SOUTH Africa’s state water infrastructure entity, the Trans-Caledon Tunnel Authority (TCTA), which needs to raise 33 billion rand ($2.21 billion) in 2021, said on Tuesday delays by treasury in guaranteeing its debt were pressuring its funding plan.
The delay is due to treasury’s tightening of conditions for guarantees and bailouts to state-owned entities (SOEs).
Government guarantees for SOEs stand at around 581 billion rand. Two-thirds is accounted for by state power firm Eskom debt. The TCTA has the second-largest share, with 43 billion rand.
Consecutive years of abnormally hot weather and below-average rainfall, which the government has partly attributed to climate change, have strained South Africa’s already-stretched water supplies, making funding for infrastructure backlogs even more pressing.
During a presentation of its delayed 2019/20 results, the TCTA said it had negotiated with lenders for the 15 billion rand it needs by May to fund a bond redemption and continue construction
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