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ADF Board Approves US$ 73 million loan
Tunis, 21 December, 2005 – The African Development Fund (ADF) will make available UA 51 million (approximately 73 million dollars or 155 billion Ariary) to the government of Madagascar to finance its national rural drinking water and sanitation supply (DWSS) programme. The ADF Board approved the amount during its weekly meeting in Tunis today.
The objective of the ten-year DWSS program (2005 – 2015) is to improve living conditions by providing sustainable drinking water and sanitation services to the population as part of efforts to meet the Millennium Development Goals (MDGs) for the sector. The program expects to increase access rates in the rural areas from 17 percent in 2005 to 26 percent in 2008 for drinking water and from 9 percent to 15 percent for sanitation during the same period.
Consistent with the national plan for the water and sanitation supply in the rural areas, the government and the ADF drew up a UA 60 million short-term development programme which will be financed by the ADF resources (85%), the government (14%) and the beneficiary communities (1%).
The main programme beneficiaries will be households, schools, community health centres, and public markets where drinking water and sanitation facilities will be built. Among the target population, nearly 1.5 million are expected to have first-time access to drinking water and about a million to sanitation services.
In 2004, Madagascar had a population of about 16.9 million, including 72 percent in the rural area. It is estimated that over 71 percent of the Malagasy people have no access to drinking water and about 87 percent do not have adequate sanitation services.
The African Development Bank last year launched a Rural Water Supply and Sanitation Initiative that aims to improve access to drinking water and sanitation in rural regions of the continent as part of the Africa Water Vision. The Initiative began in an initial group of five countries. Madagascar is among the second group of countries.
Cumulative lending by the African Development Bank Group to Madagascar is US$ 820 million for 75 operations.
* UA 1 = US$ 1.42414 = MGA 3 046.72 as at 01/12/2005