Overstrand 2030: Planning for Growth is Whale Coast Report’s ongoing series examining how population growth, infrastructure investment and development are shaping the future of the Overstrand. Through official documents, analysis and public records, the series explores whether the municipality is prepared for the challenges of the next decade.
As Greater Hermanus continues to grow, the Overstrand Municipality is moving ahead with plans for what would be the town’s first seawater desalination plant.
The project is still in the planning phase and several regulatory hurdles remain before construction can begin. However, municipal planning documents reviewed by Whale Coast Report provide a rather detailed picture of what is being proposed, why it is needed, how much it could cost and when residents could expect it to become operational.
How big will the plant be?
The proposed first phase would produce 3 megalitres (three million litres) of drinking water a day. Municipal planning documents estimate the capital cost of the first phase at approximately R113.6 million, excluding VAT.
The desalination plant is envisaged as a phased project. A second phase of similar capacity is estimated to cost a further R113.6 million, while a third phase, producing an additional 4 megalitres a day, is estimated at R151.5 million. If all three phases are eventually implemented, the total capital investment would amount to almost R379 million, excluding VAT.
What will it cost to operate?
Building the plant is only part of the financial picture. Municipal planning documents estimate the cost of producing desalinated water at approximately R16.10 per cubic metre, excluding any charges that may be payable should the municipality make use of Abagold’s existing seawater intake and brine discharge infrastructure.
For comparison, the municipality’s 2024/25 Water Distribution Losses Report puts the average production cost of water from its existing sources at R0.45 per cubic metre for conventional water treatment works, R1.21 per cubic metre for biofiltration plants and R11.14 per cubic metre for the Gateway Well Field.
While the figures relate to different treatment processes and may not be directly comparable in every respect, they indicate that desalinated water is likely to become one of the municipality’s more expensive sources of potable water. The long-term operating costs of the plant will therefore be just as important as the initial construction cost.
How will it be funded?
While provision has been made in the municipality’s 2026/27 Medium-Term Revenue and Expenditure Framework (MTREF) for the project to proceed with detailed planning, municipal planning documents acknowledge that funding for construction of the first phase still needs to be secured within the next two to three years.
The documents also indicate that the municipality is considering a 20-year operating contract for the facility. Although the final procurement model has not yet been made public, the proposed contract suggests that private sector participation could form an important part of funding, delivering and operating the desalination plant over the longer term.
Where will the plant be built?
Municipal planning documents identify the Hermanus New Harbour as the preferred location. The municipality has applied to the Department of Public Works for a long-term lease of the site and has also sought permission to demolish existing structures before construction can begin.
When could it become operational?
The project is still several years away from becoming a reality. According to the municipality’s Demand Management Plan, the current procurement programme envisages:
Tender advertisement: May 2027
Bid adjudication: October 2027
Contract commencement: January 2028
The Water Services Development Plan identifies the first phase of the desalination scheme as a short- to medium-term priority, with implementation envisaged within the next three to five years. These timelines remain subject to regulatory approvals, procurement processes and funding being secured.
What approvals are still needed?
Before construction can begin, the project will still require several key approvals, including:
Environmental authorisation.
An amendment to the existing Coastal Water Discharge Permit for brine disposal.
A long-term lease agreement with the Department of Public Works.
Completion of the procurement process.
Securing construction funding.
What we still don’t know
While the municipality’s planning documents provide valuable insight into the proposed desalination scheme, several important questions remain unanswered.
Among them are how the construction of the first phase will ultimately be funded, who will build and operate the plant, whether the estimated operating cost of R16.10 per cubic metre remains current, and what impact desalinated water could have on future municipal water tariffs.
These are questions that are likely to become clearer as the project moves from planning to implementation.
Note: This article is based on information contained in publicly available Overstrand Municipality planning documents, including the Water Services Development Plan, Integrated Development Plan (IDP), Medium-Term Revenue and Expenditure Framework (MTREF), Demand Management Plan, Water Distribution Losses Report and related technical reports reviewed by Whale Coast Report. The proposed desalination plant remains in the planning phase and details such as costs, timelines, procurement arrangements and implementation may change as the project progresses through regulatory approvals and funding processes. Whale Coast Report will continue monitoring the project and report on significant developments
What do you think?
Comments
i still suggest, together with many others, that we need to urgently halt further development and build untill such time as we have a concrete, sensible and pragmatic plan to upgrade issues like housing backlogs, dignity for those that already live in our region and a workable plan for continuous urbanisation that will take place...
at the rate we are going, HERMANUS for one and the Ovestrand as a whole, will become exclusively a rich persons bolt hole.
We are compelled to accept, that we have finite resources and cannot continue to look for augmentation of same - all actions have consequences and i say again, look at the flooding and destruction in the H and A valley, unquestionably due to human interference.
It is also my view, amongst others', that continuous extraction of ground water is unhealthy in the long term, no matter what the telemetrics say about carefull monitoring - this is not an exact science.
The obvious question to ask about desalination plans, just for starters, is the lack of consistent power supply but i also suggest we need to do other work mentioned above before we even think of desalination.
Urbanisation is a reality and "development" inevitable but, an enormous but, it needs to be guided under strict parameters underwritten by the reality of finite resources.
Equitable dignified living conditions for all already here and innovative planning for those that wish to and will still come.
As south africans, we "skrik vir niks" and are known to be "hold my beer" sort of fellows when it comes to challenges - there is therefore no reason for us, as a region with plenty talent money and experience amongst the residents, to rise to the challenges presented and be an example to the rest of our country. Our current realities are not sustainable, its that simple...