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.