Dutch firm sssures Bulawayo residents that water will not be privatised

Vitens Evides International (VEI), a Dutch water utility company, has reassured Bulawayo residents that its proposed framework for managing the city's water and sanitation services will not involve privatisation.

The assurance came during a Water Financing Indaba hosted by the Matabeleland Institute for Human Rights (MIHR) and the Bulawayo Water Assembly (BUWA) on Wednesday. The meeting was attended by Bulawayo Town Clerk Christopher Dube, councillors, residents, and water management experts.

Public Ownership Guaranteed

VEI Project Manager Robson Manatsa emphasised that the proposed utility would remain a public entity wholly owned by the City of Bulawayo.

"The utility we are advising the City of Bulawayo to form is not privatisation. It will be a public entity, wholly owned by the council, with no provision for shareholder dilution. Residents should not fear that a private entity will take over Bulawayo's water supply," Manatsa stated.

He addressed concerns that had arisen from misconceptions about the council's resolution.

"I've heard in the press that the City Council plans to privatise water services. That is incorrect. The council resolution we have states that the utility will be owned by the council," Manatsa clarified.

Aimed at Sustainability and Service Delivery

In early 2024, the City Council resolved to restructure its water management departments to create a streamlined system focused on sustainability and improved service delivery. Manatsa explained that the new utility would function as a corporatised unit under council ownership, integrating seamlessly with existing council operations and finances.

"The goal of the public entity is to ensure sustainability and enhance service delivery. From the outside, the City of Bulawayo will still appear as the provider of water, but within its setup, there will be a corporatised unit managing water supply," he said.

He added that the utility's financial performance would be transparent and reflected in the council's consolidated financial statements.

"If the utility generates $1 million, for example, that will be reflected in the city's finances. Since it's 100% owned by the council, residents will still hold their councillors and mayor accountable for water-related issues," Manatsa said.

Tariffs and Efficiency

Manatsa assured residents that the restructuring would not lead to increased tariffs and might even lower costs over time due to improved efficiency.

"Our expectation is to become more efficient, potentially even lowering costs over time. Based on our analysis, it's feasible to set up a financially viable utility without increasing current tariffs," he said.

Call for Community Input

Residents were encouraged to contribute their views during the planning process, which includes collaboration with experts to ensure the model's financial viability.

"We are engaging experts and seeking your input because we recognize the concerns about such projects. Before the city approves this plan, we aim to ensure it is financially sustainable for everyone involved," Manatsa said.

VEI has also developed a live financial model to guide the city and the utility toward maintaining affordability and efficiency.

"This is a journey, but we've seen that it's possible to achieve financial viability without burdening residents. The utility will be designed to serve the people of Bulawayo efficiently and affordably," Manatsa concluded.

Community Reactions

Residents expressed cautious optimism about the proposal, emphasizing the need for transparency and community involvement throughout the process. The Indaba ended with commitments from all stakeholders to prioritize Bulawayo's long-term water security while safeguarding public interests.