Letter: Dolphin Coast Council and Siza saved the day

Former Dolphin Coast councillors Trevor Thompson, Ian Coates and Feisal Dawood write:

The ongoing success of our unique Siza Water concessionaire warrants praise, especially in light of the current drastic situation in Gauteng and other beleaguered municipalities.

The concession has been going for more than 20 years now, since the start in 1998 and final inception in 2000! Ian Coates, Feisal Dawood and myself were the core of the then “Dolphin Coast” TLC councillors who were tasked in negotiating the successful public/private partnership with eventual agreement (with the support of the Development Bank of SA) by the Water and Sanitation services and SAUR (Société d’Augmanagement Urbane et Rurales).

Thus, Siza Water was created. The PPP/concession idea arose when the North Coast Regional Water Services Corporation that was providing Ballito, Salt Rock, Shakaskraal and Umhlali with water, was disbanded by government.

We had no choice but to take over the water system. Since we had no expertise in this field, we outsourced it to Umgeni Water on a temporary basis until such time that we decide on how to handle this situation.

Grass cutting and refuse had already been outsourced.

Our planning and tech portfolio committee, chaired by Feisal Dawood, suggested the idea to Water Affairs and Environment Minister Kader Asmal, who offered to finance it as a pilot project together with the then Municipal Infrastructure Investment Unit (MIIU).

We were fortunate to receive strong support from Ms Karien Breytenbach of the DBSA in particular.

We had numerous meetings with a great legal team, Edward Nathan & Friedman, in Ballito and Jo’burg.

Finally, the compiling of the very lengthy, detailed concession agreement was completed, its birth and signing celebrated at a function in Zimbali (where many government hangers-on/fat cats and dignitaries, many totally unknown to us, arrived at the feeding frenzy to drink the Moet et Chandon etc!)

I recall there was opposition by the municipal unions, but somehow they too came on board once the concession was fully and properly explained to them via the SALGA municipal bargaining forum here in KZN and at national level.

An important condition was that the municipal water and sanitation staff were all to be taken over by the concessionaire!

So here we had a transitional council (from ’94 through to 2000) made up of farmers/businessmen and knowledgeable, competent laypersons who somehow upstaged all the “professional politicians” and drove the concession through to its successful launch! It seems other levels of government are not convinced, even though this “concessioning” approach is, since then actual ANC government policy!

What more proof is needed to show that it works! Sadly, however, the concession applies only to the southern areas of KwaDukuza.

Citizens to our north are not so fortunate.

In spite of focused attempts to convince the ANC-led iLembe municipality, they turned it down – and saddled Stanger and northern areas of KwaDukuza with a continuance of their failed and decrepit water and sanitation services.

We have read several letters to your newspaper confirming that Stanger residents have constant breaks in their water supply.

We also know that driving past the sewage plant on the way in to KwaDukuza can be a smelly experience!

Not so in our areas! Siza Water’s service areas are well maintained and spick and span!

Tariffs were initially slightly more than the average, but through efficiency and good management we are now one of the few urban areas in RSA that has a regular and reliable water supply and sewage works that rarely break down… and that has coped with massive, ongoing expansion of our area!

Rates and tariffs now compare very favourably with the few other municipal areas where these services still function adequately.

The concessionaire has achieved and maintained acceptable standards in collecting revenue and keeping water loss low.

Since Siza Water took over our essential services, they have provided excellent training of staff and employ a considerable number of people – far more than the original numbers taken over by them!

It should be noted, however, that the original French-government supported Concessionary Entrepreneur (SAUR), has sold on the Siza Water Concession to new owners who have correctly and admirably continued to maintain the standards that are contractually defined in the concession agreement that is now administered by the iLembe District Municipality, not KwaDukuza.