Objectives

The primary objective of the tender is to procure an Independent Certifier (IC) to enhance transparency, provide assurance, and verify the performance of the management contractor over a 5-year period for a performance-based management contract. The IC will independently verify achievement of performance targets, certify operational and contractual performance, and support external audits by providing validated performance data. Additionally, the IC aims to build contract oversight capacity within the utility and ensure that incentive payments are based on accurate, reliable performance information.

Scope

The scope of work includes:

• Preparation of a certification and performance assessment plan.
• Assessment and validation of the performance baseline as required in the PBMC.
• Validation of the management contractor’s performance across key indicators such as revenue collection, non-revenue water, call center performance, financial management, capital expenditure, operations, and risk management.
• Certification of performance against targets, including interim certification for Blue Drop and Green Drop standards if annual certification is unavailable.
• Provision of assurance reports to the eThekwini Water and Sanitation (EWS) Business Unit, City Manager, and external stakeholders.
• Evaluation of the effectiveness of management practices and compliance with water industry standards.
• Monitoring and reporting on the achievement of key performance indicators and incentive payments.

Technical Requirements

The technical requirements specify that the IC must:

• Develop and implement an audit strategy aligned with professional auditing standards and the water sector’s regulatory framework.
• Assess the performance management system, control, governance, and risk management arrangements of the EWS Business Unit.
• Provide independent, objective advice on financial management, service delivery, and value for money.
• Possess a robust understanding of water and sanitation industry standards and performance management techniques.
• Ensure independence from the organization, with no executive role or responsibility for system development or operation.
• Have rights of access to all relevant records, information, and assets necessary for audit and certification.
• Produce annual performance reports, including opinions on achievement of targets and recommendations for improvement.
• Follow professional ethical standards, including confidentiality and objectivity.

Skills Requirements

The tender specifies that the IC must demonstrate:

• Experience as an Auditor: Proven track record of previous water utility audits, with at least 15 years’ experience in water and sanitation performance audits, including certification of similar projects.
• Technical Competence: Qualifications such as CA (Auditor), with a minimum of 10 years’ post-registration experience in management of audit teams, performance management, and certification.
• Specialist Knowledge: Expertise in water and sanitation standards, water sector reforms, operational performance, and industry best practices.
• Methodology and Approach: Ability to develop a clear, structured approach for evaluating performance, including milestones, innovative solutions, and modern technologies to improve service delivery.
• Independence and Objectivity: Demonstrated ability to operate independently without conflicts of interest, and to disclose any threats to independence.
• Communication Skills: Ability to produce comprehensive reports, communicate findings effectively, and liaise with stakeholders at various levels.