ADFD provides Dhs73m to finance water supply system in Lesotho

Abu Dhabi Fund for Development (ADFD), the leading national entity for economic development, signed an agreement with the Government of Lesotho to provide Dhs73 million ($20 million) to finance the development of a water supply system in the Butha-Buthe District in Lesotho.

The loan agreement was signed by Mohammed Saif Al-Suwaidi, Director General of ADFD, and 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 per cent while contributing to job creation and economic development in the district.

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, 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 revitalise societies.

He said: “The loan agreement will help us to mitigate the water supply challenges that Lesotho faces and enable us to modernise 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 metres per day as well as a water treatment and purification plant with a capacity of 45,000 cubic metres 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 Dhs84 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.

Earlier the UAE and the International Renewable Energy Agency (IRENA) announced the launch of the global platform on the sidelines of COP26, in Glasgow, the United Kingdom.

The UAE committed $400 million in funding provided by the Abu Dhabi Fund for Development (ADFD) toward the platform’s goal of securing a minimum of $1 billion in total funding.

Sheikh Abdullah bin Zayed Al Nahyan said, “The new ETAF platform reinforces our long-standing commitment to support positive climate action in developing and vulnerable countries. As a signatory to the United Nations Framework Convention on Climate Change (UNFCCC), the UAE fundamentally believes, we must work together globally, in partnerships, to mitigate the effects of climate change. The UAE is proud to act decisively in pushing forward a responsible, sustainability-led agenda, and in assisting other nations to benefit from the significant advantages of renewable energy.”

Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and UAE Special Envoy for Climate Change, said, “The UAE views development aid and climate action as powerful catalysts for economic growth, both domestically and internationally. Today’s announcement will help to advance the economies of partner countries by providing reliable, low-cost renewable energy for businesses, industry, and homes. We are proud of this significant new contribution by the Abu Dhabi Fund for Development to accelerate climate action and deliver immediate economic benefits in the process. This is the kind of initiative that combines partnership, policy and finance to create tangible progress and it is this focus on practical results that has motivated the UAE to offer to host COP 28 in 2023.”

Through co-financing, ETAF will aim to mobilise an additional US$2 billion in energy transition investments, targeting a total deployment of 1.5 GW of clean renewable energy generation and storage by 2030. ETAF will be managed by IRENA from its Abu Dhabi headquarters, capitalising on the UAE’s climate finance market and renewable energy innovation infrastructure.