The Abu Dhabi Fund for Development (ADFD) has extended AED77 million ($21 million) in concessionary loans towards the construction of the Metolong Dam in Lesotho, a land-locked nation surrounded by South Africa, according to UAE state news agency WAM.

Construction of the dam, which provides 71,000 cubic meters of drinking water daily, was recently completed by the government of Lesotho.

The loan by Abu Dhabi government-owned ADFD was used to finance construction work of the concrete dam and its outbuildings, as well as for pumping and purifying plants and distribution pipelines.

Built at a total cost of AED700 million ($189 million), the dam project aims to support Lesotho’s economy by enhancing the country’s water infrastructure, and augmenting existing drinking water sources, WAM reported. It is expected to meet the population’s water demands until 2025.

The project includes the construction of a dam, with the capacity of 53 million cubic meters on the Phuthiatsana River to store and distribute the river’s water.