State water utility Umgeni Water will receive a €35m loan from the European Investment Bank to improve water infrastructure in the city of Durban, KwaZulu-Natal, South Africa.
The utility will use the funding for new pipelines and upgrading of existing water supply, water treatment works, pumping and service reservoirs in its operational area.
The loan will also allow Umgeni Water to supply clean water to about five million people in Durban and surrounding areas.
The water supply projects are part of Umgeni Water's capital expenditure infrastructure programme.
The European Investment Bank funding will provide capacity to municipalities to enable new water connections to un-served areas.
The bank said the initiative will involve upgrading water supply networks and treatment facilities to enable increased provision of water.
European Investment Bank vice president Plutarchos Sakellaris said about a million households across KwaZulu-Natal will be able to receive clean water through the new projects.
"At a time when the world's leaders are gathering in Durban to address the challenges posed by a changing climate, acknowledging the importance of ensuring the availability of clean water in dry regions is essential," Sakellaris said.
Umgeni Water Finance CEO and general manager Nica Gevers said the European Investment Bank has an in-depth understanding of the pressing service delivery needs of South Africa and the importance of ensuring water supply in the region.
The European Investment Bank previously provided funding for South African water projects, including the Berg Water dam - supplying Cape Town, Vaal Dam reservoir and pipeline - supplying Johannesburg, and the South African component of the Lesotho Highlands water project.
South Africa-based Umgeni Water is engaged in water management and is a supplier of bulk potable water in the Province of KwaZulu-Natal.
Figure Caption: Umgeni Water is hoping to improve water infrastructure in Durban.
