Overview
The Challenges
In the face of water constraints, numerous local municipalities in South Africa find themselves ill-equipped to tackle the pressing challenges at hand. Insufficient financial support, inadequate infrastructure, fragile operations and maintenance systems, and unpredictable weather patterns have left them struggling to meet the ever-growing demands of their populations.
These challenges have resulted in the bulk of municipal-treated water being discharged into rivers or directly into the ocean. There is an urgent need to upscale direct water reuse programmes to address the country’s water supply challenges and ensure the sustainability of this critical nature resource.
The Solution
Appointed by The Development Bank of Southern Africa (DBSA), Pegasys created a highly effective, technically advanced, and ready-to-launch National Water Reuse Programme (NWRP). The NWRP achieves climate change resilience objectives by strengthening the country’s adaptive capacity against water stress and scarcity and maximises climate change mitigation co-benefits.
At the highest level, the NWRP encourages and supports municipalities to implement water reuse and reclamation initiatives that also consider nexus issues, such as combined heat and power (CHP) installations and sewage sludge reuse. The innovative solutions presented in the NWRP help to reduce water waste and increase water reuse efficiencies.
Pegasys also supported the DBSA with resource mobilisation for the NWRP by developing a full funding proposal that was submitted to the Green Climate Fund (GCF) to secure catalytic funding support. Most importantly, Pegasys designed an innovative blended finance solution that will enable the engagement of the private sector in financing these water reuse projects.
Results
The National Water Reuse Programme marks a significant step forward in driving sustainable water use efficiency at municipal levels. The programme enhances water security through the scale-up of water reuse approaches and bolsters the development of infrastructure in municipalities.
One of the program's key innovations lies in its funding model, which incorporates private sector participation. By tapping into this collaborative approach, Pegasys is creating an opportunity to establish a new asset class in water infrastructure investments. This step promises to be a game-changer in the realm of climate finance, propelling sustainable water management forward.