Our relationship with TCTA and our understanding of their journey ensured that we were able to meet their expectations. In addition to playing an integral role in coordinating the transaction, Standard Bank was also the largest participant in the funding – financing R4 billion of the R8 billion required, structured over a 15-year tenor.
This is a major contribution to the financing needs of the water resources infrastructure of the Integrated Vaal River System, including development of Phase 2 of the Lesotho Highlands Water Project.
“Working with TCTA on this transaction provided an opportunity for Standard Bank to participate in a project that is integral to ensuring Gauteng’s future water supply and infrastructure.”
Zen Dlamini, Head: Power & Infrastructure South Africa, Standard Bank
A lifeline for South Africa’s economic nucleus
The Gauteng region, serviced by the Vaal River System, is central to the future of the South African economy. The successful growth of this region is entirely dependent on a reliable, and increasing, supply of affordable water. As such, the importance of maintaining and increasing the on-schedule supply of water to the Vaal River is central to the development, social and economic wellbeing of South Africa.
The Lesotho Highlands Water Project is a result of international co-operation between South Africa and Lesotho, involving international water resources development for the mutual benefit of both countries, by securing a sustainable water supply for South Africa and providing economic development for Lesotho.
TCTA is implementing the water delivery infrastructure of the Lesotho Highlands Water Project on the South African side and managing the debt of the entire water delivery project.
“TCTA is proud of the role it plays in contributing to the supply of water to South Africa’s economic heartland. Securing this funding provides the ability to maintain and increase the volume and efficiency of supply to our stakeholders, improving their ability to secure and improve supply to end-users.”
Nhlanhla Nkabinde, Executive Manager: Project Finance and Treasury, TCTA
Leading the way in power and infrastructure development
This transaction is a further demonstration of Standard Bank’s ongoing commitment to the development of Power and Infrastructure projects throughout the continent. We are delighted to have delivered a financing solution that will enable the TCTA to continue to develop infrastructures that provide viable water solutions for a growing economy.
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