As Eskom is looking for more money, particularly as news surfaces about a possible infusion from the World Bank (World Bank May Give Eskom More $$$), another challenge possibly looms for South Africa’s state-owned utility. Bulk water infrastructure maintenance will need capital to overcome a possible collapse, according to the South African Revenue Protection Association (SARPA).
SARPA reports that according to the chief financial officer of the Department of Water and Environment Affairs, Onesmus Ayaya, that many of the more than 400 infrastructure assets that supply raw bulk water were decades old and were causing contamination of major water sources.
One major problem is a direct result of the economic crisis forcing the department to downscale its capital spending on water programs and infrastructure maintenance. A local government water and sanitation audit report released earlier this year showed that 85% of South Africa’s waste water treatment works had a "limited remaining useful life", while 90% of water treatment works were dilapidated.
In addition, an area within Johannesburg, Soweto, is reported to have only 20% of households pay for electricity use forcing Eskom to take action. A South African investigative television program recently quoted a leaked Eskom report showing a 35% revenue loss in May in the residential sector, mostly due to energy theft and meters that reflect free supply.