Komati Water Scheme Augmentation Project, South Africa – update

Name of the Project
Komati Water Scheme Augmentation Project (KWSAP).
Location
Mpumalanga, South Africa.
Project Owner/s
The Trans-Caledon Tunnel Authority (TCTA) has funded and implemented the project on behalf of the Department of Water and Sanitation (DWS). TCTA is a 100% State-owned entity mandated to finance and implement bulk raw-water infrastructure projects of national importance.
The project was implemented under the direction of the Minister of Water and Sanitation. DWS is responsible for operating and maintaining the project infrastructure, while TCTA manages the project debt and tariff-setting process.
Project Description
The KWSAP forms part of the Vaal River Eastern Subsystem and comprises infrastructure to convey water to Eskom power stations in Mpumalanga.
The project augments the Komati Water Scheme from the Vaal Eastern Subsystem and was designed to address water-supply constraints at Eskom’s Duvha and Matla power stations. The Matla power station reservoir also provides water to Kusile power station.
The interaction of the Komati, Usutu and Vaal river systems improves assurance of water supply to Eskom’s thermal power stations and other water users in Mpumalanga. The KWSAP is able to deliver an additional 57-million cubic metres of water a year to the Komati Water Scheme.
The project forms part of government’s National Infrastructure Plan and has been included under Strategic Infrastructure Project 18, which covers water and sanitation infrastructure.
Potential Job Creation
Not stated.
Capital Expenditure
R1.2-billion.
Planned Start/End Date
The Water Affairs Department instructed TCTA on September 29, 2008, to finance and implement the project. The project was launched in March 2013 and is now in the debt-management phase.
Latest Developments
The yearly tariff-setting process with the DWS continued to function as expected as at May 2026. The TCTA determines yearly what is required to service the project debt over its remaining life and conveys this as a capital unit charge, which is provided for the DWS to include in the raw-water tariffs set for the relevant projects and systems.
Eskom’s demand on the project is expected to decrease going forward, as energy-supply stabilisation and the startup of newer power plants have reduced reliance on older power stations. Eskom has agreed to leave the tariffs unchanged for the 2026/27 period as a buffer against future changes in demand.
The lower expected demand is not expected to have a material impact on overall payments from Eskom to the project, as the tariff-adjustment mechanism accounts for changes in volume demand by adjusting the unit tariff accordingly. The project’s liquidity position, considering cash and undrawn revolving credit, remained adequate, while payment timeliness from DWS to each TCTA project remained good in 2025/26.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
TCTA, tel +27 12 683 1200 or email info@tcta.co.za.
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