WHILE concerns have been raised about the Nelson Mandela Bay Municipality’s intention to raise a loan of R3.1-billion for infrastructure projects, it says it is confident the projects will generate money.
The loan, if raised, would be used for smart meter systems for both water and electricity, water and sanitation services for the Coega IDZ and Port of Ngqura, and a landfill gas extraction project, a council meeting heard yesterday.
The loan would be spread over a period of five years.
At the meeting, DA councillor Retief Odendaal said the metro could not afford smart meters.
“With all our water losses, most of the problems are with our ageing infrastructure, not with our meters.
“I don’t think it’s viable to borrow money now,” Odendaal said.
“I know it says these are incomegenerating projects, but we would have liked to see the projection of income these projects would bring.”
ANC councillor Zukile Jodwana said a number of processes still had to be followed before the council took a final decision about whether or not it would raise the loan.
The municipality plans to take out a loan of R700-million in the 2016-17 financial year.
“We need to weigh the benefits of smart meters versus 40% in water losses,” Jodwana said.
Deputy mayor Bicks Ndoni said: “The amount of water we’re losing is huge and we need to get to the root of the problem.”
ANC councillor Rory Riordan said: “The loans are manageable and affordable . . .”
Mayor Danny Jordaan said the projects made business sense.
Holding a workshop would be the next step, it was agreed.
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