A request was issued by the Minister of Water Affairs to the Chairman of the Board of Amatola Water to carry out a so-called “Due Diligence Assessment” for the proposed Southern Regional Water Utility (SRWU) within a very brief timeline. This project produced a high-level strategic business case in order to respond to the terms of reference set out by the Department of Water Affairs. The proposed Water Utility would serve the entire Eastern Cape province, much of which has suffered from lack of water services infrastructure as well as numerous operational changes with existing infrastructure. It required assessments of province-wide water resources, potable water and wastewater infrastructure, the socio-economic context, water quality, as well as the role of and requirements for a regional water utility. It included strategy, governance aspects, organisation and legislation, transfer of assets and staff, financial viability, risk analysis, stakeholder relationships, and plans for addressing poverty and inequality.

WAI assisted Amatola Water with a desktop survey of existing water infrastructure, assets, staffing and operating budgets, including bulk municipal infrastructure and reviewed future infrastructure requirements. WAI provided an analysis of the role of a regional water utility and assistance with the design and organisation of the proposed utility. They were also responsible for the development of a 20-year financial model and extensive analysis of numerous scenarios and risk analysis, as well as drafting of the due diligence report.

The project required extensive workshopping with Amatola Water’s Manco at key milestones throughout the project.

Client: Amatola Water, East London, Eastern Cape
Duration: March 2014
Value: ZAR390 000
Country: South Africa