Nedbank CIB’s partnership secures R4.5bn for Limpopo’s water infrastructure
|Published
Nedbank CIB said MCWAP-2A was more than an infrastructure project; it catalysed economic revitalisation in Limpopo. Picture: Karen Sandison/Independent Newspapers
In a landmark move to address South Africa’s escalating water crisis, Nedbank Corporate and Investment Banking (Nedbank CIB) says it has successfully closed a R4.5 billion term loan facility to the Trans-Caledon Tunnel Authority (TCTA) for the Mokolo-Crocodile River Water Augmentation Project Phase 2A (MCWAP-2A).
“The MCWAP-2A project is a lifeline for the Limpopo province, a region plagued by severe water shortages that limit industrial growth and social development,” Nedbank CIB said in a statement.
The programme involved constructing an abstraction weir, state-of-the-art pump stations and a 160km pipeline to channel water from the Crocodile River (West) to Lephalale. Once completed, the project would provide 75 million cubic metres of water a year, benefiting sectors including Eskom power stations, Exxaro mining operations and municipalities.
Phuti Mokwatedi, the sector lead of state-owned companies at Nedbank CIB, said: ‘We understand that access to water is a constitutional right, and this transaction is an example of how we support the government in ensuring the availability and sustainable management of water and sanitation for all.
“As such, we continue to build on our relationships with all spheres of government and water authorities to look for partnership opportunities to assist South Africa in resolving water and sanitation infrastructure challenges and to participate in opportunities within the water and sanitation value chain.”
Nedbank CIB said MCWAP-2A was more than an infrastructure project; it catalysed economic revitalisation in Limpopo.
“By ensuring a stable water supply, it will support both existing and future industrial and mining users, paving the way for economic expansion and social progress."
“The complexity of securing funding for projects of this magnitude cannot be overstated,” said Percy Sechemane, the CEO of TCTA. “The collaboration with NCIB and other lenders is a testament to our shared vision of sustainable development and water security. This funding will help us meet the water needs of the Limpopo Province and ensure a reliable supply for future generations.”
BUSINESS REPORT