At the Chapter of 2006, the Sisters from Lesotho mentioned that the bishop had given them land where AIDS patients could pool their energies in growing some of the food their families needed, but the land lacked water. Water became one of the areas for further study in trying to learn how to help the situation in Lesotho. Research involved reading the plans of agencies such as the World Bank and Irish Aid, nonprofits such as the Kellogg Foundation and the Denmark Lesotho Network (DLN) and interviewing some members of these organizations. What became clear is that water is a central issue to everything Lesotho is trying to accomplish: becoming food self-sufficient, addressing AIDS and the sanitation needed to make it easier to combat, and developing an industrial sector as a basis of economic growth. Major funders around the world are contributing to improving Lesotho water, and many of their efforts are likely to impact the missions where our Sisters work. The hope for this summary is that better information will make it possible for the SNJMs to take advantage of the development efforts in our areas of influence.

World Bank Interest in Lesotho Water

· World Bank water work is mainly urban: Maseru and 16-17 urban areas
· WB is not active in rural areas, but Irish Aid and Swiss are—Malcolm White of Irish Aid, the "father" of the Highlands Water Project, lives in Africa and is the most knowledgeable about water in Lesotho
· Lowlands (where SNJM missions are) has 2 million people and is declining; 25% of the population is urban and soon 33% will be
· Rural systems are advanced compared to other African nations—all the "systems" are small, up to 5,000 are metered standposts; there are no hand pumps but standposts are gravity fed. There is no effort to develop water systems to each home because the low-land water supply is meager
· The prepaid meters have reduced the costs of water. Before, families that had access to water sold water to other families that did not at the going rate of $1.70 cubic meter; now it is ten cents per cubic meter where the Lesotho Water and Sanitation Authority (WASA) has built metered standposts
· The recent rural area work with water is more decentralized to the 10 provinces and not so administratively centered in Maseru; provincial WASA leaders should be contacted about water needs—not the central office in Maseru
· Aftercare to maintain the water improvements is based on user fees and each community that receives improved water must have a bank account to collect the fees for water use

World Bank works with the WASA, and the head of WASA is recognized as very competent.
· The WB activity is not expanding water as much as strengthening WASA operations and the work is going well by the audit of performance standards measures
· WASA operates within the Maseru corporate boundary, but the rural water authority has pulled out of the peri-urban area around Maseru, and WASA cannot pick up the additional residential and industrial demand
· WASA is improving efficiency, adding water meters, and improving billing and collections, improving procurement and competence.
· There is only $10 million for capital works
· WASA is a parastatal organization: government sponsored but operated independent of government agencies; it is an "authority" which means that it has discretion; it is one of the better water authorities in Africa
· WASA and its rural counterpart (Department of Rural Water Supply Project (DRWSP) set their own priorities
· WASA cross-subsidizes the less profitable areas it serves; the country has a uniform tariff and WASA must cover its expenses
· The EU is active in 6 towns in the north of Lesotho; WB in Maseru, EU is a technical advisor to WASA; Arab banks are building the dam at ROMA.

All the water efforts are part of Lesotho’s Poverty Reduction Strategy* to reduce poverty through economic growth:
· The government has established water policy through legislation: the Water Act of 1991, Water Resources Act in 1998, and the Water and Sanitation Policy Development Act of 2007.
· The national cabinet agrees with the priority given to water improvement
· Donors are supporting these local initiatives and the local priorities
· There are not many NGOs in the water sector
· There is water; it is good quality; the issue is how far and how expensive it is to access it; WASA is reducing distance and cost; it is providing availability more hours per day.
· Where some of the people reside, there isn’t enough water and new resources need to be found

*The Poverty Reduction Strategy: 1. Employment, 2. Railhead development, 3. Free primary education 5. Transportation for access to markets

The plan with MCC is that it works with the least developed countries that are well-run and have practical plans to grow their economies. Lesotho qualifies. The project development staff works with the local government leaders (Finance Ministry in Lesotho’s case) to develop priorities based on grass roots consultations. Lesotho first approached MCC in 2005, and has since proffered several proposals before the current one was accepted and the Compact signed in July 2007. It will go into effect in May 2008.

