The Badirammogo Water Users Association (BWUA) is the implementing agent for the Olifants Management Model Progamme (OMMP). The OMMP is a water resource development project conceptualised to address water needs for the middle Olifants River catchment, within the Limpopo Province of South Africa.
Our Development Partner
The Badirammogo Water Users Association
We Invest
DF2:
USD 2.6 million
CEF2:
– Stage 1: USD 52,867,000
– Stage 2: USD 55,433,000
Estimated Project Impact
Direct Jobs 3,300 during the construction phase, and 354 during the operational phase.
Annual avoided GHG emissions (tCO2eq/year) 66,773.42
People served 763,967
Volume of water supplied per day (m3):
The overall system capacity of the OMMP will be 330,000 m3 / day.
Stage 1: 94,000 m3
Stage 2: 236,000 m3
Volume of water supplied to off-takers based on current demand will be:
Stage 1: 54,500 m3
Stage 2: 160,800 m3
Total installed capacity (MW) 36 MW
Total renewable energy generated (GWh/year) 69.3 GWh/year
CI2 E&S Rationale
The project area is located primarily within the Olifants River System. The system falls within the Bushveld Complex geological formation, which contains some of largest platinum group mineral deposits in South Africa. Formal economic activity in the area is characterised by agriculture, mining, manufacturing, commerce, and tourism.
The potential environmental and social risks identified are related to occupational health and safety (OHS), community safety during construction, and the resettlement of eleven households due to the infrastructure development. These risks are considered site-specific, reversible, and mitigable through established systems and management plans, including the Environmental and Social Management Programme’s (ESMP) of the various components, and the broader Environmental, Social and Governance Management Systems of the BWUA. IFC PS 1-6 are applicable to the project. There are no internationally recognised communities of Indigenous Peoples in the project area of influence, as such IFC PS 7 is not considered relevant to this investment. IFC PS8 (cultural heritage) is not triggered beyond the standard requirement for ‘chance find’ procedures.
Funding Objective
The CI2 investment will be used for the construction and operation of the OMMP, with an option to provide further subordinated debt funding for the remaining phases of the OMMP. The ProjectCo will have a “use of asset agreement” with BWUA, who will provide staffing and operational systems for the construction management and operation of the assets. The initial Phase 2B and 2B+ of the OMMP will increase water supply by 94 million litres per day to water users in the northern part of the Bushveld Igneous Complex.
Region
Limpopo Province
Country
South Africa
Business Model
Bulk Water Supply
Environmental & Social Category
The environmental and social risk (“E&S”) of the project has been classified as category B+ (in accordance with CI2’s risk categorisation) which is equivalent to International Finance Corporation (IFC) Category B.
Sector
Water Infrastructure
Project Location
Why Climate Investor Two Wants to Invest in This Project
CI2’s investment will contribute to the South African government’s efforts to improve local water resources and increase water supply. South Africa is identified as a water scarce country, which will only be exacerbated by climate change. The OMMP’s objective is to develop and construct the infrastructure required to deliver much-needed potable water supply to communities and bulk raw water to mining users in a water-scarce region of South Africa. Phase 2B and 2B+ will increase bulk raw water supply by 94 million litres per day to water users, with a further 70 million litres being added in subsequent phases of the OMMP.
Disclosures
Here you can find and download all the relevant disclosure documents for this project: