New Development Bank signs $200m loan for Limpopo bulk water scheme
A NDB loan will fund stage 1 of the olifants water programme, supplying Flag Boshielo Dam water to industry and communities in Mogalakwena, Limpopo.
The New Development Bank (NDB) and the government of South Africa have signed a $200m (about R3.2b) loan agreement to support stage 1 of the olifants management model programme.
The financing strengthens the partnership between the South African government and the NDB on sustainable infrastructure.
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Stage 1 will address bulk water supply needs in the Mogalakwena local municipality, Limpopo. A bulk scheme will abstract water from Flag Boshielo Dam on the Olifants River. It will supply bulk raw water to industrial users and feed water treatment works that will provide potable water to communities.
The project is expected to strengthen water security and support economic activity in the region.
The programme is a public/private partnership funded by the government and private-sector industrial users, represented by the Badirammogo Water User Association.
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The sovereign loan to the government, represented by the national treasury, will finance the public-sector contribution to stage 1 on favourable terms.
The loan amount is $200m, with a tenor of 11 years including a three-year grace period, and an interest rate of daily SOFR plus 0.985%.
National treasury expressed its appreciation to the NDB for its partnership and support. The agreement was issued on September 25.
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