Licensing

Business Activities

Off-grid electricity generation for selling to consumers

The regulatory framework for mini-grids in Zambia was approved by the Energy Regulation Board (ERB) in October 2018. The framework is being road-tested, and any adjustments may be incorporated before the regulations are gazetted.

The steps for obtaining a licence for Combined Generation, Distribution and Supply of electricity for solar/hydro off-grid systems with installed capacity above 100 kW and up to 1 MW, selling electricity to connected consumers, are covered here.

Required/Supporting Documentation:
Key facts
Prerequisites / Conditionalities:
Cost:
Duration:
Competent Authority:
Issuing Authority:

                
                                1

                        Business Registration
                    
Companies in Zambia are required to register with the Patents and Companies Registration Agency. This Agency administers relevant matters on the basis of the Companies Act, which provides for the incorporation, management, administration and winding up of companies, including registration of their names. The Act also provides for the registration of foreign companies conducting business in Zambia. 
There are no local ownership requirements for businesses registered in Zambia. However, as per section 208 of the Act, more than half of the directors of a company must be resident in the country. 

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                                2

                        Securing Land
                    
Securing land is an important step of the project
development process. There are two categories of land in Zambia: 
Customary land, comprising about 94% of land in Zambia, is held under customary tenure and falls
under the jurisdiction of Zambia’s traditional authorities, the Chiefs. 
Statutory (or state) land, which comprises around 6% of
land, is governed and administered by a number of statutory institutions,
including the Ministry of Lands, Natural Resources and Environmental Protection
(MLNREP), the Forestry Department, and local authorities. The land is zoned
into residential, commercial or industrial use by the District Councils,
according to their jurisdictions. It may be held under long-term, renewable
leases of up to 99 years.

        Key facts 
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  Competent Authority:Ministry of Lands, Natural Resources and Environmental Protection, District Councils or Customary Chiefs
  Issuing Authority:

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                                2.1

                        Acquisition of Customary Land
                    
In order to acquire land in a customary area, the following is required:
Written consent of the area Chief
Approval of the District Council in the area
Additional approval from the Director of National Parks and Wildlife, if the land is in a game management area 
These approvals should be submitted to the relevant District Council, which in turn will submit the documents to the Commissioner of Lands. The Commissioner will then make a formal offer to the applicant. The letter of offer will stipulate, among other conditions:
Consideration fee – This is not a fixed amount and is dependent on locality, services provided by the state or council, and other related factors.
Survey requirements – This can be carried out by a private or government surveyor. Submission of a diagram or plan attached to the lease agreement is a mandatory requirement prior to issuance of certificate of title.
Preparation fee – The Commissioner of Lands charges fees to prepare leases, which are fixed through statutory instruments but are subject to change.
Registration fee – The Lands and Deeds Registry charges this fee before a lease is registered and the certificate issued.
Property transfer – This charge is currently 10% of the value of land payable to the Zambia Revenue Authority by the vendor. No tax is payable where land is acquired from the state.

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                                2.2

                        Acquisition of State Land 
                    
Acquisitions of designated state land require consent of the relevant District Council. Applications for land which does not fall within the jurisdiction of any council can be made directly to the Commissioner of Lands. The Commissioner will make a formal offer to the applicant, which will contain conditions similar to offers for land situated in a customary area.
Privately-held land can be bought and sold, with title deed transfer issued by the Commissioner of Lands. In all instances the vendor must obtain state consent before the title deed can pass to the purchaser. If consent is not granted within 45 days of filing, the application is deemed to be granted. If consent is refused, the reasons for refusal must be furnished to the applicant within 30 days. Ten percent of the value of land is paid to the Zambia Revenue Authority by the vendor as property transfer tax. Such land is under leasehold tenure with a maximum lease of 99 years from the state.
A non-Zambian can acquire state land in the following cases:
They hold permanent residency in Zambia
If they are an investor within the meaning of the Zambia Development Agency Act or any other law pertaining to investment in Zambia
In exceptional cases, by Presidential consent in writing
Under a short term tenancy of not more than 5 years
If granted a concession or right under the National Parks and Wildlife Act
In the case of a registered company with no less than 75% Zambian shareholding, the title deed will be issued in the name of the registered company.
Before land can be bought or sold, state consent must be obtained from the Commissioner of Lands. If consent is not granted within 45 days of filing the application, the application is deemed to be granted. If consent is refused, the reasons for refusal must be furnished to the applicant within 30 days.
﻿

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                                3

                        Clearance from Department of National Parks & Wildlife
                    
If a proposed development site is located within a Game
Management Area (GMA) or a National Park, the developer must submit an
application to the Director of National Parks & Wildlife requesting
clearance.  

Prior to clearance, the Department of National Parks & Wildlife performs a
site inspection. The clearance may contain conditions for land use on the basis
of the general management plan applicable for the National Parks and GMAs. The
developer must comply with these conditions.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:None
  Duration:Approximately 2 weeks
  Competent Authority:Department of National Parks & Wildlife
  Issuing Authority:

              Required/Supporting Documentation:
        
                Letter of consent from the local Chief if the project site is
within a GMA (customary land), but not required if within a National Park
(state land)

                                4

                        Concession from National Heritage Conservation Commission 
                    
If the project site is within a protected cultural heritage area, the developer must apply for a concession from the National Heritage Conservation Commission. All waterfalls in Zambia are designated as heritage areas.

The conditions of the concession are negotiable between the National Heritage Conservation Commission and the developer.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:Annual fee calculated at ZMW 0.25 per square meter of the concession area (or as negotiated with the Commission)
  Duration:
  Competent Authority:National Heritage Conservation Commission
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5

                        Environmental Permitting
                    
A developer (i.e., the entity that is proposing and will be developing the project)  cannot implement a project until the Zambia Environmental Management Agency (ZEMA) has granted a no objection letter with conditions for the project. ZEMA may also request a more streamlined Environmental Project Brief (EPB) or a more thorough an Environmental Impact Statement (EIS). In such cases, the developer is informed through a response letter. ﻿

This process is outlined below:

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                                5.1

                        Environmental Screening of a Project
                    
The developer must submit the following information on the proposed project to ZEMA for environmental screening:
Type of technology to be used
Planned generation capacity
Plant location
ZEMA will review the submitted information and will inspect the designated project area, if considered necessary. On the basis of the findings from the above, ZEMA:
Issues a no objection letter including the conditions with which the developer should comply.
Issues a response letter to the developer stating that further environmental assessment is needed, through an EPB or an EIS.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:None (except costs for the on-site inspection, if such inspection is performed, and which are borne by ZEMA through statutory fees that the developer pays)
  Duration:Approximately five (5) working days (longer if on-site inspection is required)
  Competent Authority:ZEMA
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.2

                        Environmental Project Brief
                    
If ZEMA's decision requires environmental
assessment through an EPB, the process is as
follows:

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:12,999.90 ZMW
  Duration:40 days from submission of final report
  Competent Authority:ZEMA
  Issuing Authority:

              Required/Supporting Documentation:
        
EPB Template: http://www.zema.org.zm/index.php/services/procedures/environmental-assessment-formats/#                
                
                                5.2.1

                        Submission of Draft EPB
                    
The developer must submit a draft an EPB in accordance with the respective template.

        Key facts 
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              Required/Supporting Documentation:
        
EPB Template: http://www.zema.org.zm/index.php/services/procedures/environmental-assessment-formats/#                
                
                                5.2.2

                        Review and Revision of Draft EPB
                    
ZEMA reviews the brief and responds to the developer within 14 days. In case of comments, the developer must submit a revised EPB to ZEMA addressing the comments.

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                                5.2.3

                        Submission of Final EPB
                    
The developer must submit six (6) hard copies and one (1) soft copy of the final EPB to ZEMA, who forwards the EPB to the authorizing agency(ies) relevant to the project within seven (7) days of receiving the EPB. ZEMA also conducts a physical site verification inspection.

The authorizing agency(ies) have 30 days to review the EPB and notify ZEMA of any comments. If no comments are received from the authorizing agency(ies) within 30 days, the EPB is considered complete.

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                                5.2.4

                        Issuance of Decision Letter
                    
ZEMA issues a decision letter either approving or rejecting the project. In case of approval, the decision letter includes the terms with which the project should comply. In case of rejection, the developer may appeal to the Minister for Water Development, Sanitation and Environmental Protection within 30 days, and in case it is rejected again, to the High Court of Zambia

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                                5.3

                        Environmental Impact Statement
                    
If,
following the environmental screening of the project, ZEMA’s decision requires
 an EIS, the process below is followed:

The fees to be paid to ZEMA for EIS are calculated on the basis of the project investment, as per the table here: https://tinyurl.com/y4qam8l6

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:See Table in text above
  Duration:65 working days from date of submission of final EIS if no public hearing takes place.
  Competent Authority:ZEMA
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.3.1

                        Preparation of Scoping Report and Public Consultation
                    
The developer prepares a draft scoping report to determine the scope of work for assessing the environmental impact of the project. 
Next, the developer carries out a public consultation, involving governmental agencies, local authorities, non-governmental and community-based organisations, and interested and affected parties, to review the draft scoping report.
Taking into account the comments from the public consultation, the developer prepares a final scoping report.

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Template for the Scoping Report: ﻿http://www.zema.org.zm/index.php/services/procedures/environmental-assessment-formats/#%20%20-                
                
                                5.3.2

                        Prepare Terms of Reference
                    
Next, the developer drafts the terms of reference to prepare the EIS on the basis of the final scoping report. 
The draft terms of reference and the scoping report are submitted to ZEMA for its review.  ZEMA determines whether the terms are acceptable within five (5) days of their receipt. If  unacceptable, the developer must prepare the final terms of reference with ZEMA's assistance.

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Template for the terms of reference: http://www.zema.org.zm/index.php/services/procedures/environmental-assessment-formats/#                 
                
                                5.3.3

                        Submission of Names and Qualifications for EIS
                    
Once the scoping report and terms of reference are complete, the developer must submit the names and the qualifications of the persons that will prepare the EIS to ZEMA. If approved, the developer can proceed with preparing the EIS. If not, ZEMA must disclose the reasons for the rejection and request that another name be submitted.

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                                5.3.4

                        Preparation and Submission of Draft EIS
                    
The EIS is prepared based on the approved terms of reference. Once drafted, the developer must take all measures necessary to seek the views of members of the communities that will be affected by the project. The developer must publicise the proposed project and its effects and benefits in the mass media for a period not less than 15 days and at regular intervals throughout the EIS process.
After the 15-day period, the developer must hold meetings with the affected communities to present information on the project and to obtain their views. 
Based on these findings, the EIS is concluded and submitted to ZEMA in twelve (12) hard copies and one (1) soft copy. ZEMA also conducts a physical site verification inspection.

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Template for the EIS report: http://www.zema.org.zm/index.php/services/procedures/environmental-assessment-formats/#                 
                
                                5.3.5

                        ZEMA Review of Draft EIS
                    
Within seven (7) days of receipt of the EIS, ZEMA forwards a copy to the authorizing agencies for comments within 30 days. 
ZEMA also distributes copies of the EIS to relevant ministries and the local government; places copies of the EIS in public buildings in the vicinity of the proposed project site; and places a notification in at least two (2) national newspapers three (3) times a week for two (2) consecutive weeks. 
Any person wishing to comment on the draft EIS must submit comments to ZEMA within 20 days of the last notification issued.
Based on the results of the above steps, ZEMA determines whether it will issue a decision letter or hold a public hearing. 

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                                5.3.6

                        Decision Letter By ZEMA
                    
ZEMA decides on the acceptance of the project using the criteria described under Statutory Instrument No. 28 of 1997 The Environmental Protection and Pollution Control (EIA) Regulations.

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                                6

                        Water Use Permitting for Hydro Power Generation
                    
For  hydropower projects, including mini-hydro, the developer is required to acquire a water use permit issued by the Water Resources Management Authority (WARMA).

The process is as follows:

        Key facts 
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  Duration:Estimated at up to 60 days
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                                6.1

                        Application  for Water Permit
                    
The developer  must prepare and submit two (2) hard copies of the water permit application to WARMA. 

The application may be submitted to WARMA headquarters, the relevant catchment or sub-catchment offices or nearest WARMA office when they are absent. Contact details are available at http://www.warma.org.zm/warma-about-us/contact/

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:Estimated at up to 60 days
  Competent Authority:WARMA headquarters or regional branches 
  Issuing Authority:

              Required/Supporting Documentation:
        
Application Form Template (http://www.wrmtest.com/wp-content/uploads/2018/07/Form_B_APPLICATION_FOR_THE_TERTIARY_USE-2.pdf 
Title deed (if located on state land), or letter of consent from the Chief or Traditional Leader (if located on customary land)
Design drawings and reports providing further information on the project design
Environmental Impact Assessment or Project Brief

                                6.2

                        Assessment of the Application
                    
The assessment of the application is performed in accordance with following steps:

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:Application fee: 5,000 ZMW (for generation capacity up to 10MW) OR 999.99 ZMW (from 10MW up to 250MW). Fee is to be paid once the application is found complete by WARMA.
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                6.2.1

                        Review for Completeness
                    
WARMA headquarters or the relevant regional branch reviews the application for completeness. If the application is not complete, WARMA provides the necessary feedback to the developer until the application is complete. 

