Trans-Caledon Tunnel Authority disestablishment and transfer to National Water Resources Infrastructure Agency; with Minister

Video The Portfolio Committee on Water and Sanitation met to receive a briefing from the Department of Water and Sanitation (DWS) on progress towards establishing the National Water Resources Infrastructure Agency (NWRIA). The meeting aimed to assess institutional readiness, governance frameworks, and financial planning ahead of the Agency’s operationalisation in April 2026. The Department presented its progress on consolidating the Trans-Caledon Tunnel Authority (TCTA), the Water Trading Entity (WTE), and the Infrastructure Branch of the Department into the NWRIA. The briefing covered transitional workstreams in legal, finance, ICT and human resources; the phased transfer of assets, staff, and liabilities; and the business case for increasing annual infrastructure investment from R10 billion to R30 billion. Members welcomed the initiative but stressed several areas requiring clarity and assurance. These included the need for a complete and verified asset register, clear disclosure of inherited liabilities, retention of employee benefits, and an expanded implementation roadmap. Concerns were raised about the sustainability of the NWRIA’s balance sheet, the borrowing model, and the risk of replicating governance failures found in other state-owned entities. Additional questions focused on the Agency’s interaction with water boards, the role of municipalities, and whether regulatory authority over privately held dams would change. The Department stated that the NWRIA would not assume regulatory functions. All dam safety, licensing, and water use authorisations would remain with DWS. The NWRIA would manage major national dams but would not be responsible for privately owned infrastructure. The Department indicated that the TCTA Board may have its term extended to ensure continuity, and that the Chief Executive Officer (CEO) of the NWRIA would be appointed through an open process in accordance with legislation. Governance would be aligned to the Public Finance Management Act (PFMA), with oversight conducted by the Minister and Parliament. The Committee supported the establishment of the NWRIA on condition that financial controls, transparency, and risk mitigation remain central throughout the transition. Quarterly progress reports, detailed financial disclosures, and ongoing Committee engagement were requested to ensure accountability during implementation.