South African state-owned water management institution Trans-Caledon Tunnel Authority (TCTA) has secured a R3 billion loan from private banking company, New Development Bank (NDB), for the implementation of phase 11 of the Lesotho Highlands Water Project (LHWP).
The loan agreement – which was signed by the two institutions on the sidelines of the BRICS Summit held in Johannesburg this week – will fund the construction of the Polihali Dam, a reservoir, a 38 km water transfer tunnel, roads/bridges and telecommunications infrastructure.
TCTA will also use the loan to expand electricity network from South Africa to Lesotho.
Vladimir Kazbekov, NDB VP & COO, said “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.”
LHWP is expected to support economic growth in South Africa and enhance the livelihoods of people in the country’s Mpumalanga, Free State, North-West and Gauteng provinces by bolstering access to water and economic opportunities.
