Enoch Godongwana says Treasury welcomes the funding commitments made by the New Development Bank (NDB) to South Africa’s critical freight logistics and water projects.
During its 9th Annual Meeting of the Board of Directors of the NDB in Cape Town this week, the bank announced that its Board had approved a US$1billion loan to South Africa for financing water and sanitation infrastructure development under the Municipal Infrastructure Grant.
Additionally, a R5 billion loan agreement with Transnet was also extended.
The NDB has also approved $2.3 billion for 10 renewable energy projects, including solar PV, wind, hydropower, biomass, and hybrid systems with storage. These projects aim to install a 2.8GW generation capacity, reducing over 4 million tonnes of CO2 emissions annually.
The annual meeting included engaging sessions and seminars focused on energy; unlocking financing for sustainable development in emerging markets and developing countries; and the role of development finance institutions in infrastructure investment.
Godongwana said government looked to the NDB to provide solutions aimed at de-risking infrastructure projects through its financial instruments to attract private capital.
This, he added, would support infrastructure projects and provide technical assistance in designing innovative funding models and institutional arrangements that could accelerate infrastructure investments at a country-level.
“However, if the bank is to continue advancing the interests of the developing world and addressing challenges such as renewable energy, infrastructure development, digital access, and job creation then the NDB must make a concerted effort to speed-up disbursements of approved projects,” he said.
READ MORE: Treasury withdraws Eskom’s PFMA partial exemption.
1 Comment
Pingback: MK Party lauds Zuma’s legacy after Brics bank R17 billion loan - Sociopolitical Discourse Agency