UTILITIES

South Africa is regarded as a water-scarce country with an annual water availability of some 1 200m3 per capita (15% of which is supplied by Government-owned water resources).

South Africa's average annual rainfall is 497mm, compared against a world average of 860mm. The country's rainfall is very unevenly distributed, with 65% of the region receiving less than 500mm annually and 21% receiving less than 200mm.

The country is subject to frequent droughts, lasting, in many instances, for several years. This is exacerbated by high annual levels of evaporation of up to 3 000mm in some areas. As a consequence of the country’s topography and rainfall, some 60% of river flow comes from 20% of the land area.

In spite of such constraints, South Africa enjoys relatively well-developed water infrastructure, with a network of dams and inter-basin transfer schemes across the country.

Per capita storage capability is considerably higher than for any other African country.

This infrastructure has enabled the country to maintain agricultural irrigation through dry periods. Nonetheless, many of South Africa's catchment areas face water stress, with - in some instances -water demand reportedly exceeding supply.

Local Municipalities are generally responsible for the provision of water connections. Connections may generally be achieved quickly, with the exception of unserviced sites.

The time required for connections to serviced sites ranges from a single day to two weeks, and from one month to a year or longer for unserviced sites.

Electricity Connections

Eskom, a state-owned power generation enterprise, generates about 95% of the electricity produced in South Africa and some 45% of electricity used in Africa.

Eskom sells electricity to local authorities, which - in turn - act as redistributors. These local redistributors supply the majority of electricity requirements to end-users.

Eskom, in certain instances, also sells directly to end-users in line with the following conditions:

• When a local redistributor is unable to meet the needs of heavy electricity users (20 kilowatts or more); or
• When no local redistributor has jurisdiction over a particular geographic area.

Connection application and installation procedures are simple and quick for sites with existing structures and an adequate electrical supply already in place, such as in instances where equipment and/or infrastructure upgrades are not required.

Electricity connection applications should be submitted to the nearest Eskom sales office at least seven days prior to the desired connection date. Connection fees vary, depending on the category of service (standard users, off-peak users or peak users) required. A cash deposit or bank guarantee may also be required to cover costs in the event of non-payment of bills. Eskom is also in a position to meet the needs of investors who require capacity upgrades, such as energy-intensive factories. The time taken to complete capacity upgrades is dependent on the availability of the particular transformer required. Costs also depend on the size of the upgrade.

Eskom is capable of supplying power to ‘Greenfield’ sites in serviced areas. However, investors should in this instance prepare their applications well in advance. Installation can take up to 24 months for large projects, as some of the connection activities may require a separate Environmental Impact Assessment process and/or an application for the rezoning of land.

Investors may submit an application for the supply of electricity or a letter of requirements to the nearest Eskom office. Eskom will provide an estimated quotation for installation costs, which is negotiable, within 14 days of the initial application.

• Eskom, a state-owned enterprise, generates approximately 95% of the electricity produced in South Africa, and 45% of electricity used in Africa. Eskom sells electricity to local authorities, who act as redistributors. The local redistributors, in turn, supply the majority of electricity to end-users. Eskom also sells directly to the end-user:
• When the local redistributor is unable to meet the needs of heavy electricity users (20 kilowatts or more); or
• When no local redistributor has jurisdiction over a particular geographic area.
• The application and installation procedures are simple and swift for a site with an existing structure and an adequate electrical supply already in place, i.e. where no equipment upgrades or added infrastructure are required. An application for the supply of electricity should be submitted to the nearest Eskom sales office at least seven days prior to the requested connection date. Connection fees vary, depending on the category of service (standard users, off-peak users or peak users). A cash deposit or bank guarantee may also be required to cover costs in the event of non-payment
• Eskom is also able to meet the needs of investors who require capacity upgrades, such as energy-intensive factories. For capacity upgrades, the waiting time depends on the availability of the size of transformer required. Costs also depend on the size of the upgrade. The utility is also able to supply power to ‘greenfield’ sites in serviced areas. However, investors should prepare their applications well in advance. Installation can take up to 24 months for large projects, as some of the connection activities may require a separate Environment Impact Assessment process, and/or application for land rezoning. Investors may submit an application for the supply of electricity or a letter of requirements to the nearest Eskom office. Eskom will provide an estimated quote of installation costs, which is negotiable, within 14 days of the initial application.