The African Development Bank (AfDB) has approved a $86.72-million loan to co-finance the second phase of the Lesotho Highlands Water Project (LHWP). South African State-owned Trans-Caledon Tunnel Authority, which is mandated to finance and implement bulk raw water infrastructure projects, will use the funds to construct the Polihali Dam and reservoir, a 38 km-long water transfer tunnel, roads and bridges and telecommunications infrastructure, as well as extend electricity and other development infrastructure to Lesotho.
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