The ongoing dispute between the City of Cape Town and Quality Filtration Systems (QFS) regarding a desalination plant at the V&A Waterfront is set to proceed to arbitration in 2024.
This development follows a five-year conflict after QFS terminated its contract with the City, citing ‘extraordinarily contaminated’ water and inadequacies in the tender process.
As per the Cape Argus, QFS has confirmed the arbitration process, while Zahid Badroodien, the City’s Mayco member for water and sanitation, noted the City’s involvement in the proceedings but emphasised confidentiality due to the sensitive nature of the arbitration.
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The desalination plant, which was decommissioned in 2022, has been a point of contention since QFS ended its contract in 2019. Attempts at mediation between the two parties have failed to yield a settlement.
Despite this, the City has invested significantly in water and sanitation infrastructure, totalling R1.6 billion in the 2022/23 financial year.
Major projects include the Atlantis Aquifer (R90 million), the Cape Flats Aquifer Recharge (R255 million), and the Table Mountain Group Aquifer (R51.5 million).
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Sandra Dickson, the founder of STOP CoCT, reportedly criticised the City’s progress in water management projects since 2018. Dickson expressed concern about the future, highlighting the need for substantial additions to the water supply to counter potential droughts, despite additional fixed water charges imposed since 2018.
The arbitration, scheduled for late March and early April 2024, is intended to be a step forward in resolving this dispute.
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