MoU

Introduction

Norway and Zambia have had a long-standing development cooperation.

With a view to further strengthening and developing the relations between the two countries, representatives of the Governments of the Kingdom of Norway and the Republic of Zambia conducted consultations in Lusaka on the 5 September 2000 to arrive at this Memorandum of Understanding on the overall priorities and framework for the future cooperation between the two countries. The Norwegian delegation was headed by Deputy Minister of Development Cooperation, Ms Sigrun Møgedal, and the Zambian delegation was headed by the then Honourable Minister of Finance and Economic Development, Mr. Katele Kalumba.

Development perspectives

Against a background of continued economic problems and increasing poverty, the Government of Zambia has set out an ambitious reform programme. The overall objective is to achieve poverty alleviation. This strategy is at present being revised in relation to the development of a national Poverty Reduction Strategy Paper.

The two Governments agree that further progress on the following is crucial for achieving Zambia's development objectives:

• political pluralism and participation, including in relation to the preparation and implementation of the general elections due to be held in 2001
• macroeconomic stability, structural reforms and public sector reforms
• debt relief on the terms of the HIPC initiative
• increased transparency and fight against corruption
• revitalisation of the private sector
• prioritisation of basic social services for the majority

Objectives and areas of cooperation

The overall goal of the cooperation programme is to support Zambia's efforts to reduce poverty. It is agreed that the programme in particular should contribute towards:

1. reinforcing human rights and democratisation (Good governance)
2. improving basic education
3. strengthening the roads sector
4. enhancing environmental management, with the main focus on wildlife management

The four programme objectives define the main areas of cooperation.

Special attention will be given to AIDS and HIV control within all parts of the cooperation. Other overriding concerns within all areas of cooperation are gender equity, sustainable management of natural resources and the environment, private sector development and institutional capacity building.

Roles and responsibilities

In facilitating the implementation of the overall national development policies of the Government of Zambia, and in making the principle of recipient responsibility operational, the two Governments undertake to build the framework on a set of basic principles defined as follows:

• all agreements within the government-to-government cooperation shall be based on Zambia's development plans.
• all activities and financial transfers defined in agreements between the two Governments shall be incorporated in the annual budgets.
• the Government of Zambia shall be responsible for planning, implementation, monitoring and control of all activities in the programme of cooperation.
• the cooperation shall be based on the established national administrative standards and procedures of Zambia, provided that they meet with internationally accepted requirements for accountable and transparent financial management.
• agreements shall serve as instruments for dialogue on management and implementation, an specify the purpose and outputs, the obligations of the parties, the format and content of reporting, and the procedures of the cooperation.
• the Government of Norway will actively support and facilitate the efforts of Zambia towards the coordination of donor inputs and when appropriate move from project support to sector wide approach.
• as to direct financial transfers and support to non-governmental organisations, private enterprises or institutions, the Norwegian Government will provide information on the volume and recipients of assistance on an annual basis.

The volume of assistance

Both governments undertake to make all relevant efforts to enable the development cooperation to be sustained at an appropriate level.

The finance level will be subject to the progress of political and economic reforms of importance for the development in Zambia, requests for funding, the progress in the implementation of the different components of the program and annual allocations made by the Norwegian Parliament.

Other issues

Obligations under existing agreements will be honoured.

The time and place for future consultations on the development cooperation will be agreed upon through diplomatic channels.

Based on this Memorandum, the Government of Norway will publish official guidelines for its development cooperation with Zambia and forward these to the Government of Zambia.

Validity

This Memorandum shall be valid from the date of its signing until further notice. It may be revised when deemed necessary by any of the parties, for which mechanisms will be agreed upon by the parties. It may be terminated by either party within a six months' notice.