Gauteng adopts plan to cut high water losses
Intelligence Summary
Gauteng's adoption of a new water strategy targets reducing non-revenue water from 48% to below 25% by 2035, unlocking billions in potential savings. This will drive a surge in tenders for water infrastructure repair, smart metering, and leak detection, but also highlights the urgent need for efficient procurement to avoid wastage. The framework represents a shift from access-focused to quality-focused water services, impacting municipalities across the province.
Why This Matters for Procurement
This creates a multi-billion rand procurement opportunity for water infrastructure, technology, and management services, while also raising the bar for municipalities to invest in loss reduction, which will lead to a wave of tenders and potential public-private partnerships.
Key Points
- Gauteng's non-revenue water (NRW) averages 48%, with municipalities like Emfuleni exceeding 70%, indicating severe infrastructure and billing inefficiencies.
- The new Strategic Framework for Water and Sanitation Services sets a national target to reduce NRW below 25% by 2035, creating a long-term procurement pipeline for water infrastructure and management services.
- Physical water losses (leaking pipes) alone cost an estimated R7 billion annually at Rand Water rates, and over R14 billion at municipal rates, representing significant revenue loss and a strong business case for investment.
- The framework shifts focus from basic access to reliable and clean water, implying procurement of maintenance, metering, and smart water management solutions.
- Municipalities with high NRW (e.g., Emfuleni, Mogale) are likely to prioritize tenders for pipe replacement, pressure management, and leak detection technologies.
Industry Impact
A new national Strategic Framework for Water and Sanitation Services was adopted, setting a binding target to reduce non-revenue water below 25% by 2035, with Gauteng as a key focus area.
Industry-Wide Effect
This policy shift will likely influence procurement across all provinces, as the national framework sets a precedent for NRW reduction targets. It will drive investment in water conservation and demand management, potentially reshaping the water services industry from a focus on new connections to maintenance and efficiency. This could also lead to more stringent performance monitoring and reporting requirements for municipalities, affecting how contracts are structured and evaluated.
Affected Sectors
Affected Organs of State
From the Original Source
Excerpt reproduced for context. Tenders SA analysis is based on this public source. Read the full article at SAnews.gov.za.
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