Source: Department of Water Affairs and Forestry
Title: M Muller: Singing of contract to build the Berg River Dam
SIGNING OF THE CONTRACT TO BUILD THE BERG RIVER DAM PRESS RELEASE BY MR MIKE MULLER, DIRECTOR-GENERAL OF THE DEPARTMENT OF WATER AFFAIRS AND FORESTRY, 1 June 2004
Berg River: Government deliveries on its infrastructure investment pledge
In his State of the Nation address, President Thabo Mbeki highlighted government's intention to promote increased infrastructure investment to support growth and development.
In the water sector, we are already walking the talk.
We know that South Africa in a water stressed country, only 30 out of 180 countries have less water per person than we do, we know that we are already using a high proportion of our available water.
The value of water, contribution to development, i.e. clear to all.
This is why our policy is that economically able users should pay the cost of making water available to them through projects such as the Berg River Dam, and not expect government to pay from general tax revenues.
That poses a challenge for us in the Department. We can no longer just spend our budget to build new projects. We need structures to raise the finance.
The signing of this contract is a practical demonstration of the success of the approach we are following:
* Based on the willingness of Cape Town's and other water users to pay for their water services;
* The commitment of Cape Town Metro Council to recover user charges and pay the bulk supply tariff;
* The ability and reputation of TCTA.
We have been able to raise from the private sector the funds required to build the project.
As a result, the (private sector) contractors to whom the tender has been awarded will be on site within a month.
This is a practical example of partnerships we need to deliver infrastructure investment we need if South Africa is to grow and meet the needs of all our people.
Contact:
Mr Mike Muller
Director-General
Cell: 082 807 3531
Issued by: Department of Water Affairs and Forestry
1 June 2004
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