South Africa Metro Trading Services Program (WB-P505813)

Countries
  • South Africa
Geographic location where the impacts of the investment may be experienced.
Specific Location
Tshwane, Cape Town, Ekurhuleni, Magaung, Johannesburg, eThekwini, Nelson Mandela Bay, Buffalo City
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
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
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
Apr 30, 2025
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
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Infrastructure
  • 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)
$ 1,000.00 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)
$ 2,900.00 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.
Primary Source

Original disclosure @ WB website

Updated in EWS Feb 27, 2025

Disclosed by Bank Oct 3, 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.

According to the Bank’s website, the development objective is to improve the accountability, financial and operational performance of trading services in South Africa’s metropolitan municipalities.

The MTSP aims to respond to the institutional capacity needs of eight major metros, enabling substantive interventions in response to deteriorating infrastructure services (water and sanitation, waste and electricity). The MTSP will assist the metros to leverage additional funding for their infrastructure needs for these services. The eight targeted metropolitan municipalities include the City of Johannesburg, Ekurhuleni and Tshwane located in Gauteng Province, the City of Cape Town located in Western Cape Province, eThekwini located in Kwa-Zulu Natal, Nelson Mandela Bay and Buffalo City located in Eastern Cape Province and Mangaung located in Free State Province.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The ESSA concluded that the overall environmental and social risk associated with the program is considered Moderate. The environmental and social benefits associated with the project will be significantly positive and outweighs the anticipated adverse effects which are temporary and manageable. Environmental and social benefits associated with the program include i) reduced greenhouse gas emissions, ii) less demand for development of greenfield water resources, (iii) less pollution from wastewater treatment works and raw sewage discharges. (iv) reduced pollution associated with illegal dumping of waste and poor landfill site operations, iii) promotion of a circular economy to assist with reducing waste volumes to landfill, iv) enhanced access to basic services such as water and electricity provisions to vulnerable households and enhanced public health because of improved environmental controls. While the Program has an overall highly significant benefit, some potential adverse environmental and social impacts could occur namely, health and safety risks to workers and minor pollution risks associated with civil and electrical construction works. Social risks may include i) potential displacement risks associated with civil works in water and sanitation sector; ii) potential standardization of what constitutes levels of indigency, where the potentially reduced scale of benefits could compromise the existing access of those vulnerable and iii) social conflict between waste pickers due to a resource decline in real value.

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

World Bank Lending: US$ 1,000.00 million

Government program Cost: US$ 2,900.00 million


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.

World Bank

Eric Dickson
Senior Urban Specialist

Diego Juan Rodriguez
Lead Economist

Tatyana Vladimirovna Kramskaya
Senior Energy Specialist

Borrower/Client/Recipient

National Treasury
Ulrike Britton
Head: Policy Coordination (ODG)
ulrike.britton@treasury.gov.za

Implementing Agencies

City of Tshwane
Johann Mettler
City Manager
CM@TSHWANE.GOV.ZA

ACCESS TO INFORMATION

To submit an information request for project information, you will have to create an account to access the Access to Information request form. You can learn more about this process at: https://www.worldbank.org/en/access-to-information/request-submission

ACCOUNTABILITY MECHANISM OF THE WORLD BANK

The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. Information on how to file a complaint and a complaint request form are available at: https://www.inspectionpanel.org/how-to-file-complaint

How it works

How it works