LOCAL AUTHORITY NOTICE ……… CITY OF TSHWANE METROPOLITAN (PDF)

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					                                       LOCAL AUTHORITY NOTICE ……….

                              CITY OF TSHWANE METROPOLITAN MUNICIPALITY

INFORMATION STATEMENT IN TERMS OF SECTION 46(3)(a) OF THE LOCAL GOVERNMENT:
MUNICIPAL FINANCE MANAGEMENT ACT, 2003 (Act 56 OF 2003): EXISTING LONG TERM DEBT AS
REFLECTED ON THE CONSOLIDATED FINANCIAL STATEMENTS OF THE CITY OF TSHWANE
METROPOLITAN MUNICIPALITY TO BE ASSUMED BY THE MUNICIPALITY FROM ITS MUNICIPAL
ENTITY, THE ROODEPLAAT TEMBA WATER SERVICES TRUST

The City of Tshwane Metropolitan Municipality hereby gives notice in terms of Chapter 6 of the Local Govern-
ment: Municipal Finance Management Act, 2003 (Act 56 of 2003), read with section 21A (1) of the Local Govern-
ment: Municipal Systems Act, 2000 (Act 32 of 2000), that the existing long term debt of the Roodeplaat Temba
Water Services Trust (a municipal entity under the control of the municipality) will be delegated by the trust to the
municipality (simultaneously with the transfer of all the assets of the trust to the municipality) prior to the termina-
tion of the trust. All the terms and conditions applicable to the long term debt, shall remain the same after the
transfer thereof to the municipality, save that the security for the debt that has been provided by the trust and the
municipality will be cancelled with effect from the date upon which the debt is assumed by the Municipality.

On 17 February 2006 the City of Tshwane Metropolitan Municipality resolved to terminate the Roodeplaat
Temba Water Services Trust, Registration number IT 3051/03, being a municipal entity of the Municipality
currently responsible for the bulk water distribution in the North-eastern region of the Municipality consisting of
the following areas; namely:-

Temba; Hammanskraal; Doornpoort; Montana; Annlin; Sinoville; and Wonderboom.

Upon termination of the said municipal entity the Municipality will assume and take over of all assets and
liabilities of the Roodeplaat Temba Water Services Trust as they are currently reflected on the consolidated
financial statements of the Municipality and its Municipal Entities.

The lenders of the loan are the following financial institutions:-

ABSA BANK LIMITED, Registration number 1986/004794/06

DEVELOPMENT BANK OF SOUTHERN AFRICA, a juristic person incorporated in terms of section 2 of the
Development Bank of Southern Africa Act, 1997 (Act No. 13 of 1997); and

NEDBANK LIMITED, Registration number 1951/000009/06.

The principal amount of the loan amounts to maximum R530 million (Five Hundred and Thirty Million Rand), and
the aforesaid ABSA BANK will be acting as facilitator of the loan on behalf of the respective lenders which com-
prises as follows:-
        (a)      ABSA BANK                                                R 240 million
        (b)      DEVELOPMENT BANK OF SOUTHERN AFRICA                      R 125 million
        (c)      NEDBANK                                                  R 165 million

The capital cost of the loan will be calculated at a base interest rate of 10,24% (ten comma two four percent),
nominal annual calculated compounded semi-annually in arrears plus a margin of the different lenders in
respective each of the above capital amounts.

No security will be provided by the Municipality in respect of the loan.

More information on the loan could be obtained from Mr M. van Heerden Tel No: (012) 358-8292 or 358-8120
from the Office of the Acting Chief Financial Officer, BKS Building, 5th Floor, 373 Pretorius Street, Pretoria.

Written comments or representations must be directed to the Office of the Acting Chief Financial Officer, BKS
Building, 5th Floor, 373 Pretorius Street, Pretoria and any person who wishes to give comment must do so by
submitting the same during normal office hours i.e.: 07:30 to 15:45 to the aforementioned Acting Chief Financial
Officer on or before 15:45 on 17 October 2006.

Any person who cannot read or write or need assistance may come during office hours from 07:30 to 15:45 to
the abovementioned address to be assisted by Mr M. van Heerden or staff members of the Municipality in
transcribing his/her comments or representation.

MR BLAKE MOSLEY-LEFATOLA
MUNICIPAL MANAGER

20 September 2006
(Notice No 1031 of 2006)

				
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