Sewerage plans 'in pipeline'

Johannesburg - Rumours that municipal sewerage infrastructure may be managed at a provincial level in future could lead to new projects in the order books of listed construction firms.

At present, most municipal orders are taken on by smaller and medium-sized players in the market. However, if sewerage projects are managed at a macro level, it may result in substantial orders for bigger firms.

One of those players, Group Five, said it has been "keeping its ear to the ground" as there may be plans to move sewerage infrastructure management to a provincial level. "As urbanisation increases, we're seeing and hearing of opportunities being managed on a more macro level," said CEO Mike Upton.

According to Macquarie head of research Julian Wentzel, municipalities have to a large extent failed to maintain their water and sewage treatment plants.

"It not only reduces the supply but has an impact on the quality of the water supplied, raising health issues as it contaminates downstream supply," Wentzel said.

"The more we abuse the water system with general pollution and industry waste the more expensive it will become to treat the water to make it fit for human consumption. Ultimately, we are at risk of permanently contaminating certain water supplies through poor compliance and monitoring by municipal authorities."

Wentzel said South Africa has to treat its water supply issues as seriously as the electricity problem, adding that some water damage can be irreparable.

Upton said he has not heard from government about the issue, but believes there are plans to make the move.

However, the department of water affairs and forestry's media liaison Linda Page denied any knowledge of such plans.

"Not as far as I know. I don't know how provincial [authorities] would do it anyway, without there being some sort of crisis," she said.

- Fin24.com