Once the application is found complete, the developer must pay the application fee before proceeding to the next steps.

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                                6.2.2

                        Advertisement of the Application
                    
Once the application fee is
paid, the developer must advertise the application in a daily national
newspaper for 30 days. In parallel, WARMA
notifies the parties that are likely to be affected. 

If objections are raised by affected parties within the prescribed 30 days, WARMA calls a public hearing. This
hearing is necessary when there are conflicting interests or
activities from other parties concerning the water use or the hydro
plant installation area. If WARMA determines that a consensus cannot be reached from the hearing, the assessment
of the application may be terminated. 
 
        Key facts 
  Prerequisites / Conditionalities:Application fee has been paid.
 
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                                6.2.3

                        On-Site Inspection
                    
Once the application is
complete and any objections raised are addressed, a WARMA engineer visits the
site, carries out an on-site assessment, and prepares a relevant report.

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                                6.2.4

                        Technical Committee Assessment
                    
Following the on-site
inspection, WARMA assigns a technical committee to assess the application and submit
its recommendation regarding the award of the permit to the Board of WARMA.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:Application fee: 5,000 ZMW for generation capacity of up to 10 MW plus 999.99 ZMW per MW above 10 MW up to a maximun of 250 MW. 
  Duration:
  Competent Authority:
  Issuing Authority:

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                                6.3

                        Water Permit Issuance
                    
After reviewing the application, the supporting
documents and the recommendations of the technical committee, the WARMA Board makes
a decision and notifies the applicant accordingly.
If the WARMA Board rejects the
application, the developer can make an appeal to the Ministry of Water.
For approved applications, WARMA issues an invoice, and once the requisite fee (see below) is paid, the water permit is issued. 
An annual fee is payable calculated as follows:
Access charge per KW of installed capacity: 2.529976 unit fees (approximately 0.759 ZMW)
Usage per KWh generated: 0.003069 unit fees (approximately 0.000921 ZMW)
In case of a cascade of any installed capacity, the fee per KWh generated is: 0.002534 unit fees (approximately 0.076 US cents) 0.000760 ZMW
Note:   The first payment of the above is due upon 
issuance of the water permit.

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  Cost:See text above
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                                7

                        Investment Endorsement
                    
An investment endorsement is
optional for developers, but procuring one is likely to guarantee the issuance of a
licence and secure the tariff as advised by the Energy Regulation Board in the
investment endorsement process.  
The following steps are necessary: 

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:None
  Duration:10 days (up to the issuing of draft investment endorsement). Final investment endorsement depends on the timing of Board decision.
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                7.1

                        Investment Endorsement Application
                    
The
developer must submit an application for the investment endorsement
according to the guidelines issued by the ERB.
Although developers of off-grids with a maximum installed capacity of up to and including 100 kW are exempt from the Tariff Regulation, they must apply tariffs which reasonably recover the costs of providing service to customers, including  a reasonable profit, and must reduce their tariffs to reflect any one-off capital or recurrent subsidies.
The developers must submit the following information to the ERB every five years:
Average tariff applied to customers and average production price
Expected investment value and weighted average asset life
Customer numbers and forecasted sales up to 5 years
Value of subsidies and grants and how these impact the tariffs applied to customers
Forecasted operations and maintenance costs

        Key facts 
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              Required/Supporting Documentation:
        
                Application for investment endorsement: http://www.erb.org.zm/downloads/licensing/ApplicationForInvestmentEndosement.pdf) 
Business plan template: http://www.erb.org.zm/downloads/licensing/businessPlanTemp.pdf
Audited financial statements 
Proof of funds, e.g., bank statements or commitment letter from sponsor
Certificate of incorporation or registration of the applicant company
ZEMA decision letter on environmental permit for the designated project site
Zonal approval for land use of the designated site for the project 
Title deed (if located on state land) or letter of consent from the chief or traditional leader if located on customary land)
Letter of consent from Wild Life Authority (if located within a game management area) 
Letter of consent from Cultural Heritage Commission (if located ﻿within a protected area)
Water permit (in case of hydro projects)

                                7.2

                        Technical, Economic and Legal Assessment of the Investment Endorsement
                    
Once submitted, ERB must 
assess the application before issuing the endorsement and allowing the
developer to start construction of the project. 
The following steps are
required:

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                                7.2.1

                        Technical Assessment
                    
The technical assessment involves a review of the site inspection report that was drafted during the environmental permit process. If any information is needed, ERB contacts the developer for further documents.

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                                7.2.2

                        Economic Assessment
                    
This assessment determines the tariff to use when selling the produced electricity to the respective consumers. The developer must attend interrogations with ERB to justify the proposed tariff that is included in the investment endorsement application, after which ERB advises the developer what project costs can be included in the determined tariff. 
ERB’s assessment is based on the principles  in the “Electricity Tariff Determination Guidelines for Retail Customers.” These guidelines mainly determine retail tariffs for customers of mini-grids connected to the main grid, but they provide valuable insight to the investors regarding customers' tariff setting.

        Key facts 
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              Required/Supporting Documentation:
        
Electricity Tariff Determination Guidelines for Retail Customers: https://tinyurl.com/y3ogxxxm                
                
                                7.2.3

                        Legal Assessment
                    
In this stage, ERB ensures that the applicant meets all legal and regulatory requirements.

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                                7.3

                        Issuance of Investment Endorsement 
                    
Following completion of the technical, economical and legal assessment and agreement with the developer on a tariff based on the guidelines provided and ERB’s advice on the tariff, the steps below are followed:

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                Template
for ERB Investment Endorsement 

                                7.3.1

                        Draft Investment Endorsement
                    
Based on the information the developer has made available, ERB issues a draft investment endorsement that includes information on the investment costs, the agreed-upon tariff and other conditions with which the developer must comply during project development. ERB and the developer discuss the draft endorsement. Once an agreement has been reached, the ERB Board is requested to give final approval of the investment endorsement.

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                                7.3.2

                        Final Investment Endorsement
                    
After Board approval, ERB issues the final investment endorsement with the approved technical specifications of the project (not changeable without prior ERB approval), including the applicable tariff and tentative timeframe (based on the applicant's plan provided in the application).
Following issuance of the final investment endorsement, the developer must submit progress reports on the project to ERB every six months or as ERB determines necessary.
 The investment endorsement is valid for one (1) year. Subject to its renewal, the developer must endeavor to complete the project within this 1-year timeframe.

        Key facts 
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              Required/Supporting Documentation:
        
Template for ERB Investment Endorsement 
                
                                8

                        Tariff Approval
                    
For off-grid developers with installed
capacity above 100kW and up to and including 1MW, ERB's up-front tariff approval is
required. The following steps must be followed:

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                                8.1

                        Tariff Proposal
                    
Developers must submit a tariff proposal to ERB at least 150 business days prior to their effective date. The proposal must contain the following information:
Proposed tariff structure and levels for different customer categories
Assumed costs that the proposed tariffs can recover
Forecast sales (in kWh) and customer numbers by category
Capital expenditures, including expected commissioning dates and subsidies
Operating and maintenance costs, including any forecast recurrent subsidies
Weighted average cost of capital applied in calculating the proposed tariffs
Asset lives by category applied in calculating the proposed tariffs
Assumed collection losses and network losses applied in calculating the proposed tariffs
Other information reasonably requested by ERB to assess the reasonableness of the proposed tariffs﻿

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                                8.2

                        ERB Tariff Review and Approval
                    
ERB reviews the tariff proposal. If the submitted tariffs are reasonable, ERB publishes a statement for public consultation at least 130 business days prior to their effective date. After this consultation, ERB approves the tariff at least 15 business days prior to their effective date. 
If ERB does not consider the proposed tariffs reasonable, it initiates a periodic tariff review that commences at least 100 business days prior to the upcoming regulatory period, during which ERB notifies stakeholders of the indicative timeline of the periodic review, including public consultations.

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                                9

                        Issuance of Combined Licence for Generation, Transmission, Distribution and Supply of Electricity
                    
Before commencing operations of a mini-grid,  a developer must request a Combined Licence for Generation, Transmission, Distribution, Supply of Electricity from the ERB.
The developer can only request the licence after completing the construction of the off-grid.
The following steps are required: 

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              Required/Supporting Documentation:
        
                                9.1

                        Application for a Combined Licence 
                    
The developer must submit the combined licence
application in triplicate form. 

ERB checks the application
for completeness and requests any necessary actions to the developer. 
ERB then carries out an on-site technical inspection of the developed project, advising the developer of any needed remedial actions. Next ERB undertakes a financial/economic assessment of the project based on vaibility of the business plan. If not economically justifiable, the developer  is asked to undertake remedial actions.  Once both technical and financial assessments are positive, the developer must pay a processing fee (calculated at 0.1% of the cost of the envisaged investment, with a minimum fee of 100,000 ZMW.)                    

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:ZWM 50.00 for acquiring the Application Form from ERB 
  Duration:2 days
  Competent Authority:ERB
  Issuing Authority:

              Required/Supporting Documentation:
        
                Licencing Application (template at http://www.erb.org.zm/downloads/legal/erbLicenceAppForm.pdf)
Documentation demonstrating the availability and use of the renewable energy resource at the project location and his effectiveness of conversion into electrical energy (such as performance ratio, capacity factor).
Layout plan showing the location of the Generation plant, the poles of the distribution lines and the connections to consumers (e.g. service cable)

If the developer secured an investment endorsement, the documents below should be copies of the respective documents submitted in the course of the investment endorsement application. Any changes to the respective documents must be updated, as appropriate. This includes also changes in the project parameters (if any): 
Business Plan (template at http://www.erb.org.zm/downloads/licensing/businessPlanTemp.pdf)
Audited
financial statements;
p 
roof
of funds, e.g., bank statement, or commitment letter from sponsor
Certificate
of incorporation or registration
Current
list of shareholders and directors issued by the relevant registration agencies
in Zambia

Latest
annual returns from the relevant registration agency in Zambia
 Latest
valid tax clearance certificate from ZRA
ZEMA
Decision Letter on Environmental Permit for the designated project site
 Zonal
approval for the designated site for the
project, issued by the relevant local council (state
land)
Title
deed (state land) or letter of consent from
the Chief/Traditional Leader (customary land)
Approval
from Wild Life Authority (in case the project area is within a game management
area)
Letter
of consent from Cultural Heritage Commission (in case the project site is
located in a protected area)
 
Water
permit (in case of hydro projects)

A complete feasibility study which encompasses at least the following: 

consultation with REA and latest version of the rural
electrification master plan
consideration of the regional development plan
customer demand analysis using “after diversity maximum demand”
concept for the first five years of operations
service levels provided based on the World Bank “Five Tier”
system
expected diurnal load curve throughout the year
annual simulation of energy generation, storage and supply
analysis of willingness and ability to pay at customer level
customer tariff structure
presentation of the technical equipment and their codes or
standards
single-line diagram of the complete mini-grid and integration of
its technical components
presentation of the project realization timeline
risk and sensitivity analysis for volume tariffs Capex and Opex
presentation of Capex and Opex
calculation of levelized
cost of energy for the license period
financing plan for the license period
concept for commissioning and de-commissioning the mini-grid
concept to remove the installation and recycle the equipment
after the license term

                                9.1.1

                        Financial and Technical Assessment of the Application
                    
ERB then carries out an on-site technical inspection of the developed project, advising the developer of any needed remedial actions. 
Next ERB undertakes a financial/economic assessment of the project based on viability of the business plan. If not economically justifiable, the developer  is asked to undertake remedial actions. 
 Once both technical and financial assessments are positive, the developer must pay a processing fee.

        Key facts 
  Prerequisites / Conditionalities:Processing fee, calculated at 0.1% of the investment cost of the envisaged investment. Minimum fee: 100,000 ZMW 
  Cost:
  Duration:9 days (7 for financial/economic assessment and 2 for invoicing and payment)
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                9.2

                        Issuance of Provisional Licence 
                    
Subject
to payment of the processing fee, ERB issues a provisional licence that is valid for six (6) months, which allows the developer to start the project. 
In parallel, ERB submits the license application for publication in 
the Governmental Gazette for 30 days in
order to allow the public to comment or object to the project. 
If
 no objections are
received, ERB 
proceeds with issuance of the licence. If there are public comments after ERB’s decision to issue the licence, the developer must address them.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:2 days for the issuing of provisional licence. 30 days for advertisement of the licence application in GRZ﻿.
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                9.3

                        Issuance of Standard License
                    
In order to obtain standard license, ERB must ensure that the developer meets all legal and regulatory requirements. If the application is rejected, the developer may appeal to Court. 
If the developer meets all legal and regulatory requirements, ERB issues the standard licence, which is valid for 30 years. The developer is required to pay the corresponding licence fee.﻿

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:an annual fee over the license validity period, calculated at 0.7% of annual gross turnover. Each annual fee is paid in 12 monthly installments during the respective year
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:

The steps for obtaining a licence for Combined Generation, Distribution and Supply of electricity for solar/hydro off-grid systems with installed capacity higher than 1 MW, selling electricity to connected consumers, are covered here.

