The Trans-Caledon Tunnel Authority (TCTA) has amassed a R68-billion pipeline of water resources projects that will start delivering water to South Africans before the end of the decade.
These include the Lesotho Highlands Water Scheme Phase II, uMkhomazi Water Project, Mokolo-Crocodile Water Resources Development Project and the augmentation of the Western Cape water supply system.
“Together, these projects impact 70% of the economy and our major metropolitan areas in Gauteng, KwaZulu-Natal and the Western Cape,” said Water and Sanitation Minister Lindiwe Sisulu.
Speaking during her budget vote on May 25, she said that government guarantees have also been provided for the TCTA to conclude loan agreements with lenders.
This allowed the TCTA to raise R15.45-billion in the capital markets from investors to continue construction of the Lesotho Highlands Water Project (LHWP) in relation to the Vaal River System.
South Africa currently receives 780-million cubic meters of water a year from Lesotho into its Integrated Vaal River System (IVRS) which supplies water to Gauteng and surrounding areas.
“The IVRS needs to be urgently augmented in order for it to cope with the increasing water requirements,” she warned.
Phase II of the LHWP is currently under way, comprising the construction of Polihali dam, which will provide an additional 465-million cubic meters of water a year, bringing the total to about 1.25-billion cubic meters of water a year into the IVRS from Lesotho.
Further, Cabinet in April endorsed the appointment of Chief Delegate Teboho Nkhahle and Alternate Dr Musa Furumele to the Lesotho Highlands Water Commission, which will be in place by the end of June 2021.
“So, we have the resources, we have the guarantees and now we can assure you that we will be hard at work to provide water security,” Sisulu assured.
“The sustainability of off-budget funding, which the State must increasingly rely on to fund infrastructure given the limited fiscal space, means that we must strengthen and give support to those water sector institutions that raise funding,” she added.
In line with this, the Johannesburg Stock Exchange, led by CEO, Dr Leila Fourie, informed the DWS of the role it can play in funding the water projects that have been proclaimed.
“We look forward to continue using the funding capacity of the JSE to finance our capital expenditure and infrastructure development programmes,” Sisulu concluded.