SA's water infrastructure deficit amounts to R573bn over the next 10 years, or R58bn/year, according to water affairs minister Edna Molewa. The department's director of water services Fred van Zyl says that 44%-50% of these funds are available.
The R573bn excludes funds for agriculture, sanitation, operations and maintenance. Taken together, SA may need as much as R670bn.
Van Zyl is realistic about the constraints: "We can't just throw money at infrastructure without being able to manage it. We need to invest in asset management and institutional capacity."
Given the lack of funds, government will have to prioritise. The department is developing an infrastructure investment plan, headed by Van Zyl, which will guide national fund allocation.
The plan aims to map out every pipe, pump, borehole and dam, and will track water supply from source to tap. It will include existing infrastructure and its maintenance needs, as well as long-term supply of the resource.
The process will inform where investment is most needed, and is expected to include investment in human capital and management.
Part of the plan must be to "stretch" infrastructure that is already in place, he says. Every day, 30%-37% of water supplied to households is lost to leakages. This costs R11bn/year. "We have to invest in demand and conservation management," he says." That might replace the need to invest in as much new infrastructure."
Meanwhile, work is forging ahead on major water infrastructure projects that are vital for economic development. A critical project for Gauteng is the R9,2bn second phase of the Lesotho Highlands Water Project. It will transfer an additional 151mm³/year, on top of the existing 2986mm³ to the Vaal River, and is now in the preparatory phase.
Institutional and funding arrangements are being finalised, and delivery is planned for 2020. The Trans-Caledon Tunnel Authority (TCTA), a state-owned entity that finances and implements bulk raw water infrastructure, is currently investing R45,3bn.
The R2,1bn Mokolo-Crocodile water augmentation project will transfer water from the Mokolo dam to the Medupi power station, currently under construction. The TCTA's head of projects, Sibalo Dlamini, says construction on the project commenced in September and the delivery of water is planned for the fourth quarter of next year.
The R1,7bn Komati water system augmentation project, a pipeline which will supply water to the Dhuva and Matla power stations in Mpumalanga, is on target to deliver water by the fourth quarter of this year, says Dlamini.
The TCTA is also implementing the second phase of the Olifants River water resources development project, which will transfer water from the dam to domestic and industrial users. "We've had some challenges in this project. We couldn't conclude the off-take agreements with end users on time and that created a delay in securing funding," says Dlamini.
The department of water affairs has, however, made R1,9bn available for the first phase. "This will supply water for much-needed social use to areas on and adjacent to the Nebo Plateau and for expansion of mining activities in the Steelpoort-Burgersfort area," he says.
In Limpopo, the De Hoop dam is nearing completion, but Van Zyl says additional funding is still needed.
While SA's water needs are greater than the funding available, the recognition that the water sector is more than just about infrastructure seems a necessary first step.
Source: Financial Mail via I-Net Bridge
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