Required/Supporting Documentation:
Key facts
Prerequisites / Conditionalities:
Cost:
Duration:
Competent Authority:
Issuing Authority:

                
                                1

                        Business Registration
                    
Companies in Zambia are required to be registered with the Patents and Companies Registration Agency. The Agency administers the relevant matters on the basis of the Companies Act, which provides for the incorporation, management, administration and winding up of companies, including registration of their names. The Act also provides for the registration of foreign companies doing business in Zambia. 
There are no local ownership requirements for businesses registered in Zambia. However, as per section 208 of the Act, more than half of the directors of a company must be resident in the country. 

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                2

                        Securing Land
                    
Securing land is an important step of the project
development process. There are two categories of land in Zambia: 
Customary land, comprising about 94% of land in Zambia, is held under customary tenure and falls
under the jurisdiction of Zambia’s traditional authorities, the Chiefs. 
Statutory (or state) land, which comprises around 6% of
land, is governed and administered by a number of statutory institutions,
including the Ministry of Lands, Natural Resources and Environmental Protection
(MLNREP), the Forestry Department, and local authorities. The land is zoned
into residential, commercial or industrial use by the District Councils,
according to their jurisdictions. It may be held under long-term, renewable
leases of up to 99 years.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:Ministry of Lands, Natural Resources and Environmental Protection, District Councils or Customary Chiefs
  Issuing Authority:

              Required/Supporting Documentation:
        
                                2.1

                        Acquisition of Customary Land
                    
In order to acquire land in a customary area, the following is required:
Written consent of the area Chief
Approval of the District Council in the area
Additional approval from the Director of National Parks and Wildlife, if the land is in a game management area 
These approvals should be submitted to the relevant District Council, which in turn will submit the documents to the Commissioner of Lands. The Commissioner will then make a formal offer to the applicant. The letter of offer will stipulate, among other conditions:
Consideration fee – This is not a fixed amount and is dependent on locality, services provided by the state or council, and other related factors.
Survey requirements – This can be carried out by a private or government surveyor. Submission of a diagram or plan attached to the lease agreement is a mandatory requirement prior to issuance of certificate of title.
Preparation fee – The Commissioner of Lands charges fees to prepare leases, which are fixed through statutory instruments but are subject to change.
Registration fee – The Lands and Deeds Registry charges this fee before a lease is registered and the certificate issued.
Property transfer – This charge is currently 10% of the value of land payable to the Zambia Revenue Authority by the vendor. No tax is payable where land is acquired from the state.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                2.2

                        Acquisition of State Land
                    
Acquisitions of designated state land require consent of the relevant District Council. Applications for land which does not fall within the jurisdiction of any council can be made directly to the Commissioner of Lands. The Commissioner will make a formal offer to the applicant, which will contain conditions similar to offers for land situated in a customary area.
Privately-held land can be bought and sold, with title deed transfer issued by the Commissioner of Lands. In all instances the vendor must obtain state consent before the title deed can pass to the purchaser. If consent is not granted within 45 days of filing, the application is deemed to be granted. If consent is refused, the reasons for refusal must be furnished to the applicant within 30 days. Ten percent of the value of land is paid to the Zambia Revenue Authority by the vendor as property transfer tax. Such land is under leasehold tenure with a maximum lease of 99 years from the state.
A non-Zambian can acquire state land in the following cases:
They hold permanent residency in Zambia
If they are an investor within the meaning of the Zambia Development Agency Act or any other law pertaining to investment in Zambia
In exceptional cases, by Presidential consent in writing
Under a short term tenancy of not more than 5 years
If granted a concession or right under the National Parks and Wildlife Act
In the case of a registered company with no less than 75% Zambian shareholding, the title deed will be issued in the name of the registered company.
Before land can be bought or sold, state consent must be obtained from the Commissioner of Lands. If consent is not granted within 45 days of filing the application, the application is deemed to be granted. If consent is refused, the reasons for refusal must be furnished to the applicant within 30 days.
﻿

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                3

                        Clearance from Department of National Parks & Wildlife
                    
If a proposed development site is located within a Game
Management Area (GMA) or a National Park, the developer must submit an
application to the Director of National Parks & Wildlife requesting
clearance.  

Prior to clearance, the Department of National Parks & Wildlife performs a
site inspection. The clearance may contain conditions for land use on the basis
of the general management plan applicable for the National Parks and GMAs. The
developer must comply with these conditions.

﻿

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:None
  Duration:Approximately 2 weeks
  Competent Authority:Department of National Parks & Wildlife
  Issuing Authority:

              Required/Supporting Documentation:
        
                Letter of consent from the local Chief if the project site is
within a GMA (customary land), but not required if within a National Park
(state land)﻿

                                4

                        Concession from National Heritage Conservation Commission
                    
If the project site is within a protected cultural heritage area, the developer must apply for a concession from the National Heritage Conservation Commission. All waterfalls in Zambia are designated as heritage areas.

The conditions of the concession are negotiable between the National Heritage Conservation Commission and the developer.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:Annual fee calculated at ZMW 0.25 per square meter of the concession area (or as negotiated with the Commission)
  Duration:
  Competent Authority:National Heritage Conservation Commission
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5

                        Environmental Permitting
                    
A developer (i.e., the entity that is proposing and will be developing the project)  cannot implement a project until the Zambia Environmental Management Agency
(ZEMA) has granted a no objection letter with conditions for the project. ZEMA may also request a more streamlined Environmental Project Brief (EPB) or a more thorough an Environmental Impact Statement (EIS). In such cases, the developer is informed through a response letter. ﻿

This process is outlined below.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.1

                        Environmental Screening of a Project
                    
The developer must submit the following information on the proposed project to ZEMA for environmental screening:
Type of technology to be used
Planned generation capacity
Plant location
ZEMA will review the submitted information and will inspect the designated project area, if considered necessary. On the basis of the findings from the above, ZEMA:
Issues a no objection letter including the conditions with which the developer should comply.
Issues a response letter to the developer stating that further environmental assessment is needed, through an EPB or an EIS.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:None (except costs for the on-site inspection, if such inspection is performed, and which are borne by ZEMA through statutory fees that the developer pays)
  Duration:Approximately five (5) working days (longer if on-site inspection is required)
  Competent Authority:ZEMA
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.2

                         Environmental Project Brief
                    
If ZEMA’s decision requires environmental
assessment through an EPB, the process is as
follows:

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:12,999.90 ZMW
  Duration:40 days from submission of final report
  Competent Authority:ZEMA
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.2.1

                        Submission of Draft EPB
                    
The developer must submit a draft EPB developed in accordance with the respective template.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
EPB Template: http://www.zema.org.zm/index.php/services/procedures/environmental-assessment-formats/# 
                
                                5.2.2

                        Review and Revision of EPB
                    
ZEMA reviews the draft EPB and responds to the developer within 14 days. In case of comments, the developer must submit a revised EPB addressing the comments.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.2.3

                        Submission of Final EPB to ZEMA
                    
The developer must 
submit six (6) hard copies and one (1) soft copy of the finalised EPB to ZEMA, who forwards the EPB to
 the authorizing agencies relevant to the project within seven (7) days of receiving the EPB. ZEMA then conducts a physical site verification inspection.

The authorizing 
agency(ies) have 30 days to review the EPB and notify ZEMA 
of any comments.  If no comments are received from the authorizing 
agency(ies) within 30 days, the EPB is considered complete. 

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.2.4

                        Issuance of Decision Letter
                    
ZEMA assesses the EPB and any comments received and issues a decision letter approving or rejecting the project. 

In case of approval, the letter includes the terms with which the project should comply. In case of rejection, the developer may appeal to the Minister for Water Development, Sanitation and Environmental Protection within 30 days, and in case it is rejected again, to the High Court of Zambia.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.3

                        Environmental Impact Statement
                    
If ﻿ZEMA’s decision requires
environmental assessment through an EIS, the process below is followed:

The fees to be paid to ZEMA for the ﻿EIS are calculated based on the project investment, as per the table here: https://tinyurl.com/y4qam8l6

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:See Table in text above
  Duration:65 working days from date of submission of final EIS if no public hearing takes place.
  Competent Authority:ZEMA
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.3.1

                        Preparation of a Scoping Report and Public Consultation
                    
The
developer prepares a draft scoping report to assess the environmental impact of the project. Next, the developer carries
out a public consultation to review the draft scoping report, involving governmental agencies, local authorities,
non-governmental and community-based organisations, and interested and affected
parties. 

Taking into account the
results from the public consultation, a final scoping report is prepared.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
Template for the Scoping Report: Available at http://www.zema.org.zm/index.php/services/procedures/environmental-assessment-formats/#%20%20- 
                
                                5.3.2

                        Preparation  of Terms of Reference for the EIS
                    
Next, the developer prepares the draft terms of reference to prepare the EIS based on the final scoping report. 
The
draft terms and the scoping report are submitted to ZEMA for its review. Within five (5) days of their receipt, ZEMA determines whether the terms are acceptable. If 
unacceptable, the developer must prepare the final terms of reference with ZEMA's
assistance.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
Template for the Terms of Reference: http://www.zema.org.zm/index.php/services/procedures/environmental-assessment-formats/# 
                
                                5.3.3

                        Submission of Names and Qualifications for EIS
                    
Once the
scoping report and terms of reference are complete, the developer must submit the
names and qualifications of the people that will prepare the EIS to ZEMA. 
If
approved, the developer can proceed with preparing the EIS. If not, ZEMA must disclose the reasons for the rejection and request that another name be submitted.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.3.4

                        Preparation and Submission of draft EIS 
                    
The EIS is prepared on the basis of the
approved terms of reference. Once the draft EIS is prepared, the developer
must take all measures necessary to seek the views of members of the
communities that will be affected by the project. 
The
developer must publicise the proposed project and its effects and benefits in the
mass media for a period not less than 15 days and at regular intervals
throughout the EIS process. 
After
the 15-day period, the developer must hold meetings with the affected
communities to present information on the project and to obtain their views.
Based on the findings from these activities, the EIS is concluded and submitted to ZEMA in twelve (12) hard copies and one (1) soft copy. ZEMA also conducts a physical site verification inspection. 

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
Template for the EIS report: http://www.zema.org.zm/index.php/services/procedures/environmental-assessment-formats/# 
                
                                5.3.5

                        Review of Draft EIS
                    
Within seven (7) days of receipt of the draft EIS, ZEMA forwards a copy of the statement to the authorizing agencies  relevant to the project for comments within 30 days. 

ZEMA also distributes copies of the EIS to relevant ministries and local government; places copies of the EIS in public buildings in the vicinity of the site of the proposed project; and places a notification in at least two (2) national newspapers three (3) times a week for two (2) consecutive weeks.

Any person wishing to comment on the draft EIS must submit comments to ZEMA within 20 days of the last notification issued.

Based on the results of the above steps, ZEMA determines whether it will issue a decision letter or hold a public hearing.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.3.6

                        Decision Letter by ZEMA 
                    
ZEMA decides on the acceptance of the project using the criteria described under Statutory Instrument No. 28
of 1997 The Environmental Protection and Pollution Control (EIA) Regulations.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                6

                        Water Use Permitting for Hydro Power Generation
                    
For  hydropower projects, including mini-hydro, the developer is required to acquire a water use permit issued by the Water Resources Management Authority (WARMA).

The process is as follows:

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:Estimated at up to 60 days
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                6.1

                        Application  for Water Permit
                    
The developer  must prepare and submit two (2) hard copies of the water permit application to WARMA. 

The application may be submitted to WARMA headquarters, the relevant catchment or sub-catchment offices or nearest WARMA office when they are absent. Contact details are available at: http://www.warma.org.zm/warma-about-us/contact/

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:Estimated at up to 60 days
  Competent Authority:WARMA headquarters or regional branches 
  Issuing Authority:

              Required/Supporting Documentation:
        
Application Form Template (http://www.wrmtest.com/wp-content/uploads/2018/07/Form_B_APPLICATION_FOR_THE_TERTIARY_USE-2.pdf 
Title deed (if located on state land), or letter of consent from the Chief or Traditional Leader (if located on customary land)
Design drawings and reports providing further information on the project design
Environmental Impact Assessment or Project Brief

                                6.2

                        Assessment of the Application
                    
The assessment of the application is performed in accordance with following steps:

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:Application fee: 5,000 ZMW (for generation capacity up to 10MW) OR 999.99 ZMW (from 10MW up to 250MW). Fee is to be paid once the application is found complete by WARMA.
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                6.2.1

                        Review for Completeness
                    
WARMA headquarters or the relevant regional branch reviews the application for completeness. If the application is not complete, WARMA provides the necessary feedback to the developer until the application is complete. 

Once the application is found complete, the developer must pay the application fee before proceeding to the next steps.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                6.2.2

                        Advertisement of the Application
                    
Once the application fee is
paid, the developer must advertise the application in a daily national
newspaper for 30 days. In parallel, WARMA
notifies the parties that are likely to be affected. 

