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Olifants Management Model Program (Stage I)

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

Quick Facts

Financing Approval Date
September 17, 2026
Current Limit of NDB Financing
USD 200 million
Borrower
The Republic of South Africa
Project Implementing Entity
Department of Water and Sanitation of South Africa, Badirammogo Water User Association

More About This Project

Limpopo province in South Africa faces growing water scarcity due to variable rainfall, frequent droughts and limited surface- and ground-water resources. Household access to reliable water in parts of the province is below national averages. In Mogalakwena Local Municipality (MLM) of Limpopo, water demand increasingly exceeds available supply, leaving about one-third of the demand unmet. Existing surface water infrastructure is inadequate to meet long-term needs, while groundwater sources are constrained by depleting levels and deteriorating quality. New surface water supply schemes are therefore required to provide sustainable, climate-resilient water services for both communities and industry.

The Project involves implementation of a bulk water supply scheme, abstracting water from Flag Boshielo Dam on the Olifants River to supply bulk raw water to industrial users in the region as well as water treatment works to enable the provision of potable water to communities in MLM. Major components include:

  • Bulk raw water infrastructure: A steel pipeline from Flag Boshielo Dam to Pruissen and from Pruissen to Sekuruwe, three new pump stations with associated renewable energy supply, balancing dams and storage reservoirs; and
  • Bulk potable water infrastructure: Two water treatment works (in Mokopane and Sekuruwe) with a total capacity of 49 million liters per day.

The Project aims to improve quality of life and economic activity through increased bulk raw water availability and strengthened conveyance and treatment capacity, ensuring the expanded network can meet both social and commercial water demands in the region.

Department of Water and Sanitation of the Government of South Africa will be in charge for overall planning, execution and achievement of the desired results. Badirammogo Water User Association (BWUA) will be the implementing agency responsible for carrying out all activities related to design, procurement, construction and commissioning.

The Project is targeted for completion by the end of 2028.

The Project has been categorized as Category B in accordance with the NDB Environment and Social Framework. The main environmental and social (E&S) risks relate to potential adverse impacts during the construction period, such as physical and economic displacement, and possible impacts on biodiversity, including protected tree species and fauna. Other risks are largely reversible and site-specific, such as vegetation disturbance, soil erosion, waste generation, and handling of hazardous substances.

E&S impacts and risks will be addressed and mitigated by adherence to BWUA’s E&S management systems, country systems and implementing actions as outlined in the E&S Impact Management Plan developed for the Project.

Source of Fund Amount 
NDB USD 200 million
Commercial borrowings and other sources ZAR 6,555 million
NDB Borrower Project Entity
Public Sector Department

Jitesh Ketkar

Department of National Treasury of South Africa

Wanga Cibi

wanga.cibi@treasury.gov.za

Badirammogo Water User Association

Emile Malan

emile@bwua.org.za