European Banks and DBSA to Finance South African Water Project

Three European development finance partners and the Development Bank of Southern Africa (DBSA) have formally agreed to finance the Mooi-Mgeni water supply project in KwaZulu-Natal, South Africa.

The total cost of the project is €225m, €80m of which will be financed by the European Investment Bank, €70m by the French Agency for Development and €45m by the KfW Entwicklungs Bank of Germany.

DBSA will also provide about €25.1m for the project.

The scope of work includes the construction of the Spring Grove Dam on the Mooi River at Rosetta in the KwaZulu-Natal Midlands, and building a conveyance system to transfer water to the Mgeni River catchment area.

On completion, the project will provide an extra 60 million cubic metres of water each year.