Bloem Water and the Kopanong Local Municipality have reached a new agreement regarding the supply of water to the Xhariep region.
On Friday (29/01) the two parties announced a renewal of the contract after an amicable settlement to the long-standing contractual dispute had been reached.
According to Kido Thoabala, Bloem Water spokesperson, negotiation between the two parties led to the agreement.
The municipality has rescinded the council’s resolution that the contract with Bloem Water, which was to end on 26 January 2021, would not be renewed.
The original decision not to renew the contract had been based on the dispute between the parties.
The grounds of the dispute were that the municipality failed to keep up with the payment agreement, thereby causing breach of contract.
In terms of the agreement reached on Friday, the municipality has renewed a five-year contract with Bloem Water as the bulk supplier of water to the municipality.
The ANC-led municipality has committed to adhere to the payment plan as previously agreed upon.
The two parties are expected to sign the service level agreement on 10 February to become effective for the next five years.
- Bloem Water is a state-owned entity responsible for bulk water abstractions and purification for supply to major municipalities in the Free State.