If objections are raised by affected parties within the prescribed 30 days, WARMA calls a public hearing. This
hearing is necessary when there are conflicting interests or
activities from other parties concerning the water use or the hydro
plant installation area. If WARMA determines a consensus cannot be reached from the hearing, the assessment
of the application may be terminated. 
 
        Key facts 
  Prerequisites / Conditionalities:Application fee has  been paid
 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                6.2.3

                        On-Site Inspection
                    
Once the application is
complete and any objections raised are addressed, a WARMA engineer visits the
site, carries out an on-site assessment, and prepares a relevant report.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                6.2.4

                        Technical Committee Assessment
                    
Following the on-site
inspection, WARMA assigns a technical committee to assess the application and submit
its recommendation regarding the award of the permit to the Board of WARMA.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:Application fee: 5,000 ZMW for generation capacity of up to 10 MW plus 999.99 ZMW per MW above 10 MW up to a maximun of 250 MW. 
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                6.3

                        Water Permit Issuance
                    
After reviewing the application, the supporting
documents and the recommendation of the technical committee, the WARMA Board makes
a decision and notifies the applicant accordingly.
If the WARMA Board rejects the
application, the developer can make an appeal to the Ministry of Water.
For approved applications, WARMA issues an invoice, and once the requisite fee (see below) is paid by the applicant the water permit is issued. 
An annual fee is payable calculated as follows:
Access charge per KW of installed capacity: 2.529976 Unit fees (approximately 0.759 ZMW)
Usage per KWh generated: 0.003069 unit fees (approximately 0.000921 ZMW)
In case of a cascade of any installed capacity, the fee per KWh generated is: 0.002534 unit fees (approximately 0.076 US cents) 0.000760 ZMW
Note:   The first payment of the above is due upon 
issuance of the water permit.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:See text above
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                7

                        Investment Endorsement
                    
While obtaining an investment endorsement is
optional for a developer, its procurement is likely to guarantee the issuance of an appropriate
licence to commence operations and secure the tariff advised by the ERB. 
The following steps are necessary for completing the process: 

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:None
  Duration:10 days (up to the issuing of draft investment endorsement). Final investment endorsement depends on the timing of Board decision.
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                7.1

                        Submission of Investment Endorsement Application
                    
The
developer must submit the application for the investment endorsement
using the template and guidelines issued by ERB.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
Application for investment endorsement: http://www.erb.org.zm/downloads/licensing/ApplicationForInvestmentEndosement.pdf) 
Business Plan: ﻿http://www.erb.org.zm/downloads/licensing/businessPlanTemp.pdf
Audited financial statements 
Proof of funds, e.g., bank statements or commitment letter from sponsor
Certificate of incorporation or registration of the applicant company
ZEMA decision letter on environmental permit for the designated project site
Zonal approval ﻿allowing the intended land use of the designated site for the project
Title deed if the project site is located on state land, or letter of consent from the Chief or ﻿Traditional Leader if the site is located in customary land
Letter of consent from Wild Life Authority (in case the project site is within a game management area) 
Letter of consent from Cultural Heritage Commission (in case the project site is within a protected area)
Water permit (in case of hydro projects)
                
                                7.2

                        Technical, Economic and Legal Assessment of the Investment Endorsement
                    
Once submitted, ERB must 
assess the application before issuing the endorsement and allowing the
developer to start construction of the project. The following process applies:

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                7.2.1

                        Technical Assessment 
                    
The technical assessment involves a review of the site
inspection report that was drafted during the environmental permit process. If
any additional information is needed, ERB contacts the developer for further documents.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                7.2.2

                        Economic Assessment 
                    
The economic assessment determines the tariff to
be used for selling produced electricity to the
respective consumes. 
During this
stage, the developer attends interrogations with ERB to
justify the proposed tariff that is included in the investment endorsement
application. Once concluded, ERB advises the
developer what project costs are reasonable to include in the tariff determination. 

ERB’s assessment of the
tariff is based on the principles in the “Electricity Tariff
Determination Guidelines for Retail Customers.” These guidelines are used mainly to determine the retail tariffs for customers of mini-grids connected to the main grid, but they provide valuable insight to the
investors regarding customers' tariff setting.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                Electricity tariff determination guidelines for retail customers: https://tinyurl.com/y3ogxxxm

                                7.2.3

                        Legal Assessment
                    
In this stage ERB ensures
that the applicant meets all legal and regulatory requirements.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                7.3

                        Issuance of Investment Endorsement 
                    
Following
the completion of the technical, economical and legal assessment and agreement
with the developer on the tariff, the steps below are followed: 

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                7.3.1

                        Draft Investment Endorsement 
                    
ERB issues a draft investment
endorsement that includes the information on the investment costs, the tariff
and any other agreed upon conditions with which the developer must
comply during project development.

ERB and the developer 
discuss the draft endorsement before issuing the final one. Once an agreement has been reached, the ERB Board is requested to give its
final approval of the investment endorsement.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                7.3.2

                        Final Investment Endorsement 
                    
After Board approval, ERB issues the final investment endorsement that states the approved
technical specifications of the project, the applicable tariff and the tentative timeframe for the development of the project (based on the application). These terms are not to be departed from without prior ERB approval.
Following the issuance of the
final investment endorsement, the developer must submit progress reports to ERB every six months during implementation of the works or as ERB deems necessary.

The investment endorsement
is valid for one (1) year. Unless renewed, the developer must endeavor
to complete the project within this one year.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                Investment
Endorsement Template﻿

                                8

                        Tariff Approval
                    
Off-grid developers with an installed capacity over 1MW must apply tariffs approved by ERB based on allowed costs determined through a periodic review process, with approval required by
ERB.
The following steps are necessary for
completing the process:

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                8.1

                        Determination of Allowed Costs
                    
ERB sets the allowed costs during a periodic
review process for the duration of a regulatory period, which by default is five
years unless otherwise specified by ERB during the regulatory parameters
decision for the regulated
mini-grid.
Periodic reviews commence at least 100 business
days prior to each regulatory period, during which
ERB: 
notifies stakeholders of the indicative implementation
timeline of the periodic review, including planned public consultation dates; and
issues the data
submission templates which developers must submit to ERB in order to review
the allowed costs for the regulatory period.
Data submission templates are submitted to ERB
at least 80 business days prior to the regulatory period. 

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                8.2

                        Evaluation of Allowed Costs 
                    
ERB issues a provisional evaluation of allowed
costs at least 60 business days prior to the commencement of the regulatory period and publishes the evaluation for stakeholder consultation. 
ERB issues the final evaluation of the allowed costs and proposed tariffs at
least 15 business days prior to the commencement of the regulatory
period. 

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                8.3

                        Approval of Proposed Tariffs
                    
ERB must approve all proposed tariffs at least 15 business days prior to the commencement of the upcoming regulatory period.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                9

                        Issuance of Combined Licence for Generation, Transmission, Distribution and Supply of Electricity
                    
Before commencing operations of a mini-grid,  a developer must request a Combined Licence for Generation, Transmission, Distribution, Supply of Electricity from the ERB.
The developer can only request the licence after completing the construction of the off-grid.
The following steps must be followed: 

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                9.1

                        Application for a Combined Licence 
                    
The developer must submit the combined licence
application in triplicate. 

ERB checks the application
for completeness and requests any necessary actions to the developer. 
ERB then carries out an on-site technical inspection of the developed project, advising the developer of any needed remedial actions. Next ERB undertakes a financial/economic assessment of the project based on viability of the business plan. If not economically justifiable, the developer  is asked to undertake remedial actions.  Once both technical and financial assessments are positive, the developer must pay a processing fee (calculated at 0.1% of the cost of the envisaged investment, with a minimum fee of 100,000 ZMW.)                    

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:ZWM 50.00 for acquiring the application form from ERB 
  Duration:2 days
  Competent Authority:ERB
  Issuing Authority:

              Required/Supporting Documentation:
        
                Licencing Application (template at http://www.erb.org.zm/downloads/legal/erbLicenceAppForm.pdf)
Documentation demonstrating the availability and use of the renewable energy resource at the project location and his effectiveness of conversion into electrical energy (such as performance ratio, capacity factor).
Layout plan showing the location of the generation plant, the poles of the distribution lines and the connections to consumers (e.g., service cable)
If the developer secured an investment endorsement, the documents below should be copies of the investment endorsement application documents. Any changes to the respective documents must be updated, as appropriate. This includes also changes in the project parameters (if any).  
Business Plan (template at http://www.erb.org.zm/downloads/licensing/businessPlanTemp.pdf)
Audited
financial statements;
p 
roof
of funds, e.g., bank statement, or commitment letter from sponsor
Certificate
of incorporation or registration
Current
list of shareholders and directors issued by the relevant registration agencies
in Zambia

Latest
annual returns from the relevant registration agency in Zambia
Latest
valid tax clearance certificate from ZRA
ZEMA decision letter on environmental permit for the designated project site
Zonal
approval for the designated site for the
project, issued by the relevant local council (state
land)
Title
deed (state land) or letter of consent from
the Chief/Traditional Leader (customary land)
Approval
from Wild Life Authority (in case the project area is within a game management
area)
Letter
of consent from Cultural Heritage Commission (in case the project site is
located in a protected area)
Water
permit (in case of hydro projects)

A complete feasibility study which encompasses at least the following: 

consultation with REA and latest version of the rural
electrification master plan
consideration of the regional development plan
customer demand analysis using “after diversity maximum demand”
concept for the first five years of operations
service levels provided based on the World Bank “Five Tier”
system
expected diurnal load curve throughout the year
annual simulation of energy generation, storage and supply
analysis of willingness and ability to pay at customer level
customer tariff structure
presentation of the technical equipment and their codes or
standards
single-line diagram of the complete mini-grid and integration of
its technical components
presentation of the project realization timeline
risk and sensitivity analysis for volume tariffs Capex and Opex
presentation of Capex and Opex
calculation of levelized
cost of energy for the license period
financing plan for the license period
concept for commissioning and de-commissioning the mini-grid
concept to remove the installation and recycle the equipment
after the license term

                                9.1.1

                        Financial and Technical Assessment of the Application
                    
ERB then carries out an on-site technical inspection of the developed project, advising the developer of any needed remedial actions. 
Next ERB undertakes a financial/economic assessment of the project based on viability of the business plan. If not economically justifiable, the developer  is asked to undertake remedial actions. 
 Once both technical and financial assessments are positive, the developer must pay a processing fee.

        Key facts 
  Prerequisites / Conditionalities:Processing fee, calculated at 0.1% of the investment cost of the envisaged investment. Minimum fee: 100,000 ZMW 
  Cost:
  Duration:9 days (7 for financial/economic assessment and 2 for invoicing and payment)
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                9.2

                        Issuance of Provisional Licence 
                    
Subject
to payment of the processing fee, ERB issues a provisional licence that is valid for six (6) months, which allows the developer to start the project. 
In parallel, ERB submits the license application for publication in 
the Governmental Gazette for 30 days in
order to allow the public to comment or object to the project. 
If
 no objections are
received, ERB 
proceeds with issuance of the licence. If there are public comments after ERB’s decision to issue the licence, the developer must address them.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:2 days for the issuing of provisional licence. 30 days for advertisement of the licence application in GRZ﻿.
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                9.3

                        Issuance of Standard Licence
                    
In order to obtain a standard licence, ERB must ensure that the developer meets all legal and regulatory requirements. If the application is rejected, the developer may appeal to Court. 
If the developer meets all legal and regulatory requirements, ERB issues the standard licence, which is valid for 30 years. The developer is required to pay the corresponding licence fee.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:an annual fee over the license validity period, calculated at 0.7% of annual gross turnover. Each annual fee is paid in 12 monthly installments during the respective year
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:

The steps for obtaining a licence for Combined Generation, Distribution and Supply of electricity for solar/hydro off-grid systems, with a maximum installed capacity of up to and including 100 kW, selling electricity to connected consumers, are covered here.

Required/Supporting Documentation:
Key facts
Prerequisites / Conditionalities:
Cost:
Duration:
Competent Authority:
Issuing Authority:

                
                                1

                        Business Registration
                    
Companies in Zambia are required to be registered with the Patents and Companies Registration Agency. This Agency administers relevant matters on the basis of the Companies Act, which provides for the incorporation, management, administration and winding up of companies, including registration of their names. The Act also provides for the registration of foreign companies doing business in Zambia. 
There are no local ownership requirements for businesses registered in Zambia. However, as per section 208 of the Act, more than half of the directors of a company must be resident in the country. 

