The government and the New Development Bank (NDB) have signed a $1 billion loan agreement to upgrade infrastructure for the Metropolitan Municipal Services as part of the Metro Trading Services Reform Programme (MTSR).<\/p>\n\n\n\n
This is according to a National Treasury statement released on Tuesday.<\/p>\n\n\n\n
\u201cThe MTSR is a South African government-led reform programme aimed at improving the governance, financial sustainability and operational performance of municipal trading services in metropolitan municipalities, particularly in water and sanitation, electricity and energy, and solid waste management.”<\/p>\n\n\n\n
\u201cThe financing supports a government-led, performance-based reform programme implemented through South Africa\u2019s existing legal, fiscal and institutional framework.”<\/p>\n\n\n\n
“This is a performance-based loan with financing linked to institutional strengthening and the achievement of independently verified measurable performance targets that are approved by Metro Councils for their trading services,\u201d the statement read.<\/p>\n\n\n\n
Treasury explained that the NDB\u2019s financing forms part of the government\u2019s broader efforts to \u201creform municipal trading services in metropolitan municipalities\u201d.<\/p>\n\n\n\n
The loan offers favourable concessional financial terms as follows:
\u2022 Nominal value: $1 billion
\u2022 Maturity: 16 years
\u2022 Grace period: 3 years
\u2022 Interest rate: Daily SOFR plus 1.18508%.<\/p>\n\n\n\n
\u201cThe NDB loan was prepared in coordination with development partners active in South Africa’s infrastructure sector. <\/p>\n\n\n\n
\u201cNational Treasury extends its appreciation to the NDB for its support to this government-led reform towards better services for residents and stronger, more sustainable cities,\u201d the statement concluded.<\/p>\n\n\n\n
The NDB is a multilateral development bank established by Brazil, Russia, India, China and South Africa (BRICS) with the purpose of mobilising resources for infrastructure and sustainable development projects in emerging markets and developing countries (EMDCs). <\/p>\n","protected":false},"excerpt":{"rendered":"
South Africa has signed a $1 billion loan agreement with New Development Bank for infrastructure upgrades.<\/p>\n","protected":false},"author":33,"featured_media":805644,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"posted","_sma_x_autopost_error":"","_sma_x_post_id":"2099779263851340137","_sma_facebook_post_id":"191437357620492_2206068520213547","_sma_instagram_post_id":"18172505449458588","_sma_x_attempts":1,"footnotes":""},"categories":[23],"tags":[1571,3796,20445,17078],"class_list":["post-875495","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-government","tag-infrastructure","tag-national-treasury","tag-new-development-bank","tag-sanews"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/875495","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=875495"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/875495\/revisions"}],"predecessor-version":[{"id":875496,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/875495\/revisions\/875496"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/805644"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=875495"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=875495"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=875495"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}