Multilateral development bank the New Development Bank (NDB) and South Africa have signed two loan agreements to support the Limpopo Central Hospital and Magalies Bulk Water Supply Scheme projects, says National Treasury.

The combined $405-million loans advance South Africa’s sustainable infrastructure priorities.

A $200-million loan agreement will finance the Limpopo Central Hospital project, which will be a new 488-bed tertiary central hospital, in Polokwane.

The investment is aimed at strengthening tertiary healthcare services, expanding access to quality medical care, and improving health outcomes for the people of Limpopo.

The new hospital will provide modern, resilient and patient-centred healthcare infrastructure equipped with advanced diagnostic, treatment and IT systems.

Designed to serve as the principal referral hospital for the province, the facility will significantly enhance capacity to deliver specialised and advanced healthcare services, while also supporting medical education, clinical research and the training of future healthcare professionals.

The NDB will also finance the $205-million Magalies Bulk Water Supply Scheme project, which is aimed at improving reliable access to drinking water and supporting inclusive growth in the North West and Limpopo provinces.

The Magalies project is in response to severe water shortages in six local municipalities, namely Bela-Bela, Modimolle-Mookgophong, Mogalekweng, Moretele, Moses Kotane and Rustenburg, where current water demand exceeds available supply, Treasury says.

The development loans form part of government’s broader efforts to advance public health and water infrastructure, and offer favourable concessional financial terms.

Both loans offer a maturity of ten years, inclusive of a four-year grace period with an interest rate of daily Secured Overnight Financing Rate plus 0.93508%, it says.

The NDB's project loans, together with financing secured from other multilateral development partners, has enabled South Africa to meet its 2026/27 foreign currency borrowing requirement of $3.2-billion, Treasury adds.