06 Apr 2017

Parliament has approved a request to acquire a P1.5 billion loan from the International Bank for Reconstruction and Development (IBRD), a subsidiary of the World Bank.

The Minister of Finance and Economic Development, Mr Kenneth Matambo explained last week that the loan would finance the emergency water security and efficiency project.

Presenting the emergency water security and efficiency project Loan Authorisation Bill No. 5 of 2017, Mr Matambo said the terms of the loan were favourable to Botswana with low interest rate and repayment period of 19 and a half years.

He said the government would be given a four-year grace period before starting to repay the loan.

The MP for Serowe South, Dr Pelonomi Venson-Moitoi expressed support for the loan, saying it would help to improve water supply and sanitation services around the country.She added that improvement of sanitation services would help to address environmental health.

Also supporting the loan request was Boteti East MP, Mr Sethomo Lelatisitswe, who agreed that the terms and conditions of the loan were good for Botswana.

Mr Lelatisitswe urged the government to address water shortage and improve sanitation infrastructure in Letlhakane.

The MP for Letlhakeng-Lephepe, Mr Liakat Kablay also supported the request and pleaded with the minister to improve water supply in villages in his constituency.

However, Mogoditshane MP, Mr Sedirwa Kgoroba objected to the borrowing of money, saying financing of water supply improvement could be funded from government coffers.

“We are not pressed by anything to go and borrow money from the World Bank.

We can spend some of the money set aside for buying military artillery equipment to fund the improvement of water supply,” said the MP.

His sentiments were shared by Gaborone Bonnington North MP, Mr Duma Boko, who said though there was a general concern over water supply and sanitation services, “there is not any need to borrow money.”

Mr Boko said the government has the means to provide the amenities without any need for external borrowing.

He urged the government to divert money allocated for the purchase of military hardware and spend it on improving water supply and sanitation services.

The MP for Francistown South, Mr Wynter Mmolotsi was equally against the borrowing of money, explaining that with correct prioritising, government could finance the improvement of water supply from state coffers.

“We should take some of the money set aside for the military jets and finance the water projects. We can improve our water situation without borrowing money,” Mr Mmolotsi said.

He also suggested that money from the P570 million constituency development fund could be redirected to fund water supply projects instead of acquiring a loan that would attract interest.

“We want every Motswana to have access to potable water and sewerage system facilities and we believe that government has enough money to provide these,” MP Mmolotsi said, pleading with the minister to withdraw the request.

However, Parliament approved the request and Mr Matambo explained that government had assessed all possibilities of raising funds but found that the offer from the World Bank was good. ENDS