adminSOUTH Africa will look to the bond markets, banks and increasing customer revenue to finance the R700 billion needed to meet the country’s growing water demand, the Department of Water Affairs said.
The country has raised the estimate for spending on water provision over the next 10 years from R570 billion after including sanitation, refurbishment of existing infrastructure and irrigation, Trevor Balzer, the department’s acting director-general, said in an interview on Tuesday. The country had budgeted for about 45% of the R700 billion needed, leaving a gap of R385 billion.
South Africa’s water demand will outstrip its supply between 2025 and 2030, according to projections in the Treasury’s 2012 Budget Review. The country, the world’s 30th driest, was “water stressed” and the current inability to provide clean water to communities contributed to poverty, inequality and poor health, a government strategy document released last month said.“We need to look at our current sources of funding and whether there is an opportunity to increase funds from them,” Mr Balzer said during the South African Water Energy and Food Forum in Johannesburg. “We must look at opportunities from central government, in concessionary financing and we’ve got to push more on the private-sector funding through commercial banks.”
South Africa loses about 1,58-million cubic metres of water each year, or about a third of its urban supply, to leaks and theft, according to the second edition of the National Water Resource Strategy.
“We must improve on our revenue collection both at a national level for the department and at municipal level,” Mr Balzer said.
The department was putting together an investment plan that would have more detail on how the funding gap would be closed, Mr Balzer said. — Businessday.
Online Reporter