Luxembourg, 31/07/2007 (Agence Europe) - The European Investment Bank has signed a €14.3 million loan over 25 years with Lesotho's Water and Sewerage Authority (WASA) for the expansion and upgrading of wastewater and sanitation facilities in Maseru, Lesotho's capital. The loan will cover 50% of the total project cost of €28.6 million. Under the EU Water Facility, the European Commission will provide a €10 million grant and the government of Lesotho the balance of €4.3 million. The project will contribute significantly to Lesotho's efforts to achieve the Millennium Development Goals (MDGs) for sanitation. It will increase the sanitation coverage in Maseru's urban and peri-urban areas for some 100,000 inhabitants. The investment programme is adapted to the different income levels of the beneficiaries and includes the connection to central sewer networks as well as the construction of low cost on-site sanitation facilities. Together with the refurbishment of an existing treatment plant and the construction of a new plant, this will contribute to reducing the pollution of Maseru's raw water sources and to lowering the incidence of water-related diseases. (ol)