R10 billion a year spent, but 3 million homes still without running water  

The Department of Water and Sanitation (DWS) has spent over R10 billion a year on water infrastructure services since 2019.  

Despite this, 3.1 million of South Africa’s 18.5 million households are still without running water.

The numbers were revealed by the DWS in a written parliamentary response to a question posed by Build One South Africa parliamentarian Nobunto Hlazo-Webster.

R90 billion needed in next 10 years

The questions centred around the backlog DWS faces in providing water and sanitation, as well as the financial projections of the department.

DWS used the most recent census data which showed 3.1 million homes out of the country’s 18.5 million households don’t have piped water at home.

Rural areas accounted for just over one million households while 1.9 million came from the peri-urban areas.

Peri-urban defines intermediate land use on the periphery of urban areas, which also includes informal settlements.

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Regarding the backlog, DWS said it still needs almost R90 billion over the next 10 years to meet the water needs of South Africans.

This estimate was calculated by the department based on the refurbishment, upgrades and new project needs, as well as sustaining current levels of service delivery.

DWS expenditure over the last five financial years was recorded at R53.8 billion, with R45 billion given to municipalities and R8.7 billion handed over for infrastructure development.

Despite that outlay, DWS left R5.1 billion unspent, which was all due to be sent to municipalities.

R80 billion being spent on four projects

Among the amount projected for new projects, roughly R80 million is being spent on four major developments.  

As per the DWS’s Budget Review and Recommendation Report published in October, R1.2 billion is being spent on installing a 6,3km pipeline with a weir and pump station in the Western Cape.

R12 billion is being spent on a project in Limpopo that augments water supply to the Lephalale Municipality, linking Thabazimbi and Steenbokpan with 160km of steel pipeline.

In Kwazulu-Natal, R27 billion is being spent on the uMkhomazi Water Project which aims to provide water to six million residents and commercial users.

Phase Two of LHWP

The largest project underway is Phase Two of the Lesotho Highlands Water Project (LHWP) which will come at a cost of R42.5 billion.

Phase Two of the LHWP is touted as being able to add 480 million cubic meters of water to the Vaal River System via the Mountain Kingdom.

The Trans Caledon Tunnel Authority (TCTA) manages the South African end of Phase One of the LHWP and has been part of funding operations for Phase Two on the DWS’s behalf.

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There are three additional projects worth roughly R5.7 billion that are currently listed by TCTA and are in their close-out phase.

TCTA defines this as a project which has been completed and is operational, but where claims and disputes with the contractor have not been finalised.

“The project may be subject to further costs depending on the outcome of the dispute resolution process and therefore cannot yet be finally closed off,” TCTA media liaison officer Luzamo Sandlana explained to The Citizen.

Funding of projects

TCTA builds infrastructure on behalf of the department, raises funding for projects that are repaid by users, and provides advisory services.

As per TCTA’s Integrated Annual Report released last Friday, TCTA recovered R8.9 billion through tariffs in 2024.

Of that, 96% came through billing while 4% was accounted for from DWS social packages.

Another source of funding was through South African banks and intergovernmental investors.

South African banks contributed 97% of a combined R11.8 billion in 2024, while the European Investment Bank and Development Bank of Southern Africa made up the remaining 2% and 1%, respectively.

The recuperation of funds through tariffs was down R1.9 billion from 2023, while investor funding was down by R1.5 billion from 2023.

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