1.0 INTRODUCTION
In order to open up new areas for development, a Land Development Fund (LDF) was established by the 1995 Lands Act under section 16(1). The LDF which operates as a revolving Fund, is aimed at assisting City, Municipal and District Councils open up new areas for development The projects to be funded under this LDF are:-
· Preparation of Layout Plans for areas earmarked for development.
· Demarcating and Surveying of new areas earmarked for development.
· Opening up road network in areas earmarked for development ( gravel roads and tarmac).
· Lighting up of the earmarked for development (street lights)
· Provision of water and sanitation.
2.0 SOURCES OF THE FUND
Sources of the Land Development Fund shall be:-
· Money appropriated and approved by parliament for the Fund;
· 75% of the consideration fees paid under section (4) of the Lands Act; and
· 50% of money collected by the Ministry of Lands for ground rent.
3.0 VESTMENT OF THE FUND
The Land Development Fund is vested in the Minister responsible for Finance and National Planning managed and administered by the Minister responsible for Lands through the Permanent Secretary of Lands.
The two Ministers shall cause an annual statement of the income and expenditure to be prepared and laid before the National Assembly.
The Land Development Committee (LDFC) established under Statutory Instrument No. 88 of 1996, shall scrutinize the applications, reject a proposed development project or recommend it the Minister of Lands for his/her final decision. If the Committee's recommendation is ratified by the Minister of Lands he/she may request the Ministry of Finance of National Planning to release the money to the Land Development Fund Account at the Ministry of Lands. A council that has got an approved project shall open a Land Development Fund Account into which the project money shall be paid.
4.0 THE LAND DEVELOPMENT FUND COMMITTEE
The Land Development Fund Committee (LDFC) appointed by the Minister of Lands shall consist of the following officers:-
· Permanent Secretary, Ministry of Lands - Chairperson;
· Commissioner of Lands - Vice Chairperson;
· Director-Human Resources & Administration, Ministry of Lands;
· Director of Physical Planning from Ministry of Local Government and Housing;
· One Director from the Ministry of Agriculture;
· One Director from the Ministry of Tourism Environment & Natural Resources;
· One Accountant from the Ministry of Finance and National Planning;
· One senior official from the Local Government Association of Zambia;
· One senior official from Environmental Council of Zambia;
· Principal Accountant from the Ministry of Lands;
· Up to two offices co-opted ; and
· A Secretary .
5.0 FUNCTIONS OF THE COMMITTEE
The functions of the Land Development Fund Committee shall be:
· Scrutinize and approve proposals on development projects and disburse the funds to the eligible Councils.
· Prepare an information report for the Minister on all the approved and rejected applications. The Committee shall also prepare a report on project implementation annually.
· Request the Minister of Finance and National Planning to release money to the Land Development Fund Account with the Ministry of Lands.
· Ensure that the eligible Council that open a Land Development Fund Account into which the project money will be paid.
· Monitoring the implementation of the approved projects in order to ensure that the progrmmes are implemented in line with the approved workplan.
· To promote awareness on the availability and utilization of the Land Development Fund.
6.0 USES OF THE FUND
The Fund shall be utilized by Councils to open up new areas for development. Information shall be availed to all the councils on the available funds at the beginning of each year. To this effect ceilings shall be set by the Ministry of Lands as to how much can be accessed by each council.
The projects to be funded under this LDF are:-
· Preparation of Lay out Plans for areas earmarked for development.
· Demarcating and Surveying of new areas earmarked for development.
· Opening up road network in areas earmarked for development ( gravel roads and tarmac).
· Lighting up of the earmarked for development (street lights)
· Provision of water and sanitation.
5% of the Fund shall be used in meeting administrative/operational costs relating to the Land Development Fund Project under the council as well as the land Development Fund Committee.
The Fund should not be used for:-
· procurement of moveable assets; and
· payments of outstanding debts that are not as a result of the development project.
The financial year of the Land development Fund shall be in line with the normal calendar year.
7.0 APPLICATION FOR THE FUNDING
A Council wishing to apply for funds from the LDF shall apply to the Permanent Secretary, Ministry of Lands, by submitting a development proposal in writing. The proposal shall give the following details:-
· the nature of the development sought in detail.
· the name of the province, district and town/area for which the development is recommended..
· the estimated cost of the development that the Council/organization wishes to undertake.
· a diagram/sketch plan showing the location and hectarage of the parcel of land that is the subject of the proposal.
· plan of implementation of the development proposal.
· the plan of the future operation and maintenance of the project and how the same will be carried out and financed.
· the loan repayment plan which should take into account 10% interest repayment rate.
Once the Secretary of the LDFC has received the application, he/she will process it for the LDFC's consideration.
8.0 IMPLEMENTATION
Councils are encouraged to implement projects where they have the capacity or they may have to outsource or contract the projects where it is deemed necessary.
9.0 SUBMISSION OF REPORTS BY COUNCILS
The beneficiary Council shall submit an inception report once a project has commenced. An implementation progress report will be submitted every three months. At the end of the project, a report to the LDFC shall be caused which report shall include physical achievements and a detailed explanation of disbursements.
The report will include:-
· A statement showing income and expenditure on a monthly basis.
· If further funding is required, a forecast of future requirements needed.
The LDFC shall not recommend for further funds to be disbursed where such report has not been submitted.
The Fund shall be audited every year. And a report sent to the Minister of Lands and copied to the Ministers of Local Government and housing and Finance and National Planning.
10. GENERAL
The Land Development Fund Committee is responsible for monitoring and evaluating the use of the Funds. 5% of the fund shall be used to meet administrative costs of monitoring project implementation by the LDFC.
Where there is evidence of misuse or misappropriation of funds, the Committee may recommend to the Minister that:-
· the Council's bank account be frozen according to banking procedures and regulations pending investigations
· The Ministry discontinues releasing further funds to the Council until a report is provided.
Criminal proceedings by the State against an individual identified as being responsible for misappropriation and shall be liable upon conviction to a fine.
The financial year of the Land Development Fund is from 1st January to 31st December of each year.
These guidelines may be reviewed from time to time.