The Minister of Finance and Development Planning signed the last financing agreement for the Metolong Water Project with Saudi Arabia's Fund for Development, in the amount of 70 million Maloti.

Dr Timothy Thahane said the concessional loan, signed on Saturday in Riyadh, will be paid over a period of 20 years beginning in 2013 and cost government two percent finance charge.

Dr Thahane says other financiers of the project include the Arabian Development Bank (BADEA), the Millennium Challenge Corporation and the Lesotho government.

He said government's 70 million Maloti grant is to finance construction of access roads and clinics, work that is already underway. He said the initial phase of the project, which entails dam construction, is expected to be completed in 2009.

The minister added that government will put in place measures to counter massive corruption in the administration of the project, such as the one that has become synonymous with the Lesotho Highlands Water Project. He said financial management and control systems will be adopted to discourage the graft.

Dr Thahane made this announcement when addressing the media at the ministry's headquarters in Maseru on Wednesday.

The Metolong water project has been described 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.

It is expected to enhance supply and availability of water for domestic and industrial purposes in Maseru, as well as some neighbouring towns of Teyateyaneng, Roma and Morija.

Source: LENA 31/10/2007