World Bank provided a loan of 120 billion kwacha (about 36 million U.S. dollars) for Zambia's public service management program support project (PSMP-SP) under an agreement signed on Friday.

The fund will be used for improving efficiency and effectiveness of the public service delivery institutions through enhanced accountability of public resources and delivery of public services for Zambians, according to Zambia Daily Mail.

At the signing ceremony, Zambian Finance Minister Ng'andu Magande said the credit is a highly concessional loan, attracting a service charge of 0.75 percent, maximum commitment charge of 0.5 percent, with a grace period of 10 years to be repaid in 40 years.

World Bank Country Manager Ohene Nyanin said the Zambian government has made significant progress in implementing public service reforms over the years, with the aim of improving service delivery to the public.

He, however, said that the government continues to face key challenges in ensuring a transparent and accountable public sector.

Source: Xinhua