|Approval Date||16 Jul 2003|
|Signature Date||05 Aug 2004|
|Sovereign / Non-Sovereign||Non Sovereign|
|DAC Sector Code||24030|
The proposed project is the third credit line operation of US $ 100 million to DBSA. This LOC is intended to finance the goods and services required for the implementation of eligible infrastructure subprojects in South Africa and within the other countries of the SADC region. The DBSA is a strong development financing institution with good managerial, technical and operational capabilities. The LOC would mainly address the objective to develop and maintain economic infrastructure as important ingredients of economic development and poverty alleviation in the different SADC countries. This LOC is strongly supported by the Government of South Africa, who has agreed to guarantee it, as well as by the potential borrowers in SADC countries.
The objective of the LOC is to assist the provision and improvement of infrastructure services in South Africa as well as other SADC countries through the DBSA. The LOC would provide financial resources to DBSA to support and strengthen the institution’s lending capacity to enable it provide loans and other developmental services for infrastructure development in these countries. The LOC would be utilized mainly to finance regional infrastructure projects involving two or more of the countries in the SADC region. In this way, the LOC would contribute to the goal of improving the economic integration of African countries.
The primary beneficiaries of the LOC resources would be mainly private sector entities promoting infrastructure projects that would contribute to, and advance the economic development of the respective countries. Public utility companies in SADC countries could also benefit from the resources of the LOC if they are assessed as being financially viable, as well as possessing the technical ability to implement viable investment projects. The secondary beneficiaries of the LOC would be the new employees to be recruited by the primary beneficiaries, the participants in the local economies where the projects are located, as well as other firms providing inputs and services to the primary beneficiaries.
African Development Bank
|Last Update||15 Jun 2021|