Harare City Council (HCC) has lamented over the impact of the ongoing currency reforms which it says have negatively affected its operations. The HCC’s clerk, Hosiah Chisango, revealed that the local authority had projected this year’s budget using a 1:1 ratio to the United States dollar.
Addressing a Parliamentary Portfolio Committee on Local Government, Chisango said that the currency reforms resulted in a US$36 million budget for water chemicals being depleted faster than had been expected. Chisango added:
We cover just 50% of the demand for water and shortages are due to population increase, dilapidated water infrastructure over the years, resulting in water rationing for high-density areas being 48 hours during the weekend and some suburbs like Mabvuku get water once per week.
Our budget was based on a 1:1 exchange rate and our rates are still charged at the 1:1 exchange rate, yet all our expenses are now on the interbank exchange rate and there is a big gap which now needs a supplementary budget.
Chisango revealed that US$2,8 million was needed for water treatment chemicals to produce about 550 to 600 million litres per day.
He also projected a continuation of the ongoing water rationing up to 2020 due to siltation unless enough rains fall.
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