Kenya has secured a Sh20 billion loan from the World Bank to finance construction of a dam to stabilise water supply in the coast region.

The deal was sealed on the sidelines of the ongoing climate talks in Paris where global leaders are pursuing solutions to tackle climate change challenges.

“Mwache dam will supply 186,000 cubic metres of water a day to Mombasa. It will significantly ease the water deficiency our second city currently faces,” said Eugene Wamalwa, cabinet secretary for water who signed the agreement on behalf of government.

The dam will be located in Mazeras, Kwale County. The financing deal comes just days after the World Bank announced that it will fund Africa to a tune of Sh1.6 trillion to help nations adapt to climate change and boost the region’s resilience to climate shocks.

“Sub-Saharan Africa is highly vulnerable to climate shocks and our research shows that could have far-ranging impact. This plan identifies concrete steps that African governments can take to ensure that their countries will not lose hard-won gains in economic growth and poverty reduction and they can offer some protection from climate change,” said World Bank Group president Jim Yong Kim in a statement announcing the funding.

Of the total amount committed by the World Bank, Sh581 billion ($5.7 billion) is expected from the International development Association (IDA), the arm of the bank that lends to poor countries.

About Sh224 billion ($2.2 billion) will be sourced from various existing climate finance instruments, $2 billion from development institutions and Sh357 billion ($3.5billion) from the private sector.