OFFICIAL DOCUMENTS RECOMMENDATION OF THE STATUTORY COMMITTEE TO: The President, International Development Association Recommendation of the nominee selected by the Kingdom of Lesotho as a member of the Committee under Section 1 (d) of Article V of the Articles of Agreement on the proposed Credit for Lesotho Lowlands Water Development Project - Phase H to the Kingdom of Lesotho. The undersigned member of the Committee constituted under Section 1 (d) of Article V of the Articles of Agreement of International Development Association (the Association) hereby submits this recommendation pursuant to said Section in respect of the proposal that the Association grants to the Kingdom of Lesotho a credit in the total amount of sixty-eight million four hundred thousand Euro (E 68,400,000) in two portions: (a) an IDA Credit in the amount of twenty-six million three hundred thousand Euro (E 26,300,000); and (b) an IDA Scale Up Facility Credit in the amount of forty-two million one hundred thousand Euro (E 42,100,000). The purposes of said credit are to: (a) increase water availability and access to improved water supply services in two Priority Zones; and (b) improve technical and financial performance of the Water and Sewerage Company (WASCO). 1. The member of the Committee has carefully studied the merits of the proposal to grant such a credit, and of the purposes to which the proceeds of the credit are to be applied. 2. The member of the Committee is of the opinion that the project toward the financing of which the proceeds of such credit is to be applied comes within the purposes of the Association as set forth in Article I of said Articles of Agreement, and that said project is designed to promote the economic development of the Kingdom of Lesotho and is of high developmental priority in the light of the needs of the Kingdom of Lesotho. 3. Accordingly, the member of the Committee finds that said project merits financial assistance from the Association, and hereby recommends said project for such assistance. Nominee sdlected) Governor for the the gdom of Lesotho Dae at hi0, D Dated at Washington, D.C.