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Infrastructure development – Municipality, Knysna

INCA project team:
Karlien Chaplin – Assistant Portfolio Manager Nicolette Botha – Portfolio Manager

The Knysna Municipality lies within the southern region of the Western Cape, along the spectacular Garden Route, and stretches from Sedgefield in the west to Knoetzie in the east, including Belvidere Estate, Brenton, Knysna and Rheenendal.

INCA provided a loan to fund sewer, electricity and water infrastructure in this fast-growing municipality. The two largest projects funded from the loan were the new 66kv electricity intake substation in Eastford, and the upgrading of the municipal water works. These projects will run over a number of financial years, requiring further funding. The municipality’s capital budget for the 2006/07 year totalled R38,1 million.

Financial snapshot
Loan value: R18,6 million.
Term: 20-year loan.
Interest rate: Floating interest rate linked to Jibar.
Repayment: Capital and interest semi-annual in arrears.

INCA has become synonymous with the funding of municipalities in South Africa. However, it is not only the leadership role that INCA is playing amongst private sector institutions in funding municipal infrastructure that attracts attention.
This Company also has an ability to do the right things at the right time.