New municipal office building – Bela Bela Local Municipality

INCA project team: Myra Netshituni – Credit Analyst Koos Heymans – Portfolio Manager

Bela Bela is a smaller municipality with an annual operational budget of R75 million (2006/07) and its major town is Warmbaths. Villages in the area are Pienaarsrivier, Radium, Rust de Winter and Settlers.

The total estimated population in the area is 52 124 and tourism is the mainstay of the local economy. In recent times there has been a proliferation of housing estates targeting golf and wildlife enthusiasts.

The municipality’s offices burnt down two years ago due to an electrical short circuit and the building was extensively damaged. They are currently housed in temporary offices in town, which are wholly inadequate. The estimated cost of a new building is in the order of R15 million, which would in the main be funded by INCA, as part of our portfolio of essential property funding.

Financial snapshot
Loan Value: R12 million.
Interest rate: 10,49%.
Term: 20-year loan.
Repayment: Capital and interest monthly.