About M2.5 billion (362.6 US million) Challenge Compact has been approved by the Board of Millennium Challenge Corporation (MCC) to reduce poverty and increase economic growth in Lesotho.

Accepting the offer, the Minister of Finance and Development Planning, Dr Timothy Thahane said Lesotho qualified for the grant as it falls amongst the least developed African countries.

He said, Lesotho has been selected amongst other least developed countries after demonstrating commitment to promote political and economic freedom. Other criteria used in the selection include investment in education and health, anti-corruption and respect of civil liberties and rule of law.

The minister indicated that through the compact, the country will implement projects on health sector. An allocation of M856.7 million will be used, among many other things, to renovate, among others, 150 health centres and to strengthen the health systems.

Also included in the package is Water Sector Project, which will receive about M1 billion for construction of the Metolong Dam to enhance rural and urban water supply.

"Private Sector Development Projects will be awarded M252, 7 million and this includes civil and legal reforms, land administration, and gender integration", the Minister said.

Mr. Thahane therefore assured that the implementation of projects is estimated to start next year, and promised that many people will be recruited to perform different jobs in these areas.

Speaking on behalf of the Millennium Challenge Corporation Board, the Acting Ambassador of the United States of America to Lesotho, Mr. Patrick Murphy, said the compact signifies strong confidence in the government of Lesotho and the country's potential.

Mr. Murphy said, "It will make a major investment in the nation's health care infrastructure, in strengthening human resources to fight against HIV/AIDS and to build a strong nation".

The Acting Ambassador said the MCC is a United States government corporation designed to work with the poorest countries in the world, adding that it is based on the principle that aid is most effective when it reinforces good governance, economic freedom and elimination of poverty.

SOURCE: LENA 28/06/2007