Ricochet News

Metro Submits Funding Application to DBSA for Repairs and Maintenance

JANUARY 16, 2015
Metro Submits Funding Application to DBSA for Repairs and Maintenance

The metro has submitted grant funding applications to the Development Bank of Southern Africa (DBSA), according to a report to be submitted to the Municipal Public Accounts Committee (MPAC) when it meets next week.

This follows a recommendation by MPAC that “alternative strategies or funding mechanisms” should be developed “to ensure an adequate level of repairs and maintenance of municipal infrastructure”.

The application has been made to the Infrastructure Investment Programme for South Africa (IIPSA). DBSA is the Fund Manager for IIPSA, which is a joint initiative of the South African Government and European Union.

The MPAC report says that funding applications have been submitted for the metro’s Water and Sanitation programme as well as its Roads and Transport and Stormwater programmes.

The report adds that if the grant funding application is successful, the money “will be allocated to undertake preliminary planning and reports with the focus on capital infrastructure investment that will also address rehabilitation and maintenance challenges”.

It says that maintenance backlog investigations have been concluded and are being used “as a basis to report to National Treasury...as well as planning for infrastructure rehabilitation, adding that some of this work was done in 2013/14 and will continue in the current financial year.

“It is cheaper to affect scheduled maintenance repairs now than to refurbish and replace infrastructure at a later stage.

“This will mean a change in current thought and budgetary processes to effect such a change. It may also require moving funding from new installations to maintain existing installations.”

With regard to the high level of water losses experienced by the metro, the report states that business plans have been submitted to the Provincial Department of Education and the Eastern Cape Development Corporation (ECDC) for repairs at schools.

“Without a significant amount of funding this will remain a challenge going forward,” the report notes, adding that the Education Department is in the “final stages” of approving an amount of R15 million.

It adds that a contract was awarded for water leak repairs generally in December last year. - MetroMinutes.


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