Stewart Gibson & Associates (Pty) Ltd - Municipal management and service delivery in South Africa

The company was formed in 1999 to provide specialist advice and support to municipalities and associated organisations to help them optimise the provision of municipal services. To date, the company has been involved in working with some 30 municipalities in 7 out of the 9 provinces of South Africa. These projects have typically involved either an overall assessment and recommendations on the general provision of services or very specific structuring of the provision of one specific service. In respect of water services, the company has assisted in the creation and structuring of in-house service units as well as the establishment of public/public and public/private management and concession contracts. It has also advised in respect of cost recovery systems, customer care structures and processes and has been responsible for the contract monitoring of certain of these contracts. A further specialist area is the process of managing the provision of services to new private sector developments. In undertaking the detailed work, the company is constantly updating its knowledge of current legislation, policies and forward thinking in respect of the municipal and service delivery area.

There is only one full time employee and the company therefore has the option to operate as part of an informal network of highly skilled and experienced specialists. Where the work requires the input of more than one person, or where the skills required would benefit from a particular expertise, these specialists combine into teams which are structured to be very specific to the needs of each project. In this way the client receives advice and assistance from a dedicated group of specialists who are top experts in their field, who work with each other on a regular basis and who fully understand the very specific needs of the municipal environment. The wider and very specialist skills which are generally applied in this way include:

Legal and regulatory environment
Municipal finance
Financial modelling
Project finance
Communications
Institutional restructuring and organisational design
Engineering assessments, planning and design

The Principal of this company is Stewart Gibson who combines 45 years of work experience in finance, management and engineering with current experience in the optimisation and improvement of the provision of municipal services. Registered as a professional engineer in South Africa, his background is municipal engineering gained from working in a new town and local authorities in the UK as well as with consultants in South Africa. For the last ten years he has been assisting and advising municipalities on municipal management and service delivery matters. This work has included advising on the policy and structuring of the WSA and WSP, assisting with financial and HR matters including cost recovery, advising on contracts for a concession and public/public management contracts, drawing up related contracts and service agreements, preparation of bylaws, undertaking contract monitoring and advising in respect of transfer as well as current and proposed legislation, regulation and policies.

Stewart Gibson & Associates is, therefore, able to offer very specialised services to work with municipalities at a strategic level to assess their current technical, financial and organisational capability to achieve their constitutional responsibility in respect of service provision as well as to work with them to restructure or improve this capability. In undertaking this, the company uses its knowledge of current legislation and national policies as well as applying the experience gained on the implementation, monitoring and review of a wide range of different types of solutions which are currently in use in the South African environment.

Key projects (under the groupings of Water & Sanitation, Municipal Management & Service Delivery and Other):