MCC will finance rural projects for water with $34 million. MCC does not know the villages where the needs are. The specific design efforts to identify the villages that will receive water improvements are currently underway.
· The goal is to reach 25 liters of water per person per day through public standpipes; the standpipe aftercare component is not yet clear
· The schemes are gravity fed from springs that will bring water to clusters of homes; the funds will also replace some pipes that are low-functioning
· The effort to build from grassroots priorities will introduce accountability and increase buy-in; choices will be made on the basis of interest and commitment to maintain improvements

The MCC effort was not to be "humanitarian" as such but to grow the economy and income. 25 liters per day per person (about 6 gallons) will work for domestic supply but not industry; there will be little excess—even for garden plots; what gardens are developed will be too small to be income generating:
· MCC had to decide that improving health and livelihood was also fostering economic growth
· Lesotho was willing to invest in its people
· MCC considers creating a healthy workforce a match to MCC’s goals and it will reduce poverty and assist in reaching local goals—that is MCC’s first priority.
· MCC will monitor the evaluation indicators of Lesotho
· MCC’s first priority is not to cause harm; it does impact statements, it helps to manage the efforts and is concerned with social priorities—in Lesotho the main one is gender equality.
· MCC will help with the Metolong Dam; the Arab banks and international aid organizations will build it and MCC will help construct the downstream system
· $57 million will go for the downstream system from the dam and the reticulation network, expand urban water distribution and add 250 water posts in rural areas and up to 10,000 VIP (ventilated improved pit) latrines

The Compact as a whole has a huge health component:
· Initially it allocated $120 million to rehabilitate and re-equip up to 150 health centres, 14 outpatient clinics, a central laboratory, blood bank and transfusion capability, and build dorms at the National Health Training facility
· After consideration, they have decided to build fewer facilities but make sure that they are capable of all the health needs, that is, trained staff, be sure they have the water and electricity they need, provide for medical waste—a whole new health process
· Every component of the Compact affects the HIV/AIDS and water issues
· The Church Health Alliance was involved, but the Ministry of Health is responsible for determining the health priorities for the Compact; the Department of Rural Water Supply is responsible for water priorities

Lesotho prepared for the Compact through civil and legal reforms, developed a commercial court, and developed a national identification program
· All the work will be outsourced and competitively bid
· Altogether the Compact is for 5 years with $362.5 million starting in May 2008. Lesotho received $15 million for transition activity to prepare for the Compact work. MCC will coordinate with Irish Aid so that it does not duplicate efforts.
· Asked if the rural water effort bring a good rate of return, MCC responded that other points in the Compact plan are strong and the government wanted it.
· If Lesotho can add to the workforce and reduce time lost to illness and the caring of the ill, the Compact will meet the goals
· Lesotho has passed legislation for gender equality: married women now have the right to own property and bank assets
· The person in Lesotho overseeing the transition is a woman that MCC hopes will become the head of the Compact, Sophia Mohobe. She was the CFO for the Highlands Water Project and is very capable.
· The developments concerning the Compact, including all procurements must be posted on the website, which is now being developed.
· "MCA-Lesotho" will become part of the Ministry of Finance

MCC University is a skills development and orientation for all Compact countries held in Washington, DC for 2 representatives from each country. There is also the Procurement College for two representatives from each country, and the negotiations for the Compact were held in Washington, DC.
· All the Ministries are now on-board; Lesotho is really ready
· There will be two US representatives in country: Resident Director Jene MacDonald, and the Deputy Resident Director, Brian Baltimore
· There will be a staff of five eventually
· Overall project oversight will remain in Washington

The Lesotho Embassy in Washington, DC

The Lesotho Ambassador to the U.S. reports that a 30-minute walk past the outskirts of Maseru, there is a need for water; even without a cost/benefit study, Lesotho can get real improvements with better access to water.
· The Poverty Reduction Strategy is limited by water; how can Lesotho attract foreign investment without water?
· Lesotho needs water for industry in Maseru, Roma, at the University, Mazenod and the Mazenod region.
· What should Lesotho do for areas outside the Compact area? The Ambassador has talked with the head of "Play Pumps" and WASA, but there is no plan as yet
· She cannot speak about new initiatives until she talks with the Ministries that are responsible, but she acts as a bridge to get conversations started: the ministries have the information, data and approaches

The Ambassador knows that MCC wants to reduce poverty though economic growth, and that is tied to water. How can we bring the people into the process? They are being told to eat green vegetables to help them heal from AIDS—how is this possible if they do not have water to grow a garden?

The Prime Minister and the Minister of Health went to Houston to visit the Texas Children’s Hospital and met at the Baylor University College of Medicine. They want to build a Center of Excellence in each of Lesotho and Botswana, particularly for children:
· In Maseru they will build a Pediatric AIDS center, but they have yet to choose a spot.
· They will build 10 satellite clinics--one in each province; they will work with the Ministry of Health to choose where to build

In closing, the Ambassador said that education is the number one priority of Lesotho parents; they will go without shoes to get the education for their children.