The Government of Lesotho and the World Bank have signed a loan agreement for the financing of Phase II of the Health Sector Reform Project. Phase I is to come to an end in March, 2006.

The Minister of Finance and Development Planning, Mr. Timothy Thahane signed on behalf of the Lesotho government while World Bank Country Director, Ms Ritva Reinikka signed the M42.25 million agreement on behalf of the Bank.

Phase II, a three year project, will focus on improving delivery of health services at the district and community level, build on the human resource needs assessment and strategic plan developed in Phase I, improve efficiency of the financial management and planning sector, as well as supporting preparations to replace the Queen Elizabeth II hospital, according to Minster of Health, Dr. Motloheloa Phooko.

World Bank Country Director, Ms Ritva Reinikka, said commended the government of Lesotho for dealing with health issues strategically, especially when HIV/AIDS issue is another challenge facing the sector.

19 January 2006