A loan agreement for the financing of Metolong Water Supply Project of more that M42 million was signed in Vienna, Austria last week.

The agreement was signed by the Ambassador of Lesotho to Germany and Austria Dr Makase Nyaphisi and the Chairman of the Governing Board of the OPEC Fund for International Development Mr. Jamala Nasser Lootah.

The Loan will finance the construction of a 'Roller Compacted Dam' adjacent to the villages of Ha Seeiso and Metolong Ha Makotoko on the South Phuthiatsana River for water supply to Maseru, Mazenod, Roma and Morija.

During the signing ceremony, Dr Nyaphisi said 'the implementation of the project will contribute to improved water supply for industry and households in the lowlands'.

He added that the project implementation will also increase investment opportunities and alleviation of poverty through job creation and contribute to the improvement of quality of life in Maseru and environs.

He assured the Chairman of the Governing Board of OPEC Fund that the government of Lesotho in turning commitment to action through provision of water supply and sanitation, will implement the project with due diligence and efficiency and in conformity with sound administrative, financial and engineering practices.

Meanwhile, the Government of Lesotho and the Arab Bank for Economic Development In Africa (BADEA) also signed a loan agreement of about M70 million for the construction of Metolong Dam Project in July this year.

Source: LENA 08/09/2007