Halting Deterioration Through Private Investment
As towns have expanded and the quality of services has not kept up, South Africa’s water quality has degraded. Private investment is needed to halt deterioration in services and to ensure the dignity of communities is protected.
The state-run Development Bank is establishing the Water Partnership Office (WPO). The goal is to replicate the success of the country’s renewable energy independent power producers procurement program in the water sector, which is in disarray due to a failure to keep up with population growth and ailing infrastructure. The Water Partnership Office serves as a special purpose vehicle for facilitating collaborations and managing joint accounts for unique funding for collaboratively implemented projects.
South Africa is opening its office to industry in an effort to reverse its decline and follow in the footsteps of the country’s electricity procurement agency, which has drawn more than $10 billion in private finance. According to a 2019 water plan, R900 billion ($47 billion) needs be spent by 2030 on water supply and storage infrastructure.
Water conservation and demand management (especially reducing non-revenue water), water reuse, wastewater treatment improvement, and seawater desalination are among the special programs managed by the agency.
During his May budget speech, South Africa’s Minister of Water and Sanitation, Senzo Mchunu, stated that many municipalities are in a downward spiral of poor and declining water services, reduced payment rates, increasing debt, and low investment.
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