Special Emfuleni/Rand Water project approved by Council
The long-awaited reorganisation and re-purposing of Emfuleni’s water and sanitation infrastructure and associated revenue management is a step closer to implementation after the local authority’s Council approved the venture.
This will see a new company (known as the Special Purpose Vehicle between Rand Water and the Emfuleni Municipality) manage water and sanitation under a new CEO and new brand, and will incorporate all present Metsi municipal workers.
The SPV is the brainchild of ELM Manager April Ntuli.
The ELM/Rand Water SPV is on a 70/30 percent basis, with Rand Water the major partner.
But the SPV will only be launched after specific financial and funding provisions have been addressed, especially in terms of the Public Finance Management Act (PFMA).
Both ELM and Rand Water have expressed the desire to professionalise and corporatise water services that will provide a long-term solution to the endemic infrastructure decay, massive leakages in potable water and estimation billing which have plagued the municipality for years.
In Council, the Freedom Front Plus abstained from the SPV approval vote.
The Democratic Alliance (DA) voted for it, but with conditions relating to the comprehensive submission of key documents within 60 days on issues such as a Stakeholder Engagement Plan, Service Delivery Agreement, Asset Transfer Agreement and including a Debt Assignment Agreement.
