Press Release

New MCC Compact with Zambia Expected to Benefit More than One Million People

For Immediate Release

May 10, 2012

Washington – The Millennium Challenge Corporation (MCC) signed a five-year, $354.8 million compact with the Republic of Zambia today to reduce poverty through sustainable economic growth in the country.

The compact seeks to address one of Zambia’s most binding constraints to economic growth by investing in the water, sanitation and drainage sector in the rapidly urbanizing capital city of Lusaka. Hundreds of thousands of Lusaka’s residents lack access to clean water and sanitation, and many suffer from endemic flooding. MCC’s investments are designed to promote economic growth by decreasing the prevalence of water-related disease, the cost of water, the number of work days lost due to disease and water collection, and residential and business flood losses.

While attending the compact signing ceremony in Lusaka, MCC CEO Daniel Yohannes stated, “This is a landmark day for the people of Zambia. This $354.8 million compact will help transform water, sanitation and drainage in Lusaka, and improve the health and economic productivity of more than 1.2 million of the city’s residents.”

The compact consists of two major activities–infrastructure investments and institutional strengthening activities. The infrastructure activity is focused on expanding Lusaka’s water supply network; rehabilitating and enlarging sewer networks and improving the city’s drainage.

The institutional strengthening activity builds on more than 15 years of reform in the water and sanitation sector during which Zambia developed a viable utility, an independent regulator and a sound legal and regulatory structure. The compact will provide technical assistance to continue these reform efforts, improve sector management, enhance sustainability, and ensure that women and vulnerable populations benefit from MCC’s investments. This activity also aims to increase innovation in pro-poor service delivery through grants to community-based organizations, civil society and the private sector.

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Related Country Programs

Zambia Compact

The Zambia compact invests in water supply, sanitation and drainage infrastructure with the goal of decreasing the incidence and prevalence of water-related disease, cost of water and new sanitation, and business and residential flood losses.