Asset Impairment and Asset Verification Services

Lepelle Northern Water (LNW), a Schedule 3B public entity established under the Water Services Act, 1997, is seeking a suitably qualified service provider to assess the impairment, useful lives and residual values of its infrastructure and movable assets. The contract covers a 36-month period and includes physical count and asset verification, condition assessments, and the establishment of GRAP-compliant asset registers across each asset portfolio. The baseline asset register reflects a Property, Plant and Equipment carrying value of approximately R3.58 billion, comprising categories such as land, buildings, waterworks, machinery and equipment, telemetry, vehicles, computer hardware and assets under construction, along with intangible assets of around R781,576 (servitudes and software).

The scope of work is extensive and includes valuing unrecorded and donated assets, reviewing the existing PPE register and approved methodologies, reconciling the asset register to the general ledger, and performing desktop assessments to identify impairment indicators and possible duplicate assets. The provider must also load all infrastructure assets into LNW's GIS for spatial verification, unbundle completed capital projects, provide traceable audit packs for every adjustment, deliver in-house audit support with responses within three working days, and implement a skills-transfer plan. Annual Verification Reports are due by 15 July and final GRAP-compliant asset registers by 31 July each year, with an annual close-out report, fortnightly and monthly progress reports, and quarterly performance reports. Data must be handed over in open GIS formats at contract end, including post-contract transition support. Key mandatory requirements include CSD registration, valid tax compliance status, a valid asset verification software licence registered in the bidder's name, and certified director identity documents. Bidders must also meet a minimum functionality score of 80 out of 100, assessed on relevant reference letters for GRAP asset register work for a Water Services Authority or Water Board, financial capacity, off-road vehicle access, key staff qualifications and experience (CA(SA) project manager, three BCom project accountants, ECSA-registered engineering specialist, and SACPVP-registered property valuer), and the implementation plan. Evaluation then follows the 80/20 preference point system, with 20 points available for specific goals (SMME, black women, black ownership and black youth ownership). A compulsory briefing is scheduled for 23 November 2026 at 14:00 at Ebenezer Water Treatment Works, and the closing date is 7 December 2026 at 11:00.

This opportunity offers a multi-year engagement with a major public water entity and provides strong value for firms with specialised expertise in public-sector asset management, GRAP compliance, and municipal or water-sector accounting. Successful delivery would support accurate financial reporting, improved asset governance, and better infrastructure planning for LNW. Bidders should note that all prices must be all-inclusive, covering personnel, travel, equipment, software and other costs, with no additional disbursements payable. Joint ventures are permitted but require a signed JV agreement specifying the lead partner and percentage split totalling 100%, and each partner must submit its own CSD and tax compliance documentation. Subcontracting requires prior written approval from LNW.