security and Develop a resource mobilisation - Water investments and financing mobilisation sanitation investments strategy for implementing the ZIP - Investment performance and sustainability • Resource mobilisation strategy formulated Project preparation and proposal • A pipeline of bankable projects formulated for short-, medium- and development long-term interventions • Feasibility studies for water infrastructure projects • Bankable project proposals for water investments 20 • Zambia Water Investment Programme water investments have the potential of enhancing access

3.3.3 Component 9: Strengthening Public- to innovative blended finance, bridging the investment Private Partnerships and International gaps necessary to attain adequate national water security Cooperation in Water Investments and achieve economic transformation and job creation The aspirations for SDG6 and other water-related targets in line with Vision 2030. However, for this to be achieved, are high. International high-level collaboration and public- there is need to strengthen the enabling environment for partnerships are required to mobilise water investment at PPPs and promote international cooperation, collaborative scale and accelerate action in support of SDG6 and other approaches, access to blended finance, and small to medium water-related targets. Achieving the water-related SDGs and enterprises (SMEs) approach to water development and implementing the priorities of the Zambia Water Investment Programme require concerted efforts by all stakeholders. sanitation investments. This will need to be anchored on Water matters at the local, regional, basin, and international substantial capacity building efforts for both public sector level. institutions and private sector actors (companies, societies, cooperatives and individuals) to be able to effectively As water is shared with many countries, protecting and and efficiently participate in water and sanitation PPP preserving it is a shared responsibility that requires investments. Thus, the focus of this component will be on the international cooperation. Most water-related challenges enabling environment for viable public private partnerships can be addressed at the basin or national level. Further on economic and multipurpose water and sanitation international water stewardship is needed to support investments; promotion of international cooperation in transboundary water management, climate change investment mobilization, the SME approach to economic mitigation and adaptation efforts. Inadequate investments multipurpose water and sanitation investments; and Capacity in water contribute to people’s displacement, loss of food building for private sector led water investments. security, ecosystem loss and degradation, and virtual water trade, which cannot be addressed at the national level alone. International partnerships with UN agencies, international organizations, development finance institutions, private sector and others is essential. PPPs as a means of advancing Table 9: Overview of Component 9: Strengthening Public-Private Partnerships and International Cooperation in Water Investments The objective of this component is to strengthen the enabling environment for PPPs and to promote international OBJECTIVES: cooperation, collaborative approaches, access to blended finance, and the small to medium enterprises (SMEs) and cooperative approach to water development and sanitation investments. Investment priorities and Expected Outputs: The investment priorities required to enable economic diversification and job creation through water investments are outlined below. Investment priorities Intervention Expected Outputs 1. Enabling environment Identification of opportunities for economic • Ten opportunities for multipurpose economic water and multipurpose water and sanitation sanitation investments identified and documented (at least for viable PPPs investments one per province) on economic and multipurpose water and Prepare feasibility studies for economic • Ten feasibility studies for multipurpose economic water and sanitation investments multipurpose water development sanitation investments formulated (one investment plan per investments province) Sensitise and create awareness regarding • Sensitisation and promotional campaigns for multipurpose investment plans for economic economic water and sanitation investments undertaken multipurpose water resource development countrywide investments Identify risks and barriers regarding • Risk management and barrier mitigation plan for enhancing economic multipurpose water resource private-sector participation in water and sanitation development investments investments 2. Promote the Strategy for the promotion of the • National strategy on enabling the undertaking of economic cooperative approach and SME approach multipurpose water and sanitation investments by cooperative and SME to economic multipurpose water and cooperatives and SMEs formulated approach to economic sanitation investments • At least 50 percent of private-sector economic multipurpose multipurpose water and water and sanitation investments undertaken by cooperatives sanitation investments and SMEs Zambia Water Investment Programme • 21 Piloting of the cooperative and SME • At least 10 pilot multipurpose economic water and sanitation approach to economic multipurpose water investments by cooperatives and SMEs formulated and and sanitation investments implemented (one per province) Scaling up of the cooperative approach • National scaling-up strategy for the undertaking of to economic multipurpose water and economic multipurpose water and sanitation investments by sanitation investments cooperatives and SMEs formulated • Undertaking of economic multipurpose water and sanitation investments by cooperatives and SMEs mainstreamed 3. Capacity building for Strengthen international public-private • International public-private water Investment partnership partnership mechanisms for mobilisation established as a mechanism for mobilization of water private-sector-led water of water investments, driving international investments investments cooperation to close water investment gap • Champions and international water investment envoys towards 2030 SDG 6 and other water-related mobilised to drive regional and international cooperation, SDGs. high level multi-stakeholder public private partnerships engagement • Establish an annual or biannual international water investment summit as a platform for blended finance investments on water security and sanitation and related priorities Capacity development strategy and plan • Capacity needs assessment for effective private-sector for private-sector participation in water and participation in PPPs for economic multipurpose water and sanitation investments sanitation investments undertaken • Capacity building plan for private-sector and public institutions to effectively undertake PPPs on economic multipurpose water investments formulated and implemented • 30 percent in terms of monetary values of all economic multipurpose water and sanitation investments undertaken by the private sector • 30 percent of all water and sanitation investments formulated by public institutions should be through PPP arrangements 22 • Zambia Water Investment Programme Financing and Implementation Strategy

