Strengthening Local Governance in Zambia – Capital Grant Scheme Phase I

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Through this KfW-funded project, PC&A supports the development of a financing mechanism to transfer resources from the Central Government to the councils in the Southern province of Zambia in order to enable them to develop and maintain infrastructure at the local level by building a grant scheme for local infrastructure investments. In particular, this includes building capacities for the planning, financing, coordination and management of the delivery of services at the local level, including planning, construction, operation and maintenance of public infrastructure; strengthening the principle of formula-based capital grants for local authorities and eventually upscaling the scheme to the national level in the subsequent programme phases while integrating the lessons learnt from the first programme phase.



This Phase I of the Capital Grant Scheme, implemented by the Capital Grant Scheme Task Force (CGS-TF) composed of a team of national and international experts and staff of the Department of Housing and Infrastructure Development, focuses on setting up process and mechanisms for operational planning, budgeting and financing, implementation, coordination and management of infrastructure investments.


The specific objective of this project is to implement each step of the grant scheme cycle, from the allocation of a specific amount to the targeted local councils, the support of priority infrastructure projects to be funded, to their implementation and final reception.


Once established and tested in Southern Provinces, the aim is to develop a fully-fledged national capital grant scheme in subsequent phases.

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