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IFC Supports Lesotho’s Infrastructure Development through Public-Private Partnerships


In Johannesburg:
Jason Hopps
Phone: +27(0)835615487
Email: jhopps@ifc.org

In Maseru:
Edmund Motseki
Phone: +266 5888 2119
Email: emotseki@worldbank.org


Maseru, Lesotho, January 19, 2011 – IFC and the World Bank are assisting Lesotho to draft a public-private partnership (PPP) policy that will fund and develop large infrastructure projects to support broad economic growth and greater access to services in the country.

The Government of Lesotho, IFC, and the World Bank hosted a PPP awareness workshop in Maseru on January 19 that attracted participants from both the public and private sectors. The workshop covered many key areas, including the various models that other countries have used to develop PPPs, and lessons learned from successful PPP programs around the globe.

Saleem Karimjee, IFC Country Manager for Lesotho, said, “IFC supports Lesotho’s commitment to adopt innovative approaches to leverage the private sector to develop infrastructure and deliver efficient and high quality public services at the lowest cost.”

PPPs are contracts between governments and the private sector that have proved an excellent model for countries to develop large infrastructure projects. PPPs tap private sector expertise, management, and finance, effectively addressing some of the constraints of finance and management faced by the public sector.

Ruth Kagia, World Bank Country Director for Lesotho, said, “Public-private partnerships are needed to bolster economic growth and boost service delivery.  As an early pioneer, Lesotho has shown how such partnerships in the health sector can improve coverage, quality, and human welfare. Lesotho’s example holds the promise of replication across Africa.

IFC and the World Bank are helping Lesotho develop an appropriate policy to provide the institutional and legal framework for encouraging the private sector to play a larger role in financing infrastructure projects and services. Lesotho has already committed to several PPPs, most recently the Lesotho National Referral Hospital PPP for a new national referral hospital and three primary health care clinics in Maseru.

IFC acted as lead transaction advisor to Lesotho’s government on this pioneering PPP transaction, which will serve as a model for increased private sector participation in sub Saharan Africa’s often overburdened health sector.

The World Bank is the administrator for the Global Partnership on Output-Based Aid (GPOBA) which provides support for the new National Referral Hospital and clinics.  The World Bank Group’s Public-Private Infrastructure Advisory Facility (PPIAF) provided funding for the public awareness workshop in Lesotho.

About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org.

About IDA
The International Development Association, IDA, is the World Bank’s Fund for the Poorest which provides grants and interest-free long-term credits.  One of the world’s largest sources of aid, IDA provides support to poor countries for agriculture, education, health and infrastructure projects among others.  Lesotho receives funding from IDA.  For more information, visit www.worldbank.org/ida.