4.1 Financing

4.1.1 Investment Areas The 61 interventions under the ZIP are centred on economic diversification and job creation, resilience building through water, and strengthening water governance by strengthening institutions and human capacity. These interventions are depicted in Figure 9. Zambia Water Investment Programme • 23

2.1 Sustainable water supply and 2.3 Enhancing environmental sanitation for community resilience sustainability

2.2 Building climate resilience Enhancing resilience 2.4 Gender and social inclusion through water

3.1 Human and ZAMBIA institutional capacity WATER building

1.1 Water investments INVESTMENT for productive use and Water Water and sanitation 3.2 AIP-PIDA Water PROGRAMME economic growth investments to governance and Investment Scorecard support economic institutional financing water

1.2 Enhance strengthening investments and transformation water resources resources mobilisation management

3.3 Strengthening of PPPs and international cooperation Figure 9: Overview of the Zambia Water Investment Programme The summary of the budget is indicated below in Table 10.

4.1.2 Financial Resource Requirements The financial resource requirements for successful implementation of the ZIP are estimated at about US$5.75 billion over eight years, i.e. from 2022 to 2030. Table 10: Financial Resource Requirements for the Zambia Water Investment Programme (A) Investment (B) Components (C) Priority Interventions Area Budget Focus Area and Action Estimate (US$ Million)

1.1.1 Enhance irrigated agriculture systems 2,875 1. Water 1.1 Water investments to investments for 1.1.2 Develop and strengthen fisheries and aquaculture systems support economic productive use and transformation economic growth 1.1.3 Develop climate-resilient energy

1.1.4 Water infrastructure for tourism development

1.1.5 Support for dewatering for small-scale artisan mining

1.1.6 Develop and implement strategies for sustainable dewatering and tailing disposal targeted at small-scale artisan mining

1.1.7 Water supply for mineral beneficiation and value addition

1.1.8 Water for navigation

1.1.9 Inland waterways development and maintenance

1.2.1 International water cooperation and transboundary water

1.2 Enhance resources management sustainable

1.2.2 National programme on water resources development and water resources management management

1.2.3 Strengthening water information systems to support decision- making

1.2.4 Inter- and intra-basin water transfer schemes 24 • Zambia Water Investment Programme (A) Investment (B) Components (C) Priority Interventions Area Budget Focus Area and Action Estimate (US$ Million)

1.2.5 Countrywide development of wellfields for multipurpose economic/productive utilisation of water resources

2.1.1 Strengthening of water quality systems in urban areas 2,013 2. Resilience 2.1 Water supply building through and sanitation 2.1.2 Improvement of cross border water supply and sanitation water

