The funding will be used to construct a dam and supplement the scheme situated outside Franschhoek near Cape Town, South Africa, and the long-term loans will be repaid by 2027 from revenue generated from the sale of water to the city.

The scheme is the biggest water infrastructure project currently underway in South Africa, and the first bulk water resource development project directly linked to water-demand management.

The Berg River project is designed to relieve the impending shortage in domestic and agricultural water in the integrated Western Cape water system by 20%.

The main contract, worth US$88M, is being carried out by a South African joint venture, and will create at least 600 jobs by 2007 and a further 180 jobs through the Working for Water programme.

The Berg River dam will be the highest concrete-faced rockfill dam in South Africa. It will feature a surface area of 535ha, a gross storage capacity of 130.1Mm3, a net storage capacity of 129.36Mm3, a maximum dam height of 60m (70m including foundation), a dam wall length of 990m, and a rock-fill volume of 3.2Mm3