INSIGHT: Action needed to ease the burden on South Africa’s water systems

The combination of rapid urbanization, climate change and droughts, high water demand and aging infrastructure has severely strained local water systems. This strain has resulted in water shortages, water-shedding, and the growing threat of water-shedding.

According to Olebogeng Manhe, Chairman of the Gap Infrastructure Corporation (GIC) to tackle the growing pressure on water systems, both short-term and long-term measures are required. While short-term steps may not prevent water-shedding completely, they can provide immediate relief and buy time for long-term solutions to be implemented.

Improving existing water infrastructure is a crucial part of the long-term solution. Significant investments are needed to upgrade or replace aging infrastructure, especially in rapidly growing towns and cities. However, the public sector alone may not have the resources to meet these financial demands, which is where public-private partnerships (PPPs) come into play.

PPPs play a vital role in managing fiscal risks and ensuring efficient service delivery. Private infrastructure development partners bring critical technical skills and financial support to large-scale water projects. They can also introduce innovative technologies and advanced construction methods to refurbish existing infrastructure more efficiently.

PPPs can also assist governments in attracting private investment into water infrastructure projects through competitive tender bidding procedures. This can help bridge the funding gap and facilitate more extensive and higher-quality projects.

Moreover, the risk-sharing nature of PPPs ensures that the private sector shares a substantial portion of the financial, technical, and operational risks involved in infrastructure projects. This means that infrastructure developers are accountable for ensuring that projects are completed on time, within budget, and meet the standards set by public partners.

By leveraging the expertise, resources, and risk-sharing capabilities of the private sector, PPPs can play a pivotal role in addressing water infrastructure challenges and securing a sustainable water future for South Africa.

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