South Africa: New Development Bank lends 200 million dollars to secure water in Limpopo

The New Development Bank (NDB) has signed a 200 million dollar sovereign loan with the South African government, represented by the National Treasury, to finance a bulk water supply system in Limpopo province, according to SAnews.gov.za. The financing supports Phase 1 of the Olifants Management Model Program (OMMP), aimed at meeting the water needs of the Mogalakwena local municipality. The system will draw water from the Flag Boshielo dam on the Olifants river to supply industrial users with raw water and treatment plants providing drinking water to communities. The OMMP is a public-private partnership co-financed by the state and industrialists represented by the Badirammogo Water User Association; the NDB loan specifically finances the public sector contribution. The National Treasury stated that this sovereign loan "will support sustainable water infrastructure at the local government level, at favorable financing terms," adding that it "should strengthen water security and support economic activity in the region."