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Water Services Act, 1997 (Act No. 108 of 1997)

Chapter III : Water Services Authorities

19. Contracts and joint ventures with water services providers

 

(a) may perform the functions of a water services provider itself; and
(b) may—
(i) enter into a written contract with a water services provider; or
(ii) form a joint venture with another water services institution,

to provide water services.

 

(2) A water services authority may only enter into a contract with a private sector water services provider after it has considered all known public sector water services providers which are willing and able to perform the relevant functions.

 

(3) Before entering into or renewing—
(a) a contract with a water services provider; or
(b) a joint venture with another water services institution other than a public sector water services institution which will provide services within the joint venture at cost and without profit,

the water services authority must publicly disclose its intention to do so.

 

(4) Any water services provider entering into a contract or joint venture with a water services authority must, before entering into such a contract or joint venture, disclose and provide information on—
(a) any other interests it may have, which are ancillary to or associated with the relevant water services authority; and
(b) any rate of return on investment it will or may gain by entering into such a contract or joint venture.

 

(5) The Minister may, after consultation with the Minister for Provincial Affairs and Constitutional Development, prescribe—
(a) matters which must be regulated by a contract between a water services provider and a water services authority;
(b) compulsory provisions to be included in such a contract; and
(c) requirements for a joint venture between a water services authority and a water services institution,

to ensure—

(i) that water services are provided on an efficient, equitable, cost-effective and sustainable basis;
(ii) that the terms of the contract are fair and equitable to the water services authority, the water services provider and the consumer; and
(iii) compliance with this Act.

 

(6) As soon as such a contract or joint venture agreement has been concluded, the water services authority must supply a copy thereof to the relevant Province and to the Minister.

 

(7) The Minister may provide model contracts to be used as a guide for contracts between water services authorities and water services providers.