2.1.3 Improvement of water supply services in urban areas through rehabilitation and construction of climate-resilient water supply infrastructure

2.1.4 Improvement of sanitation services and hygiene promotion in urban areas through rehabilitation and construction of climate- resilient sanitation infrastructure

2.1.5 Improvement of sanitation services in rural areas through construction and rehabilitation of climate-smart sanitation infrastructure

2.1.6 Improvement of water supply in rural areas through construction and rehabilitation of climate-smart water supply infrastructure

2.1.7 Improvement of hygiene practices in households and communities in rural areas

2.1.8 Improvement of hygiene practices in households and communities in rural areas

2.1.9 Promote efficiency in the provision of water supply and sanitation services in rural areas

2.2.1 Water technologies for saving, recycling, irrigation and

2.2 Building climate sustainable management for household, agriculture and industrial resilience purposes

2.2.2 Improve water storage through artificial recharge

2.2.3 Formulation of a long-term NAP on water

2.2.4 Promotion of carbon-neutral sanitation

2.2.5 National programme for climate-proofing water and sanitation infrastructure

2.2.6 Risk reduction and preparedness

2.3.1 Preservation and conservation of wetlands and related

2.3 Enhancing ecosystems environmental sustainability 2.3.2 Protection and conservation of water catchment areas

2.3.3 Natural capital accounting for water

2.3.4 Water pollution prevention and control

2.3.5 Sustainable land, forest and water management

2.3.6 Strengthening community participation in sustainable land, forest and water management

2.3.7 Catchment management water resources planning and policy formulation

2.4.1 Strengthen capacity for gender equality in water and climate

2.4 Gender and social inclusion

2.4.2 Establish tools/guidelines for conducting gender analysis, train staff on gender inequality issues relating to water security and climate resilience, and conduct gender analyses on investments for water security and climate resilience building.

2.4.3 Develop and implement gender action plans

2.4.4 Business and career pathways and vocational options for youths related to water security

2.4.5 Ensuring child-sensitive and inclusive policy, planning and interventions in water security and sanitation investments

2.4.6 Water security for people living with disabilities Zambia Water Investment Programme • 25

3.1.1 Formulate and implement a capacity and competence 862 3. Water 3.1 Institutional development programme for water security governance and and human capacity institutional building 3.1.2 Strengthening of existing policy, legal and institutional frameworks strengthening

3.1.3 Formulate and implement a water research and development programme

3.2.1 Develop and implement a water investment scorecard

3.2 Financing water investments 3.2.2 Develop a resource mobilisation strategy for implementing the and resource ZIP mobilisation 3.2.3 Project preparation and proposal development

3.3.1 Identification of opportunities for economic multipurpose water

3.3 Strengthening and sanitation investments PPPs and

3.3.2 Prepare investment plans and pipeline of projects for economic International multipurpose water development investments both at national and Cooperation in provincial level Water Investments 3.3.3 Sensitise and create awareness regarding investment plans for economic multipurpose water resource development investments

3.3.4 Identify risks and barriers regarding economic multipurpose water resource development investments

3.3.5 Strategy for promotion of the cooperative approach and SME approach to economic multipurpose water and sanitation investments

3.3.6 Piloting of the cooperative and SME approach to economic multipurpose water and sanitation investments

3.3.7 Scaling up of the cooperative approach to economic multipurpose water and sanitation investments

3.3.8 Establishment of international public private water investment partnerships

3.3.9 Mobilization of international water investment champions and envoys

3.3.10 Establishment of an annual or biannual international water investment summit

3.3.11 Capacity development strategy and plan for private-sector participation in water and sanitation investments TOTAL BUDGET ESTIMATE: US$5,750 Million As can be seen in Figure 10: Financial Resource Requirements through water” will require 35 percent of the resources to be for the Zambia Water Investment Programme by mobilised, i.e. US$2.013 billion. The resource requirements Percentage below, “water investments to support economic for “water governance and institutional strengthening” are transformation” will require 50 percent of the US$5.75 the lowest at US$862 million. billion (i.e. US$2.875 billion), whereas “resilience building 26 • Zambia Water Investment Programme Figure 10: Financial Resource Requirements for the Zambia Water Investment Programme by Percentage 15% 16% Water investments to Support Economic Transformation: US$ 2,875 Million Resilience Building through Water: 12% 50% US$ 2,013 Million 35% Water Governance and Institutional Strengthening: US$862 Million 72%

