R3.6bn NDB loan to pipe Flag Boshielo water to Mogalakwena

The New Development Bank and the South African government have signed a USD 200 million loan agreement to support infrastructure for a bulk water supply scheme in Limpopo, the National Treasury said on Friday.

The money is for Stage 1 of the Olifants Management Model Programme (OMMP), which the Treasury says will help address bulk water supply needs in Mogalakwena Local Municipality. The scheme abstracts water from Flag Boshielo Dam on the Olifants River. It will supply bulk raw water to industrial users and feed water treatment works that 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.

According to the Treasury, the sovereign loan runs from the NDB to the Government of South Africa, represented by National Treasury, and will finance the public-sector contribution to Stage 1. The Treasury said the loan will support sustainable water infrastructure at local-government level on favourable financing terms, and that the financing strengthens the partnership between the South African government and the NDB as it advances the country’s sustainable infrastructure priorities.

By expanding access to reliable water supplies, the project is expected to strengthen water security and support economic activity in the region, the Treasury said.

The source material is the government’s own summary of the agreement. It does not name the officials who signed, set out the repayment terms, or give a construction timeline, and none of those details are stated here.

Source: SAnews (South African Government News Agency), NDB signs USD 200 million loan with government to support water infrastructure, https://www.sanews.gov.za/south-africa/ndb-signs-usd-200-million-loan-government-support-water-infrastructure