Question NW624 to the Minister of Water and Sanitation

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30 March 2023 - NW624

Profile picture: Basson, Mr LJ

Basson, Mr LJ to ask the Minister of Water and Sanitation

(1)What process did his department follow in advertising the shore property around the Hartbeespoort Dam that it owns; (2) (a) what number of contracts have been signed, (b) with whom have the contracts been signed, (c) what is the monetary value of each contract, (d) what is the (i) commencement and (ii) end date of each contract and (e) what is the size of each property that has been awarded a contract; (3) whether each contract stipulates what (a) the property may be used for and (b) procedure must be followed to develop it; if not; why not; if so, what are the relevant details; (4) what number of current contracts have (a) lapsed and (b) will be renewed?

Reply:

1.  The properties within the dam boundary line of the Hartbeespoort Dam were incorrectly vested in the name of the North West Province, and the province entered into long term lease agreements with an option to purchase the land with third parties around the dam. The Department of Water and Sanitation (DWS) had the properties vested nationally and instructed the province to cancel the lease agreements they concluded on national land under the DWS’ custodianship. The department developed a lease policy which was approved in April 2020. This policy guides the department when entering into lease agreements with third parties already occupying State land as well as new applicants from previously disadvantage groups.

The department has already commenced with the process to advertise all available State land under DWS custodianship for grazing and recreational purposes. The land will be leased at a market related rental determined by a Professional Valuer and guided by Treasury Regulations. The department has already identified three dams as pilot projects to advertise land at Van der Kloof Dam, Tant Malie at Hartbeespoort Dam and Lakeside in Potchefstroom.

2. (a)The department has signed lease agreements with 4 lessees and 1 permission to occupy as outlined in table below:

b) Lessees

i) Commencement Date

ii) Duration and End Date

e) Property Size

Boaters World

December 2020

5 years

1 ha

Hartbeespoort Training Academy

February 2023

9 years 11 months

5 ha

Sunshine Cruises

December 2022

5 years

1.5 ha

Caribbean Beach

February 2023

9 years 11 months

1.5 ha

Harties Foundation

February 2023

2 years (removal of Hyacinths)

1 ha

(c) All rental values were determined by a Professional Registered Valuer appointed in 2020/21 in terms of market related prices for each portion of land, taking into consideration the activities of the applicant and the land.

3. The contracts state what these properties may be used for, as well as the procedure for development of the property.

4. All contracts have lapsed except for the 5 mentioned in 2 (b) above. The process for considering new applicants is ongoing and the Department intends to finalize the current lease applications by end of 2023.

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