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Magalies Bulk Water Supply Scheme Project

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

Quick Facts

Financing Approval Date
25 December 2025
Current Limit of NDB Financing
USD 205 million
Borrower
The Republic of South Africa
Project Implementing Entity
Magalies Water

More About This Project

Six neighbouring local municipalities of South Africa’s North West and Limpopo provinces (Bela-Bela, Modimolle-Mookgophong, Mogalakwena, Moretele, Moses Kotane, and Rustenburg) are affected by water shortages evidenced by the current water demand outstripping supply by more than 1.4 times. This imbalance is projected to increase to more than 1.6 times by 2035. The proposed Magalies Bulk Water Supply Scheme Project (the “Project”) is a critical response to address this challenge. By extending pipeline networks, enhancing the capacity of existing pipelines, and expanding water treatment facilities, the Project will ensure reliable and sustainable access to drinking water for 2 million local residents, bridge the supply gap and cater for future demand growth.

The Project comprises:

Component 1: Moretele North Klipvoor Bulk Water Supply Scheme, which will address water supply deficit in Moretele Local Municipality of North West Province, and Bela- Bela, Modimolle- Mookgophong and Mogalakwena Local Municipalities of Limpopo Province; and

Component 2: Pilanesberg Bulk Water Supply Scheme, which will augment bulk water supply to Moses Kotane and Rustenburg Local Municipalities of North West Province.

The Project will supply additional 141 MLD of water to the six municipalities, clearing the current supply deficit of 117 MLD and partially cater for future demand growth. The Project will contribute to enhancing access to clean and reliable water for the households of Limpopo and North West Provinces, in line with the key objectives of the National Development Plan and the National Water and Sanitation Master Plan.

Magalies Water (“MW”) will take overall responsibility for implementation of the Project through a dedicated project management unit formed within its organizational structure.

Department of Water and Sanitation (“DWS”) will perform monitoring and oversight during Project implementation.

The implementation period of the Project is planned for 5 years.

The Project has been classified as Category B in accordance with the NDB Environment and Social Framework (“NDB ESF”).

Key environmental and social (“E&S”) impacts are associated with erosion and alteration of natural vegetation due to clearing of land for Project development, labour and social issues due to influx of workers for construction, and occupational health and safety risks during project implementation.

Adherence to country systems and implementation of E&S management plans, including the E&S Impact Management Plan, will minimize and mitigate these impacts. Upon successful implementation of these plans, the Project will meet the requirements of NDB ESF.

The Project is to be financed by NDB loan, funds from commercial lenders and counterpart funding from MW and DWS.

Source of Funds Amount
NDB USD 205 million
MW ZAR 0.30 billion
DWS ZAR 0.38 billion
Commercial lenders ZAR 3.67 billion
NDB Borrower  Project Entity
Public Sector Department

Mr. Yang Luo

Department of National Treasury of South Africa

Ms. Mmatshepo Maidi

mmatshepo.maidi@treasury.gov.za

Magalies Water

Chief Executive Officer

Mr. Ofentse Nthutang

ofentsen@magalieswater.co.za