4.2 Financing Strategy critical for accelerating water investments (i) Strengthening the Enabling Environment for Water Investments (ii) Mobilising Water investments and financing from public, The financing requirements for the ZIP will be addressed private, and donor (ODA) investments and (iii)Enhancing under Component 8 (Financing Water Investments and Investment performance and sustainability. Resources Mobilisation) under IFA 3. The key interventions c. Development of a pipeline of bankable projects. as already mentioned before will include development and A system of formulating projects from concept stage up to implementation of a water investment scorecard; formulation technical and financial closure will be promoted in order to of a resource mobilisation strategy; and project proposal ensure that a pool of viable project proposals is available development and project preparation. Other resource at any given time. This will maximise the possibilities mobilisation undertakings will include: of attracting the much-needed resources for project a. Convening a water investment summit. The main implementation. In addition, this will also enhance the purposes of the water investment conference is to pitch implementation of planned measures within reasonable Zambia’s investment needs regarding water and sanitation timeframes; to key stakeholders and partners. The summit will also serve d. International public-private partnerships the purpose of demonstrating Zambia’s commitment to Partnerships with various stakeholders and interest groups closing the investment gap on water security and sanitation. are very important for the successful implementation of Thus, the key outcome expected to be achieved from the the ZIP. The public partnerships and networks that will be conference is the mobilisation of convenors around the strengthened for the purposes of the ZIP include those with common goal of mobilising water investments; the private sector, academia, civil society, multilateral and b. Development of a water Investment Scorecard. bilateral cooperating partners, financing institutions and The Zambia Water Investment Scorecard will enhance intergovernmental organisations. Thus, the primary purpose mutual accountability for results in the mobilisation of of public-private partnerships and networks is resource water investments by focusing on the use of the Scorecard mobilisation, knowledge management, technical assistance accountability and peer review mechanisms at national, and sharing of experiences; provincial, sub-national, and community levels. The Water e. Capacity and competence development for public Investment Scorecard will be rolled out across the country and private institutions and water professionals. to mobilise and sustain mutual accountability, leadership Without adequate human and institutional capacity and commitment from relevant stakeholders at all levels, and competencies at the local level, implementation of the ZIP support the government to track progress, set benchmarks, will be very challenging and expensive. The requirement identify bottlenecks, and take action to meet the investment for adequately competent human capital and effective needs for water projects in the ZIP, and measure progress institutions for proper implementation of the ZIP is for towards achievement of SDG 6 on water and sanitation. The both the public and private sectors. Thus, deliberate efforts Scorecard will accompany the implementation of ZIP water will be made to ensure that the necessary capacity and projects being implemented during 2022-2030 and become competencies are developed in local experts and institutions part of the modus operandi of the water and sanitation sector through, among other things, partnering with competent delivery model. The scorecard will focus on three key pillars Zambia Water Investment Programme • 27 international experts and institutions and strengthening In partnership with community leaders, the Water water education and research; and Development Trust Fund (WDTF) will leverage domestic finance from the Constituent Development Fund (CDF) to f. Establishment of Water Development Fund. The enhance efficiency in delivery of prioritised water projects two principal pieces of legislation that govern the Zambian from CDF resources, promote local empowerment and water sector make provision for the establishment of a sustainability through establishment of revolving community blended water fund. This is important if financial flows managed water funds for operation and maintenance of to the water sector are to be improved and water and water and sanitation infrastructure at constituency, ward, and sanitation investments sustained. Thus, efforts will be local level. At the continental and global level, the WDTF will made to champion the establishment of a water fund that also leverage international climate finance – the International is aligned to international best practices of water financing Blended Finance Facility for Water Investments in Africa that and structured in a manner that can effectively address aims to mobilise US$30 billion annually by 2030 towards the local financing needs in terms of water security and SDG 6 on water and sanitation. sanitation. The WDTF will also leverage finance from the recently The Blended Water Fund will leverage ODA and grant announced G711 pledge to invest US$600 billion into finance to derisk priority water investments using a variety of infrastructure for developing countries. In July 2022, the innovative financial instruments and sources. These include Group of Seven leaders pledged to raise US$600 billion in sovereign wealth funds, guarantees, low concessional private and public funds over five years to finance needed commercial finance, institutional investors and private equity infrastructure in developing countries. We will also tap investors, foundations, value-based impact investment, and into the US$170 Billion12 announced by the European climate finance. Commission at the EU-Africa Summit in Brussels. Climate finance will be a key source. We will work with the

