In unpacking the necessity of building infrastructure to consolidate the gains of the last two decades and lay the foundation for an equity-based future, Minister of Water Affairs, Edna Molewa has indicated that the capital investment in new water and sanitation infrastructure for the entire value chain, which includes the refurbishment of existing infrastructure, is projected to require an estimated R670 billion over the next ten years.

This is equivalent to a R67 billion investment per year, said the Minister on the occasion of the presentation of the Department of Water Affairs budget in Parliament on 21 May 2013.

Although she noted significant increases in the current total allocation due to increased allocations for infrastructure development, the total allocation now only stands at R10, 2 billion for 2013/14, R12, 4 billion for 2014/2015 and R15, 5 billion for 2015/2016.

“The announcement of the Strategic Integrated Projects by the President in 2012 formed the foundation of an equity-based future that we envisage in the coming decade. As you are aware, SIP 18 concerns both the delivery of water and sanitation services to all South Africans,” said Molewa, adding that in collaboration with the Department of Human Settlements and Cooperative Governance, the Department of Water Affairs had been charged with the responsibility of integrating their work through infrastructure development.

“To facilitate effective and timely investment, I have initiated the development of a comprehensive investment framework which will inform budgeting and integrated planning based on a life-cycle approach, which includes planning and construction costs, operation and maintenance, financing costs and the costs of sustainable water management,” said Molewa.

According to the Minister, currently only R30 billion (45%) of the R67 billion per year is available from current sources. “These investments will have to be funded from on-budget and off-budget sources through the private sector.”