Will Cape Town's R5 billion desalination project lead to higher water bills?
A feasibility study tabled at the City of Cape Town’s mayoral committee has indicated that the proposed R5 billion Paarden Eiland Desalination Plant could result in a steep bump in water tariffs for ratepayers, according to reports by the Cape Argus.
The study, which was presented at a recent mayoral committee meeting, suggests that the plant could significantly inflate water bills within the first two years of operation. As the city grapples with water scarcity exacerbated by climate change, the plant aims to produce between 50 million and 70 million litres of potable water per day, with the goal of securing an additional 300 million litres from diversified sources.
Read the full Cape Argus story here.
The report reveals that modelling conducted as part of the value assessment found that the implementation of the desalination project will lead to an approximate “additional project-specific water tariff increase (over and above the base inflationary increase) of 6.57% and 6.63%” in the initial two years of operation.
In a bid to alleviate financial pressures on residents, the city is engaging with the National Treasury to explore options for Grant funding for the project. “These discussions will continue in the procurement phase of the project to mitigate the cost to the city where feasible,” the report states.
Read more on The Cape Argus.
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