The eThekwini municipality has boosted its financial resources for development in the municipal area through a R900 million loan over 15 years from Nedbank Corporate Banking. City Manager, Dr Michael Sutcliffe said the loan was struck at a competitive rate of interest and would be used to support the drive to establish the eThekwini municipality as Africa s most liveable city by 2020.
This is the first time the city has awarded a tender for funding to a single institution.The practice has been to engage with two or more organisations. The funding will enable the municipality to continue to address priorities identified in terms of its integrated development plan of growing its economy and meeting people s needs, he said.
These priorities are reflected in the municipal capital budget which has grown from R1,85 billion in 2002/3 to R2,7 billion for 2005/6.More than R1 billion, 39%, of the current budget will be spent on developing quality living environments. A further R956 million, or 34%, is budgeted for sustaining our built and natural environment and R290 million, nearly 11% for economic growth and job creation.
Other priorities are ensuring a safe, healthy and secure environment for well developed citizens and financially viable and sustainable local government. Dr Sutcliffe said the city s finances in addressing the needs of 3 million people in an area of 2 300 square kilometres continued to grow in scope. The total municipal budget, including the operating budget of R9,6 billion, had increased to R12,3 billion for 2005/6 from R9,6 billion in 2002/3.
Elizabeth Maepa, head of Nedbank Corporate Banking in KwaZulu-Natal,and previously Johannesburg-based head of the bank public sector unit until her move to Durban in January, said the award of the tender signalled Nedbank s continued strong commitment to public sector business. Before the turn of the millennium Nedbank was not known for its focus on the public sector. Over the last four years particularly there has been a concerted effort to achieve a greater involvement in this sector. We are willing and ready to transact with all levels of government.
Maepa who was named Corporate Banker of 2005 by the Association of Black Securities and Investment Professionals (Absip),said the tender required an approved credit line to be in place. It invited funding for a part or the full amount over 10 or 15 years. A Nedbank team drawn from credit, treasury and legal units was assembled to do preparatory work, negotiate the terms and conditions of the loanand to address compliance and other issues after Nedbank were named preferred bidder.
The experience gained from this tender will be invaluable in contributing to other capital projects in the pipeline in the municipal area and in KwaZulu-Natal. Opportunities will flow from some of the big plans for the province such as Dube Tradeport at La Mercy,with the King Shaka Airport at its centre.
Nedbank s relationship with eThekwini goes beyond the financing of the municipality s projects, but also extends to involvement in communit up-liftment through the Nedbank Foundation. Some of the projects financed in the current year are in sports development, home care for children in need, welfare support and job creation initiatives.
