Feasibility studies into permanent desalination making progress
8 October 2021
The City’s Water and Waste Directorate’s plans regarding the feasibility of a large-scale permanent desalination plant, with an approximate yield of 50Ml/d by 2028, are progressing.
‘The technical feasibility study, which includes the identification and assessment of potential sites, in Witzands (Atlantis), Cape Town Harbour and near Melkbos/Blaauwberg, has been completed, the outcomes of which are currently under review. A corporate cost benefit analysis for desalination was initiated in June 2021 with completion anticipated in about six months. The Environmental Impact Assessment process to establish the first desalination plant will be initiated once the new professional services contract is awarded, based on the outcome of the concept design process currently under review.
‘Council’s support to appoint the National Treasury’s Government Technical Advisory Centre as a Transaction Advisor is a key step in achieving the next objective, which is an assessment of the financial viability and mechanisms for the delivery of the envisaged permanent desalination infrastructure.
‘Some of the key aspects to be considered during this phase are the means of financing, procuring and delivering this infrastructure. These decisions need to be taken very carefully as their effects will be felt in the long term. The City will work closely with the GTAC during this part of the feasibility process. We will be guided by their expertise so the City can make a well-informed decision on the way forward relating to larger-scale permanent desalination, which forms part of the New Water Programme in our Water Strategy,’ said Mayoral Committee Member for Water and Waste, Alderman Xanthea Limberg.
The GTAC appointment and their internal resources or specialists used for this service will be at no cost to the City. However, as any external resources or specialists procured by GTAC will be for the City's account, the Water and Sanitation department has set aside up to R8 million for the Transaction Advisory Services should this be required during the scope of work, from 1 October 2021 to January 2024.
To facilitate the work, the City will enter into a Memorandum of General Agreement with GTAC, which will govern the relationship, party rights and general terms of the engagement. The City will also enter into a Memorandum of Particular Agreement, which will encompass the scope and objectives of the Transaction Advisor and will define other specific project requirements, where necessary.
‘The City’s ongoing investment into the New Water Programme demonstrates sustained commitment to reducing our reliance on rainfall and building resilience to future drought shocks. As a City, we seek an efficient and cost-effective means to successfully plan the implementation of desalination according to the Water Strategy. This part of the feasibility process will help guide those priorities so that we can continue to keep costs of a reliable water service to our residents as low as possible, while enhancing water security,’ said Alderman Limberg.
Information about the City’s Water Strategy can be found here: http://www.capetown.gov.za/
Issued by Media Office, City of Cape Town, 8 October 2021
