US gives Zambia $355 mln for water projects

Zambians queue up to cast their vote in 2001. By Yoav Lemmer (AFP/File)

LUSAKA (AFP) - Zambia signed a deal Thursday with the United States for a grant worth over almost $355 million to improve water and sanitation in the cholera-plagued capital city, Lusaka.

"This compact we have signed today for the water supply, sanitation and drainage project valued at $354.8 million (about 274 million euros) will assist increasing access to and improving the reliability of water supply and drainage services," Finance Minister Alexander Chikwanda said at the signing.

"It will also decrease the incidences of waterborne and water-related diseases and at the same time save time for households and businesses."

The United States will fund the project over five years through its Millennium Challenge Corporation, which invests in major projects in countries with a record of good governance.

Cholera and other waterborne diseases are rife in Zambia because of poor water supply and dilapidated drainage systems.

Lusaka's two-million-strong population frequently experience water shortages slums and water-rationing in plush residential areas.