The financing is aimed at helping to mobilize the capital required to launch construction on stages one and two of the sprawling water project.

The OMMP, led by the Badirammogo Water User Association (BWUA), is a bulk water infrastructure programme designed to improve water security in one of South Africa’s most water-stressed regions.

The initiative responds to a long-standing lack of reliable water supplies in areas experiencing rapid industrial expansion, population growth and the increasing impacts of drought.

The project will extend bulk raw water pipelines and expand potable water services for both industrial users and local communities across parts of Limpopo.

BWUA, a public-private partnership representing both commercial water users (including mining and industrial companies) and government entities, is driving the programme with financial and technical partners.

The first two stages of the OMMP will involve constructing new pipelines, treatment facilities and associated infrastructure. Renewable energy systems will also be installed to power components of the network that require high energy input.

These initial phases are part of a broader six-stage build-out planned over the next decade.

Darron Johnson, CFM’s Regional Head for Africa, emphasized the importance of the investment for the region’s long-term development and resilience.

According to Johnson, the financing structure illustrates the role that blended finance can play in delivering essential climate-resilient infrastructure.

He noted that the mezzanine tranche helps unlock additional private sector finance needed to advance construction on the OMMP’s first two stages, support employment in the mining value chain, and enhance access to safe water for households across Limpopo.

The OMMP is expected to support broader economic activity in one of South Africa’s key mining regions, contribute to climate adaptation goals, and improve the reliability of water supply for nearly 390,000 residents and major commercial users.

In addition to capital investment from CI2, BWUA is working with senior lenders and government funding sources to complete the wider financing package and progress into full construction.