In May 2012, the Government of the United States of America, acting through the Millennium Challenge Corporation (MCC) and the Government of the Republic of Zambia (Government) signed the Millennium Challenge Compact (“Compact I), for a grant of US $355 million for the implementation of the Lusaka Water Supply, Sanitation and Drainage Project (“LWSSDP” or “the Project”). GRZ designated the Millennium Challenge Account-Zambia (MCA-Zambia) as the Accountable Entity to perform GRZ obligations under the Compact.
The Government and MCC also signed the Program Implementation Agreement (the PIA), which provided further details on the implementation arrangements, fiscal accountability and disbursement and use of MCC funding , among other matters. The Program was to be implemented in accordance with the Compact, the PIA, any Implementation Letter signed between the Parties. The Compact and PIA, both international agreements, were domesticated into Zambian Law through the enactment of the Millennium Challenge Compact Act No. 6 of 2013. The MCC funded component of the Program ended on 15th November 2018 (the Compact End Date or CED). . By CED, MCC had disbursed 93.6 percent of the US $355 million funding.
was created by Government as a company Limited by Guarantee on 2nd November 2018 and designated it as an additional Accountable Entity pursuant to the Compact, with a specific mandate to perform the Government’s right and obligation to oversee, manage and implement the Program.
Its mandate includes without limitation, the completion of any infrastructure projects, management of defects notification periods of the infrastructure works contracts, completion of resettlement and livelihood restoration for project affected persons, establishment of the Solid Waste Management Utility, implementation of the Sanitation Connection Action Plan (SCAP) for household connections in Mtendere and coordination of post-compact monitoring and evaluation requirements.
Seven (7) sub projects out of the original nine (9) were fully completed prior to and immediately post Compact End Date (CED) and the completed infrastructure was handed over to the Lusaka Water Supply and Sanitation Company (LWSC) and the Lusaka City Council (LCC) for operation and maintenance. Two (2) sub-projects are still under implementation namely Non-Revenue Water Reduction on existing LWSC network in specific District Metering Areas and the Water and Sewer Reticulation in Mtendere and Kamanga including the SCAP interventions in Mtendere using funding from Government in line with its post Compact obligations. The Government is also responsible for ensuring the sustainability of Compact investments.
In December 2021, MCC selected Zambia as eligible to develop a second Compact (“Compact II”) and as part of the development process, the Government designated MPCA-Zambia as the entity to spearhead the development of Compact II and related activities. In early 2022, the Government, through MPCA-Zambia, and MCC commenced work towards the development of the second Compact. The development of a Compact follows a rigorous process and the aspirations of both Government and MCC is for completion of development activities by end of 2024.