Water Services Act, 1997 (Act No. 108 of 1997)

Regulations

Water Services Provider Contract Regulations

12. Financial

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A contract must provide for a method by which the water services provider shall receive payment for its performance in terms of the contract and that method must—

(a)provide an incentive for the water services provider to perform efficiently and effectively;
(b)take into account the requirement for a reasonable rate of return on any investment made by the water services provider in terms of the contract and that rate of return must—
(i)be commensurate with the risks involved;
(ii)be based on information provided during the procurement process; and
(iii)when based on a price index or on a cost of capital, be specified and based on one that is readily available from a reputable source and regularly published;
(c)provide for the periodic financial review of the method; and
(d)provide for the sharing of any financial benefit to be achieved by the efficient and effective performance of the water services provider.