Commercial close of critical Limpopo water project reached

Friday, December 12, 2025

Government has taken a pivotal step towards transforming water security in Limpopo with the commercial close of the first phase of the massive Olifants Management Model (OMM) programme.

The Badirammogo Water User Association (BWUA), a unique 50:50 public-private partnership representing both government and commercial partners, has successfully secured the R8.5 billion in funding required for Stage 1 of the OMM programme.

Government, through the Department of Water and Sanitation (DWS), collaborated with commercial members including miners, the Infrastructure Fund and a consortium of commercial lenders to bring the programme to life.

“This landmark event marks a critical milestone for one of South Africa’s most significant water infrastructure projects, implemented by BWUA, paving the way for Stage 1 Financial Close and the commencement of construction on a programme designed to transform water security and drive economic growth in Limpopo,” a joint statement by the partners read.

The OMM programme is aimed at providing water to areas including the Sekhukhune District, Mogalakwena Local and Polokwane Local Municipalities in Limpopo.

“Stage 1 of the OMMP is valued at R8.5 billion and comprises the construction of critical bulk raw water pipelines, pump stations and associated water treatment works, and an energy solution.

“At completion, the full OMMP will deliver approximately 263 million cubic metres per day to commercial and institutional users by 2050.

“It is projected to provide potable water to approximately 140 communities – benefiting approximately 390 000 people, supply raw water to key mining and industrial users and create an estimated 42 000 direct, indirect and induced employment opportunities,” the statement concluded. – SAnews.gov.za