Pretoria:Limpopo The New Development Bank (NDB) and the government have entered into a USD 200 million loan agreement to enhance water infrastructure in Limpopo. This funding will support the development of a bulk water supply scheme as part of the Olifants Management Model Program (OMMP), aimed at improving water security and boosting economic activities in the region.
According to South African Government News Agency, the initiative will focus on Stage 1 of the OMMP, addressing the bulk water supply needs in Mogalakwena Local Municipality. The scheme involves abstracting water from the Flag Boshielo Dam on the Olifants River to provide bulk raw water to industrial users and supply potable water to local communities.
The OMMP is a collaborative effort between the government and private-sector industrial users, represented by the Badirammogo Water User Association. The sovereign loan from NDB to the South African government, represented by the National Treasury, will cover the public-sector portion of the funding for Stage 1. National Treasury highlighted that this loan will offer favourable financing terms to support sustainable water infrastructure at the local government level.
Additionally, the financing is expected to strengthen the partnership between the South African government and the NDB, advancing the country's sustainable infrastructure goals.
