The Trading Services Committee, chaired by Councillor Mdu Nkosi, held its monthly meeting yesterday, 27 May, to deliberate on development matters within the services cluster under its oversight.
The Committee supported the following items, which will be submitted to the Executive Committee and Council for further consideration.
WATER PARTNERSHIP SUPPORT FOR UMDLOTI AND UMKOMAAS REGIONAL WORKS PUBLIC-PRIVATE PARTNERSHIP
The Trading Services Committee approved that the Water and Sanitation Directorate enter into a Memorandum of Understanding (MOU) with the Water Partnerships Office (WPO) to provide support for National Treasury’s Budget Facility for Infrastructure application for the uMdloti and Umkomaas wastewater treatment works Public-Private Partnership (PPP) projects.
The MOU will support the Municipality’s strategic objectives of ensuring sustainable, compliant, and efficient water management services.
The Municipality intends to implement new wastewater treatment works in uMdloti and Umkomaas, with sufficient capacity to accommodate projected future flows and consistently meet required discharge standards in line with applicable legislation.
The project is aligned with the Integrated Development Plan (IDP) and aims to create a quality living environment by providing well-maintained, sustainable infrastructure with equitable access to essential services and household infrastructure.
APPROVAL OF MINIMUM COMMITMENTS UNDER THE MUNICIPAL TRADING SERVICES REFORM PROGRAMME -M1, M3, M4 WITHIN THE ENERGY MANAGEMENT DIRECTORATE AND THE WATER AND SANITATION DIRECTORATE
The Committee noted progress in the implementation of the National Treasury Metro Trading Services Reform (MTSR) Programme, including the development and submission of required documentation to give effect to Minimum Commitments M1, M3, and M4 within the Electricity, Water and Sanitation services.
The MTSR Programme is a national reform initiative led by National Treasury in collaboration with relevant national departments.
It provides a performance-based conditional grant to metropolitan municipalities to incentivise improved service delivery and long-term sustainability of trading services, namely Water and Sanitation, Energy, and Waste Management.
The implementation of the programme requires coordinated action across municipal directorates, as well as structured engagement with external stakeholders at national level.
As part of alignment with programme requirements, Executive Director of Trading Services, Ednick Msweli, indicated that it is proposed that the Energy Management Directorate be renamed the Electricity and Energy Directorate.
This alignment is necessary for consistency in reporting, verification, and engagement processes.
He emphasised that the proposed renaming does not alter the functional responsibilities of the Directorate, but ensures alignment with national policy frameworks, reporting standards, and reform terminology.
“The reform projects will be implemented over six years.
Transparency cannot be compromised as we want to see improvements in service delivery from the affected directorates,” said Msweli.
REALLOCATION OF FUNDS WITHIN THE ENERGY MANAGEMENT DIRECTORATE
The Committee approved a R104 million adjustment and alignment of the 2025/26 capital budget within the Energy Management Directorate.
This adjustment will enable the immediate procurement, deployment, and integration of enterprise-grade high-voltage substation security system software across the municipal network.
Director of Energy Management, Philani Shange, stated that the adjustment forms part of a broader risk mitigation strategy aimed at safeguarding high-value infrastructure assets against theft and vandalism.
“We want to modernise the electricity distribution network by integrating advanced software capabilities into the grid.
This technology will strengthen overall network resilience across the City, protecting key economic zones and residential communities from secondary power disruptions,” said Shange.
He further noted that the initiative will enable faster network restoration, improved workforce deployment, and reduced municipal revenue losses associated with prolonged outages.
