/ 7 October 2004

Cabinet approves R2,1bn water project

The Cabinet on Wednesday approved the construction of a R2,1-billion water project that will pump water from the Vaal Dam to an existing water supply infrastructure near Secunda, Mpumalanga, the department of Water and Forestry said in Pretoria.

This would ensure the availability of water for power generation, the synthetic fuel industry and other urban and industrial users until 2030, said Water and Forestry minister Buyi Sonjica.

Sonjica said most of the large thermal power stations operated by Eskom and the Sasol synthetic fuel industries, providing South Africa’s power, were situated in the Eastern Highveld area of Mpumalanga.

She said these organisations had indicated that large quantities of water would be required within a short period to support the electricity generating, mining and related socio-economic developments in the region.

”The most feasible option identified for augmenting the available resources is to transfer water from the Vaal Dam,” Sonjica said.

She said the projected demand for electricity had indicated that all power stations would soon be required to operate at full capacity in order to meet the country’s requirements.

She said the capital cost of the new infrastructure was estimated at R2,1-billion, excluding value-added tax.

”Most of this will be recovered from Eskom, Sasol and other economic users, whilst the portion associated with social services will be funded by the Exchequer”, Sonjica said.

Electricity came under the spotlight when the Cabinet received a comprehensive report on administered and regulated prices that involved the price-setting processes of six sectors.

The costing and supply of electricity, communications, transport, water, health and education in future, will be scrutinised by watchdogs to prevent malpractice.

Government Communications and Information Systems (GCIS) spokesperson Joel Netshitenzhe said the review focused on processes of determining prices rather than the absolute prices themselves.

Netshitenzhe said the telecommunications industry had already been noticed for its ”excessive” prices and the rapid increase in health insurance was also noticed.

He said Statistics SA would be tasked with monitoring the ”administered price index”, which would be done in conjunction with the consumer price index.

During Wednesday’s sitting, the Cabinet received a report pertaining to changes in South Africa’s long-term weather patterns.

The Cabinet reaffirmed South Africa’s availability to serve on the restructured United Nation’s Security Council. It also approved the UN Framework Convention on Tobacco Control submitted to Parliament for ratification.

On the domestic front, the Cabinet resolved to push tourism and urged government departments to only procure accommodation from ”establishments graded by the grading council.”

Netshitenzhe said the Cabinet was happy with last week’s Imbizo Focus Week, which saw various politicians including the president, interact with communities around the country.

”The issues raised during the imbizo will be processed to ensure follow-up and monitoring of feedback,” he said.

Concerning the second hosting of the Pan African Parliament, Netshitenzhe said government described it as ”successful” but resolved to draw lessons from the experience in order to provide better working conditions for the body in future.

It also approved the appointments of interim boards and council members to six play houses including the State Theatre. – Sapa