{"id":56703,"date":"2018-09-19T12:09:11","date_gmt":"2018-09-19T10:09:11","guid":{"rendered":"https:\/\/novanews.co.za\/tygerburger\/public-asked-to-comment-until-25-september-on-loan-for-wastewater-facilities-upgrades-20180919\/"},"modified":"2025-03-19T19:02:00","modified_gmt":"2025-03-19T17:02:00","slug":"public-asked-to-comment-until-25-september-on-loan-for-wastewater-facilities-upgrades-20180919","status":"publish","type":"post","link":"https:\/\/novanews.co.za\/tygerburger\/public-asked-to-comment-until-25-september-on-loan-for-wastewater-facilities-upgrades-20180919\/","title":{"rendered":"Public asked to comment (until 25 September) on loan for wastewater facilities upgrades"},"content":{"rendered":"\n

PRESS RELEASE FROM THE CITY OF CAPE TOWN:<\/span><\/strong><\/p>\n\n\n\n

<\/span><\/strong><\/p>\n\n\n\n

The City of Cape Town invites members of the public to
\ncomment on its proposal to take up a substantial loan that has been offered at
\na highly subsidised interest rate to help it refurbish and expand several
\nwastewater treatment plants in Cape Town over the next years. The multi-million
\nrand projects are being implemented at locations across the metro and the loan
\nfunding will assist to spread the costs required for these projects to avoid
\nexcessively burdening ratepayers.<\/p>\n\n\n\n

Members of the public have until 25 September 2018 to
\ncomment on this proposal.<\/p>\n\n\n\n

According to a press statement received from the City of
\nCape Town, this morning, the loan funding offer from the German
\ngovernment-owned KfW Development Bank comprises 80 million euros in total. The
\nequivalent amount in rand will be determined at the date of signing the
\nagreement, which is envisioned to be in November 2018. That is not to say that
\nthe entire amount would be taken up by the City. <\/span><\/p>\n\n\n\n

The City has chosen to obtain funding from KfW Development Bank
\nafter it was approached by this institution and a funding offer was submitted
\nto the City at a highly subsidised interest rate. The City then advertised a
\nRequest for Funding Proposal to compare this offer to the market. Responses
\nwere received from both local and international banks and KfW proved to have
\nthe best rate compared to the proposals received, being 2% lower than the local
\nmarket rates, according to the statement.<\/p>\n\n\n\n

The rand amount of the unsecured loan would be fixed upfront
\nand repaid over the term of the loan, which is 15 years.<\/p>\n\n\n\n

\u201cThe City approved its budget during May 2018 after a
\ncomprehensive public participation process in which the City\u2019s funding strategy
\nto fund its capital programme was also approved. All costs have already been factored
\ninto the tariffs which were implemented from 1 July 2018 and would therefore
\nhave no further impact on such tariffs due to the taking up of the funding,\u201d
\nsays the City\u2019s Mayco member for finance Johan van der Merwe.<\/p>\n\n\n\n

\u201cThe taking up of debt is necessary to spread the related
\ncosts over the lifetime of the wastewater projects to mitigate against an undue
\nburden on the current ratepayer. All cost implications have been considered in
\nterms of affordability in advance.<\/p>\n\n\n\n

\u201cCape Town is a growing city and it is important that we are
\nable to sufficiently invest in infrastructure over the coming years. Our debt
\nlevel as a City is at an acceptable rate and the City will continue to follow a
\nconservative approach to loan funding while balancing what investment is
\nrequired for the metro going forward. The City continues to exercise sound
\ngovernance and prudent financial management,\u201d he adds.<\/p>\n\n\n\n

Earmarked projects include work at the Cape Flats,
\nBellville, Mitchells Plain, Borchard\u2019s Quarry, Hout Bay, Gordon\u2019s Bay and
\nZandvliet wastewater treatment plants.  <\/span><\/p>\n\n\n\n

The interest rate is calculated on a Euribor basis plus a
\nmargin, which takes the grant element into account. \u2018Euribor\u2019 refers to the
\nEuro Interbank Offered Rate which is a daily reference rate that is published
\nby the European Money Markets Institute. This rate is then swapped into the
\nrand equivalent (indicative rate at 15 August 2018 is 8,25 to 8,75%). <\/p>\n\n\n\n

How to comment<\/span><\/strong><\/p>\n\n\n\n

The City invites written comments or representations from
\nmembers of the public, the National Treasury and the Western Cape Provincial
\nTreasury in respect of the proposed debt.<\/p>\n\n\n\n

Comment may be sent via email to
\njaninemarion.abrahams@capetown.gov.za<\/p>\n\n\n\n

Any person who cannot write may come during office hours to
\nthe 7th Floor, Civic Centre, 12 Herzog Boulevard, Cape Town where assistance in
\ntranscribing that person\u2019s comments or representations will be given.<\/p>\n\n\n\n

Please also see http:\/\/www.capetown.gov.za\/City-Connect\/Have-your-say\/Issues-open-for-public-comment\/comment-on-proposed-intention-to-incur-long-term-debt<\/a><\/strong><\/p>\n\n\n\n

<\/p>\n\n\n\n

<\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

PRESS RELEASE FROM THE CITY OF CAPE TOWN: The City of Cape Town invites members of the public to comment on its proposal to take up a substantial loan that 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