The Danish government has granted Zambia 20 billion kwacha (about 58.8 million US dollars) for the improvement of the latter's rural and peri-urban water supply and sanitation, Times of Zambia reported Saturday.

Zambian Finance and National Planning Minister Ng'andu Magande signed the grant agreement with Danish Ambassador to Zambia Orla Bakdal here on Friday.

The agreement is for execution of a five-year water sector support program scheduled to commence immediately up to 2010.

The program will initially be implemented in 12 districts in Western, Lusaka and Southern provinces.

After signing the accord, Magande said the program would facilitate assurance that his country's water resources are effectively developed and efficiently managed to contribute to poverty reduction.

"As this money is for ensuring that the grassroots benefit, if any misuse is discovered, the government will take action against suspects including their immediate interdiction, and dismissal for law to take its course," the minister warned.

On the occasion, the Danish envoy emphasized that a very important component of the agreement was the support to decentralized implementation and considerable capacity building at the district level.

Meanwhile, The Danish government has also given the southern African country another 3.1 million dollars for its anti- corruption activities for 2005-2007.

The Zambian minister said that as a result of the mutual understanding of the two governments to fight corruption, the Danish government provided the grant for fight against graft.

Source: Xinhua