CoCT justifies proposed tariff hikes
The City of Cape Town has been explaining the reasons behind its proposed tariff increases.
The city has proposed a 26.9% increase in both water and sanitation tariffs along with a 7.2% increase for rates and 5.7% for refuse tariffs.
The city has been impacted by the increase in VAT, we have to accommodate the increase in fuel levy - all of these things increase our operating costs.Cllr Xanthea Limberg, Informal Settlements, Water and Waste Services; Energy
The water tariff is as a result of implementation of those water augmentation projects.Cllr Xanthea Limberg, Informal Settlements, Water and Waste Services; Energy
Limberg also provided clarity in the matter between the City and desalination company GrahamTek.
According to reports, GrahamTek offered the City to build a large scale desalination plant on condition that the city buys water from them for a minimal amount for a period of 15 years.
The city only offered Grahamtek two years.
Any proposal has to go through formal adjudication process. GrahamTek did participate in the tender that the city put out as well as calls for proposals released last year.Cllr Xanthea Limberg, Informal Settlements, Water and Waste Services; Energy
We have made a choice in respect to a preferred bidder based on a set of criteria as per our supply chain policy.Cllr Xanthea Limberg, Informal Settlements, Water and Waste Services; Energy
Limberg says the DA caucus have approved the proposed tariff hikes and the budget is now open for public comment.
Public meetings for comments will be held in April.
We take the comments received into consideration, meaning we are not dealing with the final budget yet, it can be altered depending on public comments.Cllr Xanthea Limberg, Informal Settlements, Water and Waste Services; Energy
To hear the rest of the conversation with Xanthea Limberg, listen below:
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