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                2

                        Securing Land
                    
Securing land is an important step of the project
development process. There are two categories of land in Zambia: 
Customary land, comprising about 94% of land in Zambia, is held under customary tenure and falls
under the jurisdiction of Zambia’s traditional authorities, the Chiefs. 
Statutory (or state) land, comprising around 6% of
land, is governed and administered by a number of statutory institutions,
including the Ministry of Lands, Natural Resources and Environmental Protection, the Forestry Department, and local authorities. The land is zoned
into residential, commercial or industrial use by the District Councils,
according to their jurisdictions. It may be held under long-term, renewable
leases of up to 99 years.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:Ministry of Lands, Natural Resources and Environmental Protection, District Councils or Customary Chiefs
  Issuing Authority:

              Required/Supporting Documentation:
        
                                2.1

                        Acquisition of Customary Land
                    
In order to acquire land in a customary area, the following is required:
Written consent of the area Chief
Approval of the area District Council
Additional approval from the Director of National Parks & Wildlife, if the land is in a game management area 
These approvals should be submitted to the relevant District Council, which in turn will submit the documents to the Commissioner of Lands. The Commissioner will then make a formal offer to the applicant. The letter of offer will stipulate, among other conditions:
Consideration fee – This is not a fixed amount and is dependent on locality, services provided by the state or council, and other related factors.
Survey requirements – This can be carried out by a private or government surveyor. Submission of a diagram or plan attached to the lease agreement is a mandatory requirement prior to issuance of Certificate of Title.
Preparation fee – The Commissioner of Lands charges fees to prepare leases, which are fixed through statutory instruments but are subject to change.
Registration fee – The Lands and Deeds Registry charges this fee before a lease is registered and the certificate issued.
Property transfer – This charge is currently 10% of the value of land payable to the Zambia Revenue Authority by the vendor. No tax is payable where land is acquired from the state.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                2.2

                        Acquisition of State Land 
                    
Acquisitions of designated state land require consent of the relevant District Council. Applications for land which does not fall within the jurisdiction of any council can be made directly to the Commissioner of Lands. The Commissioner will make a formal offer to the applicant, which will contain conditions similar to offers for land situated in a customary area.
Privately-held land can be bought and sold, with title deed transfer issued by the Commissioner of Lands. In all instances the vendor must obtain state consent before the title deed can pass to the purchaser. If consent is not granted within 45 days of filing, the application is deemed to be granted. If consent is refused, the reasons for refusal must be furnished to the applicant within 30 days. Ten percent of the value of land is paid to the Zambia Revenue Authority by the vendor as property transfer tax. Such land is under leasehold tenure with a maximum lease of 99 years from the state.
A non-Zambian can acquire state land in the following cases:
They hold permanent residency in Zambia
If they are an investor within the meaning of the Zambia Development Agency Act or any other law pertaining to investment in Zambia
In exceptional cases, by Presidential consent in writing
Under a short term tenancy of not more than 5 years
If granted a concession or right under the National Parks and Wildlife Act
In the case of a registered company with no less than 75% Zambian shareholding, the title deed will be issued in the name of the registered company.
Before land can be bought or sold, state consent must be obtained from the Commissioner of Lands. If consent is not granted within 45 days of filing the application, the application is deemed to be granted. If consent is refused, the reasons for refusal must be furnished to the applicant within 30 days.
﻿

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                3

                        Clearance from Department of National Parks & Wildlife
                    
If a proposed development site is located within a Game Management Area (GMA) or a National Park, the developer must submit an application to the Director of National Parks & Wildlife requesting clearance.  

Prior to clearance, the Department of National Parks & Wildlife performs a site inspection. The clearance may contain conditions for land use on the basis of the general management plan applicable for the National Parks and GMAs. The developer must comply with these conditions.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:None
  Duration:Approximately 2 weeks
  Competent Authority:Department of National Parks & Wildlife
  Issuing Authority:

              Required/Supporting Documentation:
        
Letter of consent from the local Chief if the
project site is within a GMA (customary land), but not required if within
a National Park (state land)                
                
                                4

                        Concession from National Heritage Conservation Commission
                    
If the project site is within a protected cultural heritage area, the developer must apply for a concession from the National Heritage Conservation Commission. All waterfalls in Zambia are designated as heritage areas.

The conditions of the concession are negotiable between the National Heritage Conservation Commission and the developer.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:Annual fee calculated at ZMW 0.25 per square meter of the concession area (or as negotiated with the Commission)
  Duration:
  Competent Authority:National Heritage Conservation Commission 
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5

                        Environmental Permitting
                    
A developer (i.e., the entity that is proposing and will be developing the project)  cannot implement a project until the Zambia Environmental Management Agency (ZEMA) has granted a no objection letter with conditions for the project. ZEMA may also request a more streamlined Environmental Project Brief (EPB) or a more thorough an Environmental Impact Statement (EIS). In such cases, the developer is informed through a response letter. 

This process is outlined below:

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.1

                        Environmental Screening of a Project
                    
The developer must submit the following information on the proposed project to ZEMA for environmental screening:
Type of technology to be used
Planned generation capacity
Plant location
ZEMA will review the submitted information and will inspect the designated project area, if considered necessary. On the basis of the findings from the above, ZEMA:
Issues a no objection letter including the conditions with which the developer should comply.
Issues a response letter to the developer stating that further environmental assessment is needed through an EPB OR an EIS.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:None (except costs for the on-site inspection, if such inspection is performed, and which are borne by ZEMA through statutory fees that the developer pays)
  Duration:Approximately five (5) working days (longer if on-site inspection is required)
  Competent Authority:ZEMA
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.2

                         Environmental Project Brief
                    
Following the environmental screening of the project, if ZEMA’s decision requires environmental
assessment through an EPB, the process is as
follows:

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:12,999.90 ZMW
  Duration:40 days from submission of final report
  Competent Authority:ZEMA
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.2.1

                        Submission of Draft EPB
                    
The developer must submit a draft EPB developed in accordance with the respective template.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
EPB Template: http://www.zema.org.zm/index.php/services/procedures/environmental-assessment-formats/# 
                
                                5.2.2

                        Review and Revision of EPB
                    
ZEMA reviews the draft EPB and responds to the developer within fourteen (14) days. ﻿In case of comments, the developer must submit a revised EPB addressing the comments received.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.2.3

                        Submission of Final EPB to ZEMA
                    
The developer must 
submit six (6) hard copies and one (1) soft copy of the final EPB to ZEMA, who then forwards the EPB to
 the authorizing agencies relevant to the project within seven (7) days of receiving the EPB. ZEMA then conducts a physical site verification inspection.

The authorizing 
agencies have 30 days to review the EPB and notify ZEMA 
of any comments.  If no comments are received within 30 days, the EPB is considered complete. 

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.2.4

                        Issuance of Decision Letter
                    
ZEMA assesses the EPB and any comments received and issues a decision letter approving or rejecting the project. 

In case of approval, the letter includes the terms with which the project should comply. In case of rejection, the developer may appeal to the Minister for Water Development, Sanitation and Environmental Protection with 30 days, and in case it is rejected again, to the High Court of Zambia.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.3

                        Environmental Impact Statement
                    
If ZEMA’s decision requires
environmental assessment through an EIS, the process below is followed:

The fees to be paid to ZEMA for the ﻿EIS are calculated on the basis of the project investment, as per the table here: https://tinyurl.com/y4qam8l6

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:See Table in text above
  Duration:65 working days from date of submission of final EIS if no public hearing takes place.
  Competent Authority:ZEMA
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.3.1

                        Preparation of a Scoping Report and Public Consultation
                    
The
developer prepares a draft scoping report to assess the environmental impact of the project. Next, the developer carries
out a public consultation to review the draft report, involving governmental agencies, local authorities,
non-governmental and community-based organisations, and interested and affected
parties.

 A final scoping report is prepared based on the consultation findings.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
Template for the scoping report available at: http://www.zema.org.zm/index.php/services/procedures/environmental-assessment-formats/#%20%20- 
                
                                5.3.2

                        Preparation of Terms of Reference
                    
Next, the developer prepares the draft terms of reference for the
EIS based on the final scoping report. 
The terms and scoping report are submitted to ZEMA for its review. Within five (5) days
from their receipt, ZEMA determines whether the terms of reference are acceptable. If 
unacceptable, the developer must prepare the final terms of reference with ZEMA's
assistance.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
Template for the Terms of Reference: ﻿http://www.zema.org.zm/index.php/services/procedures/environmental-assessment-formats/# 
                
                                5.3.3

                        Submission of Names and Qualifications for EIS
                    
Once the scoping report and terms of reference are considered complete, the developer must submit the
names and the qualifications of the people that will prepare the EIS to ZEMA. If
approved, the developer can proceed with preparing the EIS.  If not, ZEMA must disclose the reasons for the rejection and request that another name be submitted.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.3.4

                        Preparation and Submission of Draft EIS 
                    
The EIS is prepared on the basis of the
approved terms of reference. Once drafted, the developer
must take all measures necessary to seek the views of members of the
communities that will be affected by the project. 
The
developer must publicise the proposed project and its effects and benefits in the
mass media for a period not less than 15 days and at regular intervals
throughout the EIS process. 
After
the 15-day period, the developer must hold meetings with the affected
communities to present information on the project and to obtain their views.
On the basis of the findings, the EIS is concluded and submitted to ZEMA in twelve (12) hard copies and one (1) soft copy. ZEMA also conducts a physical site verification inspection. 

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
Template for the EIS report: ﻿http://www.zema.org.zm/index.php/services/procedures/environmental-assessment-formats/# 
                
                                5.3.5

                        ZEMA Review of Draft EIS
                    
Within seven (7) days of receipt of the draft EIS, ZEMA forwards a copy of the statement to the authorizing agencies relevant to the project for comments within 30 days. 

ZEMA also distributes copies of the EIS to relevant ministries and the local government; places copies of the EIS in public buildings in the vicinity of the site of the proposed project; and places a notification in at least two (2) national newspapers three (3) times a week for two (2) consecutive weeks.

Any person wishing to comment on the draft EIS must submit comments to ZEMA within 20 days of the last notification issued.

On the basis of the results of these activities, ZEMA determines whether it will issue a decision letter or hold a public hearing.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.3.6

                        Decision Letter by ZEMA 
                    
ZEMA decides on the acceptance of the project using the criteria described under Statutory Instrument No. 28
of 1997 The Environmental Protection and Pollution Control (EIA) Regulations.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                6

                        Water Use Permits for Hydro Power Generation
                    
For hydropower projects, including mini-hydro projects, the developer must acquire a water use permit issued by the Water Resources Management Authority (WARMA).

The process is as follows:

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:Estimated at up to 60 days
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                6.1

                        Application for Water Permit
                    
The developer  must prepare and submit two (2) hard copies of the water permit application form to WARMA headquarters, the relevant catchment or sub-catchment offices or the nearest WARMA office (when they are absent). Contact details are available at: http://www.warma.org.zm/warma-about-us/contact/

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:Estimated at up to 60 days
  Competent Authority:WARMA headquarters or WARMA regional branches 
  Issuing Authority:

              Required/Supporting Documentation:
        
Application Form Template (http://www.wrmtest.com/wp-content/uploads/2018/07/Form_B_APPLICATION_FOR_THE_TERTIARY_USE-2.pdf 
Title deed if the project is located on state land, or Letter of Consent from the Chief / Traditional Leader if the project is located in customary land
Design drawings and reports providing further information on the project design 
Environmental Impact Assessment / Environmental Project Brief

                                6.2

                        Assessment of the Application
                    
The assessment of the application is performerd as per the following steps:

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:Application fee: 5,000 ZMW (for generation capacity up to 10MW) OR 999.99 ZMW (from 10MW up to 250MW). Fee is to be paid once the application is found complete by WARMA.
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                6.2.1

                        Application Review
                    
WARMA headquarters or the relevant catchment or sub-catchment regional branch reviews the application for completeness. If not complete, WARMA provides the necessary feedback to the developer until the application is complete. Once complete, the developer must pay the application fee before proceeding to steps below.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:Application fee: 5,000 ZMW for generation capacity of up to 10 MW plus 999.99 ZMW per MW above 10 MW up to a maximun of 250 MW.
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                6.2.2

                        Advertisement of the Water Permit Application
                    
The developer must advertise the application in a daily national
newspaper for 30 days. 

In parallel with the advertisement, WARMA
notifies parties that are likely to be affected. In case objections are raised by affected parties within the 30 days, a public hearing is called by WARMA. This
hearing is necessary in cases where there are conflicting interests from other parties concerning the water use or the hydro
plant installation area. In such cases, WARMA is seeking to ascertain if a compromise or consensus can be obtained. If WARMA deems that a consensus cannot be reached, the application may be terminated. 
 
