https://newsletter.en.creamermedia.com
Financial|Infrastructure|Projects|Services|Sustainable|Water|Infrastructure
Financial|Infrastructure|Projects|Services|Sustainable|Water|Infrastructure
financial|infrastructure|projects|services|sustainable|water|infrastructure

Municipalities owe Rand Water nearly R5bn

Image of Rand Water, Water Purification and Pumping Station, Zuikerbosch

PAYMENT REQUIRED Rand Water, calling on defaulting municipalities to acknowledge the seriousness of the situation, urges municipalities to pay for the water they receive

Photo by Creamer Media

16th June 2023

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

Font size: - +

Municipalities across three provinces owe water utility Rand Water just under R5-billion for water.

While some municipalities have responded to Rand Water’s call for them to pay for the water received, the utility still faces a significant challenge in collecting the outstanding money.

The R4.62-billion cumulative debt is shared among municipalities including the Emfuleni, Govan Mbeki, Merafong, RandWest, Victor Khanye and Ngwathe local municipalities, across Gauteng, Mpumalanga and the Free State.

“Rand Water’s financial sustainability, which impacts on the current and future provision of water, depends on municipalities paying for the water they receive from Rand Water,” the water provider said in a statement.

The lack of revenue generation is risking Rand Water’s planned infrastructure development projects to improve the provision of water services.

Rand Water, as part of its options available, including alternative means, to recover money owed to it, attached the bank account of the Emfuleni local municipality. However, owing to what Rand Water described as “persistent interference” from the municipality, funds have not yet been recovered.

“Rand Water is proactively engaging with various government entities through the intergovernmental relations process. While certain municipalities are struggling to pay within the agreed timelines, others are unable to meet their payment commitments.”

Rand Water, calling on defaulting municipalities to acknowledge the seriousness of the situation, has urged municipalities to pay for the water they receive, commit to collaboration to develop payment plans that they will be able to adhere to and proactively cooperate with Rand Water to find mutually beneficial resolutions.

“By working together, we can devise sustainable payment plans and mechanisms to recover the outstanding amounts, thereby ensuring the long-term financial sustainability of both the municipalities and Rand Water.”

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

Comments

 

Showroom

Weir
Weir

Weir is a global leader in mining technology. We recognise that our planet’s future depends on the transition to renewable energy, and that...

VISIT SHOWROOM 
Hanna Instruments (Pty) Ltd
Hanna Instruments (Pty) Ltd

We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 13 December 2024
Magazine round up | 13 December 2024
13th December 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.161 0.256s - 172pq - 2rq
Subscribe Now