Sandton, 12 December 2025 – The Badirammogo Water User Association (BWUA), Infrastructure Fund and Department of Water and Sanitation announced today the successful Commercial Close of Stage 1 of the landmark Olifants Management Model Programme (OMMP). This milestone was formalised at a signing ceremony at Inanda Club in Sandton, where Facility Agreements were finalised with the programme’s financiers, paving the way for immediate Financial Close and the commencement of construction.
This R25 billion source-to-tap infrastructure programme is a pioneering 50:50 public-private collaboration by BWUA members represented by the Department of Water and Sanitation (DWS) and commercial mining and industrial users. It is registered as Strategic Integrated Project 19 (SIP-19), accelerating its delivery as a national priority.
The OMMP will construct over 875 km of bulk raw and potable water pipelines, associated water treatment works, pump stations, and reservoirs. Once completed, it will provide potable water to approximately 140 communities, benefiting around 390,000 people, while also securing reliable water supply for key economic sectors in the region. The programme is expected to create an estimated 42,000 employment opportunities.
The event specifically pertained to Stage 1 of the OMMP is valued at R8.5 billion and comprises the construction of critical bulk raw water pipelines, pump stations and associated water treatment works, and an energy solution.
The ceremony featured remarks from senior representatives from BWUA (as Project Sponsor and Implementor), the Institutional Sector Financing partners – including the Infrastructure Fund (Institutional Senior Lender and Fundraiser), the Department of Water and Sanitation (Member and Equity Funder through National Treasury grant & WTE funding) – and the Commercial Sector Financing partners, including a consortium of South African Commercial Banks, namely ABSA, Nedbank and Standard Bank (Commercial Senior Lenders), and Climate Fund Managers providing international financing.
In marking this watershed moment for water security and regional development in Limpopo, the partner stakeholders had this to say:
Mr. Mohale Rakgate, Chief Investment Officer of the Infrastructure Fund, said:
“The Infrastructure Fund is proud to be a cornerstone partner in this transformative programme. Achieving Commercial Close for OMMP Stage 1 validates a robust, bankable model that strategically leverages public capital to de-risk and crowd-in significant private investment. This partnership is a blueprint for how South Africa can fast-track critical infrastructure to unlock economic growth and serve communities.”
Dr Kobus Duvenhage, Chief Executive Officer of the Badirammogo Water User Association, said:
“Today is the culmination of years of dedicated work to transform our mandate and forge a new model for infrastructure delivery. As BWUA, our ‘hive’ approach has brought public and private stakeholders together with a common purpose. Achieving this milestone for Stage 1 unlocks the pathway to delivering sustainable water solutions that will serve both our commercial members and, pivotally, hundreds of thousands of residents in the Sekhukhune and Mogalakwena areas. This is infrastructure with shared accountability and shared benefit.”
Dr. Sean Phillips, Director-General of the Department of Water and Sanitation, said:
“The Department of Water and Sanitation welcomes this historic step forward. The OMMP represents a strategic shift in how we develop water infrastructure, accelerating the remainder of the Olifants River Water Resources Development Project (ORWRDP) in a more cost-effective and integrated manner. This 50:50 collaboration ensures that while government retains ownership of the assets, the private sector’s efficiency and investment are harnessed for the public good. It directly supports our constitutional mandate and our commitment to Sustainable Development Goal 6.”
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Note to Editors:
BWUA is implementing the OMMP, a R25 billion (capital expenditure), source-to-tap infrastructure programme that will expand bulk raw and potable water supply in the Limpopo province. Registered as a Strategic Integrated Project (SIP-19), the OMMP represents a pioneering 50:50 public-private collaboration and co-governance model between the Association’s Institutional Members (consisting of the Department of Water and Sanitation and the Lepelle Northern Water Board, providing water to Sekhukhune District, Mogalakwena Local and Polokwane Local Municipalities) and Commercial Members (consisting of Valterra Platinum, African Rainbow Minerals (ARM) managing Modikwa Platinum Mine, Northam Platinum’s Booysendal Platinum Mine, Impala Platinum, Assore, Corridor Mining Resources, Kadoma Investment Industries, Nkwe Platinum, Samancor’s, Tubatse Alloys Smelter and ARM’s Two Rivers Platinum Mine).
Stage 1 of the OMMP is valued at R8.5 billion and comprises the construction of critical bulk raw water pipelines, pump stations and associated water treatment works, and an energy solution. At completion, the full OMMP will deliver approximately 263 million cubic metres per day (m3 per day) to commercial and institutional users by 2050. It is projected to provide potable water to approximately 140 communities (benefiting ~390,000 people), supply raw water to key mining and industrial users, and create an estimated 42,000 direct, indirect and induced employment opportunities.
For media enquiries, please contact:
Mr Soneni Phiri, Head: Marketing and Communications, DBSA - Infrastructure Fund | Cell: 073 211 9437, Email: sonenip@dbsa.org or Tsholofelo Mokoena, Marketing Business Partner | Cell: 072 034 7475, Email: tsholofelom@dbsa.org
Ms Wisane Mavasa, Director: Media Liaison, Department of Water and Sanitation | Cell: 060 561 8935, Email: mavasaw@dws.gov.za
Mr Tim Boshoff, Communications Manager, BWUA | Cell: +27 (82) 909 2959 , Email: tim@lebalelo.co.za
Issued Jointly by:
The Infrastructure Fund
Department of Water and Sanitation
Badirammogo Water User Association (BWUA)