(Bloomberg) -- South Africa faces worsening water supply problems due to rising municipal debt and failing infrastructure, City Press reported, citing Deputy Water and Sanitation Minister David Mahlobo.
A number of the nation’s water agencies “will never make it to next March if these debts are not paid”, and may close down, Mahlobo told the Johannesburg-based news site. “In our case, they are owing the water boards because water boards give them the bulk water supply.”
The debt is above 23 billion rand, or $1.3 billion, he added.
The closing of the boards, which also owe the state money, will affect Gauteng, South Africa’s most populous province, as well as Limpopo, all of North West, parts of the Northern Cape and the Free State, City Press reported, citing Mahlobo. Altogether, water services to almost 8 million people are at risk.
The ministry borrows money from the market to build dams and canals, and is then owed funds for water-use charges to resume operations, Mahlobo said, without giving further details on how much the state is owed.
South Africa is considering special purpose vehicles to better manage water services, as well as public-private partnerships to fund key infrastructure projects, ye said.
“The department is looking at how it can leverage private investment to enhance our water systems, similar to the arrangements made with Eskom for electricity supply,” he said.
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