National Treasury has awarded the Drakenstein Municipality a Budget Facility for Infrastructure (BFI) grant of R1.4 billion over the next three financial years.
The Municipality (covering Paarl, Wellington, Mbekweni, Gouda, Saron, Hermon and Simondium) will spend the grant funds on wastewater and sanitation upgrades and rehabilitation across the Drakenstein area. These include the upgrading of the Paarl Wastewater Treatment Works and the construction of the Southern Paarl Bulk Sewer, as well as the rehabilitation and upgrade of Drakenstein sanitation infrastructure to ensure sustainability and resilience.
Treasury awards these grants to selected municipalities to fund large and strategic interventions. Projects should have a minimum total cost of R1 billion and should have substantial long-term impacts on economic growth, social equity and employment creation.
Alderman Conrad Poole, Executive Mayor of Drakenstein Municipality, says: “This is definitely a game changer for us – not only for our area’s wastewater and sanitation service levels, sustainability and resilience, but also for the confidence that National Government is expressing in our Municipality’s financial management and spending capabilities.”
“The bank loans that the Municipality made earlier to erect new infrastructure and improve others have shown our appetite for investing – to make Drakenstein more attractive for business owners and developers, and to make economic growth and job creation here possible. That is why we are now attracting this type of investment.” The Executive Mayor is full of praise for the team who made this possible. This is a major coup for Drakenstein and its people, and we are proud of this achievement.”
Residents across Drakenstein will benefit from this grant as it will ensure increased bulk sewer capacity to unlock future developments, which include social and private residential housing, commercial hubs and industrial opportunities. Other benefits are:
- Improved sewage treatment processes, reduced energy demand, and operation and maintenance costs at the Paarl Wastewater Treatment Works;
- Improved quality of effluent released into the Berg River which is vital for the livelihood of surrounding communities (domestic and agricultural, especially for growers of export fruit and produce);
- Ensured compliance with the prescribed effluent quality standards;
- Significant economic and socio-economic benefits (i.e. job opportunities, attracting public and private sector investment ensuring the growth of the local economy);
- An increased tax base and revenue generation; and
- Sustainable opportunities such as green energy (i.e. transforming sludge into biogas) which will also reduce the high electricity demand at the Paarl Wastewater Treatment Works.
Source and photo: Drakenstein Municipality
