Water Sector response to ASGISA IMC Department of Water Affairs and Forestry June 2008.

Water Sector response to ASGISA IMC

Department of Water Affairs and Forestry

June 2008

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Content

• Background• Drinking water quality• Water services infrastructure• Water resources infrastructure• Compliance and enforcement of the NWA• Regulation and compliance in water services• Raw water quality• Water conservation and demand management• Skills crisis• Conclusion

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Background• 9th May: DWAF presentation to ASGISA IMC• DWAF to report back on various issues raised by the IMC • Key issues raised by IMC relate to:

– Water infrastructure and universal access, including water for electricity generation– Compliance and enforcement– Water quality (raw water and drinking water)– Water conservation and demand management and – Skills and human resources

• “A Response to the Immediate Challenges facing the Water Sector” – Provides response to issues raised by IMC– Deals with issues that require immediate intervention in water services sector and water resources

sector• Request came while DWAF was drafting a Strategic Framework on Water for

Sustainable Growth and Development – Will follow this Response to the Immediate Challenges facing the Water Sector– Will outline strategic response of sector to ensuring water supports growth and development– Will deal with issues in Immediate Challenges document and other longer term issues and

opportunities– Will be available for comment in October 2008 and presented at Cabinet Lekgotla in January 2009.

• In parallel, work will begin on revising the National Water Resources Strategy (NWRS)

– Provides framework for protection, use, development, conservation, management and control of water resources

– NWRS must be revised and completed by January 2010.

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Drinking water quality

• Challenge:• Under-budgeted and under-resourced function in

many municipalities• Poor water quality impacts on people’s lives,

particularly those with compromised immune systems

• Monitoring and reporting improving but still inadequate

• Many rural water schemes and small schemes not monitored at all

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Drinking water quality• Response: • DWAF and DPLG to investigate options and processes for placing water

services functions under administration – where a Water Services Authority is unable to perform these functions effectively – particularly where human lives are put at risk due to non-performance and – where a quick response is needed.

• Regulation of water services includes regulation of drinking water quality – action will be taken against Water Services Authorities where it does not meet

standards. • Where appropriate, Water Boards to

– assist in monitoring drinking water quality – assist DWAF to audit the results submitted by municipalities on drinking water

quality, or – Act as WSP on behalf of a WSA.

• DWAF will put in place an urgent programme to build capacity in regional offices to support municipalities in drinking water quality management.

• DWAF and National Treasury to further investigate ways to incentivise good municipal asset management and sufficient budgeting for drinking water quality management and monitoring.

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Water services infrastructure

• Challenge• Aging, poorly maintained infrastructure leading to

increased failures• Lack of investment in maintenance and refurbishment• Poorly managed waste water and sewage infrastructure

leading to high pollution levels, sewage spills• Many VIPs now full leaving households without

functioning toilets• Bulk infrastructure not sufficient for increased demand

(sanitation and water)• FBW not sufficient for AIDS affected and vulnerable

households

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Water services infrastructure

• Response • DWAF and NT to investigate funding for bulk water

services infrastructure and refurbishment of water services infrastructure to catch up on backlog of O&M and refurbishment. – total additional requirement is estimated at around R3.7-billion

per year• DWAF to investigate, with DPLG and NT, measures /

incentives to ensure that – O&M is planned and budgeted for in all new and existing

services, and – WSPs commit a minimum percentage of value of infrastructure

to annual O&M• DWAF, DPLG and NT to review funding arrangements

for free basic services through Equitable Share, including feasibility of ring-fencing part of Equitable Share to support sustainable water services.

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Water services infrastructure

• Response cont:• DWAF to establish task team to review current approaches to basic

sanitation improvement, including – advisability of providing further funding to permanent VIP structures; – MIG conditionalities to ensure bulk infrastructure is sufficient for new

networked sanitation services. • DWAF, with SALGA, to

– develop strategy for dealing with full VIPs and – review appropriate technology for communities previously served with

VIPs. • DWAF to finalise and implement the National Infrastructure Asset

Management Strategy• DWAF, with SALGA, to review quantity of water allocated under

Free Basic Water (FBW) and the mechanisms for providing/funding FBW, including to HIV and AIDS affected households and other vulnerable groups.

• DWAF to finalise Free Basic Sanitation Strategy and submit to Cabinet

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Water resources infrastructure

• Challenge• Asset management systems need

upgrading• Decisions to be made on augmentation

options for major cities where demand is high relative to supply (Cape Town, Gauteng, Port Elizabeth)

• New infrastructure needed urgently to serve Eskom and SASOL

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Water resources infrastructure

• Response – Establishment of National Water Resources Infrastructure

Agency (NWRIA) to be fast-tracked to • support the provision of sustainable and reliable infrastructure to

strategic water users eg Eskom and Sasol, and • support economic growth and development across the country.

– DWAF to complete National Water Resources Infrastructure Action Plan with regard to infrastructure that serves Eskom by end June 2008.

