Reinforcing Road Infrastructure Network in Lesotho - ADF to Provide US$ 10.5 million in Supplementary Lending
Tunis, 4 December 2006 – The African Development Fund (ADF) will make available UA 6.83 million, equivalent to 10.5 million (LSL 69.68 million) in supplementary road project loan to the government of Lesotho. The ADF Board approved the loan during a weekly meeting on Monday in Tunis.
The ADF resources will fund the upgrading works on the Likalaneng-Thaba Tseka stretch of the Trans-Maloti highway – a vital link connecting Maseru, the capital city, and the towns of Likalaneng and Thaba Tseka to the sea port of Durban in South Africa. The road also connects poor rural mountainous areas to the productive lowlands of the country.
The new loan supplements a previous loan, approved in August 2003, of UA 10.3 million (LSL 121.29 million) to relieve pressure on the government’s budget due largely to high crude oil prices which translated to high local fuel and bitumen – essential inputs for road construction.
The project will include the upgrading of 85 km of existing gravel road to a bitumen road standard of a width of 7-metre carriageway and 1.0 meter paved shoulders on either side between Likalaneng and Thaba Tseka.
The AfDB Group began operations in Lesotho on 1974. The Bank’s cumulative commitments in the country currently stand at US$ 332.42 million in 57 operations.
* 1 UA = 1.50773 US$ = 10.7302 LSL as at 04/12/2006