Franchising -- a partnership model for efficient water services operation and maintenance

Abstract

There is a need in South Africa for institutional innovations aimed at increasing the coverage and reliability of water services, and sustaining those services. The paper describes an alternative service delivery institutional concept, viz the franchising of the operation and maintenance of water services, and outlines the need to formulate a franchise model that could be developed and made available to emerging entrepreneurs as the basis of a viable business. The franchise would be in respect of components of the water services value chain that are suitable for small business in that they can be readily systematised.

Addressing the infrastructure maintenance gap while creating employment and transferring skills: An innovative institutional model

“…The model involves creating partnerships for skills development and job creation, based on franchising principles relating to quality control and mutual incentives (Wall & Ive, 2010).…”

“…Pilots would require significant operational and capital funding, and therefore the business case needed to be strong enough to attract participants and funding from outside the CSIR. Accordingly, a set of studies was undertaken, covering (i) the concept of franchising and its relevance to water services, (ii) a review of policy, regulation and legal aspects deemed to be possibly significant to implementation, (iii) modelling of selected water services operational elements, (iv) an institutional review, (v) criteria for the selection of potential water service franchisors, partnerships and franchisees, and finally (vi) a desktop business analysis case study of the concept applied to a sector (schools sanitation operation and maintenance was chosen) (Wall & Ive, 2010;WRC, 2010aWRC, , 2010bWRC, , 2010cWRC, , 2010d.…”