Sharp bump in water tariffs on the cards once Paarden Eiland desalination plan goes ahead

A FEASIBILITY study presented at a City mayoral committee meeting has indicated that the proposed R35 billion Paarden Eiland Desalination Plant could result in a steep bump in water tariffs for ratepayers.

- THEOLIN TEMBO.

ENGINEERS seen moving large pipes into place with the help of excavators and tugboats at the Strandfontein Pavilion Desalination site in 2018. I HENK KRUGER Independent Newspapers

(HENK KRUGER Independent Newspapers)

The study indicates that the plant could significantly increase water bills within the first two years of operating.

The City intends for the plant to produce between 50 million and 70 million litres of potable water per day, with the aim of securing an additional 300 million litres of water from diversified sources.

In the report, it explains that modelling conducted as part of the value assessment found that the impact of the Desalination Project results in an approximate “additional project-specific water tariff increase (over and above the base inflationary increase) of 6.57% and 6.63%” in the first two years of operating.

“It should be noted that the City is also in engagements with the National Treasury to identify options to pursue Grant funding for the project to mitigate the expected tariff impacts. These discussions will continue in the procurement phase of the project to mitigate the cost to the city where feasible.