Lesotho Compact

Lesotho Compact

Projected Long Term Results
Project Estimated Beneficiaries Estimated Benefits
Health Sector Project 752,003 $142,000,000.00
Private Sector Development 368,319 $60,000,000.00
Water Sector Project 236,874 $173,000,000.00

The above estimates are based in the best, currently available, information and may be updated if new, reliable, data are available.

The total beneficiary count for the Compact may not be the sum of the different project beneficiary counts because of overlaps between Projects. In other words, some beneficiaries benefit from more than one project but are counted only once in the total beneficiary count.

Total benefits expected from each project are obtained from the ERR analysis MCC conducts during due diligence. Beneficiary counts, although consistent with benefit streams identified in the economic analysis, are not necessarily derived from these models (which are concerned with costs and benefits rather than beneficiaries). MCC estimates and reports expected beneficiaries when sufficiently reliable data exists to support the estimation. If such evidence is lacking, no estimation is attempted, resulting in an underestimation of projected beneficiaries for the Compact. Calculating the amount of benefit per beneficiary would therefore give an overestimation and can be misleading.

Project Objectives
Project Objective
Health Sector Project

Mitigate the negative economic impacts of poor maternal health, HIV/AIDS, tuberculosis (“TB”) and other diseases by:

  • Renovating health care infrastructure;
  • Strengthening and mainstreaming HIV/AIDS and TB services;
  • Improving management of hospital out-patient departments;
  • Constructing and equipping a new central laboratory and training for laboratory staff;
  • Constructing a dedicated, central facility for collecting and processing blood and the provision of mobile blood collection and storage equipment;
  • Increasing the number of dormitories and staff residences at Lesotho’s National Health Training College;
  • Strengthening health systems through increased capacity for pre-service and in-service nurse training;
  • Improving district-level public health human resources management;
  • Supporting development of information tools for health systems management and strengthen health research capacity, and
  • Improving occupational health and safety and medical waste management practices.
Private Sector Development

Increase private sector economic activity in Lesotho by:

  • Improving access to credit;
  • Reducing transaction costs;
  • Increasing the participation of women in the formal economy;
  • Improving the civil legal system through development of a functioning commercial court, court-annexed mediation, small claims procedures and introduction of improved case management;
  • Supporting the production and issuance costs of national identification cards, creating appropriate cross-border payments legislation and creating regulations and the data privacy laws needed to establish and operate a cross-border credit bureau and protect personal information on national identification cards;
  • Implementing a new automated payments and settlement system in Lesotho, including using smart-cards to improve financial services delivery to rural areas;
  • Implementing a systematic land regularization program for urban and peri-urban areas and establishing a new land administration authority, and
  • Implementing a training and public awareness program dedicated to implementing gender equality in economic rights and building of local capacity to continue advocacy.
Water Sector Project

Improve the water supply for industrial and domestic needs by:

  • Providing essential infrastructure to deliver water to garment and textile operations and future industrial projects;
  • Providing a reliable supply of water and better sanitation;
  • Constructing a bulk water conveyance system;
  • Extending and rehabilitating the urban and peri-urban water network;
  • Improving sanitation services for households;
  • Restoring degraded wetlands at three areas in the highland pastures, and
  • Preparing a strategic environmental assessment to support the development of a national watershed management and wetlands conservation plan.

Projected Results by End of Compact

The Lesotho Compact aims to achieve the results below by the end of the compact in September 2013:

  • Benefit approximately 304,000 people in urban areas and 150,000 people in rural areas;
  • Maintain 28,000 jobs and create 12,000 additional jobs in “wet industries” as part of the Metolong Dam activity;  
  • Improve rangeland productivity and improve livelihoods for an estimated 55,000 people under the Wetlands Restoration and Conservation Activity;
  • Renovate up to 150 health centers and up to 14 hospital out-patient departments to improve service quality and availability;
  • Expand the number of graduates in health fields to more than 1.3 million individuals;
  • Improve property and commercial rights for more than 14,000 enterprises, and
  • Deliver formally recognized titles to up to 55,000 urban households.

Results to Date

Information on results to date is available in the Table of Key Performance Indicators (a subset of the full set monitored under the Lesotho Monitoring and Evaluation Plan). The full set of performance indicators is detailed in the Monitoring and Evaluation Plan.

Impact Evaluation Framework

In addition to careful monitoring of implementation performance and measurement of preliminary results, four independent evaluations are underway, which will assess what would have happened in the absence of the MCC investments and measure the gains in incomes that can be attributed specifically to MCC-funded activities. More information about the evaluations of Rural Water and Sanitation, Urban and Peri-Urban Water Systems, Health Clinic Rehabilitation and Renovation, and OPD Center Rehabilitation and Renovation activities is available in the Monitoring and Evaluation Plan.