The European Investment Bank has approved a EUR 140 million loan for the EUR 282 million (US397.3 million) Metolong Dam and Water Supply Program in Lesotho, EIB reported.
The program is a key element in the Government of Lesotho's Poverty Reduction Strategy. The loan encompasses the Metalong Dam itself, along with related infrastructure, conveyance system, water treatment works, environmental and social management and institutional support. The European Investment Bank's support closes the funding needed to complete the project in its entirety using a local currency and long-term loan which is well suited to the project's long economic life, EIB said.
To be built on the Phuthitsana River near Metolong, Lesotho, Metolong Dam is a Lesotho Lowlands Water Supply project that is to supply domestic and industrial water to six lowland districts of Lesotho.
In other news, EIB recently confirmed it has stopped funding environmental and social impact studies for the Gibe III hydroelectric power project in Ethiopia, as the Ethiopian government has found alternative sources of finance.
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