The DA welcomes approval of R750 million Loan Terms and much-needed Cash Injection to improve the City’s Capital Infrastructure
by Cllr. Alta de Beer– DA Member of Finance Oversight Committee
Date: 30 November 2022
Release: Immediate
The Democratic Alliance welcomes the approval of the funding requirements and indicative pricing terms for the R750 million loan in the 24 November 2022, Ordinary Council Meeting.
The City’s intention to take up an external loan was approved on 25 May 2022 to subsidize the Capital Budget for the 2022/23 financial year. The capital budget for the 2022/23 financial year is R3.323 billion and is funded through a mixture of Grants, External Borrowings, and internally generated revenue. The City is targeting to raise the total approved borrowings of R741 982 950, subject to the pricing and adjustment budget in January 2023, which makes the bulk (22%) of the funding requirement for the financial year.
The DA requested that the MMC expedites the finalization of the indicative terms and conditions in line with the City’s Credit rating. This is a much-needed cash injection to ensure the implementation of policy programmes and the initiation and completion of a range of Capital Projects across the City.
Capital projects are key to improving the lives of our communities, by improving road, electricity, and water infrastructure and bringing economic relief to the unemployed through EPWP and other programmes. More importantly, this loan will assist with expediting service delivery in all our Customer Care Areas which amongst others include, Vosloorus, Duduza, Katlehong, Kwa-Thema, Tembisa, Thokoza, Germiston, Bedfordview/ Edenvale, and Kempton Park.
The bulk of the loan will fund Energy, Water, and Sanitation projects that will bring relief in terms of outages to our residents and local businesses. This reaffirms the commitment of the Multi-Party Government to ensure the maintenance, improvement, and security of municipal infrastructure and will go a long towards addressing the City’s infrastructure development backlog inherited from years of negligence from the former ANC-led administration.
Cllr. Alta de Beer
DA Member of Finance Oversight Committee
082 777 1406
