The Department of Water and Sanitation, in collaboration with the Development Bank of Southern Africa (DBSA) and the South African Local Government Association (SALGA), has put in place an office to support municipalities in establishing partnerships with the private sector.
This as poor investment in water and sanitation infrastructure by municipalities is one of the biggest challenges in the water sector currently.
Water and Sanitation Minister, Pemmy Madojina, said this when she tabled the department’s Budget Vote in Cape Town on Friday.
While South Africa is doing well in terms of mobilising private sector finance for investment in national water resource infrastructure, Majodina said it is not doing so well in terms of private sector financing of municipal water and sanitation infrastructure.
“Aging infrastructure, pipe leaks and lack of operation and maintenance, among others, are some of the main causes of high levels of non-revenue water in municipalities. For example, the water partnerships office is currently supporting the eThekwini, Mangaung, Buffalo City, Nelson Mandela Bay and Tshwane municipalities to mobilise private sector finance for the replacement of leaking municipal water distribution pipes which result in high levels of non-revenue water,” Majodina said.
She added that other focus areas include private sector investment in municipal water-reuse and desalination projects.
Water resource infrastructure agency
The Minister further announced the establishment of the National Water Resource Infrastructure Agency, which will own all the national water resource infrastructure assets and obtain the revenue streams associated with those assets.
This will enable the agency to borrow additional funds on the strength of its balance sheet.
“The establishment of the agency will be one of the major focus areas of the department over the coming year. Parliament passed the National Water Infrastructure Agency Bill before it rose in May this year and we are expecting it to be signed by the President shortly.
“This will involve the transfer of all the national water resource infrastructure assets currently owned by the department to the agency, as well as the staff responsible for the operation and maintenance of the assets,” Majodina said.
The Trans Caledon Tunnel Authority (TCTA) will be merged into the National Water Infrastructure Agency, along with the water trading entity in the department, which is responsible for collecting revenue from the sale of raw or untreated water to the water boards, municipalities and industry.
“A transition plan is in place, and we aim to complete the establishment of the agency by May 2025. During this financial year, the department will be focusing on implementing the major structural changes and staff transfers associated with the establishment of this agency,” the Minister said.
The Minister shared her intentions to ensure that there is continuity of the various reforms and improvements that were initiated by the former Minister Senzo Mchunu. Many of them were mandated by the National Development Plan and the Presidency’s Operation Vulindlela. – SAnews.gov.za
