Lusaka, Zambia
Updated - Monday 05 January 2004
Chipata is a high density, low-income peri-urban area of Lusaka, the capital city of Zambia. Supply of water comes from groundwater. To address cost recovery, the area has developed a system of monthly prepayment for water supplies. This system was decided upon by the residents of Chipata, and was provided with seed financing from CARE.
Under this system, consumers go to the local committee office and pay a cashier 2,500 kwacha for a pre-paid monthly use card, which allows seven 20-litre buckets/ day per family. Consumers receive their water from communal taps, which are only accessible when attended by employees, who work fixed hours and stamp the card to keep track of use. The limit for consumption was made factoring demand and public health considerations, but also the capacity of the borehole where the taps are installed. Membership and user fees totalling 9,000 kwacha (US$6.37 as of 1st January 1998) per year are associated with using the service, and can be paid in a lump sum or over time (with no interest). Those who cannot afford the membership fees are excluded from the service, and even members who are unable to pay for a month receive no water. These people are relegated to using alternative, often unsafe sources.
Institutionally, the system is divided into different levels of committees. There are 39 Zone Development Committees (ZDC) that represent the community at its most grassroots level, and have the greatest level of interaction with individual households. The ZDCs are charged with supervising each tap's operation and tap attendants, and reporting problems to the Residents' Development Committee (RDC). The ZDCs elect the RDC, which coordinates compound-wide projects, works with the ZDCs, reports to the Forum of Zone Representatives (FZR), and represents Chipata's system to other government agencies and groups. The majority of these representative positions are volunteers, indicating the community's resolve in maintaining the system. The FZR sets tariffs based on community input, and the RDC has independent signatory to its account from the Lusaka City Council.
To keep track of finances, the system in Chipata has two bank accounts: one for capital replacement costs; the other for operating expenses. Revenues are used to pay for electricity (for pumping), water quality chemicals, staff salaries, capital expenses, and administration. Monthly financial reporting is disseminated to the public as part of an effort to increase transparency and improve community relations. As a rule, 55% of revenue is used to meet capital expenses, while 40% is used for operating expenses, and 5% is reserved for future development costs.
On the whole, the system of pre-paid cards has been successful in Chipata. Household membership in the system increased from 1,041 member-households in July 1997 to 3,182 in March 1998, and the system is financially solvent. The major concerns for this system are possible expansion plans of the Lusaka municipality, which would either take over or dissolve this community-driven system, and the possibility that central government will mandate a free water policy, similar to South Africa's. Given the level of daily use under this system is very basic, and is capped at 20 litres, a free water policy could dismantle the positive benefits the system has created in the area. While other similar systems in peri-urban areas have been impacted by political influence, the Chipata system has thus far remained fairly democratic.
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