Irrigation PPPs in Zambia

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Client World Bank and the Zambian Ministry of Agriculture and Livestock (MAL)
Dates 2015
Sector(s)Agriculture, International Infrastructure
Service(s)Policy & Economics, Strategy & Finance, Transaction Advisory

CEPA continues to advise and support the World Bank and Zambia’s MAL on the PPP arrangements for three irrigation infrastructure projects in Zambia. The three projects are part of the Zambian government’s aim to attract private resources and expertise into irrigation development and management for the benefit of smallholder farmers. They include: the Lusitu Irrigation Project, Siavonga District, Southern Province; the Mwomboshi Dam Project, Chisamba, Central; Province; and the Musakashi SADA Project, Mufulira, Copperbelt Province.

In the first phase of the project, in 2010, our team advised the World Bank and Zambia’s MAL on PPP structuring options. The specific tasks included: (i) assessing the commercial and financial issues with the three irrigation sites, (ii) structuring PPP options, (iii) risk assessment and allocation (political, financial, commercial, regulatory, technical and foreign exchange), (iv) determining the functions and roles of the public sector, smallholders and third parties, and (v) undertaking stakeholder consultation and assessments.

Our ongoing support to MAL concerns the financial, legal, organizational aspects of a proposed publicly-owned ‘UtilityCo’ alongside a private concessionaire/ farming company, as well as advice on the proposed PPP arrangements for all stakeholders at the three sites. Our transaction advisory services are intended to achieve stakeholder buy-in, a fair and equitable outcome, and, ultimately, financial close.