Home  »  Articles   »   Bank Guarantees for Rand Water Set Down

Articles
Bank Guarantees for Rand Water Set Down

August 26, 2019

National Treasury

26 August 2019

Rand Water has been authorized to source bank guarantees up to R15 million per annum until the end of June 2021.

National treasury confirmed this in Government Gazette 42657.

According to the notice, the bank guarantee amount reflects the maximum bank guarantee Rand Water may source in favour of Eskom for its electricity supply agreement.

The bank guarantee is granted only in favour of Eskom and is limited to Eskom providing electricity to Rand Water’s 3 key accounts, namely, Zuikerbosch, Zwartkopjes and Palmiet pumping stations.

Meanwhile, in Notice 1097, treasury announced that Umgeni Water has been authorized to have an interest-bearing debt amount of R2 billion for the financial year ending 30 June 2020.

An interest-bearing debt amount of R1.4 billion for the financial year ending 30 June 2022 has also been authorised.

In a separate matter, parliament announced that the Joint Tagging Mechanism has classified the Special Appropriation Bill as a money bill (Section 77).

A reprint of the bill was published.

The bill was tabled in parliament towards the end of July 2019.

It aims to:

• appropriate an additional amount of money for the requirements of the Department of Public Enterprises to assist Eskom Holdings SOC Limited with its financial obligations and to provide for matters connected therewith.