Monday, June 28, 2010

Transnet: AfDB loan to fund capital investment

The African Development Bank (AfDB) has approved a loan of up to $400 million (R3 billion) to logistics and transport parastatal Transnet.

The AfDB said on Friday the loan would contribute to the financing of Transnet's five year R93.4bn capital investment programme.

According to the AfDB, the programme would allow the parastatal to "revitalise and expand vital rail infrastructure".

By increasing capital investments, recapitalisation and the rehabilitation of key freight and logistics equipment and infrastructure, Transnet would contribute to reducing the cost of doing business in South Africa to internationally competitive proportions, the AfDB added.

This would stimulate trade, boost sustainable economic growth, and facilitate regional integration. "It also aims to support local suppliers and increase their competitiveness."

The AfDB said the loan would go towards the financing of Transnet Rail's capitalised maintenance plan, which formed part of the programme