Water & Sanitation

Section 78 studies for the optimum structuring of the water and sanitation delivery process for:
- Local Municipality of Madibeng
- Nkomazi Local Municipality
- Umjindi Local Municipality
- Mbombela Local Municipality
- Kungwini Local Municipality
- Delmas Local Municipality
- eThekwini Metropolitan Council
- Maluti-a-Phofung Municipality
- Capricorn District Municipality
Nelspruit Water Services Concession for Mbombela Local Municipality
- Evaluation of bids for the 30 year Public Private Partnership concession (PPP) for water and sanitation services for Nelspruit TLC to serve a population of 300,000. Assessment of the capabilities of the bidders as well as the analysis of the performance standards, capital investment programmes, operations and maintenance proposals and the tariff structure. Negotiating the contract with the preferred bidder and assisting Council members and officials to conclude the terms of the contract. Provided major inputs into the development of the detailed concession agreement including aspects such as technical standards, tariff structuring, contract monitoring, hand over procedures, transfer of personnel, performance standards, etc.
- Advising on improved systems for contract monitoring in respect of the concession including the development of a contract monitoring manual, changed methods of reporting to Council and more detailed job descriptions and systems;
- Undertaking the five-year review of the performance of this PPP concession contract. Areas covered included the review of actual achievements against target, analyses of the impact of changed conditions, assessment of the impact of the loss of DWAF subsidies, an assessment of the impact of the introduction of free basic water and analysis of the expenditure and revenue model to assess proposals for tariff increases;
- Providing input to the Supplementary Agreement with specific reference to Key Performance Indicators (KPI) for measuring the performance of the concessionaire.
Maluti-a-Phofung Municipality
- Advising on and negotiating the finalisation of a three-year interim management partnership contract (Public Public Partnership) for the provision of water and sanitation services between Harrismith TLC and Rand Water Board, a public water board.
- Formalisation of a contract where Sedibeng Water Board were appointed as the service provider for the Qwa Qwa area of the municipality (now merged with Harrismith).
- Contract Monitoring of above contracts providing on-going support and advice to ensure that the terms of these public/public contracts were complied with by the parties and to monitor and report on the extent that the contracts were achieving the objectives.
- Study of Future Options for the Delivery of Water Services, in accordance with the requirements of section 78 of the Municipal Systems Act. The purpose of the study was to assist the municipality to make a considered decision of how to best provide water services after the two existing public/public management contracts come to an end in June 2004.
- Procurement of a Strategic Partner to assist to establish and operate a Municipal Entity to provide Water Services to the entire municipal area.
Working with Chemonics International and ValuAdd on a four year technical assistance programme, funded by USAID, which had the overall objective of building capacity within the Water Services Authority of Bohlabela District Municipality and its LMs in Bushbuckridge and Maruleng. Provided detailed specialist inputs in respect of appropriate policy and regulatory arrangements, the creation, format and responsibilities of a proposed Water Services Provider Partnership, capacity building within the municipality, the process of transfer of assets from DWAF, procurement of appropriate staff, training/developmental needs, operations and maintenance and cost recovery and financial sustainability aspects.
Drafting the water and sanitation section of the Guidelines for Municipal PPP Projects for the PPP Unit of National Treasury with funding from the World Bank.
Tariff modelling and determination for a Rural Towns Water Supply and Sanitation Study for the Ministry of Water, Lands and Environment, Uganda
Assisting the local municipalities in their role as water services authorities and providing guidance and support in improving the provision of water services in the Lejweleputswa District Municipality.
Preparation of draft agreements for Mopani District Municipality for the appointment of local municipalities as the water services provider (WSP) and the local water board as the interim WSP in the rural areas. Drafted a bulk water supply agreement for use where the water board supplied bulk water services.
Providing assistance and guidance through the BRIM Consortium in the development of appropriate strategic reporting systems for the Department of Water Affairs and Forestry for Water Services Support and the Department’s interaction with water services authorities.
Development of Model Contracts for the Department of Water Affairs and Forestry, i.e., Bulk supply agreement between DWAF and a water services institution; Transfer of assets agreement from DWAF to a water services authority; Agreement where DWAF acts as water services provider on behalf of a water services authority.
Municipal Management & Service Delivery
Advisor under a South African Institution of Civil Engineers / DBSA managed, and Gauteng Provincial Department of Local Government funded, programme to provide experienced support to Kungwini Local Municipality. Providing support at 2 to 3 days per week over a three year period to the municipality and the Director of Service Delivery with specific focus on water and sanitation as well as economic development through the support to, and control of, private sector township development. Main responsibility was forward planning and strategic issues.
Provided specialist municipal assistance to PADCO under a USAID funded project to support the Municipal Infrastructure Investment Unit (under the control of the Department of Provincial and Local Government) facilitating municipal service partnerships and PPPs in South Africa. Managing municipal projects involving waste management, revenue enhancement and water services as well as contributing to the core of knowledge offered by the MIIU.
Diagnostic Studies for the Municipal Infrastructure Investment Unit undertaking broad based studies of the financial, organisational structure and service delivery capacity of the following municipalities based on the allocated powers and responsibilities:
- Imbabazane Local Municipality
- Bushbuckridge Local Municipality
- Nelson Mandela Metro
- Mangaung Local Municipality
- Ugu District Municipality
- Umsunduzi Local Municipality
Other
Section 78 study into the optimum future arrangements for the asphalt production plant and asphalt paving operation of eThekwini Metropolitan Municipality.
Ad-hoc support to the South African Local Government Association (SALGA) in developing strategies and drafting discussion papers.
Research into the key factors impacting on the capacity and ability of South African municipalities to achieve their service delivery responsibilities and publication of the research paper.
Facilitation of training workshops and presentations in the fields of municipal management and service delivery.