SEMBCORP SIZA WATER CONCESSION
In January 1999, the Borough of the Dolphin Coast (‘BODC’) and Sembcorp Siza Water (‘SSW’) entered into a Concession Contract whereby SSW would oversee, manage and implement the provision of water and sanitation services within the then BODC Municipality boundary, on a Concession basis, for a period of 30 years. The Agreement was concluded in line with the principles contained within the Framework for Restructuring of Municipal Services agreed to between the National Government, South African Local Government Association and Confederation of South African Trade Unions. Key among the legislative and policy developments introduced by this framework was the enactment of the Water Services Act 108 of 1997.As a result of this enactment, the ILembe District Municipality (‘IDM’) inherited the Concession Agreement, in its capacity as a water services authority from what was then known as the Borough of the Dolphin Coast Municipality, which in recent times is known as the KwaDukuza Municipality (‘KDM’).
Over the past three (3) years MCPM has been commissioned by the IDM as a ‘specialist PPP/Concession Consultant’ to ensure that the national legislative mandate, industry standards and norms, guidelines, as well as regional and provincial frameworks are fulfilled. During this time period, MCPM has submitted eighteen (18) Quarterly Concession Monitoring Reports, a Five Year Review Report, a Concession Legal Review Report, an addendum to the Concession Contract, as well as numerous opinion letters with the aim of monitoring the infrastructure quality, maintenance, controls, water quality, financial model, financial reports, profit sharing and adherence to the environmental legal compliance framework. This monitoring exercise is in no way investigative, but rather a continuous survey and analysis of the progress of the Concession Agreement.
We have currently completed compiling the sixteenth Concession Monitoring Report (for the period of October to December 2016), and as with the previous 18 reports, it focuses on three (3) key issues in the concession agreement as being Technical, Financial and Legal Compliance.