Billions for Gauteng water revamp
Johannesburg - Rand Water has created a R5bn domestic medium term note (DMTN) programme as part of a strategy to access funding at competitive rates in the debt capital markets, it said on Wednesday.
"The proceeds of the bonds to be issued under the DMTN programme will be used to fund Rand Water's capital expenditure (capex) requirements," Rand Water spokesperson Luthando Kekana said in a statement.
"Rand Water's capex requirement over the next five years is R10bn, 70% of which will be spent to augment bulk water infrastructure," she said.
According to Rand Water CEO Percy Sechemane, the group was undertaking major renovations to ageing infrastructure, related mostly to augmentation and rehabilition of infrastructure over the next five years.
"[For] the provision of appropriate infrastructure for bulk water... the business outlaid R910m (2009: R986m) of capital expenditure for the year under review which was funded through internally generated resources," Kekana said.
Sechemane said that in keeping with the group's strategy, they would increasingly tap new sources like the development finance institutions, project finance and bank funding to fund their growth initiatives.
Rand Water provides bulk water to more than 11 million people in Gauteng, parts of Mpumalanga, Free State and North West province.
Sigh!!!! - Who is going to pay for this? The levels of incompetence that resulted in NO maintenance coupled with the non-paying masses have made this country's development and survival unsustainable. You cannot simply increase rates against the paying populace. They are reaching the verge of collapse.
Not too long from now - there will be a domino effect and those, WHO DO PAY will not be able to sustain this.
I am absolutely tired of the substantial layers of incompetence shown right throughout the ANC dynasty. They will bring this thriving country to its knees.
A case of too little to late AGAIN!!!!