– DWAF to complete and implement the review of Government Water Scheme operation and maintenance systems and procedures

– Decision on new infrastructure to augment water supply to Gauteng to be taken in 2009

– Further feasibility studies to be completed before a decision can be made for Cape Town’s augmentation needs.

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Compliance and enforcement under the National Water Act

• Challenge:

• High levels of unlawful water abstraction in some areas, particularly the Vaal

• Unlawful effluent discharge leading to high levels of pollution

• Illegal dam construction

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Compliance and enforcement under the National Water Act

• Response • DWAF to ensure sufficient funding for development of a

strong Compliance, Monitoring and Enforcement function to – Prevent and control unlawful raw water use and pollution– Take action against around 300 illegal water users in the Vaal

• illegal water use = around 290 million m3 per annum= approx 8.5 million households using 100 litres per day = almost entire yield of Mohale dam in Lesotho Highlands Water Project.

• DWAF to discuss with National Treasury and Asset Forfeiture Unit possibility of retaining assets seized during action against illegal water users.

• National Environmental Management Act to be amended to give powers to appoint DWAF officials as Environmental Management Inspectors so that they are empowered to take compliance action under both NEMA and the National Water Act.

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Regulation and compliance in water services

• Challenge:

• Poor regulation of WSAs and WSPs resulting in– Drinking water quality problems– Interruptions in supply– Low maintenance levels– Failing waste water treatment infrastructure

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Regulation and compliance in water services

• Response• DWAF to determine appropriate institutional

arrangements for water services regulation, including – institutional arrangements for national regulator – revision of Water Services Authority (WSA) and Water

Services Provider (WSP) functions to take into account de facto lack of separation of functions between the two.

• DWAF to strengthen drinking water quality regulation by end of September 2008 through strengthening of current capacity.

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Raw Water Quality

• Challenge:

• Poor maintenance and operation of WWTW leading to high levels of pollution

• Pollution from industry, mines and agriculture

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Raw Water Quality

• Response• Phased implementation of Waste Discharge Charge

System to begin in Upper Olifants, Upper Vaal and Crocodile Marico water management areas in 2009.

• Directives to be issued by Minister – to municipalities to rehabilitate Waste Water Treatment Works

where severe problems have been identified– during Enforcement Week in October 2008– action to be taken against municipalities that do not comply with

directives

• Infrastructure Asset Management plans to be developed for all waste water treatment works and other municipal water services infrastructure.

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Water conservation and demand management

• Challenge:

• High levels of water wastage in water services and agriculture in particular;

• Results in – High costs for municipalities– Early need for augmentation of supply

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Water conservation and demand management

• Response • DWAF, through MTEF, DBSA, Land Bank and

Commercial Banks, to establish effective mechanisms for funding Water Conservation and Water Demand Management (WC/WDM)

• DWAF, with other stakeholders, including SALGA, municipalities, and SAAWU to – develop national programme for WC/WDM in key metropolitan

and agricultural areas, – investigate options for funding and resourcing this programme

including finding sufficient technical skills to support the programme.

• Regulations for WC/WDM to be completed by December 2008.

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Response to the skills crisis in the water sector

• Challenge:

• Shortage of technical skills in water sector– engineering– finance– technical and artisan

• Continuing drain of skills from the sector • Large number of institutions in the water sector requiring

skilled staff

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Civil engineering capacity in the municipal sector

DPLG 2008

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Civil Engineering Staff in Local Government in 2005

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Response to the skills crisis in the water sector

• Response• Review of designation of municipalities as WSPs and potential for creating

regional WSPs to be conducted, with focus on areas of poor water services provision.

• Review of MFMA to be discussed with DPLG and National Treasury re bringing in greater private sector capacity for management and delivery of services.

• DWAF to discuss with DPLG and relevant departments on legislative requirements for national government to intervene in water services functions in municipalities that are unable to provide an effective service.

• DWAF to continue to drive development and implementation of a comprehensive sector skills response strategy (Vision for Capacity Building and Training 2025)

• DPSA to speed up review of salaries and conditions of service for engineers, technicians and scarce occupational classes in water sector.

• DWAF to examine how to bring private sector expertise back into the Department and how to build capacity in a dedicated fashion.

• DWAF to investigate absorption of people with theoretical training as Process Controllers into municipalities for internships and hands on training

• DWAF, with DBSA and other partners, to build on current programme of placing engineers in municipalities, and to increase deployment.

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Conclusion• Government must recognize crucial role of water supply and

sanitation in achieving ASGISA goals • Concerted action is needed from all spheres of government to avoid

potential failure in water sector • Government must invest significantly in water sector to avoid

potential water crises and to ensure water management supports ASGISA growth targets

• Current investment in water sector across all spheres of government is below what it should be– Current investment is around 1.2% of GDP– Benchmark level for water resources and water services investment in a

country of the economic status of South Africa should be around 2-3%. • Some of this investment must be found through improved revenue

management• There is need for substantial injection of fund from fiscus for next

decade at least– must be carefully targeted and monitored – conditions attached to ensure that it does not create perverse

incentives but sets up virtuous cycle of good asset management.

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Thank you