eThekwini Mayor Cyril Xaba said the Water Turnaround Strategy (TAS) that will be presented to the National Treasury (NT) was ahead of the pack, chasing R3.3 billion for infrastructure upgrades.
The municipality's council approved the water and sanitation unit's TAS in April 2023.
On Tuesday, Simon Scruton, senior manager of Water Design at the municipality presented feedback at an eThekwini Executive Committee (Exco) meeting on the Treasury's requirements, leading up to a possible allocation of additional Urban Settlements Development Grant (USDG) funding in the 2025/26 financial year.
Scruton said considering the benefits of the NT Trading Services Financial Reform strategy for the eThekwini Water and Sanitation (EWS) Unit, it was recommended that council approves the EWS Governance and Institutional roadmap and EWS Business and Investment Plan (A2).
He also said the eThekwini council should note the Performance Improvement Action Plan being developed.
The NT recognised the deteriorating state of infrastructure platforms that was driving the decline in the performance of trading services in municipalities. It has initiated reforms through performance-based financial incentives to reward good decisions and performance.
“During the period November 2024 to June 2025, the Road Map and Business and Investment Plan will be improved upon, the Performance Improvement Action Plan will be developed and will include institutional and operational/service delivery key performance indicators and targets defined, clarified, and agreed,” Scruton said.
From July 2025, metros will receive the first allocations of incentive funding made available on achievement of the KPIs captured in the Performance Improvement Action Plan.
The EWS Road Map and targets have been developed based on five strategic pillars:
- Institutionalisation of a Single Point of Accountability.
- Acquisition of Management, Technical, and Change Leadership Capabilities and Improvement of Governance Model.
- Financial Ring-fencing of the Water and Sanitation Business Unit.
- Improving Budget Execution Rate and Catalyse the Flow of Private and International Long-Term Financing of Water and Sanitation.
City Manager Musa Mbhele said the EWS had sound leadership and guidance to secure the R3.3bn from the National Treasury.
Xaba described the EWS unit as a well-capacitated team that must be congratulated for their hard work.
“The city is well positioned to now be considered for the incentive grant. They will be a self-contained unit. We will see a change. We are also meeting with engineers to gather their input. It is all systems go,” Xaba said.
Yesterday, the city announced the approval of the transfer of R2 million within the water and sanitation capital budget in the 2024/25 financial year to address persistent water challenges, affecting various areas in the northern parts of the city, particularly Verulam and surrounding areas.
The Pinkney Park project has been delayed by the Bid Evaluation Committee due to insufficient funding in the currently approved 2024/25 and 2025/26 financial years.
The Hazelmere to Grange Reservoir Pipeline project is an ongoing project that urgently requires an additional R2 million in funding to complete the project in the current financial year.
The municipality said that work has stopped on site due to funding having been exhausted for the Hazelmere to Grange Reservoir Pipeline project.
It added that additional allocation to complete the Hazelmere to Grange Reservoir Pipeline project will ensure much-needed relief to the communities in the northern parts of the city, who have been experiencing water shortages.