City Council Approves PPP Model for Cape Town’s New Water Infrastructure Projects

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The City of Cape Town's Council granted in-principle approval for a public-private partnership (PPP) model to develop two major water infrastructure projects: the Faure New Water Scheme (FNWS) and the Paarden Eiland Desalination Plant (PEDP).

The FNWS aims to add between 70 million and 100 million litres of purified, recycled wastewater a day to the water supply, with the first water expected in the financial year 2030/31. The PEDP involves removing salt from seawater to yield between 50 million and 70 million litres a day, with the first water forecasted for the financial year 2030/31.

The PPP will be procured through a two-stage competitive tender. First, a request for qualifications (RFQ) will be issued in the second half of 2026, inviting potential bidders to demonstrate their technical expertise and capacity to carry out the project. After evaluating these submissions, shortlisted firms will move to the request for proposals (RFP) stage, where they will be asked to submit comprehensive, detailed bids. The RFP phase is anticipated to take place in the second half of 2027.

The city defines the required outputs — including what must be delivered, at what standard, and at what scale — while the private partner is responsible for designing, constructing, financing, and operating the facility for an agreed-upon term. Ownership of the infrastructure stays with the city at all times, and the city continues to hold full responsibility for supplying clean water to end-users.

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