Saldanha Bay Municipality has boosted its financial resources for infrastructural development in the municipal area through a R64,7 million funding arrangement facilitated by the Corporate Banking division of Nedbank Corporate.

Of the R64,7 million, R43,3 million will be used for the refinancing of existing debt and R21,4 million for financing the municipality's 2005/6 capital budget, says municipal manager Louis Scheepers.

He says the area, which has great development potential, covers Hopefield, Langebaan, Vredenburg, Saldanha, St Helena Bay, Jacobsbaai and Paternoster. It has a population estimated at more than 92 000.

"The funding arrangement will enable the municipality to continue to address priorities identified in terms of its integrated development plan. These priorities include the provision of housing and backlogs in the supply of water services and basic sanitation facilities."

Alistair Pearce, Cape divisional director of Corporate Banking, says the funding arrangement is a reflection of the group's commitment to public sector business. "Municipalities serving widespread areas such as Saldanha Bay face the challenge of limited funding to address community needs and to help release development potential. We were able to structure funding at a fixed rate, over a term ranging from three to 12 years."