DBSA and Salga establish an office to mobilise private sector finance for municipal water infrastructure
14 July 2024 - 17:01
by Thando Maeko
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Water & sanitation minister Pemmy Majodina. Picture: Jeffrey Abrahams/Gallo Images
The Development Bank of Southern Africa (DBSA) and the SA Local Government Association (Salga) have established an office to assist municipalities in raising funding from the private sector to finance infrastructure projects.
The department of water & sanitation has indicated about R900bn will be required over the next decade to halt further deterioration of the country’s water infrastructure.
Newly appointed minister Pemmy Majodina said the water partnerships office had begun work in various metros including eThekwini, Mangaung, Buffalo City, Nelson Mandela Bay and Tshwane.
In these metros, private sector finance had been sought “for the replacement of leaking municipal water distribution pipes, which are resulting in high levels of nonrevenue water”, Majodina said.
“Other focus areas include private sector investment in municipal water reuse and desalination projects.”
The minister was speaking during the tabling of the department’s 2024/2025 budget in parliament on Friday.
She said the department aimed to diversify SA’s water mix including making use of sources such as groundwater, water reuse and desalination, as well as implementing more effective water conservation.
“Ageing infrastructure, pipe leaks and lack of operation and maintenance, among others, are some of the main causes of high levels of nonrevenue water in municipalities,” she said.
“While SA is doing well in terms of mobilising private sector finance for investment in national water resource infrastructure, it is not doing so well in terms of private sector financing of municipal water and sanitation infrastructure.”
Infrastructure projects that began under the sixth administration would continue, Majodina said.
These included construction of the R26bn Upper uMkhomazi dam to provide additional water to eThekwini, and the new R1.8bn Cwabeni off-channel storage dam, which would provide additional water to Port Shepstone and surrounding areas in KwaZulu-Natal.
“We are also implementing the R24bn Olifants River Water Resource Development Project in Limpopo and the R10bn Vaal Gamagara Phase Two Project in the Northern Cape,” she said.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Private sector funding sought to plug water gap
DBSA and Salga establish an office to mobilise private sector finance for municipal water infrastructure
The Development Bank of Southern Africa (DBSA) and the SA Local Government Association (Salga) have established an office to assist municipalities in raising funding from the private sector to finance infrastructure projects.
The department of water & sanitation has indicated about R900bn will be required over the next decade to halt further deterioration of the country’s water infrastructure.
Newly appointed minister Pemmy Majodina said the water partnerships office had begun work in various metros including eThekwini, Mangaung, Buffalo City, Nelson Mandela Bay and Tshwane.
In these metros, private sector finance had been sought “for the replacement of leaking municipal water distribution pipes, which are resulting in high levels of nonrevenue water”, Majodina said.
“Other focus areas include private sector investment in municipal water reuse and desalination projects.”
The minister was speaking during the tabling of the department’s 2024/2025 budget in parliament on Friday.
She said the department aimed to diversify SA’s water mix including making use of sources such as groundwater, water reuse and desalination, as well as implementing more effective water conservation.
“Ageing infrastructure, pipe leaks and lack of operation and maintenance, among others, are some of the main causes of high levels of nonrevenue water in municipalities,” she said.
“While SA is doing well in terms of mobilising private sector finance for investment in national water resource infrastructure, it is not doing so well in terms of private sector financing of municipal water and sanitation infrastructure.”
Infrastructure projects that began under the sixth administration would continue, Majodina said.
These included construction of the R26bn Upper uMkhomazi dam to provide additional water to eThekwini, and the new R1.8bn Cwabeni off-channel storage dam, which would provide additional water to Port Shepstone and surrounding areas in KwaZulu-Natal.
“We are also implementing the R24bn Olifants River Water Resource Development Project in Limpopo and the R10bn Vaal Gamagara Phase Two Project in the Northern Cape,” she said.
maekot@businesslive.co.za
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