Expand on the Problem Statement, and cite references for each of the $5$ sections, giving a more in depth analysis to the challenges with this project.

$1.$ PROBLEM STATEMENT Over the last two decades, we have worked with many municipalities, inclusive of the metropolitan areas of South Africa. In that period, we have witnessed the following as some of the major challenges faced by municipalities: $-1\mathrm{.}1$ Lack of adequate infrastructure, resulting in poor service delivery. In most instances this was caused by aged infrastructure, or inadequate maintenance thereof, and generally the inability of the municipalities to keep pace with the much$-$needed new infrastructure$-$built requirements. It is a fact that the majority of municipalities have inherited aged infrastructure, and over $60\%($by some estimate need urgent replacement or refurbishment $$ these reservoirs, pipes, water meters, collection and treatment works, and many other related infrastructure requirements. $1\mathrm{.}2$ Large uncollected, and escalating debt making it very difficult for municipalities to maintain healthy cash levels for their operational requirements. $1\mathrm{.}3$ Inadequate funding of municipalities due to restricted funding lines by the National Treasury of South Africa, this is likely to proceed into the foreseeable future, and this is compounded by the inability by National Treasury to provide credit enhancements $($such as through national guarantees$)$ into municipal infrastructure projects. $1\mathrm{.}4$ Unacceptably too risky ratings by rating agencies, whether due to inability of municipalities to maintain heathy cash reserves, or due to inadequate funding by National Treasury, etc. $1\mathrm{.}5$ Illiquidity in the capital markets for municipalities has been an issue with some of the major municipalities in that they had previously issue bonds and similar debt instruments which are not easily tradeable in the capital market, especially the larger asset managers. In fact, few municipal bonds are being issued as a result.