The Zambia government has signed a financing agreement worth over Euro16 Million with the Germany bank called KFW Development Bank to finance a rural transport programme for poverty reduction in Southern Province.
KFW Development Bank Senior Programme Manager Stefanie Peter disclosed the development during the signing ceremony held at the Road Development Agency (RDA) in Lusaka yesterday.
She stated that that the loan agreement would not only be used to improve the road sector in the southern province but also used to alleviate poverty in the entire country.
Ms Stafanie said part of the money would be used to improve the health facilities in all districts of Southern province adding that the programme is scheduled to commence by 1st March, 2011.
She said the aim of the programme is to rehabilitate pro-poor growth relevant rural roads in Southern province as well as giving support to RDA in the province through capacity building and carrying out training for local authorities and emerging contractors on the area.
She stated that some of the funds would be used to contribute to the sector programme ROADSIP 11 in order to support Zambia's national poverty reduction and development strategy.
Ms Stafanie said the programme would be confined to cover 10 rural districts in Southern province namely ; Mazabuka, Choma, Monze, Kalomo, Siavonga and Gwembe.
She said others includes Sinazongwe,Kazungula, Ithezhi-Tezhi and Namwala adding that the works has been packaged into three implementation programmes.
The implementation programme No 1 signed yesterday will comprise of the rehabilitation of 217 km of rural feeder roads in Mazabuka, Monze, Choma and kalomo districts.
The rest of the districts will be covered under implementation programme No. 11 and 11 respectively adding the total value of the contracts is worth over 20 billion Kwacha.
Ms Stafaine added that three contracts in Monze District were sub-packed into small lots with the maximum length of 17.8 km and the works would be undertaken through labour based methods while the remaining contracts will be undertaken through machine based method.