•   INTERNATIONAL DEVELOPMENT ASSOCIATION
    1818 H STREET, N.W., WASHINGTON    D. C. 20433   TELEPHONE:   EXECUTIVE   3-6360




           IDA Press Release No. 71/4                Subject:      $3.0 million credit to
           February 4, 1971                                        Botswana for an urban
                                                                   water supply project


                A   critical water supply situation in Botswana caused by increasing

           population, especially in the new capital of Gaborone, and made woroe by

           the drought of the last three years will be alleviated with the help of

           a $3.0 million credit approved by the International Development Association
           (IDA), oJE the World Bank Group.




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                The project will ease the water shortage in Lobatse, 32 miles south

           of Gaborone, as well as meet rapidly increasing demand in the capital.

           The Lobatse part of the project is particularly important. because the

           slaughterhouse located there, which accounts for 90% of·Bocswana's exports,

           might be forced to close within a year if additional water is not available.

                Botswana is a sparsely populated country, lying north of the Union

          of South Africa.    Although it is about the size of France, much of it is

          desert and water is scarce.    Rainfall is low and erratic, river flows un-

          reliable and groundwater generally in~dequate.

               Gaborone has well planned waterworks and an ample reserve of water

          at the Gaborone dam.    However, treatment and pumping plant cannot meet the

          increasing demand from the rapidly growing population and water mains need

          to be extended.    Lobatse's mains also need extension but the shortage there




•         is largely due to the extended drought which has exhausted its water supply

          from the Nuane dam nearby.    Emergency wells are barely meeting present needs.


                                                                                   /more
IDA P.R. No. 71/4 -- Botswana -- water supply project


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     The project calls for water to be drawn from the Gaborone dam 1.,nd
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treated at the Gaborone waterworks.     Part will go into the Gaborone

distribution system with the remainder pumped along a transmission line

into the Lobatse distribution system at Nuane dam.

     The project will cost an estimated $3.3 million and includes a raw

water pumping plant, storage reservoir, pumping stations and main exten-

sions in Gaborone; a transmission line with pumping station to link the

Lobatse distribution system with the dam at Gaborone; and main extensions

and a storage reservoir at Lobatse.

     Minor improvements and extensions of the distribution systems,




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financed by Botswana Govemment funds, are included in the project.       It

also provides for technical assistance, workers' quarters, vehicles and

miscellaneous equipment.

     The Water Utilities Corporation (WUC), a semi-autonomous Botswana

public utility organized last year, will implement the project, scheduled

for completion in 1972.    The IDA credit is being made to the Government of

Botswana for a term of 50 years, including 10 years of grace.    It will be

interest-free, but a service charge of 3/4 of 1% will be made to cover
IDA's administrative costs.

    The Government of Botswana will relend the credit to WUC for a term

of 30 years at 7% with a five-year grace period on capital repayments.



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