Municipalities are in serious trouble if something isn’t done fast
The truth is the lifespan of infrastructure in the electricity grid is 50 years.
You don’t ever want the whole grid to approach that age.
If it does, there is a real danger of the whole thing breaking down all at once.
And now, there are reports out citing our entire grid has an average age of 48 years… Because it was not maintained!
Many municipalities are already in big trouble.
But how did things get so bad?
How South African municipalities racked up a R25 billion backlog
Well, for over a decade, our municipalities have been under spending by half! At the moment, spending on maintenance is only R3.5 billion annually, but to keep the grid healthy the figure should be double that.
And those numbers really stack up.
Municipalities’ (almost hilarious) bad planning has racked up a backlog of R25 billion!
If no one does anything, vast swathes of the country will be in darkness in little over a year.
Forty-eight odd sub-stations need replacing. This alone will cost around R6.125 billion!
But we also need 81 new sub-stations built. Plus, 12,733km of new transmission lines installed…
It’s now at the point that government will HAVE to spend R174.7 billion to keep the grid going over the next 10 years.
It’s all in the government’s latest Transmission Development Plan.
Why the money WILL flow out of the government’s bank account…
There is NO way the government can let the grid collapse! And the work HAS to go out in order to keep our economy from grinding to a complete halt.
Our grid needs a comprehensive rescue plan...
And at the very least, R25 billion of the R174.7billion government set aside for its infrastructure plan WILL go to upgrading the grid in the next two years.
And there is one company standing in line to sweep up a good portion of those tenders…
I’ve written a special report which contains all the details of the company set to benefit from this massive spending. In it I'll show you how to get in on this great investment opportunity.
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Here’s to rooting out rewards,
Resource Economist, FSP Invest