        Key facts 
  Prerequisites / Conditionalities:The application fee must have been paid
 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                6.2.3

                        On-site Inspection
                    
Once the application is
complete and any objections raised are addressed, a WARMA engineer visits the
site, carries out an on-site assessment, and prepares a relevant report.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                6.2.4

                        Technical Committee Assessment
                    
Following the on-site
inspection, WARMA assigns a technical committee to assess the application and submit
its recommendation regarding the permit award to the Board of WARMA.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:.
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                6.3

                        Issuance of Water Permit
                    
After reviewing the application, the supporting
documents and the recommendation of the technical committee, the WARMA Board makes
a decision and notifies the applicant accordingly.
WARMA issues an invoice and once the requisite
fee (see below) is paid by the applicant a water permit is issued.
Following the issuance of the water permit an anual fee is payable calculated as follows:
Access charge per KW of installed capacity: 2.529976 unit fees (approximately 0.759 ZMW)
Usage per KWh generated: 0.003069 Unit Fees (approximately 0.000921 ZMW)
In case of cascade of installed capacity, the fee per KWh generated is: 0.002534 Unit Fees (approximately 0.076 US cents) 0.000760 ZMW

Note:   The first payment of the above is due upon the
issuing of the Water Permit
If WARMA does not approve the application, the developer can make an appeal to the Ministry of Water.﻿

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:See text above
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                7

                        Investment Endorsement
                    
While obtaining an investment endorsement is
optional, its procurement is likely to guarantee a developer the appropriate
licence to commence project operations and secure a tariff, as advised by the ERB. 
The following steps are necessary for completing the process: 

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:None
  Duration:10 days (up to the issuing of draft investment endorsement). Final investment endorsement depends on the timing of Board decision.
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                7.1

                        Investment Endorsement Application
                    
The
developer must submit the application for an investment endorsement
using the guidelines issued by ERB. Although developers of off-grids with a
maximum installed capacity of up to and including 100 kW are exempt from
the tariff regulation, they must apply tariffs which reasonably recover their costs
of providing service to customers, including a reasonable profit. They must reduce their tariffs to reflect any one-off capital or recurrent
subsidies. 

Developers must submit the following
information to the ERB every five years:
Average tariff applied to customers
and average production price
Expected investment value and
weighted average asset life
Customers numbers and forecasted sales
for up to 5 years
Value of subsidies and grants how these subsidies affect the tariffs applied to customers
Forecasted operations and
maintenance costs

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
Application for investment endorsement: http://www.erb.org.zm/downloads/licensing/ApplicationForInvestmentEndosement.pdf) 
Business plan template: http://www.erb.org.zm/downloads/licensing/businessPlanTemp.pdf
Audited financial statements 
Proof of funds, e.g., bank statements or commitment letter from sponsor
Certificate of incorporation or registration of the applicant company
ZEMA decision letter on environmental permit for the designated project site
Zonal approval for intended land use of the designated site for the project 
Title deed if the project site is located on state land or letter of consent from the chief or traditional leader if the site is located in customary land
Letter of consent from Wild Life Authority (in case the project site is within a game management area) 
Letter of consent from Cultural Heritage Commission (in case the project site is within a protected area)
Water permit (in case of hydro projects)
                
                                7.2

                        Technical, Economic and Legal Assessment of the Investment Endorsement
                    
Once the application has
been submitted, ERB must assess the application before issuing the endorsement and allowing the
developer to start construction of the project. 
The following steps apply:

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                7.2.1

                        Technical Assessment 
                    
The technical assessment involves a review of the site
inspection report that was drafted during the environmental permit process. If any additional information is needed, ERB contacts the developer for further documents.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                7.2.2

                        Economic Assessment 
                    
The economic assessment determines the tariff for selling produced electricity to the
respective consumers. 
During this
stage, the developer attends interrogations with ERB to
justify the proposed tariff in the investment endorsement
application. Once concluded, ERB advises the
developer what costs of the project are reasonable to include in the tariff determination. 

ERB’s assessment of the
tariff is based on the principles set out in the “Electricity Tariff
Determination Guidelines for Retail Customers.” Although these guidelines mainly determine retail tariffs for customers of mini-grids connected to the main grid, they provide valuable insight regarding tariff setting for customers.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                Electricity tariff determination guidelines for retail customers: https://tinyurl.com/y3ogxxxm

                                7.2.3

                        Legal Assessment
                    
In this stage ERB ensures
that the applicant meets all legal and regulatory requirements.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                7.3

                        Issuance of Investment Endorsement 
                    
Following
completion of the technical, economical and legal assessment and agreement
with the developer on a tariff based on the guidelines, the steps below are followed: 

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                7.3.1

                        Draft Investment Endorsement 
                    
Based on the information the developer has made
available, ERB issues a draft investment
endorsement that includes information on the investment costs, tariff
 and any other agreed upon conditions with which the developer must comply during project development.

ERB and the developer 
discuss the draft endorsement before issuing the final one. Once an agreement has been reached, the ERB Board is requested for 
final approval of the endorsement.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                7.3.2

                        Final Investment Endorsement 
                    
After Board approval, ERB issues the final investment endorsement stating the approved
technical specifications of the project, the applicable tariff and the tentative timeframe for development of the project
(based on timeframe provided in the application). These terms are not to be departed from without prior ERB approval.
Following issuance of the
final endorsement, the developer must submit ERB
progress reports every six months during implementation of the works or as ERB deems
necessary.

The investment endorsement
is valid for one (1) year. Subject to its renewal, the developer must endeavor
to complete the project within this one year.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                Investment
Endorsement Template﻿

                                8

                        Issuing of Combined Licence for Generation, Transmission,  Distribution and Supply of Electricity
                    
Before commencing operations of a mini-grid,  the developer must apply for a Combined Licence for Generation, Transmission, Distribution and Supply of Electricity from ERB.
The developer can only request the licence after completing the off-grid construction.
The process is outlined below:

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                8.1

                        Application for a Combined Licence 
                    
The developer must submit the combined licence
application form in triplicate to ERB. 

ERB checks the application
for completeness and requests the developer for any further information to
complete the application.
Off-grid developers with a maximum installed capacity of up to and including 100 kW are exempted from the Tariff Regulation; however, they must apply tariffs which reasonably recover the costs of providing service to customers, including a reasonable profit. They must adjust their tariffs downwards to reflect any one-off capital or recurrent subsidies.
Developers must submit the following information to the ERB every five years:
Average tariff applied to customers and average production price
Expected investment value and weighted average asset life
Customer numbers and forecasted sales up to 5 years
Value of subsidies and grants and how these affect tariffs applied to customers
Forecasted operations and maintenance costs

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:ZWM 50.00 for acquiring the application form from ERB 
  Duration:2 days
  Competent Authority:ERB
  Issuing Authority:

              Required/Supporting Documentation:
        
Licencing
application: http://www.erb.org.zm/downloads/legal/erbLicenceAppForm.pdf)
Documentation demonstrating the availability and use of the renewable energy resource at the project location and its effectiveness in conversions into electrical energy (such as performance ratio, capacity factor)
Layout of the generation plant, poles of the distribution lines and connections to consumers (e.g., service cable)
If the
developer has an investment endorsement, the documents below should
be copies of the respective information submitted in the investment
endorsement application. If any changes have occurred, the respective
documents must updated, as appropriate, including any changes in the
project parameters:
 
Business plan (template at http://www.erb.org.zm/downloads/licensing/businessPlanTemp.pdf)
Audited
financial statements;
p 
roof
of funds, e.g., bank statement or commitment letter from sponsor
 
Certificate
of incorporation or registration
 
Current
list of shareholders and directors issued by the relevant registration agencies
in Zambia
 
Latest
annual returns from the relevant registration agency in Zambia
 
Latest
and valid tax clearance certificate from ZRA 
 
ZEMA
decision letter on the environmental permit for the designated project site;
 
Zonal
approval for the intended land use for the
project, issued by the relevant local council (for state
land)
 
Title
deed (for state land), or letter of consent from
the chief /traditional leader (for customary land)
 
Approval
from the Wildlife Authority (for game management
area)
 
Letter
of consent from Cultural Heritage Commission (for protected areas)
 
Water
permit (for hydro projects)
A complete feasibility study which encompasses at least the following: 
consultation with REA and latest version of the rural electrification master plan
consideration of the regional development plan
customer demand analysis using “after diversity maximum demand”
concept for the first five years of operations
service levels provided based on the World Bank “Five Tier”
system
expected diurnal load curve throughout the year
annual simulation of energy generation, storage and supply
analysis of willingness and ability to pay at customer level
customer tariff structure
presentation of the technical equipment and their codes or
standards
single-line diagram of the complete mini-grid and integration of
its technical components
presentation of the project realization timeline
risk and sensitivity analysis for volume tariffs Capex and Opex
presentation of Capex and Opex
calculation of levelised
cost of energy for the license period
financing plan for the license period
concept for commissioning and de-commissioning the mini-grid
concept to remove the installation and recycle the equipment
after the license term

                                8.2

                        Technical and Financial/Economic Assessment of the Application
                    
Once complete, ERB must assess the application for its technical and financial/economic justification as follows: 

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                8.2.1

                        Technical Assessment
                    
ERB carries out an on-site technical inspection
of the developed project. 

If the application is
technically compliant, ERB proceeds to next step, otherwise the developer must undertake remedial
actions as advised by ERB.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:10 days (subject to remedial actions required, if any)
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                8.2.2

                        Economic Assessment
                    
ERB completes an economic
assessment to assess whether the business plan is viable. If the application is not economically viable, the developer receives a not-justifiable notification from ERB and must undertake remedial actions
to justify the project. 

If the assessment is positive, the
developer must pay the corresponding processing fee.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:Processing fee, calculated at 0.1% of the investment cost of the envisaged investment. Minimum fee: 100,000 ZMW
  Duration:9 days (7 for financial/economic assessment and 2 for invoicing and payment)
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                8.3

                        Issuance of Provisional Licence 
                    
Subject
to the payment of the processing fee, ERB proceeds with issuing of the provisional
licence, which is valid for six (6) months and allows the developer to commission the project. 
In parallel, ERB submits the application for publication in
the Governmental Gazette for 30 days in
order to allow the public to comment or object to the project. 
After the prescribed 30-day period, if no adverse reports or objections are
received, ERB 
proceeds with issuing the licence.

If there are responses from
the public after ERB’s decision to issue the licence, the developer must address the comments.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:2 days to issue the provisional licence. 30 days for advertisement of the licence application.
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                8.4

                        Issuance of Standard Licence
                    
Subject to the developer addressing any comments
received in the previous steps, ERB proceeds with the
following:

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                8.4.1

                        Legal Assessment
                    
ERB ensures that the developer meets all legal
and regulatory requirements.
If the applicant does not meet all legal and
regulatory requirements, then the application is rejected. The applicant may appeal
to Court.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                8.4.2

                        Issuance of Standard Licence
                    
If the developer meets all legal and regulatory
requirements, then ERB issues the standard licence. The developer must pay the corresponding licence fee. 
The duration of validity of the standard
licence is 30 years. 

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:Annual fee over the validity period of the license, calculated at 0.7% of annual gross turnover. Each yearly amount is paid in 12 monthly installments during the respective year
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:

Off-grid electricity generation for own use

Up to 100kW
100kW or higher

Off-grid electricity generation for own use, with an installed capacity of up to 100kW,

is exempt from the requirement to obtain a licence from the Energy Regulation Board.

However, the developer still needs to obtain all other applicable licences and permits, as presented in the steps below.

Own use of electricity in the above context means that the electricity can only be used by those who produced it and is not transferable either commercially or on an in kind basis.

Required/Supporting Documentation:
Key facts
Prerequisites / Conditionalities:
Cost:
Duration:
Competent Authority:
Issuing Authority:

                
                                1

                        Business Registration
                    
Companies in Zambia are required to be registered with the Patents and Companies Registration Agency. The Agency administers the relevant matters on the basis of the Companies Act, which provides for the incorporation, management, administration and winding up of companies, including registration of their names. The Act also provides for the registration of foreign companies doing business in Zambia. 
Currently there are no local ownership requirements for registering a business in Zambia. However, as per section 208 of the Act, more than half of the directors of a company must be resident in the country. 

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                2

                        Securing Land
                    
Securing land is an important step of the project
development process. There are two categories of land in Zambia: 
Customary land, comprising about 94% of land in Zambia, is held under customary tenure and falls
under the jurisdiction of Zambia’s traditional authorities, the Chiefs. 
Statutory (or state) land, which comprises around 6% of
land, is governed and administered by a number of statutory institutions,
including the Ministry of Lands, Natural Resources and Environmental Protection
(MLNREP), the Forestry Department, and local authorities. The land is zoned
into residential, commercial or industrial use by the District Councils,
according to their jurisdictions. It may be held under long-term, renewable
leases of up to 99 years.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:Ministry of Lands, Natural Resources and Environmental Protection, District Councils or Customary Chiefs
  Issuing Authority:

              Required/Supporting Documentation:
        
                                2.1

                        Acquisition of Customary Land
                    
In order to acquire land in a customary area, the following is required:
Written consent of the area Chief
Approval of the District Council in the area
Additional approval from the Director of National Parks and Wildlife, if the land is in a game management area 
These approvals should be submitted to the relevant District Council, which in turn will submit the documents to the Commissioner of Lands. The Commissioner will then make a formal offer to the applicant. The letter of offer will stipulate, among other conditions:
Consideration fee – This is not a fixed amount and is dependent on locality, services provided by the state or council, and other related factors.
Survey requirements – This can be carried out by a private or government surveyor. Submission of a diagram or plan attached to the lease agreement is a mandatory requirement prior to issuance of certificate of title.
Preparation fee – The Commissioner of Lands charges fees to prepare leases, which are fixed through statutory instruments but are subject to change.
Registration fee – The Lands and Deeds Registry charges this fee before a lease is registered and the certificate issued.
Property transfer – This charge is currently 10% of the value of land payable to the Zambia Revenue Authority by the vendor. No tax is payable where land is acquired from the state.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                2.2

                        Acquisition of State Land
                    
Acquisitions of designated state land require consent of the relevant District Council. Applications for land which does not fall within the jurisdiction of any council can be made directly to the Commissioner of Lands. The Commissioner will make a formal offer to the applicant, which will contain conditions similar to offers for land situated in a customary area.
Privately-held land can be bought and sold, with title deed transfer issued by the Commissioner of Lands. In all instances the vendor must obtain state consent before the title deed can pass to the purchaser. If consent is not granted within 45 days of filing, the application is deemed to be granted. If consent is refused, the reasons for refusal must be furnished to the applicant within 30 days. Ten percent of the value of land is paid to the Zambia Revenue Authority by the vendor as property transfer tax. Such land is under leasehold tenure with a maximum lease of 99 years from the state.
A non-Zambian can acquire state land in the following cases:
They hold permanent residency in Zambia
If they are an investor within the meaning of the Zambia Development Agency Act or any other law pertaining to investment in Zambia
In exceptional cases, by Presidential consent in writing
Under a short term tenancy of not more than 5 years﻿
If granted a concession or right under the National Parks and Wildlife Act
In the case of a registered company with no less than 75% Zambian shareholding, the title deed will be issued in the name of the registered company.
Before land can be bought or sold, state consent must be obtained from the Commissioner of Lands. If consent is not granted within 45 days of filing the application, the application is deemed to be granted. If consent is refused, the reasons for refusal must be furnished to the applicant within 30 days.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                3

                        Clearance from Department of National Parks & Wildlife
                    
If a proposed development site is located within a Game
Management Area (GMA) or a National Park, the developer must submit an
application to the Director of National Parks & Wildlife requesting
clearance.  

