1 Delivery Mechanisms and Scoping Joint Response Team - DWAF, SALGA, NT and dplg Using Section 78.

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Delivery Mechanisms Delivery Mechanisms and Scopingand Scoping

Joint Response Team - DWAF, SALGA, NT Joint Response Team - DWAF, SALGA, NT and dplgand dplg

Using Section 78

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Purpose of this presentationPurpose of this presentation

The purpose of this presentation is to:

Provide a broad overview of what delivery mechanisms is all about

Highlight the importance of assessing different options to find the right delivery mechanism

Emphasise the need for macro scoping before starting the S78 process

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Before starting with delivery mechanisms – let’s start with water

services What makes water services so challenging?

Water is politically and emotionally highly charged

People have strong values and opions linked to water because of its relations to life and livelihood

Sanitation is highly personal – linked to dignity

Water is a resource – subject to resource constraints

Technical constraints may limit operational efficiencies

Water services requires multi dimensional capacity

Water has a social and an economic value

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What is delivery mechanisms all about?

Every municipality faces challenges related to: Improving efficiency and effectiveness Ensuring access through expanding infrastructure Reducing costs Providing free basic services and ensuring

financial sustainability Addressing problems related to remote rural areas

Delivery mechanisms is about solving service delivery challenges and problems

It is about finding the best mechanism to address specific challenges and problems

It is about improving the delivery of services

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A Municipality must know its service delivery challenges

before starting any process to decide delivery mechanisms

What targets must be met?

What are the challenges we

face?

What service improvements must be made?

What investment is needed?

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Finding the right delivery mechanism means investigating

options The success of a delivery mechanism

depends on how well it fits the local context within which it has to deliver services

A delivery mechanism has to be carefully designed so that it:

addresses existing and future services delivery challenges

meets the needs of local circumstances, and

brings the right capacity to deliver the services

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What is a Section 78 Assessment?What is a Section 78 Assessment?

A Section 78 assessment is a process required by the Municipal Systems Act to assess potential service delivery mechanisms for the provision of a municipal service

Section 78 assessments are only required when certain legislated circumstances occur. This legislative circumstances are referred to as “triggers”

It is a strategic decision-making process which takes place BEFORE implementing the chosen service delivery mechanism

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S78 helps us to assess different options and motivate the right

option

Internal?

External Option 1?

External Option 3?

External Option 2?

Combination of options

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What is the ideal we are trying to achieve for water supply?

The WSP supplies water to the consumer for household use

6 000 litres are provided as free basic water Subsidies built into the tariff are delivered successfully The size of the bill above FBW is related to consumption

patters of the household Bills are delivered to each household and paid by each

household (for higher levels of service) Water is available 24 hours a day with no service

interruptions (so that the consumer does not have to store the water)

The water is of a high quality (meets quality standards – so that the consumer does not have to treat the water)

The standard of service improves over time sustainably

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How do we achieve our ideal, or close to our ideal, in our municipal area?

What are the challenges of our area?

What problems do we need to address?

What special conditions does our WSP need to address to provide sustainable, affordable, efficient and effective water services?

Sustainable water services provision?

What is the most appropriate WSP for this area?Is more than one WSP needed?

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Before you start assessing mechanims you need to know:

The area where the services will be provided

The needs that the mechanism should be designed to address

The different service delivery mechanisms (options)

??

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Are you assessing a service delivery mechanism for the whole municipality area?

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Or are you assessing a service delivery mechanism for part of the municipality

area?

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It may even be necessary to look at a cross boundary service delivery mechanism.

The Institutional Reform process may be relevant for some WSAs in this regard.

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The need for MACRO Scoping These questions about the geographical area for the section 78 assessment form part of a

MACRO SCOPING exercise

Before a municipality can start its section 78 process it needs to address the big (MACRO) questions

Macro Scoping also assists the municipality to prepare the Terms of Reference (ToR) for the section 78 assessment

In fact, the macro level strategic decisions must be taken before preparing the ToR in order to provide parameters for a Section 78 Assessment

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These issues are requirements of Section 11 of the WSA with states: “In ensuring access to water services, a WSA must take into account..:

Macro Scoping must look at: Alternative ways of

providing access to water services

The need to achieve benefit of scale

The requirements of equity

The need for regional efficiency

The need for lower costs

The availability of resources from neighboring WSAs

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Cross boundary infrastructure provides opportunities to look at multi-jurisdictional water services provider arrangements

Macro Scoping: Cross boundary infrastructure

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If the water resources are outside the muncipality’s boundary, arrangements to access water from schemes in neighbouring municipalities may be an option. This impacts on options for service delivery mechanisms.

Macro Scoping: Water Resources

No water resource

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Macro Scoping: Regional Efficiencies

Regional efficiencies may be achieved through delivery options for more than one municipal area – especially where there are existing WSPs with capacity to serve large areas.

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Macro scoping: More than one delivery mechanism

It may be necessary to have more than one delivery mechanism in the municipal area. For example where there are remote rural areas, difficult topology, and where there are different service delivery needs / challenges

Mo

un

tain

rang

e

Remote rural area

Shared infrastructure

Existing regional institutional capacity

Remote rural areas

Dense urban and peri-urban area

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You need to know your area!

Financial issuesWater resource issues HR issues

Infrastructure issues

Capacity issues

Legal issues

Operation and maintenance issues

Consumer issues

Levels of service

Backlogs

Economies of scale

Institutional issues

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From Macro Scoping to a Terms of Reference

Information from the IDP and WSDP will assist in gaining the macro picture

Once the municipality has a high level picture (helicopter view) of the infrastructure, water resource, financial and institutional issues it can prepare the Terms of Reference for the section 78 assessment

Macro Scoping

Terms of Reference Section 78

Assessment

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Status Quo and Needs Analysis Report

Status Quo and Needs Analysis Report

Terms of ReferenceTerms of

Reference Status Quo and Needs Analysis

Macro Scoping

Internal Assessmen

t section 78(1)

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2 3

4Implement Internal Mechanism

S78 Process

External Assessment and Feasibility Study

section 78 (3)5

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Implement External

Mechanism

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T R I G G E R S

S78 (4) decision

S78 (2) decision

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Modules to Follow

Module 2: Internal Delivery Mechanisms Module 3: External Delivery Mechanisms Module 4: Decision making process

THANK YOU