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South Africa : DBSA inks US$150 MILLION long-term loan facility with SOUTH AFRICA CITY

June 24, 2014

The Development Bank of Southern Africa has inked a long-term loan facility with the South Africa's City of Tshwane for US$150 million.

This loan is aimed at assisting the city's capital expenditure programme, including the removal of backlogs in water and sanitation, roads, electricity and housing-related infrastructure. It will also help the city's growth and development initiatives.

The facility will be utilised to aggressively fast-track the city's infrastructure capital programme. This level of capital investment in the city was necessitated by the need to improve the enlarged infrastructure, which now includes the erstwhile municipalities of Metsweding, Nokeng Tsa Taemane and Kungwini, said Jason Ngobeni, manager of City of Tshwane.

This is a 20-year loan tenure, which would additionally support the municipalities to deliver socio-economic infrastructure an attempt to address the country's triple challenges of high unemployment, poverty and inequality, the bank said.

We are pleased to be part of this capital expansion programme, which signifies the bank's commitment to contribute towards the development of social and economic infrastructure in the City of Tshwane, said Tshokolo Nchocho, group executive for South Africa Financing Division at DBSA.

The city, like several other metropolitan municipalities in South Africa, has been hit by a number of infrastructure backlogs.

DBSA will provide comprehensive support programmes, aimed to address each metro's needs, in order to ensure the metropolitan municipalities remain at the centre of South Africa's economic growth, said DBSA.

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Source: TendersInfo (India)

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