Prior to clearance, the Department of National Parks & Wildlife performs a
site inspection. The clearance may contain conditions for land use on the basis
of the general management plan applicable for the National Parks and GMAs. The
developer must comply with these conditions.

﻿

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:None
  Duration:Approximately 2 weeks
  Competent Authority:Department of National Parks & Wildlife
  Issuing Authority:

              Required/Supporting Documentation:
        
                Letter of consent from the local Chief if the project site is
within a GMA (customary land), but not required if within a National Park
(state land)

﻿

                                4

                        Concession from National Heritage Conservation Commission
                    
If the project site is within a protected cultural
heritage area, the developer must apply for a concession from the National
Heritage Conservation Commission. All waterfalls in Zambia are designated as
heritage areas.

The conditions of the concession are negotiable between the National
Heritage Conservation Commission and the developer.
﻿

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:Annual fee calculated at ZMW 0.25 per square meter of the concession area (or as negotiated with the Commission)
  Duration:
  Competent Authority:National Heritage Conservation Commission
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5

                        Environmental Permitting
                    
A developer (i.e., the entity that is proposing the project
and will be developing it)
cannot implement a project until the Zambia Environmental Management Agency
(ZEMA) has granted a no objection letter with conditions for the project. ZEMA may also request a more streamlined Environmental Project Brief (EPB) or a more thorough an Environmental Impact Statement (EIS). In such cases, the developer is informed through a response letter. ﻿

The
process is presented below:

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.1

                        Environmental Screening of a Project
                    
The developer must submit information on the proposed project to ZEMA for environmental screening. Information to be provided includes:
Type of technology to be used
Planned generation capacity
Location of the plant
ZEMA will review the submitted information and inspect the deisgnated project area, if considered necessary

Based on its findings ZEMA either:
Issues a no objection letter to the developer with conditions with which the developer should comply; or 
Issues a response letter to the developer stating that further environmental assessment is needed through an EPB or EIS.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:None (except costs for the on-site inspection, if such inspection is performed)
  Duration:Approximately five (5) working days (longer if on-site inspection is required)
  Competent Authority:ZEMA
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.2

                         Environmental Project Brief
                    
If ZEMA’s decision requires environmental
assessment through an EPB, the process is as
follows:

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:12,999.90 ZMW
  Duration:40 days from submission of final report
  Competent Authority:ZEMA
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.2.1

                        Submission of Draft EPB
                    
The developer must submit a draft EPB developed in accordance with the respective template.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
EPB template: http://www.zema.org.zm/index.php/services/procedures/environmental-assessment-formats/# 
                
                                5.2.2

                        Review and Revision of EPB
                    
ZEMA reviews the draft EPB and responds to the developer within 14 days. In case of comments, the developer must  submit a revised EPB addressing the comments received.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.2.3

                        Submission of Final EPB to ZEMA
                    
The developer must 
submit  six (6) hard copies of the finalised EPB to ZEMA, who then forwards the EPB to
 the authorizing agencies relevant to the project,
 within seven (7) days.

The authorizing 
agencies have 30 days to review the EPB and notify ZEMA 
of any comments.  If no comments are received, the EPB is considered complete. 

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.2.4

                        Issuance of Decision Letter
                    
ZEMA assesses the EPB and any comments received and issues a decision letter approving or rejecting the project. 

In case of approval, the decision letter includes the terms with which the developer should comply. 

In case of rejection, the developer may appeal to the Minister for Water Development, Sanitation and Environmental Protection within 30 days, and in case it is rejected again, to the High Court of Zambia.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.3

                        Environmental Impact Statement
                    
If ﻿ZEMA’s decision requires
environmental assessment through an EIS, the process below is followed:

The fees to be paid to ZEMA for the ﻿EIS are calculated on the basis of the project investment, as per the table here: https://tinyurl.com/y4qam8l6

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:See Table in text above
  Duration:65 working days from date of submission of final EIS if no public hearing takes place
  Competent Authority:ZEMA
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.3.1

                        Preparation of a Scoping Report and Public Consultation
                    
The
developer prepares a draft scoping report to support determining
the assessment of environmental impact of the project.
The developer carries
out a public consultation, involving governmental agencies, local authorities,
non-governmental and community-based organisations, and interested and affected
parties, to review the draft scoping report.

Taking into account the
results from the public consultation, a final scoping report is prepared.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
Template for the scoping report: ﻿http://www.zema.org.zm/index.php/services/procedures/environmental-assessment-formats/#%20%20- 
                
                                5.3.2

                        Preparation and Submission of Terms of Reference for the EIS
                    
On
the basis of the scoping report, the developer prepares the draft terms of reference for the
preparation of the EIS. 
The
draft terms and the scoping report are submitted to ZEMA for its review.  
Within a period of five (5) days
of their receipt, ZEMA determines whether the terms of reference are acceptable. If 
unacceptable, the developer must prepare the final terms of reference with ZEMA's
assistance.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
Terms of reference template: ﻿http://www.zema.org.zm/index.php/services/procedures/environmental-assessment-formats/# 
                
                                5.3.3

                        Submission of Names and Qualifications for the EIS
                    
Once all comments have been addressed and the
scoping report and terms of reference are considered complete, the developer must submit the
names and the qualifications of the people that will prepare the EIS to ZEMA. 
If
approved, the developer can proceed with preparing the EIS, if not, ZEMA must disclose
the reasons for rejection and request that another name be submitted.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.3.4

                        Preparation and Submission of Draft EIS 
                    
The EIS is prepared on the basis of the
approved terms of reference, taking into account the relevant guidelines. 
Once the draft is prepared, the developer
must take all measures necessary to seek the views of members of the
communities that will be affected by the project. 
The
developer must publicise the proposed project and its effects and benefits in the
mass media for a period not less than 15 days and at regular intervals
throughout the EIS process. 
After
the 15-day period, the developer must hold meetings with the affected
communities to present information on the project and to obtain their views.
Based on the findings of these activities, the EIS process is concluded and the report is submitted to ZEMA in twelve (12) hard copies and one (1) soft copy. ZEMA then conducts a physical site verification inspection. 

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
Template for the EIS report: ﻿http://www.zema.org.zm/index.php/services/procedures/environmental-assessment-formats/# 
                
                                5.3.5

                        Review of draft EIS
                    
Within seven (7) days of receipt of the draft EIS, ZEMA forwards a copy of the statement to the authorizing agencies relevant to the project for comments, and the authorizing agencies have 30 days to make comments. 

ZEMA also distributes copies of the EIS to relevant ministries and the local government; places copies of the EIS in public buildings in the vicinity of the site of the proposed project; and places a notification in at least two (2) national newspapers three (3) times a week for two (2) consecutive weeks.

Any person wishing to comment on the draft EIS must submit comments to ZEMA within 20 days of the last notification issued.

Based on the results of these activities, ZEMA determines whether it will issue a decision letter or hold a public hearing.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.3.6

                        Decision Letter by ZEMA 
                    
ZEMA decides on the acceptance of the project or not
under the criteria described under Statutory Instrument No. 28
of 1997 The Environmental Protection and Pollution Control (EIA) Regulations.﻿

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                6

                        Water Use Permitting for Hydro Power Generation
                    
For hydropower projects, including mini-hydro projects, the developer must acquire a water use permit issued by the Water Resources Management Authority (WARMA).

The process is as follows:

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:Estimated at up to 60 days
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                6.1

                        Application for Water Permit
                    
The developer  must prepare and submit two (2) hard copies of the water permit application form to WARMA. 

The application may be submitted to WARMA headquarters, the relevant catchment or sub-catchment offices, or nearest WARMA office when these are absent. Contact details are available at: http://www.warma.org.zm/warma-about-us/contact/

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:Estimated at up to 60 days
  Competent Authority:WARMA headquarters or regional branches 
  Issuing Authority:

              Required/Supporting Documentation:
        
Application template: http://www.wrmtest.com/wp-content/uploads/2018/07/Form_B_APPLICATION_FOR_THE_TERTIARY_USE-2.pdf 
Title deed if the project is located on state land, or Letter of Consent from the Chief/Traditional Leader if the project is located on customary land
Design drawings and reports providing further information on the project design
Environmental Project Brief or Environmental Impact Statement

                                6.2

                        Assessment of the Application
                    
The assessment of the application is performerd as per the following steps:

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:Application Fee: 5,000 ZMW (for generation capacity up to 10MW) OR 999.99 ZMW (from 10MW up to 250MW). Fee is to be paid once the Application is found complete by WARMA.
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                6.2.1

                        Review for Completeness
                    
WARMA headquarters or the relevant catchment or sub-catchment regional branch reviews the application for completeness. If incomplete, WARMA provides the necessary feedback to the developer until the application is complete. 

Once the application is found complete by WARMA, the developer should pay the application fee before proceeding to the steps below.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                6.2.2

                        Advertisement of the Application
                    
Once the application fee is
paid, the developer must advertise the water permit application in a daily national
newspaper for 30 days. In parallel with the advertisement, WARMA
notifies parties that are likely to be affected by the project. 
In case objections are raised by affected parties within the aforementioned 30 days, WARMA calls a public hearing to try to secure a consensus or compromise where there are conflicting interests or
activities from other parties concerning the water use or the hydro
plant installation area.  
In case a consensus (as determined by WARMA) cannot be reached during the
public hearing, the assessment
of the application may be terminated. 
 
        Key facts 
  Prerequisites / Conditionalities:The application fee has been paid
 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                6.2.3

                        On-site Inspection
                    
Once the application is
complete and any objections raised are addressed, a WARMA engineer visits the
site, carries out an on-site assessment, and prepares a relevant report.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                6.2.4

                        Technical Committee Assessment
                    
Following the on-site
inspection, WARMA assigns a Technical Committee to assess the application and submit
its recommendation regarding the awarding of the permit to the Board of WARMA.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                6.3

                        Issuance of the Water Permit
                    
After reviewing the application, supporting
documents and recommendation of the Technical Committee, the WARMA Board makes
a decision and notifies the applicant accordingly.
WARMA issues an invoice and once the requisite
fee (see below) is paid by the applicant, the water permit is issued.
In case the Board does not approve the
application, the developer can appeal to the Ministry of Water.
Following the issuing of the water permit, an annual fee is payable calculated as follows:
Access charge per kW of installed capacity: 2.529976 Unit fees (approximately 0.759 ZMW)
Usage per kWh generated: 0.003069 Unit fees (approximately 0.000921 ZMW)
In case of a cascade of any installed capacity, the fee per kWh generated is: 0.002534 Unit fees (approximately 0.076 US cents or 0.000760 ZMW)
Note:   The first payment of the above is due upon the
issuing of the water permit.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:

The process for obtaining a licence for off-grid generation of electricity for own use, with an installed capacity of 100kW or higher, is accomplished following the steps below.

In the above context, own use of electricity means that the electricity generated can only be used by those who produce it, and it is not transferable either commercially or on an in kind basis.

Required/Supporting Documentation:
Key facts
Prerequisites / Conditionalities:
Cost:
Duration:
Competent Authority:
Issuing Authority:

                
                                1

                        Business Registration
                    
Companies in Zambia are required to be registered with the Patents and Companies Registration Agency. The Agency administers the relevant matters on the basis of the Companies Act, which provides for the incorporation, management, administration and winding up of companies, including registration of their names. The Act also provides for the registration of foreign companies doing business in Zambia. 
Currently there are no local ownership requirements for registering a business in Zambia. However, as per section 208 of the Act, more than half of the directors of a company must be resident in the country. 

