Vaal Gamagara Water Supply Scheme (VGWSS) phase 2 implementation is expected to bring in R10 billion to Northern Cape according to, Mr Senzo Mchunu, the Minister of Water and Sanitation in South Africa.
The Vaal Gamagara Water Supply Scheme project, the implementation of which is vital for both the mining industry and the residents of the Northern Cape, entails the construction of a bulk pipeline from the Vaal River to Hotazel and reticulation to settlements along the pipeline’s route.
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Development of Vaal Gamagara Water Supply Scheme
Minister Mchunu stated last week that R1.4 billion has already been spent on Phase 1 of the Vaal Gamagara Water Supply Scheme project, which is 96% complete when tabling the Department of Water and Sanitation budget. An additional R10 billion will be invested once phase 2 is completed this year.
The project is being executed as a Public-Private Partnership (PPP) between the Northern Cape government and mining companies, with nearly equal financial contributions. According to Minister Mchunu, another public-private collaboration between the government and the private sector is between the Department of Water and Sanitation, the Vaalharts Water User Association, and the Infrastructure Fund, with the goal of refurbishing the entire canal system of the Vaalharts Irrigation Scheme.
According to Minister Mchunu, the DWS and the Water Trading Entity have been granted a combined budget of R111.256 billion for the fiscal years 2022/23/24/25 under the Medium-Term Expenditure Framework. Over the same Medium-Term Expenditure Framework, conditional infrastructure grants for municipal water services amount to a little over R3 billion.
The Regional Bulk Infrastructure Grant (RBIG) is worth R19 billion, while the Water Services Infrastructure Grant is worth R14 billion. The RBIG award will be used for 113 various projects around the country, while the Water Services Infrastructure Grant (WSIG) will be used for almost 200 projects. Minister Mchunu has issued a harsh warning to Water Service Authorities that it is an oddity that municipal water services continue to deteriorate when big grant allocations are made.