Tuesday, February 3 Login

Cape Town has taken a major step toward long-term water resilience after the City Council approved procurement for the Faure New Water Scheme and the Paarden Eiland Desalination Plant. The decision supports the broader New Water Programme, which aims to add 300 million litres of new supply per day soon after 2030. It uses a mix of desalination, reuse, groundwater extraction, and clearing invasive vegetation. The feasibility studies confirmed that the Cape Town Water Project PPP model offers the best approach for delivering these technically complex facilities. Public participation also shaped the final plans, as each project received more than 100 comments during the 2025 consultations. These views helped refine technical, financial, and environmental considerations. Cape Town continues to face high climate variability, so this approval marks an important shift toward greater supply stability. It also signals a commitment to reliable, high-quality water delivery for households and businesses.

The City selected a PPP approach to ensure strong performance and transparent delivery across the two major water schemes. Under this model, Cape Town sets clear output standards, while the private partner designs, builds, finances, and operates the project for a fixed term. Payments link directly to verified performance, which encourages discipline in operations and maintenance. Importantly, all assets remain publicly owned, and tariff-setting powers stay with the City. This structure prevents any form of privatization and protects public control. International experience shows consistent benefits, as cities like Singapore and Sydney have used similar models to expand reuse and desalination capacity. These examples support Cape Town’s confidence in adopting this aligned approach. As the City advances implementation, officials expect the Cape Town Water Project framework to grow employment in construction, engineering, and operations. It should also attract investment and support long-term stability in South Africa’s water infrastructure market.

The Faure New Water Scheme will supply between 70 and 100 million litres of purified recycled water each day. First water is expected during the 2030/31 financial year. The procurement process includes two stages: an RFQ in late 2026 and an RFP in 2027. This phased approach supports strong competition and ensures compliance with the City’s Supply Chain Management rules. The Paarden Eiland Desalination Plant will add a further 50 to 70 million litres per day through advanced seawater treatment systems. These systems have proven effective in regions with similar climatic pressure. Cape Town confirmed that all infrastructure will remain municipally owned throughout the project lifecycle. Councillor Zahid Badroodien emphasized that every component will remain under public control. As both projects advance, the Cape Town Water Project model is expected to support consistent delivery, strong operational reliability, and lower long-term supply risk. It also reinforces Cape Town’s wider goals for climate resilience and economic growth.

Source:

City of Cape Town

Leave A Reply

Disclaimer: The content within The PPP Post is intended for general awareness and should not be construed as professional advice. We cannot guarantee the accuracy and completeness of the information, and readers are strongly advised to independently verify any information provided. Our content is solely for informational purposes and does not constitute tax, legal, or investment advice. We do not express opinions on the suitability, value, or profitability of specific securities, portfolios, or investment strategies.
 

Copyright 2025 The PPP Post. All rights reserved.  The PPP Post is not responsible for the content of external sites.

Exit mobile version