Fitch ratings agency has affirmed national long-term ratings at AA+ with stable outlooks for five Trans-Caledon Tunnel Authority (TCTA) projects. The agency also announced it is affirming the project’s national short-term ratings at F1+.
Fitch the AA+(zaf) rating is for Berg Water Project in the Western Cape, Vaal River Easter Sub-System Augmentation Project in Gauteng and Mpumalanga, Mooi-Mgeni Transfer Scheme Phase 2 in KwaZulu-Natal, Komati Water Scheme Augmentation Projec in Mpumalanga and Mokolo-Crocodile Water Augmentation Project Phase 1 in Limpopo.
“TCTA is happy to retain the AA+ and F1+ credit ratings for its 5 projects. The latest credit rating by Fitch is crucial to TCTA, as we prepare to approach funders for the implementation of the Lesotho Highlands Water Project Phase 2 and Berg River-Voëlvlei Augmentation Scheme,” said acting chief executive officer Leonard Radzuma.
Established thirty years ago, TCTA has grown from being a Special Purpose Vehicle for the Lesotho Highlands Water Project to making a significant contribution to extending water for domestic consumption and key industries, contributing a total of about 1,310 million cubic meters of water per annum.
The entity does this through 11 projects assigned to it by the department of Water and Sanitation. It has also recently introduced an intervention called the Acid Mine Drainage Short-term Intervention (AMD-STI). Radzuma through this project they prevent the uncontrolled decant of toxic acid mine drainage into the broader environment. He said the preliminary treatment has limited the load of various hazardous metals to acceptable levels.
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