Announcement of Botswana Using Twenty-Two Million Dollar Loan for Urban Water Supply on July 11, 1983

FOR IMMEDIATE RELEASE &vorld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 84/2 Contact: Pushpa Schwartz July 11, 1983 (202) 477-3294 BOTSWANA TO USE $22 MILLION LOAN FOR URBAN WATER SUPPLY The city of Gaborone, Botswana's capital, will have its water supply needs met up to 1988 through a third water supply project to be assisted with a $22 million loan from the International Bank for Reconstruction and Development (IBRD). The two previous Bank-assisted water supply projects for expanding the distribution systems of Lobatse and Francistown, two major cities and Gaborone itself, have been successfully completed. The project will help prevent water shortage during the mid-,1980s in Gaborone, which is undergoing rapid population growth. In addition, it will speed up the second phase of the development of Gaborone West, and provide Lobatse, the center of the country's meat-processing industry, with more water. Under the project, the earthfill structure of the Gaborone Dam, the capital's only source of water, will be raised by eight meters to double the yield. The capacity of the existing treatment plant will be extended by 20,000 cubic meters daily, and storage facilities increased by 29,500 cubic meters. Site investigations for two additional dams on the Kolobeng and Metsemotlhaba rivers, west of Gaborone, will be carried out to ensure water supply for Gaborone and Lobatse into the 1990s as the combined population doubles to an estimated 150,000. The project will also finance manpower development programs for the Water Utilities Corporation, the implementing agency. The $50 million project will receive co-financing of $10.8 million from the Commonwealth Development Corporation of the United Kingdom. The Government of Botswana and the Water Utilities Corporation will contribute a total of $17.2 million towards the costs. The IBRD loan is for 17 years, including four years of grace, at an annual interest rate linked to the cost of Bank borrowings. The loan also carries an annual commitment charge on 0.75% of undisbursed balances, and a front-end fee of 0.25% on the amount of the loan. NOTE: Money figures are expressed in U.S. dollar equivalents.