| (i) | enter into a written contract with a water services provider; or |
to provide water services.
| (2) | A water services authority may only enter into a contract with a private sector water services provider after it has considered all known public sector water services providers which are willing and able to perform the relevant functions. |
| (3) | Before entering into or renewing— |
| (a) | a contract with a water services provider; or |
| (b) | a joint venture with another water services institution other than a public sector water services institution which will provide services within the joint venture at cost and without profit, |
the water services authority must publicly disclose its intention to do so.
| (4) | Any water services provider entering into a contract or joint venture with a water services authority must, before entering into such a contract or joint venture, disclose and provide information on— |
| (a) | any other interests it may have, which are ancillary to or associated with the relevant water services authority; and |
| (b) | any rate of return on investment it will or may gain by entering into such a contract or joint venture. |
| (5) | The Minister may, after consultation with the Minister for Provincial Affairs and Constitutional Development, prescribe— |
| (a) | matters which must be regulated by a contract between a water services provider and a water services authority; |
| (b) | compulsory provisions to be included in such a contract; and |
| (c) | requirements for a joint venture between a water services authority and a water services institution, |
to ensure—
| (i) | that water services are provided on an efficient, equitable, cost-effective and sustainable basis; |
| (ii) | that the terms of the contract are fair and equitable to the water services authority, the water services provider and the consumer; and |
| (6) | As soon as such a contract or joint venture agreement has been concluded, the water services authority must supply a copy thereof to the relevant Province and to the Minister. |
| (7) | The Minister may provide model contracts to be used as a guide for contracts between water services authorities and water services providers. |
