The R1,4-billion Skuifraam Dam project planned for the Berg River near Franschhoek has been approved by the cabinet as part of a package of measures designed to stave off a looming water crisis in the Western Cape.

At the province's current rate of increase in consumption and assuming winter rains are in line with the long-term average demand for water is expected to exceed existing supply within two years.

However, the Skuifraam Dam will start filling up only from 2006. The full 80-million cubic metre capacity is likely to be reached by 2008 at earliest, adding about 20% to existing storage capacity.

The department's regional director, Rashid Khan, says the building of the dam will be expedited 'because Cape Town will be living on borrowed time for the next couple of years'.

Meanwhile, the department is considering boosting supplies by upgrading the storage capacity of existing water schemes such as Lorelei and Voelvlei. It is also looking into recycling water and exploiting natural aquifers.

The city council, which has lobbied hard for Skuifraam and is destined to be its biggest client, has produced a water services development plan that emphasises water demand management.

The aim is to restrict growth in demand by using water more efficiently, thus preventing supplies from running out before the new capacity comes on stream.

The department estimates if no action were taken there would have to be such Draconian curbs on domestic, industrial and agricultural users the province's economic growth would be harmed.

However, Khan says Skuif- raam will only buy an estimated two more years before demand again equals maximum capacity. For the longer term the department is counting on being able to recycle water and is looking at the feasibility of desalination plants.

The Trans-Caledon Tunnel Authority has been appointed as Skuifraam project agent. The cost estimate is based on 2002 prices.