Cape Town Debt (IFC-49631)

Regions
  • Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • South Africa
Geographic location where the impacts of the investment may be experienced.
Specific Location
City of Cape Town
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 25, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of South Africa - City of Cape Town
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Infrastructure
  • Transport
  • Water and Sanitation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 421.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 2, 2024

Disclosed by Bank May 8, 2024

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated by the IFC, the Project is to support the City of Cape Town Metropolitan Municipality’s FY24/25 capital investment program, through a proposed IFC loan of up to the lower of ZAR2.8 billion or US$150 million (in South African Rands equivalent) with an up to 20-year tenor. The investment aims to support the City’s FY24/25 capital investment program for infrastructure assets, which comprises primarily upgrades, replacements and expansion of sanitation and water supply infrastructure, roads, electrical infrastructure, and transport assets, amongst others. The capital investment program forms part of the City’s ten-year infrastructure plan, under which the City aims to address key infrastructure gaps to deliver quality basic services to its growing population and enable inclusive economic growth.

The City of Cape Town is located in the Western Cape province of South Africa and has a population of ~4.7 million people (approximately 8% of the population of South Africa) (https://www.capetown.org.za).

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

As stated by the IFC, the City plans to raise up to ZAR8 billion (around US$421 million) through loans to finance its FY23/24 and FY24/25 capital expenditure program of ZAR25.3 billion (around US$1.3 billion). 

The ESRS states that the "IFC is now considering a debt package of up to US$ 300 million (c. ZAR 5.7 billion)".


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

General IFC Inquiries - IFC Communications:

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: +1 202-473-3800
Fax: +1 202-974-4384

Borrower - City of Cape Town Metropolitan Municipality:

Hilton Robbins - Manager: Treasury, Corporate Finance Directorate
Phone: +27 21 400 5211
Email: hilton.robbins@capetown.gov.za
Address: PO Box 298, Cape Town, 8000
Website: https://www.capetown.gov.za/

Local Access for Project Documentation:

City of Cape Town, 12 Hertzog Boulevard, Foreshore, Cape Town 8000, South Africa

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works