The European Union (EU) Commission has approved funding for a R375-million project to provide water and sanitation to needy communities in the country.

The Masibambane 2 Project follows on the maiden project, which provided water to between three-million and four-million people and sanitation to about a million people.

The Masibambane 1 Project was completed earlier this year.

The announcement was made by EU Commissioner for Development Poul Nielsen during the celebration of ten years of cooperation in the water sector between the EU and South Africa.

Commissioner Nielsen said the EU had recognised then, as it did now, that access to potable water as well as improved hygiene affected people's well being and that such services invariably improved the lives of beneficiary communities.

The EU has provided over R8-billion for developmental programmes in South Africa between 1994 and 2002.

"Currently in our third programme (2004-2006), we have committed in excess of R1-billion annually to development in South Africa," said Commissioner Nielsen.

He said the EU also had a support programme to the Southern African Development Community water sector valued at €7-million.

Also speaking at the event, Water Affairs and Forestry Minister Buyelwa Sonjica, thanked the EU for the further funding and its continued commitment to service delivery and poverty alleviation in the country.

"The EU's involvement in the water sector dates back to 1994 when it supported five initiatives in the sector...these programmes were concerned with infrastructure provision, capacity building, health and hygiene, environment management, monitoring and evaluation," she said.

She said the Masibambane Programme would compliment government's investment of about R22,5-billion over the same three-year period.

"The funds will be used to support local government to use the municipal infrastructure to further reduce the basic infrastructure backlog and to achieve reliable services," said Sonjica. – BuaNews.