South Africa - Second Line of Credit to the Development Bank of Southern Africa Limited (DBSA)


Project Summary

Approval Date 10 Nov 1999
Signature Date 21 Mar 2000
Planned Completion Date 31 Dec 2004
Last Disbursement Planned Date 30 Jun 2004
Sovereign / Non-Sovereign Sovereign
Sector Finance
DAC Sector Code 24030
Commitment U.A 30,578,234.41
Status Completion

Project General Description

The project is a 500 million South African Rands line of credit for financing the provision/improvement of infrastructure services that would largely benefit the disadvantaged segments of the population and the under-served local and municipal authorities in areas where DBSA is mandated to operate. It is following the First Line of Credit provided to the Development Bank of South Africa (DBSA) for infrastructure financing in December 1997 and which was fully and successfully implemented by December 2000. This Second Line of Credit was intended for implementation over a three-year period (February 2000-February 2003). The principal components of the project may be classified into two categories: i) the provision of sub loans to public institutions, local authorities and private institutions for infrastructure services: water and sanitation, power and road infrastructure; and ii) Supporting and strengthening DBSA’s capacity to provide loans and other development services to which would benefit the disadvantaged segments of the population and the underserved regions within the bank’s mandated areas of operations. The outputs of the project will be new/improved infrastructure services in the areas of water supply and sanitation, power transmission and distribution, rural electrification and telecommunication, and municipal transportation network (including storm water drainage) which would benefit the currently underserved communities.

Project Objectives

The objective of the proposed line of credit is to support and strengthen the lending capacity of DBSA to enable it to provide loans and other developmental services for projects in the infrastructure sector in areas where it is mandated to operate. More specifically, the loans under the proposed LOC will be advanced to public-sector institutions, public utilities and private sector entities for the provision/improvement of infrastructure services, which would largely benefit the disadvantaged segments of the population, and the underserved areas and regions in accordance with DBSA’s mandate.

Beneficiaries

About seventy-two infrastructure sub-projects that are in the DBSA’s lending pipeline are expected to be financed under the LOC. The sub-projects are expected to benefit more than 225 000 households. At an average of 5 persons per household, close to 1 125 000 people will benefit from the project through access to improved infrastructure services.

Participating Organization

Funding
African Development Bank
Implementing
Development Bank of Southern Africa DBSA

Information

IATI identifier 46002-P-ZA-HAA-002
Last Update 31 Oct 2019

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Geographic Location

Country South Africa