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South Africa Municipal Water Supply and Sanitation Program

Country
South Africa South Africa
Status
Cancelled
Area Of Operation
Water and Sanitation Water and Sanitation
Type
Sovereign

Quick Facts

Financing Approval Date
29 August 2024
Current Limit of NDB Financing
USD 1.00 billion
Borrower
The Republic of South Africa
Project Implementing Entity
Department of Cooperative Governance

More About This Project

Lack of infrastructure is a key issue impacting delivery of water and sanitation services in municipalities in South Africa (SA). About 12% of total households in SA did not have access to piped water, and about 17% of the total households did not have access to improved sanitation services in 2022.

The National Water and Sanitation Master Plan 2030 formulated by the Government of SA estimates that the water supply and sanitation sector will require an investment of ZAR 90 billion per annum. While a large portion of these investments is earmarked for large water bulk transfer projects implemented by national level institutions, capital expenditures at lower level are carried out by municipal authorities from their own funds and grants received from the national government, including the Municipal Infrastructure Grant (MIG).

MIG is the largest infrastructure conditional grant to municipalities in SA, which is provided to non-metropolitan municipalities to eradicate infrastructure backlogs and ensure provision of basic services such as water, sanitation, roads and public lighting.

Municipal Water Supply and Sanitation Program in South Africa (Program) will focus on the construction/refurbishment of water and sanitation supply infrastructure financed under MIG.

The Program aims to expand provision of basic water and sanitation services in SA, leading to increase in access to reliable and safe drinking water and sanitation facilities. It is estimated to benefit around 0.4 million household.

The Program will be implemented by the Department of Cooperative Governance which will be responsible for planning and monitoring the physical and financial progress of the Program as well as for achieving its targeted results. Onsite implementation of the Program components will be carried out by the municipalities that are implementing MIG projects.

The Program has been categorized as Category B in accordance with the NDB Environment and Social Framework (ESF). The main environmental and social impacts include wastewater sludge disposal, sewage discharge into streams, odor from wastewater treatment plants, handling of chlorine-containing chemicals, land acquisition and servitude registration for water infrastructure, influx of workers and community issues, impacts on cultural heritage resources, and occupational health & safety risks. These impacts and risks will be addressed and mitigated through compliance with the country system requirements and implementation of the Environmental and Social Impact Management Plan to ensure compliance with ESF.

The Program will be financed through loan from New Development Bank and counterpart fund from budgetary resources of the Government of SA.

Source of Fund Amount
NDB USD 1.00 billion
Budgetary resources ZAR 8.03 billion
NDB Borrower Project Entity
Public Sector Department

Mukund Kumar

The Republic of South Africa

Wanga Cibi

Wanga.Cibi@treasury.gov.za

Department of Cooperative Governance

Werner Heydenreich

Wernerh@cogta.gov.za