Question NW3886 to the Minister of Water and Sanitation

Reply:

Amathole District Municipality (ADM) is receiving the Water Services Infrastructure Grant (WSIG), Regional Bulk Infrastructure Grant (RBIG) and the Municipal Infrastructure Grant (MIG) to implement water services infrastructure development projects within their area of jurisdiction for accessibility of water and sanitation services and to reduce backlogs.

RBIG and WSIG are administered by the Department of Water and Sanitation and MIG is administered by the Department of Cooperative Governance.

In terms of section 227 of the Constitution, local government is entitled to an equitable share of national revenue to enable it to provide basic services and perform its allocated functions. The local government equitable share is an unconditional transfer that supplements the revenue that municipalities can raise themselves (including revenue raised through property rates and service charges). The equitable share provides funding for municipalities to deliver free basic services indigents and subsidises the cost of administration and other core services for those municipalities with the least potential to cover these costs from their own revenues.

The operations and maintenance of water services infrastructure is the responsibility of the Municipalities and should be funded by the equitable share and the revenue that the Municipalities can raise.

Recent challenges across this municipality have been as a result of labour issues which were resolved about two weeks ago. This we believe this will ensure full operations of the systems across the district.

During the 2021/22 financial year the DWS allocated a total of R 172,2 million funding through RBIG and WSIG to the ADM, as follows:

Grant	Allocation R’ 000	Revised allocation	Expenditure R’ 000	Expenditure %	Balance R’ 000
WSIG 5B	75 000	75 000	20 147	27	54 853
RBIG 6B	153 715	97 162	88 503	91	8 660
Total	228 715	172 200	108 650	63%	63 513

ADM applied to National Treasury for a rollover of the unspent WSIG allocation to the amount of R49,5 million. National Treasury did not approve the rollover application as the Municipality did not meet the set criteria in terms of section 21(2) of the 2021 Division of Revenue Amendment Act, (Act No. 17 of 2021).

During the 2022/23 financial year, a total revised allocation of R 172,2 million funding was allocated by DWS through RBIG and WSIG to the ADM, as follows:

Grant	Allocation R’ 000	Revised allocation	Transferred	Expenditure R’ 000	Expenditure %	Balance R’ 000
WSIG 5B	86 000	86 000	15 200	0	0	86 000
RBIG 6B	222 935	110 000	N/A	36 689	33	73 311
Total	228 715	172 200		108 650	63%	159 311

a) The intervention steps are as follows:

i) Peddie – This area is one of the areas having inadequate bulk water supply. Bulk water in Ngqushwa Municipal area is supplied by Amatola Water (AW). AW is continuously engaged in trying to come up with a Long-Term Plan for this area and have promised to be developing a plan. The ADM is also currently implementing interventions where boreholes are currently being drilled and equipped for the following villages, Ntilini, Hamburg, Upper Gwalana and Celetyume through WSIG funding budgeted in the 2022/23 Financial Year benefiting about 24 000 people. ADM is also busy implementing the Bulk and Reticulation Phase 2 project funded through MIG in the current MIG 3-year Capital Plan. The whole Peddie Town and surrounding areas will benefit from the project (about 24 000 people). ADM continues to cart water as and when required utilising its Equitable Share.

ii) Stutterheim – This town is supplied with water through the Gubu Dam as well the Kubusie River and Scotchmans Weir. ADM operates and maintains its infrastructure efficiently while continuing to cart water as and when required. To improve service delivery, ADM is also implementing the Stutterheim Water Pipe Replacement Programme funded through WSIG also in this financial year.

iii) Kei mouth - This town is supplied with water through the Cwili Dam. The ADM is also in the process of upgrading the Kei Bridge Komga Water Treatment Works funded through MIG also prioritised the current financial Year.

iv) Haga haga - This town is supplied with water through the Haga Haga Dam. ADM has also prioritised Upgrading of the Haga Haga Water Treatment Works which is currently at implementation stage funded through MIG and also prioritised this current 2022/23 Financial Year.

---00O00---