4.3 Sources of funding for the Zambia Investment Ministry of Green Economy, Development Bank of Zambia Programme (DBZ), local commercial Banks and Ministry of Finance to operationalise and access climate finance at scale from the Green Climate Fund, Global Environmental Facility, Instead of the traditional social sector financing of water Adaptation Fund, develop Green, municipal Bonds, and and sanitation that is largely reliant on the national treasury others. and donor funding, and given the current constrained fiscal space at local and international level, the Zambia Creating an investment-ready pipeline will be essential. We Water Investment Programme will be financed through will develop bankable water security and sanitation projects an innovative blended finance approach. This approach and de-risk priority water investments using grant finance will leverage public finance, ODA and grant finance to de- combined with a variety of innovative financial instruments risk priority water and sanitation investments so that the such as guarantees, currency hedging, cost reflective tariffs private sector can invest their resources in water. The largest for water utilities, to lower the barriers and remove the source of funding is expected to be from the private sector constraints that make private sector investment unattractive through blended finance using Public-Private Partnerships and use PPPs to distribute risks fairly among key players. (PPPs) delivery model. In collaboration with domestic and international development Currently, the private sector invests very little in water partners (including over 25 partners13 of the Continental and sanitation due to various risks and a weak regulatory Africa Water Investment Programme) and building on the framework. The ZIP will develop and roll out a mutual Zambia Public-Private Dialogue Forum launched earlier this accountability instrument to enhance transparency and year, we will establish an international public-private water accountability in water financing: the AIP-PIDA Water investment partnership as a mechanism for positioning Investment Scorecard, which will assist to (i) strengthen Zambia as the go-to-investment destination for water the enabling environment for water investments (ii) security, sustainable sanitation and mobilisation of water track bottlenecks, financial flows from domestic, ODA, investments from the private sector including sovereign private sector (iii) enhance efficiency in water finance and wealth funds, pension funds, investment guarantees, private investments. commercial banks, institutional investors, foundations, impact investors and other sources. We will operationalise the Water Development Trust Fund10 in the 2001 National Water Resources Act, Part XV, Article While efforts will be made to increase domestic water sector 155 to operate as a Blended Finance Facility to mobilise financing for planning purposes, the expected contribution finance from the private sector using PPP models at scale. from national treasury between 2022 to 2030 is US$ 1.08 28 • Zambia Water Investment Programme billion. This is based on the Government of Zambia allocation in the yellow book for 2021 and 2022 estimated14 at USD 135 million/year. Over eight years, this is estimated at USD 1.08 billion. Overall, the funding for the Zambia water investment programme that will be pursued can be grouped into the following main sources:

