44164 - Ekurhuleni Muni2

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Summary of Investment Information

Project Number

44164

Company Name

CITY OF EKURHULENI

Date SPI Disclosed

Jun 23, 2020

Country

South Africa

Region

Africa

Projected Board Date

Jun 5, 2020

Environmental Category

B - Limited

Status

Active

Last Updated Date

Jun 23, 2020

Department

Regional Industry - INF ME & Africa

Industry

Infrastructure

Previous Events

Approved : Jun 5, 2020
Signed : Jun 10, 2020
Invested : Jun 18, 2020

Sector

other

Project Description

The Project is to support the City of Ekurhuleni Metropolitan Municipality’s (“CoE”) FY19/20 capital investment program, through an IFC investment of up to US$55 million (in South African Rands equivalent) in CoE's expected bond issuance.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	55.0
Equity

Development Impact

The proposed investment supports the implementation of municipal infrastructure projects in CoE and is expected to have positive effects on access to quality of urban infrastructure services such as water, electricity, sanitation, and roads for households and private productive enterprises. It is also expected to promote inclusive development by enabling the CoE to expand access to essential infrastructure to households in townships and informal settlements. At the market level, the Project is expected to help i) improve the City's financial resilience by reducing non-technical losses in the water and electricity distribution systems, with potential for market-wide effects; and, ii) increase the financial integration of municipalities with capital markets to support infrastructure projects, particularly in a time of declining market conditions.

IFC's additionality is both financial and non-financial. Through its participating in CoE's bond issuance, IFC aims to support the City's infrastructure investment program and provide much-needed counter-cyclical support. IFC will also help CoE better align debt maturities with the long-life infrastructure assets by providing a longer tenor investment than is currently available in the market. Finally, IFC will also seek to provide advisory services to CoE, thus supporting efforts to improve sustainability and strengthen development effects.

E&S Category Rationale / Risks and Mitigation

This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability as it is expected to have limited environmental and social impacts which are expected to be site-specific, none are expected to be significant, and can be avoided or mitigated by adhering to recognized performance standards, procedures, guidelines and design criteria as described in the following sections.

Key E&S risks and issues related to this project include: (a) COE’s management systems and staffing to review E&S risks and impacts associated with its operations and the projects of the CAPEX plan; (b) implementation of adequate E&S risk assessment, monitoring and review systems in line with applicable legal and IFC PSs requirements; (c) assurance of fair, safe and healthy working conditions for all employees and third party workers during operation as well as development of the projects of the CAPEX plan.

Contacts

For Inquiries About the Project, Contact

City of Ekurhuleni Metropolitan Municipality
Themba Gadebe
Spokesperson
011 999-1522/0763037594
themba.gadebe@ekurhuleni.gov.za
Corner Cross & Roses Streets, Germiston, 1400, South Africa
Websitehttp://www.ekurhuleni.gov.za

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Local Access of Project Documentation

Corner Cross & Roses Streets, Germiston, 1400, South Africa

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. Its purpose is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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