The Cabinet on Wednesday approved the establishment of the National Water Resource Infrastructure Agency (NWRIA), aimed at ensuring long-term water security for South Africa.
”The agency will take responsibility for developing and operating South Africa’s major national dams and water-transfer schemes, which are currently managed directly by the Department of Water Affairs and Forestry,” Minister of Water Affairs and Forestry Buyelwa Sonjica said in a statement.
These include the Vaal Dam, the Tugela-Vaal transfer system, the Orange River scheme and the Western Cape system.
”The organisation will be a major business in its own right. Its assets are currently valued at nearly R40-billion, and bulk water sales bring in more than R2-billion annually.
”The aim of government is to ensure the long-term water needs of the country are met sustainably, equitably and efficiently; the establishment of the agency will be an important step in this regard,” she said.
The NWRIA will incorporate the Trans-Caledon Tunnel Authority, the parastatal organisation responsible for funding the Lesotho Highlands Water Project.
It will not, however, be responsible for domestic water supplies, which remain the responsibility of municipalities and regional water boards.
The decision to establish the agency is the result of studies that noted water is a strategic resource for South Africa.
Sonjica said the country faces many water-related challenges, notably extremely variable rainfall, which is being aggravated by climate change as well as growing demands from all sectors of the economy and society.
”This requires close oversight by government of decisions related to the development and allocation of water, but also effective management of the national infrastructure.
”A need was also identified to enable funds to be raised for development projects to serve large users from commercial sources in a manner which allows government’s limited finances to be focused on meeting social needs.
”The establishment of an agency was seen as the best way to address these challenges,” she said.
The minister will remain responsible for deciding what projects need to be built, in terms of the National Water Resource Strategy.
The NWRIA will be required to make funding arrangements and ensure projects are designed and built according to appropriate technical, social and environmental standards, and operate effectively and efficiently. — Sapa