4.4 Implementation Arrangements The anchor institution for implementation of the ZIP will be the MWDS. This will be within the context of the coordination arrangements of the NDP coordination mechanism. Therefore, other government ministries and institutions will be required to lead and anchor specific aspects of the programme as necessary. Source of finance Instrument/ financing source Amount (USD) Billion % Of total a. Regular allocation from the Grants 1.08 18.8% national treasury b. Official Development Grants, Low concessional finance 0.86 15.0% Assistance (ODA) c. Private Sector (PPPs) PPPs, private equity, sovereign wealth funds, 1.73 30.0% investment guarantees, Green Bonds international and domestic pension funds d. International Financing Euro-Africa Infrastructure Fund, G 7 infrastructure 2.08 36.2% Initiatives and climate finance fund, International Climate Finance, and others Zambia Water Investment Programme • 29 Table 11: Implementation Arrangements for the Zambia Water Investment Programme Investment Components Lead Collaborating Institutions Focus Area Institution Water investments for MWDS Ministry of Agriculture, Ministry of Fisheries and Livestock, Water investments economic growth Ministry of Energy, MOFNP, Ministry of Tourism, Ministry of Small to support and Medium Enterprise Development, Ministry of Commerce, economic Trade and Industry, Ministry of Transport and Logistics (Maritime transformation Department), Ministry of Foreign Affairs and International MWDS Cooperation, and Ministry of Mines and Minerals Development, Enhancing the Zambia Development Agency management and productive use of water MWDS Ministry of Community Development and Social Services, Ministry Resilience building Water supply and sanitation of Health, Ministry of Local Government and Rural Development, through water National Water Supply and Sanitation Council, water utility companies, local authorities and constituency offices Climate resilience MWDS Ministry of Green Economy and Environment, Ministry of Community Development and Social Services, Ministry of Local Government and Rural Development, Ministry of Lands and Natural Environmental resilience MWDS Resources, Meteorological Department, Disaster Management and Mitigation Unit, Water Resources Management Authority, Zambia Environmental Management Agency, provincial and district administrations Gender and social inclusion MWDS Gender Division, Ministry of Community Development and Social Services, Ministry of Labour and Social Security, Ministry of Youth, Sport and Arts, Ministry of Local Government and Rural Development MWDS MOFNP, Ministry of Green Economy and Environment, Ministry Water governance Financing water of Energy, Ministry of Agriculture, Ministry of Tourism, Ministry of and institutional investments and resource Mines and Minerals Development, Ministry of Commerce, Trade strengthening mobilisation and Industry Institutional and human MWDS Ministry of Education, Ministry of Justice, Ministry of Technology capacity building and Science, Public Service Management Division, Management Development Division Strengthening PPPs MWDS MOFNP (PPP Office), Ministry of Small and Medium Enterprise Development, Ministry of Commerce, Trade and Industry, Ministry of Local Government and Rural Development, Ministry of Labour and Social Security

4.5 Monitoring and Reporting System investment scorecard will form an integral part of the ZIP monitoring and evaluation system. The MWDS will have the primary responsibility for overall implementation, tracking Monitoring and evaluation of the ZIP will follow the and reporting on the ZIP within the context of the National provisions of the Government of Zambia’s monitoring Development Coordination Framework. and evaluation framework. However, specific projects and subprogrammes may have their own tailored monitoring and evaluation systems as required. Furthermore, the water 30 • Zambia Water Investment Programme

