The New Development Bank (NDB) and the South African Government have signed two loan agreements worth a combined US$405 million to support infrastructure projects in Limpopo, North West and Gauteng.
In a statement on Friday, National Treasury said the financing will support the Limpopo Central Hospital Project and the Magalies Bulk Water Supply Scheme, as part of efforts to advance South Africa’s sustainable infrastructure priorities.
The NDB will provide a US$200 million loan for the Limpopo Central Hospital Project, which involves the construction of a new 488-bed tertiary central hospital in Polokwane.
The flagship investment is expected to strengthen tertiary healthcare services, expand access to quality medical care and improve health outcomes for the people of Limpopo.
The province faces growing demand for tertiary healthcare services, ageing hospital infrastructure and shortages of specialised medical facilities.
The new hospital will provide modern and resilient healthcare infrastructure, equipped with advanced diagnostic, treatment and information technology systems.
It will also serve as the principal referral hospital for the province and increase capacity to provide specialised and advanced healthcare services.
The facility will further support medical education, clinical research and the training of future healthcare professionals.
Water security
The NDB will also provide US$205 million for the Magalies Bulk Water Supply Scheme, which aims to improve reliable access to drinking water and support inclusive growth in the North West and Limpopo provinces.
The project responds to severe water shortages affecting six local municipalities where current water demand exceeds available supply.
These municipalities are Bela-Bela, Modimolle-Mookgophong, Mogalakwena, Moretele, Moses Kotane and Rustenburg.
According to National Treasury, both loans have a maturity period of 10 years, including a four-year grace period, with an interest rate of daily SOFR plus 0.93508%.
The financing forms part of Government’s broader efforts to strengthen public health and water infrastructure.
National Treasury expressed its appreciation to the NDB for its continued partnership and support towards South Africa’s infrastructure development and long-term sustainable development objectives.
“The NDB's project loans, together with financing secured from other multilateral development partners, have enabled Government to meet its 2026/27 foreign currency borrowing requirement of US$3.2 billion,” National Treasury said. – SAnews.gov.za
