The Badirammogo Water User Association (BWUA) on Tuesday said that it has passed a significant financing milestone for one of South Africa’s largest water infrastructure programmes.
Stage 1 of the R25-billion Olifants River Management Model (OMM) Programme has achieved financial close with its mezzanine debt lender, climate-focused blended finance investment manager Climate Fund Managers.
The funding milestone through Climate Fund Managers European Union-supported water, waste and oceans infrastructure fund Climate Investor Two facility, which approved a $86.2-million, or about R1.4-billion, financing facility to support the first stage of the OMM Programme, represents the conclusion of the principal funding, legal and commercial arrangements associated with Climate Fund Manager’s mezzanine debt investment.
The milestone followed the successful commercial close of Stage 1 in December and the start of the detail design, limited procurement and construction in February.
"Achieving mezzanine debt financial close is a significant milestone for the OMM Programme and demonstrates how blended finance can continue to support the delivery of strategic infrastructure at scale," said Climate Fund Managers Africa regional head Darron Johnson.