Annex 1: Proposed Location, Activities and Cost Estimates for Water Security Investments Table 12: Proposed Location, Activities and Cost Estimates for Water Security Investments Proposed Name of Region Proposed Cost Remarks Place Activities (in Million USD) National Zambia National Water Resources Master 2 Plan Development Project National Zambia Water Statistical Survey Programme 5 National Zambia Skills and Competence Development 5 Programme for Water Resources Development National Zambia NAP for Water Project 1 All provinces and districts Central Province; Copperbelt Water Resources Infrastructure 350 Province; Eastern Province; Development Project Luapula Province; Southern Province; Northern Province; Muchinga Province; Western Province; Lusaka Province and Northwestern Province National Zambia Capacity Building Programme for 5 Zambia’s Effective Participation in Transboundary and International Water Cooperation All provinces and districts Central Province; Copperbelt Programme for Implementation 400 Province; Eastern Province; of Water Security-related NDCs to Luapula Province; Southern Climate Change Province; Northern Province; Muchinga Province; Western National Groundwater Resources and 10 Province; Lusaka Province and Wellfield Development Programme Northwestern Province All provinces and districts Central Province; Copperbelt National Passive Rainwater 20 Province; Eastern Province; Harvesting Sites Development Luapula Province; Southern Province; Northern Province; Muchinga Province; Western Province; Lusaka Province and Northwestern Province Luapula Province; Copperbelt Province; Central Congo River Basin and Zambezi Congo - Zambia Bulk Water Transfer 500 Province and Southern Province River Basin Programme Lufubu, Luapula Province; West Lunga, Central Province; Copperbelt Large dam development programme 2,156 Northwestern Province; Lukupa, Northern Province; Eastern Province; Province; Kapemba, Eastern Province; Solwezi, Luapula Province; Southern Northwestern Province; Kafue, Copperbelt Province; Northern Province; Province; Mutundu Copperbelt Province; Muchinga Province; Lusaka Lufupa (downstream), Northwestern Province; Province and Northwestern Lufupa (upstream), Northwestern Province; Province Kafubu, Copperbelt; Lunsemfwa, Central Province; Kopyonga, Central Province; Muchito, Lusaka Province; Kanakantapa, Lusaka Province; Chongwe, Lusaka Province; Mwapula, Lusaka Province; Lundazi, Eastern Province; Lukusashi, Central Province; Lutembwe, Eastern Province; Luongo, Luapula Province; Lwombe, Northern Province; and Kalomo, Southern Province Proposed Name of Region Proposed Cost Place Activities (in Million USD) Zambia Water Investment Programme • 31 SADC region Border areas with neighbouring Cross-border water, sanitation and 185 countries: Angola, Botswana, hygiene projects Democratic Republic of Congo, Malawi, Mozambique, Namibia, Tanzania and Zimbabwe North Western Water Supply & Sanitation Central Province; Copperbelt Urban Water Supply and Sanitation 2,111 This Company; Eastern Water and Sanitation Province; Eastern Province; Programme programme Company; Nkana Water Supply and Sanitation Luapula Province; Southern will deal Company; Luapula Water Supply and Sanitation Province; Northern Province; with water Company; Southern Water and Sanitation Muchinga Province; Western supply and Company; Western Water Supply and Sanitation Province; Lusaka Province and sanitation Company; Lusaka Water Supply and Sanitation Northwestern Province in both Company; Mulonga Water Supply and rural and Sanitation Company; Kafubu Water Supply and urban areas Sanitation Company; Chambeshi Water Supply through the and Sanitation Company; Lukanga Water water utility Supply and Sanitation Company companies Total Cost: USD 5,750 Million 32 • Zambia Water Investment Programme

