Almost 50 per cent of the water will service communities -with the other 50 per cent servicing platinum mines. It was noted due to the recession and the subsequent decline in platinum sales, mines were less eager to conclude agreements with the Department. The Committee was informed that at the initial stages prior to the commencement of the project, the surrounding mines were invited to invest in the project. While the mines had agreed to this no action was forthcoming from their side. While the Committee is of the view that the service level agreement between the Department and the mines is important therefore this process should be expedited. It is important to note that the non involvement of Mines in this regard will negatively affect the Departmental budgeting process. The project is therefore funded fully by the government. Building costs have escalated by about 25% yearly since the commencement of the project. The construction costs of the social component of the project were therefore expected to increase significantly which may necessitate a request by the Department for more funding. Although no specific price was given, it was noted that the water would be expensive -as the total cost to be paid by the mines would depend on the total capital invested in the construction. Both small and big mines would pay the same amount for the water. The Committee noted the need not to over charge mines for water as they were generators of employment.