CAPE TOWN – The City Council has given in-principle approval for a public-private partnership (PPP) to advance two major water security projects — the Faure New Water Scheme (FNWS) and the Paarden Eiland Desalination Plant — as part of the City of Cape Town’s long-term plan to secure additional water supply beyond 2030.
The decision follows the presentation of separate feasibility studies to the City’s Mayoral Committee, outlining the scope, costs and potential impacts of the projects under the City’s New Water Programme (NWP).
Desalination study flags potential tariff increases
A feasibility study on the proposed R5 billion Paarden Eiland Desalination Plant has indicated that the project could result in a steep increase in water tariffs for ratepayers, particularly within the first two years of operation, according to reports.
The City plans for the desalination plant to produce between 50 million and 70 million litres of potable water per day, contributing to its broader target of securing an additional 300 million litres of water per day from diversified sources, including desalination, water re-use, groundwater extraction and clearing invasive alien vegetation.
Why the City is choosing a PPP model
Based on the feasibility studies, the City concluded that a PPP is the most suitable delivery model for both projects due to their complexity and long-term operational requirements.
Under a PPP the private sector partner will design, build, finance and operate the facilities for a defined period, while the City retains ownership of the infrastructure and responsibility for providing clean drinking water to residents. The City will only make payments if strict performance and quality standards are met.
City officials have stressed that the PPP model does not amount to privatisation and does not allow private companies to set water tariffs or take ownership of public water assets.
Mayco member for water and sanitation Zahid Badroodien said the approval marks an important step toward strengthening Cape Town’s water resilience.
He explained: “By undertaking these projects through a PPP the City will remain the infrastructure owner and responsible for providing safe, high-quality drinking water.” Badroodien added that the projects were expected to create economic and employment opportunities during construction and operation.
He also urged residents to remain water-wise at all times, regardless of dam levels or seasonal rainfall.
Public participation and the way forward
More than 100 public submissions were received for each project during public participation processes held in 2025. These inputs were incorporated into the feasibility reports that informed Council’s decision.
The Faure New Water Scheme aims to add between 70 and 100 million litres of purified, recycled wastewater per day to the water supply, with first water expected in the 2030-’31 financial year. Procurement will follow a two-stage process, beginning with a Request for Qualification in 2026, followed by a Request for Proposal in 2027.
The Paarden Eiland Desalination Plant is similarly expected to deliver first water by 2030-’31.
Concerns raised over cost and location
Stop CoCT founder Sandra Dickson has raised concerns about the desalination project’s cost and potential impact on water affordability in a social media post.
She said the plant, planned to draw seawater near harbour areas, faces criticism over water quality risks, treatment challenges and high energy demands. According to Dickson, these factors could further drive up operational costs and, in turn, water tariffs for residents.
She also pointed to previous temporary desalination projects, which were criticised for high maintenance costs and operational difficulties, calling on the City to consider alternative water sources more carefully.
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