Annex 2: AIP-PIDA Water Investment Scorecard Indicators Framework IMPACT Sustainable and inclusive water investment spurring economic growth through job creation, poverty reduction, improved health, and gender equality and social inclusion in Africa OUTCOME Sustainable, efficient and inclusive investments increased across water sectors (increased access to water, sanitation and hygiene [WASH] services, increase in irrigated area per country vs irrigation potential, increase in proportion of potential hydropower capacity developed, increased investments in ecosystem services, improved water system efficiency, adoption of industry and nature-based solutions) OUTPUTS Water governance and management improved Public, private and donor investments into Efficiency and sustainability the water sector increased of water investments increased 3. Investment performance INPUTS 1. Enabling environment for water investments 2. Water investments and financing and sustainability 1.1 Water 1.2 Investment climate 1.3 Social and 2.1 2.2 Official 2.3 Private- 3.1 3.2 investment environmental Government development sector Investment Investment governance and inclusion expenditure assistance investments performance/ sustainability planning Market risks Regulatory efficiency Risks 1.1.1 Water 1.2.1 Ease 1.2.2 1.3.1 Gender- 2.1.1 Public 2.2.1 Official 2.3.1 Domestic 3.1.1 Water 3.2.1 Climate- governance and of access to Government transformative budget development private sector and sanitation resilient water institutional finance payment risk water allocation on assistance investment pricing investments coordination investments water (WASH, allocation for (WASH, efficiency agriculture, water (WASH, agriculture, 1.2.1.2 Interest 1.2.2.2 energy, nature agriculture, energy, nature 3.2.2 disaster 1.1.2 Integrated rate spread Corruption 1.3.2 Social and biodiversity energy, nature and biodiversity 3.1.2 management climate-resilient Perceptions inclusion protection) per and biodiversity protection) Operation and planning, national water Index (youth, gender, capita protection) per maintenance early-warning investment plan 1.2.1.3 vulnerable and capita capacity forecasting and and financing Currency risk marginalised 2.3.2 Foreign response strategy (rural and 1.2.2.3 Legal populations) 2.1.2 Public direct urban) rights index budget 2.2.2 Official investments on 3.1.3 Cost 1.2.1.4 execution development water (WASH, recovery 3.2.3 Water Sovereign risk 1.3.3 rate (WASH, assistance agriculture, accounts allocation 1.1.3 Pipeline of 1.2.2.4 Political Environmental agriculture, disbursement energy, nature efficiency bankable projects instability impact 1.2.1.5 Risk energy, nature for water and biodiversity and demand estimate assessment and biodiversity (WASH, protection) management 1.1.4 Water reporting 1.2.2.5 protection) per agriculture, resources Enforcement capita energy, nature information and of contractual and biodiversity 2.3.2 PPPs on data availability judgment protection) per water (WASH, 2.1.3 Public capita agriculture, budget energy, nature 1.1.5 Water-related 1.2.2.6 allocation to and biodiversity international Accountability transboundary protection) treaties, and monitoring water transboundary mechanism cooperation 2.3.3 Blended agreements and financing water diplomacy 1.2.2.7 Public investments health-related in water, 1.1.6 Integration of risks (including sanitation and water in national COVID-19, environment climate change hygiene and and development sanitation) 2.3.4 plans (NDCs, NAPs) Philanthropic finance to water 1.1.7 Integration sanitation and of transboundary environment water investments in NDPs 1.1.8 Capacity of institutions and human resources Zambia Water Investment Programme • 33 References 1 World Bank. 2021. Zambia Overview. https://www.worldbank.org/en/country/zambia 2 https://www.transparency.org/en/cpi/2021/index/zmb 3,4 ibid 5 Zambia Vision 2030 6 Definition: Basic drinking water service: drinking water from an improved source, provided collection time is not more than 30 minutes for a round trip, including queuing (WHO/UNICEF, Progress on household drinking water, sanitation and hygiene, 2000-2020) 7 Definition: Safely managed drinking water service: drinking water from an improved source that is accessible on premises, available when needed and free from faecal and priority chemical contamination (WHO/UNICEF, Progress on household drinking water, sanitation and hygiene, 2000-2020) 8 Definition: Basic sanitation service: use of improved sanitation facilities that are not shared with other households (WHO/ UNICEF, Progress on household drinking water, sanitation and hygiene, 2000-2020) 9 Definition: Safely managed sanitation service: use of improved sanitation facilities that are not shared with other households and where excreta are safely disposed of in situ or removed and treated off-site (WHO/UNICEF, Progress on household drinking water, sanitation and hygiene, 2000-2020) 10 http://extwprlegs1.fao.org/docs/pdf/zam117433.pdf 11 https://www.weforum.org/agenda/2022/06/g7-pledges-invest-600-billion-infrastructure-developing-countries 12 https://www.bloomberg.com/news/articles/2022-02-18/europe-commits-170-billion-to-africa-continent-wants-more 13 https://aipwater.org/ 14 Using exchange rate of USD 1 to 16 ZMW as of 6 July 2022. 34 • Zambia Water Investment Programme Zambia Water Investment Programme • 35 REPUBLIC OF ZAMBIA