November 18, 2009 15:28 PM

World Bank Grants Botswana US$186 Million For Transport Project Aid

GABORONE, Nov 18 (Bernama) -- Botswana has received US$186 million from the World bank in loan, to finance its Integrated Transport Project, China's Xinhua news agency reported Wednesday, citing official sources.

The project is aimed at facilitating cross-border activities as part f the country's regional integration efforts. It is estimated to cost US$385 million, involving the development of road and rail linkages to Zambia, Namibia and South Africa.

The government of Botswana will cover the deficit of the funding with a US$159 million injection and the OPEC fund for international development has pledged a sum of US$40 million.

Speaking at the signing ceremony of the loan agreement in Gaborone on recently, newly appointed Finance Minister Kenneth Matambo said the project will spur economic growth in Botswana and the region at large, while reducing traffic congestion.

Country Director for Botswana Lesotho, Namibia, South Africa and Swaziland Ruth Kagia signed the loan agreement on behalf of the World Bank.

Although Botswana has not received assistance from the Bretton Woods institutions as much as other African states due to its middle income status , the World Bank has a long standing collaboration with the diamond rich southern African country, giving it technical and financial assistance.

Of late the bank support has been mainly in the form of finances to fight the deadly HIV/AIDS pandemic as Botswana has the highest infection rate on the continent.

-- BERNAMA

We provide (subscription-based) 
news coverage in our Newswire service.