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World Bank finances health sector reform project in Lesotho Press Release No:2006/112/AFR

 

Washington, October 12, 2005 - The World Bank today approved an International Development Association (IDA) credit* of US$6.5 million to support the Government of Lesotho's health sector reform program.

The Health Sector Reform project will focus on policy and institutional reforms for better service delivery in Lesotho, and support the development of health financing policy and financing reforms to increase efficiency of public expenditures. It is also expected to explore pro-poor mechanisms to improve the equity and sustainability of sector financing, promote out-sourcing to achieve efficiency gains, develop performance management system, and devise mechanisms for more effective delivery of essential health services at district level and below.

"The project's development objective is aligned with the overall goal of the reform program to achieve a sustainable increase in access to quality preventive, curative and rehabilitative health services and achievement of the Millennium Development Goals," said Muhammad Ali Pate, World Bank Task Team Leader for the project.

The first component of the project -Essential Health Services Delivery-will focus on improving the effectiveness of the delivery of priority health interventions at district and community level.

The second component -Strengthening Human Resources-will support innovative approaches required to address the severe constraints in human resources, such as continuing education opportunities for contracted medical officers and nurses and career advancement opportunities.

The third component -Improving Efficiency of Health Sector Financing, Financial Management and Planning-aims to support the further development and implementation of a national health sector financing policy which will address the role of the public sector, efficiency in mobilization and allocation of public financing and strategies for ensuring sustainable financing.

The last component -Queen Elizabeth II Hospital-will support preparations for the replacement of the Queen Elizabeth II hospital.

The declining health status of the population in Lesotho calls for urgent response from the Government and its partners in development. The Health Sector Reform program is central to efforts at revitalizing the health care delivery services, in addition to the dealing with other cross-cutting issues outlined the poverty reduction strategy.

* The credit is on standard International Development Association (IDA) terms, with a commitment fee of 0.35 percent and a service charge of 0.75 percent. The credit's period of maturity is 40 years, including a 10-year period of grace
 
 
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