Summary
The Borough of Dolphin Coast municipality engaged the private sector, via a deal involving SAUR Services and Siza, to upgrade failing water and sanitation infrastructure. While targets were met in wealthier areas, poorer areas suffered from unmet targets and tariff increases, contributing to 140 cholera cases in the first year. The concession faced financial instability by 2001, necessitating contract adjustments that reduced municipal fees and investment commitments while raising consumer prices.
Key insights
- The water concession achieved targets in wealthier areas but failed to meet all targets in poorer areas, where residents faced tariff increases and some resorted to using unhygienic stream water, resulting in 140 cholera cases during the first year.
- Financial instability led to a contract renegotiation in 2001 after Siza could not pay concession fees due to a 20% rise in bulk water costs; this resulted in halved annual fees to the municipality until 2006, lower investment commitments, and higher consumer prices.
- The partnership structure allowed the French multinational SAUR Services to earn a 21% return on investment in the first year, even though the majority-controlled Siza was not yet profitable.
Cite the original document
- APA
- South African Institute of International Affairs (2008). Accessing Water. https://saiia.org.za/research/case-study-accessing-water/
- Chicago
- South African Institute of International Affairs. Accessing Water. 2008. https://saiia.org.za/research/case-study-accessing-water/.
- Wikipedia
- {{cite report |author=South African Institute of International Affairs |title=Accessing Water |date=12 May 2008 |url=https://saiia.org.za/research/case-study-accessing-water/ |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{southafricaninstituteofinternationalaffairs2008accessing, author = {{South African Institute of International Affairs}}, title = {{Accessing Water}}, institution = {South African Institute of International Affairs}, year = {2008}, month = may, url = {https://saiia.org.za/research/case-study-accessing-water/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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