URBAN RESTRCT &WATER

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The objectives of the Urban Restructuring and Water Supply Project are: 1) provide immediate solutions to the most severe water and sewerage infrastructure deficiencies in nine key urban areas; 2) test out community-generated and managed water and sanitation demonstration projects which meet articulated needs at an affordable price while strengthening local councils capacities to support community based initiatives in Lusaka and the participating Copperbelt councils; and 3) initiate broader institutional and financial reforms required for providing organizational incentives for investing in, operating and maintaining infrastructure based on residents' perceived needs and willingness to pay. Based on priority attached to the water sector expressed in various fora by central and local government and by residents themselves, the project proposes to use water supply as an entry point for developing furture investment programs, initially concentrating on rehabilitation, in formal settlement areas and testing institutional options in peri-urban, unserviced areas. Both activities focus on a participatory demand-based approach, and as such, seek to break the persistent cycle of non-payment and inadequate service provision. Second, technical assistance and studies will be provided to support immediate improvements in participating council's management capacity and propose alternative methods of organizing services and evaluating trade-offs. Third, capacity building assistance will look to the medium term and outline how future urban policy can avoid mistakes of past policies. Project components comprise the following: 1) water supply and sanitation system rehabilitation; 2) community-based water and sanitation demonstration projects; and 3) sectoral and local government reform and capacity building.