On 21 August 2023, the New Development Bank (NDB) and Trans-Caledon Tunnel Authority (TCTA) signed the Loan Agreement for the implementation of Phase II of the Lesotho Highlands Water Project (LHWP). The NDB will provide a project loan of ZAR 3.2 billion to TCTA under the sovereign guarantee of South Africa.
The Loan Agreement was signed by Mr. Vladimir Kazbekov, Vice President and Chief Operating Officer of NDB and Mr. Percy Sechemane, Chief Executive Officer of TCTA on the sidelines of the 15th BRICS Summit in Johannesburg, South Africa. Mr. Sechemane was represented by Mr. Nhlanhla Nkabinde, Executive Manager for Project Finance & Treasury.
TCTA, a state-owned entity in South Africa charged with financing and implementing bulk raw water infrastructure projects, will use the funds to construct the Polihali Dam and reservoir, a 38-kilometre-long water transfer tunnel, roads and bridges, telecommunications infrastructure, and will extend electricity and other development infrastructure to Lesotho.
The New Development Bank (NDB) and Trans-Caledon Tunnel Authority (TCTA) signed the Loan Agreement for the implementation of Phase II of the Lesotho Highlands Water Project (LHWP)
By increasing the yield of the Vaal River Basin by almost 15% in the long run, the project will support economic growth and foster sustainable livelihoods of people of Gauteng, a highly urbanised province with 15 million people (25% of the total population of the country), responsible for 36% of South Africa’s GDP. Three other provinces (the North-West, Mpumalanga and Free State provinces) will also benefit directly from the increased water supply resulting from the project.
The Project will be co-financed by NDB, African Development Bank (AfDB) and other financiers.
“Today marks a significant milestone as NDB and TCTA sign the Loan Agreement for the implementation of Phase II of the Lesotho Highlands Water Project. This is the first project financed by NDB outside of BRICS countries and it supports South Africa’s commitment to ensure the availability and sustainable management of water, as promoted by Sustainable Development Goal (SDG) 6. This project exemplifies NDB’s dedication to supporting projects that promote access to clean water, while prioritising sustainable management of water resources,” said Mr. Vladimir Kazbekov, NDB VP & COO.
