Council approves SPV to deal with water and sanitation issues in ELM
VANDERBIJLPARK – In a major step toward improving water and sanitation services in the region, the Emfuleni Local Municipality (ELM) Council has approved the formation of a Special Purpose Vehicle (SPV) in partnership with Rand Water.The decision was made during a Special Council Sitting held on July 1.
According to ELM's spokesperson, Makhosonke Sangweni, the newly endorsed SPV will take over full responsibility for the delivery and management of water and sanitation services in Emfuleni, marking a strategic shift aimed at achieving sustainable service delivery.
'The SPV is expected to operate as an independent company and will serve the municipality for the next 30 years. Once operational, it will be accountable for all systems involved in water and sanitation provision to residents and stakeholders.'
In a statement, ELM revealed that the formation of the SPV follows months of preparation and the successful securing of key approvals.
On June 10, ELM received conditional support from the Minister of Finance, followed by approval from the Minister of Water and Sanitation on June 25. These endorsements were granted under specific conditions outlined in the Public Finance Management Act.
The new structure aims to address Emfuleni's long-standing water challenges, which have been exacerbated by financial and operational difficulties within its existing Water and Sanitation Unit, Metsi-a-Lekoa.
The ELM has labelled the move as a game-changer, stating that it will be geared towards professionalising and corporatising water services.
'This will significantly enhance our ability to deliver consistent, high-quality services,' Sangweni adds.
Previously, ELM had signed a memorandum of understanding with Rand Water in September 2023 to conduct a due diligence study on Metsi-a-Lekoa.
Work on the SPV launch was delayed late last year, but officials now say the project is back on track and nearing final executive approval.
Speaking to Boipatong residents recently who were complaining about damaged infrastructure and sewage running down their streets and into their yards, MMC for Public Works, Tumi Mochawe, highlighted that the municipality had been faced with a problem of aged infrastructure.
An optimistic Mochawe, however, promised residents that water and sanitation problems would soon be a thing of the past in ELM due to the approval of the SPV.
Sangweni said both ELM and Rand Water teams are in the final stages of implementation.
'The municipality is optimistic about the SPV's impact on improving service delivery and infrastructure management in the region. The official name of the SPV will be revealed at its upcoming launch.'
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