Agence Française de Développement (AFD) and the Development Bank of Southern Africa (DBSA) have provided the eThekwini municipality with a R700-million 15-year loan.
A grant of R93-million was also provided to the municipality by the Infrastructure Investment Programme for South Africa which is funded by the European Union.
The funds will be used to advance the city’s Western and Northern Aqueduct projects that will improve water access to citizens.
The projects are currently in implementation. The Western Aqueduct project comprises a large-diameter bulk potable water pipeline that will connect eThekwini’s western and northern supply areas to Umgeni Water’s inland bulk supply system from the Midmar treatment works.
The Northern Aqueduct project involves large-diameter bulk potable pipelines that will augment eThekwini’s existing bulk supply pipeline network that serves the north-eastern portion of the area of supply north of the Umgeni river, south of the Ohlanga river and east of Ntuzuma.
The phased project will be implemented over a multiyear period, with the core components expected to be completed by the 2019/20 financial year.
This is the first time that AFD and DBSA are co-financing a project, following a deliberate decision by the two institutions to work more closely.
“The AFD is proud to be involved and to finance eThekwini’s infrastructure development goals especially pertaining to water and sustainable development," AFD South Africa regional director Martha Stein-Sochas said.