Day: July 12, 2024

In a bid to address the water debt owed by municipalities, the Department of Water and Sanitation, including water boards, have strengthened and standardised debt collection processes and put in place incentives for municipalities to pay their water board bills.

Presenting the Water and Sanitation Budget Vote on Friday, Water and Sanitation Minister Pemmy Majodina said the municipal debts to the water boards increased to R21.3 billion by May 2024, posing a major risk to the financial sustainability of the whole water sector.

Majodina said this debt has forced the department to close down the Sedibeng Water Board in 2022 and transfer its functions, including assets and liabilities, to the Vaal Central and Magalies Water Boards.

‘The debts owed by municipalities to Sedibeng Water had resulted in it no longer being able to service its own debts and to meet its operational expenditure requirements. However, the transfer of Sedibeng’s operations to the Vaal Central and Magalies Water Boards did not solve the un
derlying debt problem and the municipal debt continues to grow,’ Majodina said.

While non-payment by municipalities poses a threat to the financial sustainability of all the water boards, Majodima said the department is particularly concerned about Magalies Water and Vaal Central Water, which are experiencing an increasing cash flow challenges due to non-payment.

‘One of our immediate priorities will therefore be to work with our colleagues in Cabinet, particularly the Minister of Finance and the Minister of Cooperative Governance and Traditional Affairs, to find a sustainable solution to this problem,’ Majodina said.

While acknowledging that not all municipalities are falling behind on their payments, Majodima warned that non-payment by a few municipalities which are served by a particular water board can result in severe financial difficulties for that water board.

During the 2023/24 financial year, the National Government allocated R61.7 billion of water and sanitation-related grants to municipalities
to enable the municipalities to address water and sanitation infrastructure backlogs and provide free basic water to the indigent.

Apart from these grants, the water services sector must be self-financing through revenues from the sale of water.

Available infrastructure for other economic activities

To ensure the department’s assets contribute towards the objectives of the Government of National Unity, Majodina said the department would be availing its infrastructure for other economic activities, including promoting tourism and recreation, and reducing the risk of load shedding through the use of dams for generation of hydropower.

The Minister noted that during the last financial year, the department issued an expression of interest to obtain access rights to state dams for tourism and recreation activities, with the aim of promoting economic development, particularly of communities adjacent to dams.

She said the expressions of interest received will be processed during the current financial year.

‘In
consultation with the Ministry of Energy and Electricity, the department has also issued requests for applications for interested parties to apply for water use authorisations to generate hydropower using water courses and the water resource infrastructure owned by the department.

‘This process received interest from over 200 applicants, for generation of 2 845 Megawatts of electricity from the water courses. To date, the department has issued 40 authorisations for floating solar panels, and the remaining applications will be processed in the current financial year,’ Majodina said. – SAnews.gov.za

Source: South African Government News Agency

The Department of Water and Sanitation, in collaboration with the Development Bank of Southern Africa (DBSA) and the South African Local Government Association (SALGA), has put in place an office to support municipalities in establishing partnerships with the private sector.

This as poor investment in water and sanitation infrastructure by municipalities is one of the biggest challenges in the water sector currently.

Water and Sanitation Minister, Pemmy Madojina, said this when she tabled the department’s Budget Vote in Cape Town on Friday.

While South Africa is doing well in terms of mobilising private sector finance for investment in national water resource infrastructure, Majodina said it is not doing so well in terms of private sector financing of municipal water and sanitation infrastructure.

‘Aging infrastructure, pipe leaks and lack of operation and maintenance, among others, are some of the main causes of high levels of non-revenue water in municipalities. For example, the water partnerships offic
e is currently supporting the eThekwini, Mangaung, Buffalo City, Nelson Mandela Bay and Tshwane municipalities to mobilise private sector finance for the replacement of leaking municipal water distribution pipes which result in high levels of non-revenue water,’ Majodina said.

She added that other focus areas include private sector investment in municipal water-reuse and desalination projects.

Water resource infrastructure agency

The Minister further announced the establishment of the National Water Resource Infrastructure Agency, which will own all the national water resource infrastructure assets and obtain the revenue streams associated with those assets.

This will enable the agency to borrow additional funds on the strength of its balance sheet.

‘The establishment of the agency will be one of the major focus areas of the department over the coming year. Parliament passed the National Water Infrastructure Agency Bill before it rose in May this year and we are expecting it to be signed by the President
shortly.

‘This will involve the transfer of all the national water resource infrastructure assets currently owned by the department to the agency, as well as the staff responsible for the operation and maintenance of the assets,’ Majodina said.

The Trans Caledon Tunnel Authority (TCTA) will be merged into the National Water Infrastructure Agency, along with the water trading entity in the department, which is responsible for collecting revenue from the sale of raw or untreated water to the water boards, municipalities and industry.

‘A transition plan is in place, and we aim to complete the establishment of the agency by May 2025. During this financial year, the department will be focusing on implementing the major structural changes and staff transfers associated with the establishment of this agency,’ the Minister said.

The Minister shared her intentions to ensure that there is continuity of the various reforms and improvements that were initiated by the former Minister Senzo Mchunu. Many of them were ma
ndated by the National Development Plan and the Presidency’s Operation Vulindlela. – SAnews.gov.za

Source: South African Government News Agency

Brand SA has set out its plans to reimagine the Play Your Part campaign.

This according to the Minister in the Presidency, Khumbudzo Ntshavheni, who was speaking during the Budget Vote of the Government Communication and Information System (GCIS) on Friday.

Brand SA, the country’s official marketing agency, has been allocated R186 million to carry out its work for the 2024/25 financial year.

According to the Minister, the Play your Part initiative aims to ‘inspire, empower and celebrate active citizenship’.

‘It aims to lift the spirit of our nation by inspiring South Africans to contribute to positive change, become involved and start doing. It calls on South Africans to use some of their time, money, skills and goods to contribute to a better future for all of us,’ she said.

Ntshavheni said the Media Development and Diversity Agency has made ‘significant strides in developing the community media sector to reflect the needs and aspirations of all South Africans’.

The entity has been allocated at least R
38.5 million for the 2024/25 financial year.

‘In its duty of providing funding and other support for the marginalised groups to enable them to start and sustain their own community media projects, it has supported over 586 small commercial media projects over the years despite its meagre budget.

‘This includes 321 community radio and community television stations along with 185 community print projects such as community newspapers, magazines and small commercial print as well as digital platforms,’ she said.

She emphasised the vital nature of the work of the MDDA.

‘The work of the MDDA is important because community media serves to connect people with shared interests and concerns. It amplifies the unique stories and experiences within a community and promotes understanding amongst its members.

‘In essence, community media acts as a catalyst for social cohesion, empowering individuals to actively engage in dialogue, bridge cultural gaps and collectively address challenges for the greater good of society,
‘ she said. – SAnews.gov.za

Source: South African Government News Agency