PPPs vital for water provision, sanitation minister says
07 October 2024 - 11:57
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Public-private partnerships (PPPs) could go a long way to accelerating the provision of water services infrastructure and to address the gaps for which the government did not have sufficient funding or skills, water and sanitation, minister Pemmy Majodina says.
But she insists there will be no privatisation as the constitution prohibits private ownership of water resources for which the department of water and sanitation is the custodian.
Majodina was replying in writing to a question by EFF MP Mathibe Mohlala, who asked what assurances the minister could give that private companies would not prioritise profit over people, exploit water provision at the expense of the poor and fall into the trap of corruption and mismanagement.
“The department’s intention with any public-private partnership is to gain access to the funding and skills of the private sector to increase the provisioning of safe water, as well as to improve the reliability and efficiency of water provision further than it can do so by itself.
“Without the private sector, the department’s ability is confined to the funds and capacity available within government only, which is insufficient to address the current needs,” Majodina said.
The process also looks at the long-term impact of these projects on communities, municipalities, and government at large.
Water and sanitation minister Pemmy Majodina
“The water services infrastructure gap currently far exceeds what the government can deliver with the skills available and within the fiscal constraints. Through PPPs, the department can facilitate more investment and skills in the water sector.
“PPPs are not a new concept in the water sector and such projects have been implemented successfully in the past.” There had not, however, been any outright privatisation of water services.
Majodina stressed the long-term affordability of water was carefully considered through an extensive feasibility and project preparation process before any PPP was entered into.
“The project preparation process includes a value for money element that ensures that no party takes undue risk or unduly benefits from a project. The process therefore also looks at the long-term impact of these projects on communities, municipalities, and government at large.”
Furthermore, any water provider would have to be issued with a water-use licence for which the department could set conditions to protect the abuse of the water resource.
The National Water Act informed the pricing strategy for water use charges which the department implemented in its PPPs.
“Should the department find that a private partner is abusing the access it has to a water source, it will be able to take appropriate regulatory steps.”
Majodina said the department was in the process of amending the Water Services Act, with the intention of professionalising the delivery of water services to ensure more reliable and efficient services.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
PPPs vital for water provision, sanitation minister says
Public-private partnerships (PPPs) could go a long way to accelerating the provision of water services infrastructure and to address the gaps for which the government did not have sufficient funding or skills, water and sanitation, minister Pemmy Majodina says.
But she insists there will be no privatisation as the constitution prohibits private ownership of water resources for which the department of water and sanitation is the custodian.
Majodina was replying in writing to a question by EFF MP Mathibe Mohlala, who asked what assurances the minister could give that private companies would not prioritise profit over people, exploit water provision at the expense of the poor and fall into the trap of corruption and mismanagement.
“The department’s intention with any public-private partnership is to gain access to the funding and skills of the private sector to increase the provisioning of safe water, as well as to improve the reliability and efficiency of water provision further than it can do so by itself.
“Without the private sector, the department’s ability is confined to the funds and capacity available within government only, which is insufficient to address the current needs,” Majodina said.
“The water services infrastructure gap currently far exceeds what the government can deliver with the skills available and within the fiscal constraints. Through PPPs, the department can facilitate more investment and skills in the water sector.
“PPPs are not a new concept in the water sector and such projects have been implemented successfully in the past.” There had not, however, been any outright privatisation of water services.
Majodina stressed the long-term affordability of water was carefully considered through an extensive feasibility and project preparation process before any PPP was entered into.
“The project preparation process includes a value for money element that ensures that no party takes undue risk or unduly benefits from a project. The process therefore also looks at the long-term impact of these projects on communities, municipalities, and government at large.”
Furthermore, any water provider would have to be issued with a water-use licence for which the department could set conditions to protect the abuse of the water resource.
The National Water Act informed the pricing strategy for water use charges which the department implemented in its PPPs.
“Should the department find that a private partner is abusing the access it has to a water source, it will be able to take appropriate regulatory steps.”
Majodina said the department was in the process of amending the Water Services Act, with the intention of professionalising the delivery of water services to ensure more reliable and efficient services.
ensorl@businesslive.co.za
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