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The Ministry of Local Government and Rural Development (MLGRD) has disbursed K256 million in capital grants to 95 local authorities under the Zambia Devolution Support Programme (ZDSP), aimed at enhancing rural development.
Speaking during a media briefing on Friday at his office, Permanent Secretary for Administration, Maambo Hamaundu, stated that each benefiting local authority would receive K2,694,736.84.
He explained that the disbursed funds are part of the World Bank-supported US$210 million ZDSP, designed to improve financing, institutional performance, and accountability in Zambia’s rural local authorities.
“The grants will finance capital investment projects, local infrastructure development, and the procurement of equipment necessary for service delivery,” Hamaundu said.
The Permanent Secretary stated the importance of prudent resource utilization, urging local authorities to ensure the funds benefit communities through local employment opportunities provided by contractors.
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He also stressed the need for adherence to grant utilization conditions, including environmental and social guidelines, to avoid repercussions linked to non-compliance.
“The ZDSP is being implemented through a combination of Programme for Results (PforR) funding of US$200 million and Investment Project Financing (IPF) of US$10 million,” Hamaundu explained.
While 96 of the 116 local authorities initially qualified for the programme, the Permanent Secretary highlighted its four key result areas: capital grants for local authorities, improved public financial management, a strengthened fiscal framework for devolution, and capacity building for local authorities.
“With this financial support, we anticipate significant improvements in rural infrastructure and service delivery, meeting the expectations of community members and the general public,” Hamaundu added.
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