Lesotho – Lowlands Water Development and Sanitation Project – Phase III: Additional Financing

The Lesotho Lowlands Water Development and Sanitation Project – Phase III Additional Financing is an additional financing operation designed to scale up the ongoing Phase III project and extend climate-resilient water supply and sanitation services to three additional underserved localities in Butha-Buthe District, Lesotho. The additional financing will expand the water distribution network to Qalo (Kontsokoaneng), Butha-Buthe Industrial Area (Ha Majara Serutle), and Ha Mopeli (Nqabeni). It will finance approximately 171.3 km of water transmission and distribution pipelines, a 2,000 m³ service reservoir, seven pressure-break tanks, access roads to the reservoirs, network control chambers, and approximately 5,050 metered household connections serving 25 villages. It will also support the construction of 300 climate-resilient sanitation facilities, hygiene promotion, community mobilization, establishment and training of village water and health committees, water-resource monitoring and early-warning systems, institutional strengthening, and project management. The additional financing cost is estimated at approximately UA 11.11 million, equivalent to USD 15.34 million, financed by an ADF-16 loan of UA 10 million, or approximately USD 13.8 million, and an in-kind contribution from the Government of Lesotho of approximately UA 1.11 million, or USD 1.54 million. The initial Phase III project had an estimated cost of UA 87.19 million, equivalent to USD 117.71 million. In addition to the Bank’s initial financing of UA 10 million, the Bank mobilized approximately USD 94.2 million in co-financing from five Arab development partners: the Arab Bank for Economic Development in Africa – USD 20 million; Kuwait Fund for Arab Economic Development – USD 13 million; OPEC Fund for International Development – USD 30 million; Saudi Fund for Development – USD 11.2 million; and Abu Dhabi Fund for Development – USD 20 million. The executing agency is the Ministry of Natural Resources, through the Commissioner of Water and the existing Project Implementation Unit.