Nedbank Capital finances PPP project in South Africa
Nedbank Capital has provided a R1,15 billion loan for the development of the R1,4 billion (US$124.1 million) Statistics South Africa (Stats SA) accommodation building through a PPP project.
Nedbank Capital has acted as the mandated lead arranger and funder of the government accommodation building PPP project, which is located near Freedom Park in Tshwane, South Africa.
Dipalopalo Concessions (Pty) Ltd was awarded the project. The consortium is composed by: WBHO Construction (Pty) Ltd, Royal Bafokeng Holdings, Servest, Vulindela Holdings, Crowie Concessions and Fikile Concessions.
The project is for the provision of a new serviced accommodation to the Department for Statistics Head Office entailing the demolition of certain existing facilities, the design, construction, financing, operation and maintenance (DCFOM) of new facilities and of certain existing facilities/structures. The Dipalopalo consortium will operate the facility for 24 years following the construction period of two years, providing building maintenance and facilities management.
Construction will comprise of approximately 45,000m2 of office space (including a specialist Data Processing Centre) with an additional 30,000m2 of designated parking area on the Salvokop site, which is located on the south of Pretoria CBD between Potgieter Street and the Pretoria station.
Mike Peo, Head of Infrastructure, Energy & Telecommunications at Nedbank Capital stated:
Due to the extensive due diligence requirements and complex legal arrangements associated with deals of this nature, such transactions have historically taken a number of years to close. However, we are proud to have closed this PPP in record time. This was achieved through a huge degree of commitment by Stats SA coupled with the extensive experience of the project sponsors and the project advisors.
South Africa has currently a significant road PPP project in planning stage, the Moloto Corridor rail project. The project, with an estimated investment of R9.7 billion (US$907 million), will link Gauteng and Mpumalanga. The new rail would use a wider-gauge railway line, similar to the Gautrain, enabling it to accommodate high-speed trains.