The FW de Klerk Foundation has submitted written comments to Parliament’s Select Committee on Cooperative Governance and Public Administration on the South African National Water Resources Infrastructure Agency SOC Limited Amendment Bill of 2025.

The Bill proposes an important institutional change in the governance of national water infrastructure. It formally lists the South African National Water Resources Infrastructure Agency (“SANWRIA”) as a major public entity under Schedule 2 of the Public Finance Management Act of 1999, while providing for the eventual delisting of the Trans-Caledon Tunnel Authority once its functions are transferred to the Agency. In practical terms, the legislation consolidates the financing, development and management of national bulk water infrastructure – including dams, transfer schemes and major pipeline systems – within a single state-owned entity.

The Foundation supports the overall objective of strengthening South Africa’s capacity to finance and manage large water infrastructure projects. Reliable national water infrastructure is essential for economic growth, environmental sustainability and the progressive realisation of the constitutional right of access to sufficient water.

However, the establishment of a new Schedule 2 public entity also carries significant governance and fiscal implications. Entities of this scale typically manage substantial financial resources and possess borrowing powers to finance infrastructure investment. South Africa’s recent experience with governance failures in several state-owned enterprises, also alluded to by the Zondo Commission, highlights the importance of ensuring that new institutions are established with robust oversight and accountability mechanisms from the outset.

The Foundation’s submission therefore emphasises the need for strong governance safeguards. These include transparent and merit-based board appointments, prudent management of borrowing and financial risk, strict compliance with public finance legislation and effective parliamentary oversight of the Agency’s operations.

Ismail Joosub, Manager of Constitutional Advancement at the FW de Klerk Foundation, said: “The creation of a single national agency to manage water infrastructure is a significant institutional shift and it should be approached with caution. When large infrastructure mandates are consolidated in one entity, the quality of long-term planning, technical independence and public accountability becomes critically important. If SANWRIA is to succeed, it must demonstrate disciplined infrastructure planning, credible leadership and consistent transparency so that the management of national water resources remains firmly aligned with the public interest”.

The Foundation will seek to present oral submissions to the Select Committee should hearings be convened.

Click here to read the full submission.