The New Development Bank (NDB) and the government have signed a USD 200 million loan agreement to support infrastructure for a bulk water supply scheme in Limpopo.
“By expanding access to reliable water supplies, the project is expected to strengthen water security and support economic activity in the region,” the National Treasury said on Friday.
This initiative will be implemented through Stage 1 of the Olifants Management Model Program (OMMP), which will help address bulk water supply needs in Mogalakwena Local Municipality, Limpopo.
It will implement a bulk water supply scheme that abstracts water from Flag Boshielo Dam on the Olifants River. The scheme will supply bulk raw water to industrial users and feed water treatment works that will provide potable water to communities in the municipality.
The OMMP is a public-private partnership funded by government and private-sector industrial users, represented by the Badirammogo Water User Association.
“The sovereign loan from the NDB to the Government of South Africa, represented by National Treasury, will finance the public-sector contribution to Stage 1. The loan will support sustainable water infrastructure at local-government level on favourable financing terms,” National Treasury added.
According to the National Treasury, the financing strengthens the partnership between the South African government and the NDB as it advances the country’s sustainable infrastructure priorities. -SAnews.gov.za
