Contacts
In Washington: Gylfi Palsson (202) 473-6713
gpalsson@worldbank.org
In Maseru: Charles Annor-Frempong +266-22-21-7000
cannorfrempong@worldbank.org
WASHINGTON, October 19, 2006 – The World Bank Board of Executive Directors today approved an International Development Association (IDA) grant and credit of US$23.5 million (US$ 12.3 and US$ 11.2 million respectively) to support the Government of Lesotho’s integrated transport program. The World Bank project will contribute to the Government’s poverty reduction and economic growth strategy by improving access to basic services, markets and employment opportunities for rural and urban Basotho, as well as support the Government in improving its transport sector management.
The Integrated Transport Project will be co-financed by the European Union and the Government of Lesotho. The total estimated cost of the project is US$38.2 million, of which IDA will fund US$23.5 million, European Union €7.85 million (approximately US$9.5 million equivalent) and the Lesotho Government US$5.2 million.
“A reliable and cost-effective transport system underpins all other poverty reduction and development efforts. Poor access among Lesotho’s major regional centers and to remote populations in mountainous areas hinders social service delivery and in-country movements in support of democratization and decentralization. It also generates high transport costs, adversely affecting the welfare of the poor and reduces the competitiveness of Lesotho’s economy by driving up the price of such things as farm products, consumer goods and exports, and discouraging investment in non-farm income-generating activities, such as mining and tourism”, according to Gylfi Palsson, World Bank Task Team Leader for this project.
The Integrated Transport Project will support government priorities that include the improvement of institutional capabilities and management of transport programs, assets and services on a more commercial basis. The project will:
-
Assure connectivity between and within the regions, thus facilitating social service delivery and ongoing democratization and decentralization programs. One aspect will specifically contribute to the South Eastern Corridor through the construction of two bridges over the Senqu and Senqunyane rivers.
-
Support sector institutional and policy reforms, thereby contributing to more efficient and transparent use of public resources and governance reform programs.
-
Fund civil works, promoting labor-based methods and promoting sustainable road maintenance financing, thereby generating immediate and continuous employment opportunities.
The project complements other strategic objectives with a rich social and HIV/AIDS agenda. It is also consistent with the Africa Action Plan to raise agricultural productivity and to connect rural poor people to the rest of the economy through investments in roads.
For more information on the World Bank’s work in Lesotho, please visit
www.worldbank.org/lesotho
For more information on this project, please visit
http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=356029&menuPK=356063&Projectid=P075566
|
RSS