COJ Debt 2

pending

The City of Johannesburg Metropolitan Municipality (CoJ or “the City”) is the largest municipality in South Africa based on revenue generation and has an estimated population of 6 million (approximately 10% of the population of South Africa) (https://www.joburg.org.za/). IFC first engaged with CoJ in 2004 through a bond issuance and a subsequent loan in 2023 to support the City’s FY22/23 capital expenditure projects (https://disclosures.ifc.org/project-detail/ESRS/46703/coj-debt). IFC is considering a further loan to support the City's non-revenue water (NRW) reduction strategy ("the project"). Johannesburg Water which is part of CoJ will be the implementing agency for the project the scope of which consists exclusively of brownfield and rehabilitation works. Specifically this includes; (i) replacement of existing water pipelines; (ii) a city-wide bulk and customer metering installation program; and (iii) refurbishment and limited capacity enhancement of existing water reservoirs. Activities consist of internal repairs, installation of additional reservoir capacity including installation of liners, and pipe and valve replacement. Eligible activities will be implemented entirely within the existing as-built physical footprint of operational assets, or, for pipeline replacements, within established municipal road reserves and servitudes under the City's ownership. Where physical additions occur to existing operational assets they will be situated on vacant and unencumbered land, devoid of any formal or informal use. Additions will be contiguous with existing asset types, requiring no new ancillary facilities or access routes, and will not impact environmentally sensitive areas.Works associated with the project will be constructed by contractors appointed by the City via a tender process and thereafter managed by Johannesburg Water.