Statement delivered by Alfredo Abad, Head of the European Investment Bank’s Regional Office for Southern Africa, on behalf of EIB, KfW , AFD and DBSA on the occasion of the signing of a Financing Protocol with TCTA.
Honourable Minister of Water and Environmental Affairs, Ms. Bomo Edna Molewa
CEO of TCTA Mr. James Ndlovu
Acting Director General of Water Mr. Trevor Balzer
Colleagues from the European Union and the French Agence Française de Développment - AFD
and the Development Bank of South Africa -DBSA
other distinguished guests and colleagues
members of the press
All protocol observed.
I have been asked today to speak on behalf of the European Investment Bank’s partners: Agence Francaise de Developpement (AFD) and Germany’s KfW, and our long standing partner in the region, the Development Bank of Southern Africa (DBSA). We are also pleased to have with us today representatives of the EU’s delegation in South Africa.
It is a pleasure for me to be with you on the occasion of the signing of a Financing Protocol which demonstrates the commitment of three European development finance partners to water projects in South Africa and, in particular, to our common support for the Mooi-Mgeni water supply project in KwaZulu-Natal.
Today is a particularly appropriate time for this signing given it is the start of South Africa’s National Water week. Water access and supply is one of the priorities of the South African Government and of the European Union.
The Mooi Mgeni water project will supplement the yield of the Mgeni System, one of the three systems supplying water to more than five million people living in KwaZulu-Natal. The project comprises construction of the Spring Grove Dam on the Mooi River at Rosetta in the KwaZulu-Natal Midlands, and a conveyance system to transfer water to the Mgeni River catchment. Once constructed, the project will provide an additional 60 million cubic metres a year, address water delivery backlogs, and improve the security of supply.
The Mooi Mgeni project is the first time that the three European institutions have streamlined financial cooperation under their Mutual Reliance Initiative in South Africa to enhance the efficiency in appraising and processing large scale development finance projects. The total cost of the project is ZAR 2.2 billion. The project will be co-financed by the European Investment Bank, AFD and KfW with funding of EUR 195m (about ZAR 1.8 billion) and supported by the DBSA who will provide ZAR 250 million. The Trans-Caledon Tunnel Authority (TCTA) will be in charge of implementing the project under the authority of the South African Department of Water Affairs.
Since 1995, European Investment Bank, AFD and KfW have supported South African economic growth by funding large infrastructure programs, such as this bulk water project, which are key to improving the quality of lives and economic development in South Africa.
All of us are honoured to be afforded the opportunity to collaborate and play this important catalytic role in this transaction in line with our respective mandates to promote infrastructure delivery.
On behalf of the European Investment Bank, the European Union and our financial partners, AFD, KfW and DBSA we look forward to continuing our discussions with TCTA and to finalising the funding for this important project.
Johannesburg
19 March 2011