Name of the Project
uMkhomazi water project – Phase 1 (uMWP-1).

Location
KwaZulu-Natal, South Africa. The raw water infrastructure extends from the proposed Smithfield dam on the uMkhomazi river, about 18 km east of Bulwer, to the Baynesfield area in the uMlaza river valley, south of Pietermaritzburg.

Project Owner/s
The Department of Water and Sanitation (DWS) is the project authority. The Trans-Caledon Tunnel Authority (TCTA) has been appointed to fund and implement the raw water component, while uMngeni-uThukela Water will implement the potable water component and operate the overall scheme.

Project Description
uMWP-1 is intended to address the long-term water deficit in the Mgeni water supply system, which supplies residents and industries in KwaZulu-Natal. The project is expected to increase the system yield from 394-million cubic metres a year to 608-million cubic metres a year.

The raw water component comprises an 81-m-high Smithfield dam, with a gross storage capacity of 251-million cubic metres, and associated infrastructure on the uMkhomazi river; a 33 km, 3.5-m-diameter raw water transfer tunnel from the dam reservoir to the uMlaza river valley; and a 5.1 km, 2.6-m-diameter raw water pipeline from the tunnel outlet to the Baynesfield water treatment works.

The potable water component will comprise a water treatment works and bulk potable-water conveyance infrastructure linking the scheme to the existing uMngeni-uThukela Water distribution network. The project will supply the eThekwini, Msunduzi, uMgungundlovu, Ugu, iLembe and Harry Gwala municipal areas.

Potential Job Creation
TCTA estimates that the project will create about 4 280 direct jobs during construction and about 110 permanent positions during the operational phase.

Capital Expenditure
TCTA currently estimates the project cost at R23.20-billion.

The funding structure comprises a 25% capital grant and a 25% interest-free loan through government infrastructure funding mechanisms, with the balance expected to be financed through commercial borrowing and repaid through water tariffs. During the August 2026 tariff consultations, TCTA indicated that the feasibility-stage cost estimate could change once detailed design is completed.

Planned Start/End Date
Construction tender documents are planned to be issued in January 2027, with construction scheduled to start in January 2028. The project is expected to start delivering water in July 2032.

Latest Developments
As at August 2026, detailed design and project development work was progressing. Professional service provider contracts for the Smithfield dam and water conveyance infrastructure were awarded in 2024.

Geophysical and ground-based investigations were under way for the conveyance infrastructure, together with land-access engagements and assessments of tunnel boring machine advance rates across the different rock types. Drilling for the dam investigations had been completed and rehabilitation of the disturbed areas was being finalised. Revised design criteria memoranda for the dam and tunnel were being prepared for submission to the DWS.

The project’s institutional and funding arrangements have also advanced. TCTA entered into an implementation agreement with the DWS in January 2025, while a framework agreement and water-user agreements with the beneficiary municipalities were concluded in April 2024.

The budget facility for Infrastructure has approved R12-billion in support comprising a R6-billion nonrepayable grant and R6-billion interest-free loan. A government guarantee of R22.9-billion is in place. In August 2026, the New Development Bank also granted concept approval for proposed financing of up to R4-billion for the project.

Key Contracts, Suppliers and Consultants
AECOM (professional service provider for Smithfield dam and associated infrastructure, including project management, design engineering, construction supervision and environmental compliance); and GIBB–Knight Piésold joint venture (design and construction supervision of the water conveyance infrastructure, including the transfer tunnel and raw water pipeline).

Contact Details for Project Information
TCTA, tel +27 12 683 1231 or email info@tcta.co.za.
uMngeni-uThukela Water, tel +27 33 341 1111 or email info@umgeni.co.za.