|
Commercial vs social
The question is, now that we know what we need, how do we achieve this, given that according to former Minister of Finance Pravin Gordhan,“ R18.4-billion has been allocated over the medium term to the Regional Bulk Infrastructure Grant and R12.5-billion to the Water Services Infrastructure Grant. These allocations continue to prioritise water provision in the 27 most impoverished district municipalities.”
Haripersad grins wryly and says:“ The issue is multi-faceted. How do we ignite investment in what is essentially public sector-related infrastructure?” The challenge here is that the public sector purse is a limited resource, while the private sector is sitting on enough money to fund a small country.
The University of Johannesburg’ s Centre for Competition, Regulation and Economic Development reported that South African companies are hoarding R1.4-trillion in cash, accumulating reserves and not investing in the economy, while acquisition-led growth has increased concentration and led to anticompetitive behaviour.
Haripersad continues:“ The public sector doesn’ t have access to unlimited funds, so the government cannot do everything that it wants to do,” he says and observes,“ Whereas the private sector( institutional funders, fund managers, and the like) has a specific commercial view to investment around what is public infrastructure, in terms of revenue return versus what should be a social commitment.”
He says that until the mindset changes as to what constitutes a sound investment— not based entirely on the rate of return— getting out of the present cycle is going to be challenging.
Infra-related business, however, remains tentative around investing, with business confidence at an all-time low( below the neutral 50-point mark), according to the last assessment of the Construction Industry Development Board, putting the drop squarely at the door of the public sector, the largest contributor for civil engineering works.
Short-term maladministration within government is clouding investment in people, Haripersad says.“ Securing the public water supply should not be tempered by shortterm political manoeuvrings, because a politician’ s life( as well as that of a president) is limited,” he observes.
He believes the ongoing political shenanigans that is crippling the
|
country is“ in the moment politics” and will pass, while the infra investment needed must be more long term,“ What is the social rate of return we can expect over the next two decades?” he asks. The commercial and social investment viewpoints are at odds, he believes.
Paul Fairall, principal consultant for Emifula, says with absolute candour that the water crisis is nothing short of a lack of management, right from the top.“ Find the proper management to manage any project to do with the environment or building.” He adds,“ We have a tremendous country that has plans; plans that it doesn’ t implement.”
He draws attention to the Lesotho Highlands Water Project( LHWP), with Phase ll recently announced by the Lesotho Highlands Development Authority( LHDA). The announcement stated that the design and construction supervision on the second phase of the LHWP will mainly include construction of the Polihali Dam, of which the primary design was set to commence in August. The project will cost R445-million.
“ The plan has been lying there for many years, while it should have been implemented six years ago,” Fairall points out.“ The planning stage is now only taking place, namely Polihali Dam, which means South Africa will be running out of water for human and commercial use from about 2018, while 2022 will be extremely harsh. Polihali Dam should have come into full production in 2020, which is now overshot, and it’ s not inconceivable that( in the future) some households will be allocated water for about five or six hours a day. That is what is going to happen,” he adds ominously.
He cites that of the available water in the country, 98 % has been spoken for, of which a small percentage is used by humans domestically and adds:“ Of that, 46 % is used on gardens and swimming pools. Johannesburg loses 40 % of its water from Rand Water through leaks, before it gets to the public, through ailing infrastructure or the lack of infrastructure maintenance.”
Defunct monitoring systems
Gordon Allen, director of GuruManzi, a water technology and solutions provider, speaking at a Moneyweb and Standard Bank business breakfast on the state of the Western Cape water infrastructure, says that South Africa’ s water crisis is owing to an infrastructure failure in general.
|
While the country’ s water crisis stems from drought conditions and inadequate infrastructure, added to the water supply problem is a collapse in the systems that measure, monitor, and predict water resources. Allen adds that water delivery is compromised by a variety of transformational objectives from government, infrastructure failure, and an inability to deliver.
Major infrastructure programmes have been delayed, compounding South Africa’ s overstretched water resources with projections of a significant national water deficit by 2025, while nearly a quarter of South Africa’ s over 1 000 water treatment plants are operating below specification. The country has 824 bulk wastewater treatment plants, treating 5.13 billion litres a day. However, only 16 % of these are discharged to specification, according to Allen.
A multitude of contaminants and toxins are also on the rise, compromising health care and facilities of the poorest citizens and, according to Allen, the Western Cape’ s rainwater gauging stations are dysfunctional,“ so the ability to predict has been compromised severely,” he stresses.
There are numerous infrastructure failures, including six closed loops on the Olifants River system and locations along the Gauteng supply via Rand Water, which allow sewage to flow into the river. The utility is increasing chlorine levels to compensate for rising levels of bacteria, he says.
He believes that an integrated water and environmental management plan to provide a strategic response to identified risks should ensure an uninterrupted water supply, fit for purpose.
The trend towards a digital economy, which could enable people to work from anywhere, begs the question of whether there will even be a need for commercial buildings, and how many buildings will have a single, dedicated use.
Allen adds that the correct response into the future, whether it be new or existing property development, would be to“ consider water as a business risk”.
Whatever the viewpoint, the outlook is bleak; there is no escaping the fact that our water resources are running dry, with few solutions in the future to look forward to. u
|
networking contributor industry debate environment infrastructure municipalities |