Minister has cut red tape tying the City's hands

1 November 2017

The decision by the Minister of Finance to allow Cape Town to go ahead and make the emergency arrangements to deal with the water crisis is welcome, says the Cape Chamber of Commerce and Industry.

“Effectively, the Minister has cut the red tape which has tied the City’s hands until now,” said Ms Janine Myburgh, President of the Chamber.

“It should have happened long ago but the important thing is to look ahead and to make plans to deal with the crisis now and in the long term.”

Ms Myburgh said the best way to go about securing Cape Town’s future water supplies was to follow the example of the Department of Energy when it secured supplies of renewable energy from Independent Power Producers.

“In other words call for tenders to supply water and guarantee to buy that steady supply of water at a fixed price for the next 20 years.”

She explained that this would create the certainty required to finance a major project of this order and she had no doubt that the country’s financial institutions would be eager to help.

The tendering process was now recognised as international best practice and there should be no arguments about it. It had worked for the IPP’s and it should work even better for water.

“We have the technology to deal with the water problem. Now, we have the freedom and, I hope, the political will. This is Cape Town’s opportunity to show that it can deal with a major challenge,” Ms Myburgh said.

Issued by Dean Le Grange, Media and Digital Co-ordinator, Cape Chamber of Commerce and Industry, 1 November 2017