In his speech Finance minister Xavier Duval stated that the water sector is one area where the government is putting in extra efforts but the various institutions related to this sector are under-performing and have not been able to live up to the expectations.
The government is therefore merging the Central Water Authority, the Irrigation Authority, the Water Resources Unit and the Wastewater Authority into a single water authority.
This new authority will pursue a multi-pronged strategy.
It will include improving water catchment, reducing water loss, protecting underground water from pollution, promoting demand management, expanding irrigation capacity and promoting effective and assuring efficient waste water management.
Meanwhile, the government will continue to support the CWA programme for the replacement of old and defective pipes around the island.
Rs 454 million have been allocated for the next three years for this purpose. Leakages were at 44.4 per cent in 2007 and now are estimated at 49 per cent.
Other improvements include the Pailles Treatment Plant which will be financed to the tune of Rs 245 million.
Some Rs 53 million is earmarked in 2012 for drilling of new boreholes and upgrading of existing dams.
The government has decided to support low income families in need of water tanks. To that end, it will give a cash grant of Rs 3,000 to families with a monthly income below Rs 10,000.
The Rs 3 billion Bagatelle Dam construction contract which will be operational by 2015 will store approximately 14 million m3 .The project is financed by China.
According to the meteorological services the long drought will continue till end of December when heavy rains are expected.
The summer of 2011 could be marked by cyclones, the weatherman forecast heavy rains earlier.
Tropical cyclones in the Indian Ocean is beneficial because it fills the reservoirs and other water bodies.
However, big cyclones cause damage to crops and low lying areas.