INDUSTRY OVERVIEW
Privatisation of
SERVICE
Will this be the new normal ?
PROVISION
Recent events indicate the emergence of an alternative model for the management of services like water and waste . Several separate initiatives are under way , currently unconnected , but all moving in a similar direction . In areas where municipalities have failed , courts have ruled in favour of residents ’ associations , giving them the right to manage water and waste . It is evident that , with increased support from National Treasury and the Presidency , a new model is emerging that will enable private capital to be raised for clearly defined public services provision .
HOW DID IT START ? We now know that over 60 % of municipalities are in financial distress , and are unable to render reliable basic services , with water being the most notable and high profile . As government abandons both the Blue and Green Drop Reporting system , the supply of potable water is disrupted , and the quality of water going into the municipal system deteriorates . It is not uncommon to read in the newspapers about the collapse of wastewater management , with horrific stories of sewerage flowing in the streets and into the nearest river ; many municipalities have experienced these persistent crises in some form or another .
Reports from Harrismith , Kimberley , Parys and Makhanda ( Grahamstown ) all present the same story of collapsed infrastructure , and the inability of the local municipality to mobilise sufficient resources to rectify the problem in an appropriate way . We also have the Day Zero crises that originated in Cape Town , but that are now manifesting in East London and Gqeberha ( Port Elizabeth ).
In response , local communities , often organised as residents ’ associations , have been forced to take control of these vital services – and the courts are backing them . Probably the most notable was the
18