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MEDIA RELEASE
7 June 2024
RMB helps unlock water supply with funding to Trans-Caledon Tunnel Authority for the MCWAP project
RMB has supported Trans-Caledon Tunnel Authority (“TCTA”) to secure water supply inter alia to the Lephalale Local Municipality, Eskom’s Matimba and Medupi power stations, and Exxaro’s Grootegeluk mine with a significant participation in the R22.25 bn funding package to implement the Mokolo Crocodile River (West) Water Augmentation Project Phase 2A (“MCWAP-2A”) water resource development project. MCWAP-2A will augment the infrastructure and support the current yield of phase 1 of MCWAP (“MCWAP-1”).
The MCWAP-1 which was commissioned in June 2015 currently delivers approximately 40 million m3 per annum (million m3/a) to Eskom (including 3 of the 6 Medupi flue-gas desulphurisation (“FGD”) Units), Exxaro, farmers in the Lephalale area and the Lephalale Local Municipality. RMB is pleased to have participated in the funding of MCWAP-1.
To further augment the system, TCTA was instructed to undertake MCWAP-2A, consisting of a water transfer scheme to augment existing water supply in the project area by 75 million m3/a, through a 160 km pipeline. MCWAP-2A will increase the MCWAP system yield to 105 million m3/a excluding allocation to farmers. MCWAP-2A is critical to becoming a second source of water supply to the Waterberg area which will address municipal water needs, support industrial development, support energy security and unlock the mineral wealth in the Waterberg area.
The additional water supply also plays a key role in limiting the potential negative environmental impacts related to the Medupi and Matimba Power Stations by allowing for the commissioning and operation of the outstanding FGD units, which could not previously be supplied due to limited water supply in MCWAP-1system. FGD technology is a climate change mitigant as it removes sulphur compounds from the exhaust emissions of fossil fuel power stations, to prevent acid rain and air pollution.
“RMB has been involved in this strategic bulk water project from its inception, initially as a funder into MCWAP-1 in 2012 and, more recently, working closely with TCTA through providing funding into MCWAP-2A. We are proud to have played a significant role in the MCWAP funding and most importantly supporting TCTA in delivering on its mandate of water security for South Africa through financing and implementing bulk raw water infrastructure projects.” says Xoli Mdluli, Senior Transactor at RMB.
“The MCWAP project is pivotal to South Africa’s water and energy security. Not only will it enable the Lephalale Local Municipality to cater for additional growth and development, it will also increase mining capacity for Exxaro to provide coal to Eskom’s Matimba and Medupi Power Stations and increase assurance of water supply for Eskom’s operational needs for Medupi and Matimba Power Stations. In addition, it creates an enabling environment for economic growth in the area to support job creation, socio-economic and industrial development,” TCTA CEO, Percy Sechemane, concludes.
ENDS
