The Lesotho Government has signed a loan agreement worth about M70million for Metolong Dam Project with the Arab Bank for Economic Development in Africa (BADEA) at the Ministry of Finance and Development Planning on Monday.

Dr. 'Mamphono Khaketla signed on behalf of the government, while Mr. Ahmed Abdallah Al-Akeil signed on behalf of BADEA.

Speaking at the occasion, Dr. Khaketla on behalf of the Minister of Finance and Development Planning, said the signing of the financing with BADEA has come at a critical time when Lesotho is now struggling to find ways to sustain the livelihoods of its population of 1.8 million.

She described Metolong dam project as a fast-tracked component of the lowlands water supply scheme, which focuses on the growing water demand in the whole of the lowlands of Lesotho.

She added that the most pressing water supply needs are in the Maseru district, where rapid growth of industry has occurred, providing many job and poverty alleviation opportunities.

'It is therefore clear that without reliable water supplies, the national industrial growth programme will falter, and investors will likely go elsewhere, leaving a huge hole in Lesotho's current and future economic and social development,' she said.

She urged other Arab donors that have not signed to do so for speedy implementation of the Metolong dam project.

The Chairman of the Board of BADEA, Mr. Al-Akeil said the money comes as a response to the government of Lesotho priorities and promises to contribute to the socio-economic development of the country through provision of water for residential and industrial areas of Maseru.

He said the Metolong dam project comes as an addition to a series of operations that BADEA has funded in Lesotho and to further strengthen the BADEA and Lesotho cooperation.

Beside Metolong project, BADEA is also funding the extension of Maseru's water services feasibility study and design of the water and sanitation needs of five other towns outside of Maseru.

SOURCE: LENA 30/07/2007