ADFD Provides AED73 Million to Finance Water Supply System in Lesotho

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  • Project will provide 9,000 cubic meters of clean water per day, covering the water supply needs of the Butha-Buthe population and industrial sector through 2045
  • New water supply system to help reduce cases of water-borne illness and disease by 50%.

Abu Dhabi, United Arab Emirates: Abu Dhabi Fund for Development (ADFD), the leading national entity for economic development, signed an agreement with the Government of Lesotho to provide AED73 million (US$20 million) to finance the development of a water supply system in the Butha-Buthe District in Lesotho.

The loan agreement was signed by His Excellency Mohammed Saif Al-Suwaidi, Director General of ADFD, and His Excellency Thabo Sophonea, Lesotho’s Minister of Finance.

The water supply system will provide 9,000 cubic meters of clean water per day, enough to meet the water needs of the Butha-Buthe population and its industrial sector through 2045. This project, which is in line with the third and sixth goals of the Sustainable Development Goals and supports Lesotho’s strategic infrastructure development objectives, will help reduce cases of water-borne illness and disease due to water pollution by 50 percent while contributing to job creation and economic development in the district.

His Excellency Mohammed Saif Al-Suwaidi said: “This project contributes to the long-term water security of Lesotho while representing the Fund’s commitment to support the development of sustainable clean water sources and infrastructure in developing countries in line with the UN 2030 Agenda for Sustainable Development. It will provide a reliable clean water resource to meet multiple needs of the Butha-Buthe District’s residents, including improving water quality, safety and efficiency while supporting economic development of Lesotho.”

Commenting on the agreement, His Excellency Thabo Sophonea expressed his gratitude to the UAE and ADFD for their ongoing support of priority development projects in Lesotho. He also praised the pioneering role played by the Fund in assisting developing countries to achieve their development goals, support economic growth and help revitalize societies.

His Excellency said: “The loan agreement will help us to mitigate the water supply challenges that Lesotho faces and enable us to modernize the water supply system in Butha-Buthe, facilitate continuous access to clean water to meet the needs of the population in the district and enhance our capabilities to better manage our water resources.”

The project will include the construction of a water barrier and outlet on the Hololo River with a capacity of 76,000 cubic meters per day as well as a water treatment and purification plant with a capacity of 45,000 cubic meters per day. The project will also include installation of a network of water transmission and distribution lines with a total length of 350 km, 25 pumping stations and 42 water tanks to deliver clean water to residents of the district.

ADFD’s developmental activities in Lesotho began in 1978 with a total value of AED84 million financed by the Fund to date. Projects in the country supported by ADFD include the Metolong Dam project, Maseru International Airport and the engineering studies for the airport. 

About Abu Dhabi Fund for Development (ADFD):

Abu Dhabi Fund for Development (ADFD) is a leading national entity for economic development aid owned by the Abu Dhabi government. Established in 1971, it aims to help emerging countries by providing concessionary loans to finance sustainable development projects as well as administering long-term investments and direct contributions. In addition to managing development grants offered by the Abu Dhabi government, ADFD has adopted a policy of supporting the national economy. Since its inception, ADFD has marked developmental milestones in 97 developing countries. Spanning the last 50 years, the Fund’s development projects and investments, valued at more than AED150 billion, have helped the international community achieve sustainable economic growth as well as drive the implementation of the United Nations’ Sustainable Development Goals (SDGs).