The state entity entrusted with SA’s water security has devised a funding strategy for phase two of the Lesotho Highlands Water Project, which includes bank loans and going to market. Trans Caledon Tunnel Authority CEO Leonard Radzuma told Business Day at the entity’s results presentation on Friday that state guarantees to back its capital funding-raising efforts were still to be discussed with the Treasury. The state-owned water and infrastructure entity is the implementing agent for most bulk water infrastructure projects in SA, including the multi-year acid-mine drainage project that is ongoing in Gauteng. It falls under the Department of Water and Sanitation. Its results for the year to March show cash flows rose to R7.46bn from R7bn in 2015 because of a rise in water volumes and a 9% tariff hike. Across all projects, bonds form two-thirds of the authority’s funding, with commercial banks providing 29%.
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