28/05/2026
MANAGEMENT APPROVES LUANSHYA COUNCIL’S PARTICIPATION IN CDF SOLAR ENERGY PROJECT TAKEOFF UNDER ZNEC
By Gideon Thole
MAY 28, 2026.
LUANSHYA Municipal Council management has approved the Council’s implementation of the Presidential Constituency Energy Initiative (PCEI) and the use of part of Constituency Development Fund (CDF) allocations to finance solar energy plants construction by a Special Purpose Vehicle the Zambia National Energy Corporation (ZNEC).
During the Management Meeting Chaired by Town Clerk Collins Ndilema, it was resolved that Luanshya Municipal Council should participate in ZNEC, and the meeting also passed a formal Management Resolution authorizing investment in to the ZNEC.
The management meeting paved way for the Council’s facilitating for the implementation of the PCEI, which seek to construct two solar energy plants in Roan and Luanshya constituencies using 20 percent of this year’s CDF allocation.
The Council management’s decision follows Government’s decision to develop a 312 megawatt (MV) national decentralised electricity generation progrmmme, structured at 2 MV (two million watts), electricity production plants per constituency across all the 156 constituencies in the country.
The management meeting resolved to approve the construction of two solar energy plans,which will be situated in Maposa and Chawama areas in Roan and Luanshya constituencies respectively.
The implementation of the PCEI will be done by the ZNEC in partnership with Zambia Consolidated Copper Mines Investments Holdings (ZCCM-IH).
A Cabinet Meeting which was held on November 24, 2025, approved the development of the national decentralisation of electricity programmez, agreed on the following measures to ensure inclusive ownership and direct benefit to the constituencies:
That 40.5 % equity in ZNEC shall be held by the Minister responsible of finance on behalf of Finance, on behalf of the Ministry of Local Government and RuralDevelopment (Local Authorities)
That 50% equity shall be held by ZCCM-IH and 9.5 % shall be held by ZESCO.
According to a Circular Letter to Local Authorities, issued by Ministry of Local Government and Rural Development (MLGRD), Permanent Secretary (PS) in charge of Technical Services Nicholas Phiri, all Council's national wide are expected to facilitate for the take off of the solar energy plants creation.
Mr Phiri stated that in line with the CDF framework and objectives of promoting local economic development and infrastructure, Cabinet authorised the use of up to twenty percent (20%) of the 2026 CDF allocations to be utilized by each constituency as an equity contribution towards participation in ZNEC.
Mr Phiri explained that investment shall be treated as a long tern constituency asset capable of generating dividends and sustainable revenue for local development.
“The Minister of Finance shall hold the 40.5 % equity stake in trust on behalf of all the constituencies through the Constituency Energy Benefit Trust (CEBT).
Councils shall be beneficiaries, not direct shareholders and all dividends attribute to the 40.5% equity shall be distributed equally to constituencies through their respective. Councils.The arrangement ensures transparency, fiduciary protection and accountability,” the PS stated.
Mr Phiri added that the PCEI represents a strategic opportunity for constituencies to participate directly in national energy infrastructure, promotes, energy security and generate sustainable local revenue.
LMC PUBLIC RELATIONS UNIT.