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                2

                        Securing Land
                    
Securing land is an important step of the project
development process. There are two categories of land in Zambia: 
Customary land, comprising about 94% of land in Zambia, is held under customary tenure and falls
under the jurisdiction of Zambia’s traditional authorities, the Chiefs. 
Statutory (or state) land, which comprises around 6% of
land, is governed and administered by a number of statutory institutions,
including the Ministry of Lands, Natural Resources and Environmental Protection
(MLNREP), the Forestry Department, and local authorities. The land is zoned
into residential, commercial or industrial use by the District Councils,
according to their jurisdictions. It may be held under long-term, renewable
leases of up to 99 years.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:Ministry of Lands and Natural Resources, District Councils or Customary Chiefs
  Issuing Authority:

              Required/Supporting Documentation:
        
                                2.1

                        Acquisition of Customary Land
                    
In order to acquire land in
a customary area, the following is required:

Written consent of the area Chief
Approval
of the area District Council
Additional
approval from the Director of National Parks and Wildlife, if the land is in a Game Management Area

Once these approvals are obtained, they should be
submitted to the relevant District Council, which in turn will submit the
documents to the Commissioner of Lands. The Commissioner will then make a formal
offer to the applicant stipulating other
conditions:
Consideration fee – This is not a fixed
amount and is dependent upon locality, services provided by the state or
council and other related factors.
Survey requirements – This can be carried out
by a private or government surveyor. Submission of a diagram or plan attached to
the lease agreement is a mandatory requirement prior to issuance of the certificate
of title.
Preparation fee – The Commissioner
of Lands charges fees to prepare leases, which are fixed through
statutory instruments but subject to change.
Registration fee – The Lands and
Deeds Registry charges this fee before the lease is registered and the certificate issued.
Property transfer – The vendor pays 10% of the
value of land to the Zambia Revenue Authority. No tax is
payable where land is acquired from the state.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                2.2

                        Acquisition of State Land
                    
Acquisitions of designated state land require consent of the relevant District Council. Applications for land which does not fall within the jurisdiction of any council can be made directly to the Commissioner of Lands. The Commissioner will make a formal offer to the applicant, which will contain conditions similar to offers for land situated in a customary area.
Privately-held land can be bought and sold, with title deed transfer issued by the Commissioner of Lands. In all instances the vendor must obtain state consent before the title deed can pass to the purchaser. If consent is not granted within 45 days of filing, the application is deemed to be granted. If consent is refused, the reasons for refusal must be furnished to the applicant within 30 days. Ten percent of the value of land is paid to the Zambia Revenue Authority by the vendor as property transfer tax. Such land is under leasehold tenure with a maximum lease of 99 years from the state.
A non-Zambian can acquire state land in the following cases:
They hold permanent residency in Zambia
If they are an investor within the meaning of the Zambia Development Agency Act or any other law pertaining to investment in Zambia
In exceptional cases, by Presidential consent in writing
Under a short term tenancy of not more than 5 years
If granted a concession or right under the National Parks and Wildlife Act
In the case of a registered company with no less than 75% Zambian shareholding, the title deed will be issued in the name of the registered company.
Before land can be bought or sold, state consent must be obtained from the Commissioner of Lands. If consent is not granted within 45 days of filing the application, the application is deemed to be granted. If consent is refused, the reasons for refusal must be furnished to the applicant within 30 days.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                3

                        Clearance from Department of National Parks & Wildlife
                    
If a proposed development site is located within a Game
Management Area (GMA) or a National Park, the developer must submit an
application to the Director of National Parks & Wildlife requesting
clearance.  

Prior to clearance, the Department of National Parks & Wildlife performs a
site inspection. The clearance may contain conditions for land use on the basis
of the general management plan applicable for the National Parks and GMAs. The
developer must comply with these conditions.

﻿

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:None
  Duration:Approximately 2 weeks
  Competent Authority:Department of National Parks & Wildlife
  Issuing Authority:

              Required/Supporting Documentation:
        
                Letter of consent from the local Chief if the project site is
within a GMA (customary land), but not required if within a National Park
(state land)﻿

                                4

                        Concession from National Heritage Conservation Commission
                    
If the proposed project site is within a protected cultural heritage area, the developer must apply for concession to the National Heritage Conservation Commission. All waterfalls in Zambia are designated as heritage areas.

The conditions of the concession are negotiable between the Commission and the developer.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:Annual fee calculated at ZMW 0.25 per square meter of the concession area (or as negotiated with the Commission)
  Duration:
  Competent Authority:National Heritage Conservation Commission
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5

                        Environmental Permitting
                    
A developer (i.e., the entity that is proposing and will be developing the project)
cannot implement a project until the Zambia Environmental Management Agency
(ZEMA) has granted a no objection letter with conditions for the project. ZEMA may also request a more streamlined Environmental Project Brief (EPB) or a more thorough an Environmental Impact Statement (EIS). In such cases, the developer is informed through a response letter. ﻿ 

The
process is presented below.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.1

                        Environmental Screening of a Project
                    
The developer must submit information on the proposed project to ZEMA for environmental screening. The information to be provided includes:
Type of technology to be used
Planned generation capacity
Location of the plant
ZEMA will review the submitted information and will inspect the deisgnated project area, if considered necessary.

On the basis of the findings from the above, ZEMA either:
Issues a no objection letter to the developer with conditions with which the developer should comply; 
Issues a response letter to the developer stating that further environmental assessment is needed through an EPB or EIS.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:None (except costs for the on-site inspection, if such inspection is performed, and which are borne by ZEMA through statutory fees that the developer pays)
  Duration:Approximately five (5) working days (longer if on-site inspection is required)
  Competent Authority:ZEMA
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.2

                        Environmental Project Brief
                    
If ZEMA’s decision requires environmental
assessment through an EPB, the process is as
follows:

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:12,999.90 ZMW
  Duration:40 days from submission of final report
  Competent Authority:ZEMA
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.2.1

                        Submission of Draft EPB
                    
The developer must submit a draft EPB developed in accordance with the respective template.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
EPB template: http://www.zema.org.zm/index.php/services/procedures/environmental-assessment-formats/# 
                
                                5.2.2

                        Review and Revision of EPB
                    
ZEMA reviews the draft EPB and responds to the developer within 14 days. In case of comments, the developer must submit a revised EPB to ZEMA addressing the comments received.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.2.3

                        Submission of Final EPB
                    
The developer must 
submit six (6) hard copies and one (1) soft copy of the finalised EPB to ZEMA. ZEMA then forwards the EPB to
 the authorizing agencies relevant to the project within seven (7) days of receiving the EPB. ZEMA then conducts a physical site inspection.

The authorizing 
agencies have 30 days to review the EPB and notify ZEMA 
of any comments.  If no comments are received, the EPB is considered complete. 

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.2.4

                        Issuance of Decision Letter
                    
ZEMA assesses the EPB and any comments received and issues a decision letter approving or rejecting the project. 

In case of approval, the decision letter includes the terms with which the developer must comply. 

In case of rejection, the developer may appeal to the Minister for Water Development, Sanitation and Environmental Protection within 30 days, and in case it is rejected again, to the High Court of Zambia.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.3

                        Environmental Impact Statement
                    
If ﻿ZEMA’s decision requires
environmental assessment through an EIS, the process below is followed:

The fees to be paid to ZEMA for the ﻿EIS are calculated on the basis of the project investment, as per the table here: https://tinyurl.com/y4qam8l6

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:See Table in text above
  Duration:65 working days from date of submission of final EIS if no public hearing takes place
  Competent Authority:ZEMA
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.3.1

                        Preparation of a Scoping Report and Public Consultation
                    
The
developer prepares a draft scoping report to support the assessment of environmental impact of the project.
The developer then carries
out a public consultation to review the draft report, involving governmental agencies, local authorities,
non-governmental and community-based organisations, and interested and affected
parties.

Taking into account the
results from the public consultation, a final scoping report is prepared.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
Template for the scoping report: http://www.zema.org.zm/index.php/services/procedures/environmental-assessment-formats/#%20%20- 
                
                                5.3.2

                        Submission of Terms of Reference for the EIS
                    
The developer prepares the draft terms of reference for the
preparation of the EIS based on the findings in the scoping report. 
The
draft terms of reference and the scoping report are submitted to ZEMA for review.  
Within five (5) days of their receipt, ZEMA must determine whether the terms of reference are acceptable. If 
unacceptable, the developer must prepare the final terms of reference with ZEMA's
assistance.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
Template for the terms of reference: http://www.zema.org.zm/index.php/services/procedures/environmental-assessment-formats/# 
                
                                5.3.3

                        Submission of Names and Qualifications for the EIS
                    
Once all comments have been addressed and the
scoping report and terms of reference are considered complete, the developer must submit the
names and the qualifications of the people that will prepare the EIS to ZEMA. 
If
approved, the developer can proceed with preparing the EIS. If not, ZEMA shall
state the reasons for the rejection and request that another name be submitted.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.3.4

                        Preparation and Submission of Draft EIS 
                    
The EIS is prepared on the basis of the
approved terms of reference, taking into account the relevant guidelines. 
Once the draft EIS is prepared, the developer
must take all measures necessary to seek the views of members of the
communities that will be affected by the project. 
The
developer must publicise the proposed project and its effects and benefits in the
mass media for a period not less than 15 days and at regular intervals
throughout the EIS process. 
After
the 15-day period, the developer must hold meetings with the affected
communities to present information on the project and to obtain their views.
Based on the findings above, the EIS is concluded and submitted to ZEMA in twelve (12) hard copies and one (1) soft copy. ZEMA then conducts a physical site verification inspection. 

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
Template for the EIS report: ﻿http://www.zema.org.zm/index.php/services/procedures/environmental-assessment-formats/# 
                
                                5.3.5

                        Review of Draft EIS
                    
Within seven (7) days of receipt of the draft EIS, ZEMA forwards a copy of the statement to the authorizing agencies relevant to the project for comments, and the authorizing agencies have 30 days to make comments. 

ZEMA also distributes copies of the EIS to relevant ministries and the local government; places copies of the EIS in public buildings in the vicinity of the site of the proposed project; and places a notification in at least two (2) national newspapers three (3) times a week for two (2) consecutive weeks.

Any person wishing to comment on the draft EIS must submit comments to ZEMA within 20 days of the last notification issued.
Based on the results of these activities, ZEMA determines whether it will issue a decision letter or hold a public hearing.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                5.3.6

                        Decision Letter by ZEMA 
                    
ZEMA decides on the acceptance of the project using the criteria described in Statutory Instrument No. 28
of 1997 The Environmental Protection and Pollution Control (EIA) Regulations.

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                6

                        Water Use Permits for Hydro Power Generation
                    
For hydropower projects, including mini-hydro projects, the developer must acquire a water use permit issued by the Water Resources Management Authority (WARMA).

The process is as follows:

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:Estimated at up to 60 days
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:
        
                                6.1

                        Application for Water Permit
                    
The developer  must prepare and submit two (2) hard copies of the water permit application form to WARMA headquarters, the relevant catchment or sub-catchment offices or the nearest WARMA office (when they are absent). Contact details are available at: http://www.warma.org.zm/warma-about-us/contact/

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:
  Duration:Estimated at up to 60 days
  Competent Authority:WARMA headquarters or regional branches 
  Issuing Authority:

              Required/Supporting Documentation:
        
Application template http://www.wrmtest.com/wp-content/uploads/2018/07/Form_B_APPLICATION_FOR_THE_TERTIARY_USE-2.pdf 
Title deed (if located on state land) or letter of consent from the chief/traditional Leader (if the  located in customary land)
Design drawings and reports providing further information on the project design
Environmental Project Brief or Environmental Impact Assessment﻿

                                6.2

                        Assessment of the Application
                    
The assessment of the application is performed as per the following steps:

        Key facts 
  Prerequisites / Conditionalities: 
  Cost:Application fee: 5,000 ZMW (for generation capacity up to 10MW) OR 999.99 ZMW (from 10MW up to 250MW). Fee is to be paid once the application is found complete by WARMA.
  Duration:
  Competent Authority:
  Issuing Authority:

              Required/Supporting Documentation:

Required/Supporting Documentation:
Key facts
Prerequisites / Conditionalities:	Application fee has been paid.
Cost:
Duration:
Competent Authority:
Issuing Authority:

Required/Supporting Documentation:
Key facts
Prerequisites / Conditionalities:	Processing fee, calculated at 0.1% of the investment cost of the envisaged investment. Minimum fee: 100,000 ZMW
Cost:
Duration:	9 days (7 for financial/economic assessment and 2 for invoicing and payment)
Competent Authority:
Issuing Authority:

Required/Supporting Documentation:
Key facts
Prerequisites / Conditionalities:	Application fee has been paid
Cost:
Duration:
Competent Authority:
Issuing Authority:

Required/Supporting Documentation:
Key facts
Prerequisites / Conditionalities:	The application fee must have been paid
Cost:
Duration:
Competent Authority:
Issuing Authority:

Required/Supporting Documentation:
Key facts
Prerequisites / Conditionalities:	The application fee has been paid
Cost:
Duration:
Competent Authority:
Issuing Authority: