Nedbank Corporate and Investment Banking (CIB) has finalized a R4.5 billion ($250 million) term loan facility to the Trans-Caledon Tunnel Authority (TCTA) for the Mokolo-Crocodile River Water Augmentation Project Phase 2A (MCWAP-2A). This financial initiative underscores Nedbank’s steadfast commitment to sustainable development and vital infrastructure ventures.
The MCWAP-2A project emerges as a critical lifeline for Limpopo province, a region beset by severe water shortages that hinder industrial growth and impede social progress. The initiative entails the construction of an abstraction weir, cutting-edge pump stations, and a 160 km pipeline designed to transport water from the Crocodile River (West) to Lephalale. Upon completion, the project is poised to deliver 75 million cubic meters of water annually, benefiting key sectors such as Eskom power stations, Exxaro mining operations, and local municipalities.
The MCWAP-2A project emerges as a critical lifeline for Limpopo province, a region beset by severe water shortages that hinder industrial growth and impede social progress
Phuti Mokwatedi, Sector Lead of State-Owned Companies at Nedbank CIB, emphasized, “We recognize water access as a constitutional right, and this transaction exemplifies our support for government efforts in ensuring sustainable water management for all. We are committed to fostering partnerships with governmental bodies and water authorities to address South Africa’s water and sanitation infrastructure challenges.”
More than a mere infrastructure endeavor, MCWAP-2A is set to catalyze economic rejuvenation in Limpopo. By securing a reliable water supply, the project will bolster current and future industrial and mining operations, paving the way for economic expansion and societal advancement. This initiative aligns closely with Sustainable Development Goal 6 (Clean Water and Sanitation), underscoring Nedbank’s dedication to effecting positive change.
Established as a Schedule 2 State-Owned Entity, TCTA boasts a distinguished record in implementing pivotal bulk raw water infrastructure projects. Initially mandated for the Lesotho Highlands Water Project Phase 1, TCTA has since overseen numerous critical initiatives, including the ongoing second phase of the Lesotho Highlands Water Project scheduled for completion by 2028.
Percy Sechemane, CEO of TCTA, said, “Securing funding for projects of this magnitude is immensely complex. Our collaboration with Nedbank CIB and other lenders underscores our shared commitment to sustainable development and water security. This funding will ensure Limpopo’s water needs are met, securing a reliable supply for future generations.”
