(1)(a) The contract referred to is a bulk water supply contract.
(1)(b) The duration of the contract is for 30 years.
(1)(c) The contract did not go out on tender. My Department allocates water to Water Boards in general, the Water Board (Lepelle Northern Water in this instance) needs to find clients who will utilise such allocation and alternatively other businesses approach LNW to check if the board can meet their demands for either their expansion or extension or starting up a business.
The above is not done through the form of a tender but through water supply agreements between its customers, whether it is industries or Municipalities in LNW’s area of supply.
(2) No, there was no need as this was a normal bulk water supply agreement between LNW and Southern Palace 440 (Pty) Ltd.The contract is valid but has outstanding suspensive conditions which have not yet been agreed to.
(3)(a) R0, 07658 cents per m3 adjustable annually,
(3)(b) Through meters.
(3)(c) The water was intended for Agricultural purposes.
(4) The contract has not been implemented.
(5) No, my Department does not approve agreements, the LNW signs agreements with clients, in line with the delegations of authority.
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