“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 spokeswoman Luthando Kekana said in a statement.
“Rand Water’s capex requirement over the next five years is R10-billion, 70 percent 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.
Is this a sign of things to come? Eskom also started out looking for money to upgrade infrastructure and in a short space of time, we are hit by massive price increases. Will water follow suit?
Water has additional problems such as Acid Mine Drainage and pollution to contend with. You can be prepared for the problems facing our water resources. Sustainable solutions such as Rainwater harvesting and Greywater reuse will reduce your dependency on our dwindling water resources and minimise the impact of large increases in the near future.