Announcement of Sixty-Two Million US Dollars for Squatter Upgrading and a Site and Services Project, and a Power Project in Zambia on July 9, 1974

• 1818 H STREET, N.W., WASHINGTON D. C. 2C433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release No. 74/68 Subject: $62 million for squatter upgrading July 9, 1974 and a site and services project, and a power project in Zambia The World Bank has approved two loans to Zambia totalling $62.1 million. A loan of $20 million will help finance a site and services project designed to up- grade the squatter areas in Lusaka. The other loan of $42.1 million represents supplemental financing for the Kariba North Project, for which the Bank made a loan for $40. 0 million in July 1970. $20 million loan for squatter upgrading and site and services project Zambia's Second National Development Plan (1972-76) established site and services development and squatter upgrading as primary vehicles for public housing investment. The rapid development of Lusaka; the capital and Zambia~ s fastest ~rowing city, has led to the most pressing squatter problem in the country. During t~e past decade, the Lusaka City Council (LCC) has developed about 1,000 site and services plots per year . • The present project will help to provide an early improvement in the social environment and public health conditions of the low-income squatter population. It comprises: servicing for 17,000 dwellings in four major squatter settlements and preparation and servicing for 7,600 residential plots in three "overspill" areas; preparation and servicing of 1,200 "basic" and 3,200 "normal" plots in six sites; building materials loans; primary infrastructure including extension of water, sewerage, road and garbage removal systems to serve project areas and adjacent sites; conrrnunity facilities including construction and equipping of primary schools providing 9,600 student places, connnunity centers, health clinics and markets; consultants' services and land acquisition. The total cost of the project is estimated at $41. 2 million. The loan is being made to the Republic of Zambia with LCC as the beneficiary. It is for 25 years in- cluding 4-1/2 years of grace, with interest at the rate of 7-1/4% per annum. $42.1 million loan for eleetrk puwf:r The supplemental loan of $42 .1 million to the Kariba North Bank Company Limited (KNBC) will help to finance the completion of the Kariba North Project. The original loan of $40 million was made in July 1970. The project forms part of a larger scheme, for which the Bank made two earlier loans, to utilize the hydroelectric power potential available at Kariba. This scheme, part of Central African Power Corporation's inter- connected system, began in 1956 with the construction of a dam on the Zambesi River, a power station (600 MW) on the South Bank, and a transmission line grid, which has • subsequently been extended . - 0 - Note: Money figures are expressed in U.S. dollar equivalents.  TECHNICAL DATA July 9, 1974 • PROJECT: Lusaka squatter upgrading and site and services COUNTRY: Republic of Zambia TOTAL COST: $41..2 million BANK FINANCING: $20. 0 million, for 25 years including 4-1/2 years of grace, interest at 7-1/4% per annum OTHER FINANCING: Government: $2L2 (including small contributions from UNICEF and the American Friends Service Committee (AFSC) IMPLEMENTING ORGANIZATION: Lusaka City Council (LCC), P.O. Box 77, Lusaka, Republic of Zambia PROJECT DESCRIPTION: The project comprises: servicing for 17,000 dwellings in 4 major squatter settlements and preparation and servicing for 7,600 residential plots in 3. "overspill" areas. Preparation and servicing of 1,200 "basic" and 3,200 "normal" plots in 6 sites; building materials loans; • primary infrastructure including extension of water, sewerage, road, and garbage removal systems to serve project areas and adjacent sites; com- munity facilities including construction and equ:1.-,ping of primary schools providing 9,600 student places, community centers, health clinics and markets; consultants' services and acquisition of land. PROCUREMENT: Civil works estimated at $7.6 million, materials and equipment estimated at $6.8 million,will be procured on tha basis of international competitive bidding in accordance with Bank &uidelines. CONSULTANTS: Consultants will be appointed for detailed engi- neering of primary infrastructure and community facilities, construction supervision, and for an organization and management study of Lusaka City CmmciL Basic and in-service training of community development workers would be assisted by UNICEF and AFSC. ESTIHt\.TED COMPLETION DA.TE; December 1978. •