President Cyril Ramaphosa yesterday launched the long delayed second phase of the Lesotho Highlands Water Project, which will boost South Africa’s water and energy security.
However, the move although welcome, is unlikely to benefit farmers and is more for consumption.
This is a partnership between South Africa and Lesotho dating back to a treaty agreed upon by the two governments to supply water to the Vaal River System, which ensures water security for Gauteng, the Free State, the Northern Cape and the North West.
“The launch is a critical step on the journey to greater water and energy security for South Africans and Basotho, and is a demonstration of the strong relations between the two countries,” the Presidency said in a statement yesterday.
Absa head of Agri Business Abrie Rautenbach said yesterday that the project would likely herald good news for water security, particularly in Gauteng, but that there would not likely be a breather for the farming community.
“I do not see an adding of vast hectarage from this. It might overall have an impact somewhere, but I cannot say with my hand on my heart that it will benefit agriculture. There might be a few farmers close by the areas, but they too would have to apply for additional capacity to take advantage of the supply,” Rautenbach said.
In previous economic notes, Investec chief economist Annabel Bishop had noted that higher interest rates weakened the economy, along with substantial electricity and water shedding capacity and very weak rail and port capacity, all of which was negative for the rand.
“SA’s export potential has also been afflicted by a weakening in its export performance, as its factors of production rapidly deteriorate (electricity supply, freight rail and port, water supply, road infrastructure etc), undercutting the currency,” Bishop said in previous notes.
The phase launched yesterday is to augment water supply by 490 million to Gauteng and some areas of the Free State, Northern Cape and North West.
The main contracts for the Polihali Dam, the Polihali to Katse Transfer Tunnel and the Senqu Bridge were awarded during the last financial year and contractors are on site.
The estimated cost of Phase Two is R39 billion, with the Trans-Caledon Tunnel Authority (TCTA) raising the funding in the market and it is due to be completed by 2028.
The binational infrastructure project involves the construction of a network of tunnels and the dams to transfer water from the Orange-Senqu River in the Lesotho Highlands to South Africa where it is projected to increase the current annual supply rate capacity from 780 million cubic metres to 1.2 billion cubic metres and to use the water delivery system to provide hydro-electric power to the Kingdom of Lesotho.
Phase 1 of the project was completed 20 years ago, in 2003.
Water and Sanitation Minister Senzo Mchunu, who is accompanying Ramaphosa, in Lesotho, has alluded that water infrastructure backlogs will cost R89.9bn per annum in South Africa over 10 years, with 3 698 074 kilolitres of water lost every single day due to infrastructure failure and leakages.
“This costs South Africa R250 million every single year,“ he said.
Mchunu earlier this month tabled a budget vote of R40.3bn for the 2023/2024 financial year in the National Assembly.
“The total value of the major water resource infrastructure projects that are in implementation stage, most of which I have just alluded to, collectively amount to R130 billion, with approximately 65% of the funding to be through private sector finance. In addition to these projects in implementation phase, we also have many projects in the planning and feasibility study phases,” he said during the budget vote.
BUSINESS REPORT