BPC, WUC top development budget, again
Mbongeni Mguni | Tuesday February 7, 2017 15:57
The P1.46 billion allocation for 2017/18 is the first under National Development Plan 11, which envisages pumping a total of P10 billion between April 2017 and March 2023 to the BPC for “operational support”. The 2017/18 development budget amounts to P16.52 billion.
Matambo yesterday made it clear what the “operational support” entailed.
“That allocation is operational costs or subsidy,” he said. “If it was not provided for, it must be expected that the tariffs you are now paying for electricity would be much higher. This is a notable gesture on Government’s part.”
For the financial year ended March 2015, the BPC received a subsidy of P2.33 billion and another of P2.32 billion for the year ended March 2016. For the year ending March 2017, the BPC was allocated P1.35 billion in February 2016 and received an additional P1.3 billion in a supplementary budget in December.
The Corporation’s ambitious Masa 2020 turnaround strategy envisages securing approval for a multi-year tariff adjustment plan this year, with implementation starting in 2018. Matambo’s budget also allocated P2.80 billion or 17.0% of the total development budget, to projects that include work on the North-South Carrier II to supply water to the Southern part of the country and reticulation of water from the Thune Dam to nearby villages.
Matambo did not mention tariff support to the Water Utilities Corporation (WUC), whose finances have slumped into crisis in recent years as a result of added responsibilities under the Water Sector Reform Programme.
In September, WUC CEO, Mmetla Masire told a Parliamentary committee that the Corporation needed tariff subsidy of P350 million annually. WUC’s fall from grace started in 2009 when it began the ambitious Water Sector Reforms Programme under which it took over the supply of water to all urban centres and villages. In 2010, the Corporation posted a surplus of P161.4 million, which narrowed to P21.8 million in 2011, before the tide turned and a loss of P541.6 million was recorded in 2012, followed by another of P191.1 million in 2013.
Its last published results for 2014, indicate that the WUC reported a loss of P346.6 million.The P2.8 billion allocated to the Ministry of Land Management, Water and Sanitation Services, will also cater for implementation of the Land Administration, Procedure, Capacity and Systems (LAPCAS) to improve land management as well as land servicing, which Matambo said would enhance investment and employment opportunities.
The Ministry of Justice, Defence and Security, which was the biggest winner of the 2016/17 development budget, was third this year with an allocation of P2.76 billion.
“This amount will be used to complete ongoing construction of new police stations and housing, refurbishment of prison facilities and improvements to infrastructure, construction of houses for army personnel, purchase of vehicles and upgrading of equipment for the BDF to enhance security capabilities,” Matambo said.