Water Services Bulk Infrastructure Programme January 2008.

Water Services Bulk Infrastructure Programme

January 2008

Introduction

• Infrastructure required to connect water resources over vast distances with internal bulk and reticulation systems

• Vast = Macro/Regional scale.

Policies / Conditions

• Policies and conditions will be revised under the following categories– Criteria for project proposals– Criteria for project approval– Conditions for funding– Project Management processes

• Accounting process & responsibility• Project implementation• Monitoring

– Sustainability conditions– Process to reallocate funds– Consequences for Failure to comply with agreements.

Other Policy documents • Water resource development• Regional bulk infrastructure• Internal bulk infrastructure• Bucket eradication programme• Other program alignment• Asset management • Financial, social, economic, environmental &

institutional issues• Master bulk infrastructure framework

• Costing & funding requirements.

Special DoRA conditions• DWAF must ensure appropriate involvement• Role players must understand implications• Agreement prior to implementation to be reached on:

– Ownership– Implementation– Operation & Maintenance– Social & Economic component funding

(Viability, Funding availability, Borrowing capacity, Etc.)

Funding • Allocation:

– 07/08 … R300 million– 08/09 … R450 million– 09/10 … R650 million

• NB: Fund small compared to MIG:– 8.6% of annual MIG…relative small impact

• Fund transferred to DWAF as schedule 7 grant (Grant in kind)

• Grant split:– R7m/a for regional management– R39-50m/a for planning & feasibility studies– Remainder for implementation.

Purpose

• Distinguish between direct service delivery of • reticulation schemes that MIG is targeting• Water availability & scarcity (Link Water Resource

Strategy and planning)• Benefit of scale• Integrated management (multi users)• Institutional aspects & arrangement (ownership,

implementation, O&M)• Socio-Economic development• Financial issues (Viability & funding)• Implementation options• Sustainable management (water resources, O & M)

3. 3. Development Development

and revision of and revision of policypolicy

8. Approval of 8. Approval of Feasibility Feasibility studies for studies for

future projefuture projects cts

6. Monitoring of 6. Monitoring of implementation implementation

of projects of projects approvedapproved

Overview of programme functions

2. Programme Management2. Programme Management

1. Programme Governance1. Programme Governance

9.9. Business Business case for case for

internal bulkinternal bulk

7. Strategic 7. Strategic support of support of projectsprojects

4.Evaluation 4.Evaluation process of process of

project project proposals proposals

5.Project 5.Project approval approval

agreements agreements

Milestones to Date• Feb’07 - Programme Initiation Policy• Mar’07 - Announcement• Apr’07- DoRA Draft• May’07 - List of Projects submitted• Jun’07- Review of Project Lists• Jul’07 - Revised Project Lists submitted• Sep’07 - DoRA gazetted• Oct’07- Implementation commenced

Project Management StructureProgramme Manager

(Sibusiso Mthembu)

National Coordinator(George Constantinides)

(Supported by D vd Boon)

Regional Coordinator(DWAF Northern Cape)

Regional Coordinator(DWAF Gauteng)

Specialist SupportContract/ Legal (RW)

Finance (Magalies)M&E (DWAF)

Institutional (DWAF)

Regional Coordinator(DWAF Mpumalanga)

Regional Coordinator(DWAF Eastern Cape)

Implementing AgentWaterboards

PSPsDWAF

Municipalities


PSPsDWAF

Municipalities


PSPsDWAF

Municipalities


PSPsDWAF

Municipalities

LinkagesDWAF Regions

NTDPLG

SALGA

Include 9 Provinces

Project approval / agreements

• Letters informing benefiting Municipalities – NB: grant-in-kind; not default transfer

• Project profiles• DoRA compliance: formal agreements on

– Ownership– Implementation arrangements– Operations & maintenance– Financial management (financing & cost recovery)– Effective water use– Asset management – (Expert team support – format, agreements, authorization?)

Monitoring of implementation

Monitoring of projects /programme:• Implementation action plan with monthly deliverables

& cash flow• Implementation arrangements• Oversight• Monthly reporting per region (certification payments

and BAS)

Reporting of programme• DWAF management, Cash flows, status report• NT, DoRA financial expenditure report (as from Jan 08)• NT, Information / reporting system IRM ?

Strategic Support• Identify projects, nomination & prioritization• Developing Project proposals• Populating the Information system (to be developed)• Monitoring & reporting• Expenditure forecasts• Reallocation of budgets

Feasibility studies• Regional coordination• Guidelines, checklist and tools• Water services planning mentoring

(training, modular development)• Provincial planning task team• NB: Comprehensive plan

– Total services– Water resources– Appropriate solutions (Technical)– Institutional– Financial– Impact & outcome– Validation & Adjudication

• Expert teams• Other programs alignment (Housing, MIG, etc).

Business case for Internal Bulk• Municipalities highlighted the need

• Recognized that there is gap between Regional Bulk and reticulation.

• Motivation for internal bulk is similar to that of regional bulk, (I.e should not be through MIG because it does not supply directly to consumers. )

• Currently collecting information on potential projects

• Business case to be completed by end March 2008

KWAZULU NATAL

• Budget Allocation 2007/08

• Infrastructure Implementation R 69.0 million

• Implementation Readiness R 4.0 million

• Management Support R 0.25 million

• Project Status

• 5 Infrastructure projects all in implementation phase

• 7 Implementation readiness projects, Municipalities already started with development of feasibilities

• R 25.9 mill certified for payment by end December (35%)

• R 22.2 million paid through BAS by end December (30%)

• Progress satisfactory and budget will be spend by end March 2008

PROGRESS TODATE

NORTH WEST





• Project Status

• 1 Infrastructure project in implementation phase

Forms part of R 146 million project currently implemented

• 4 Implementation readiness projects, PSP’s appointed for 3 projects

• Progress satisfactory, R 20 million (86%) already transferred (R 13.0 million actual expenditure)

NORTHERN CAPE





• Project Status

• 1 Infrastructure project

• Phase 1 contractor on site November 2007

• Phase 2 contractor on site January 2008

• 4 Implementation readiness projects PSP appointed

R 3.9 million certified for payment by end December (51%)

• R 3.6 million paid through BAS by end December (47%)

• Progress satisfactory and budget will be spend

WESTERN CAPE





• Project Status

• 0 Infrastructure projects

• 3 Implementation readiness projects PSP appointed November 2007

• Only implementation readiness projects, funds will be spend by March 2008

LIMPOPO





• Project Status


• 9 Implementation readiness projects PSP to appointed

• Programme started slow, general progress average, needs close monitoring and budget will be spend by end March 2008

EASTERN CAPE





• Project Status


• 16 Implementation readiness project, Municipalities started with development of feasibilities

• R 4.7 mill certified for payment end December (12%)

• R 22.9 mill of work completed and to be submitted (57%)

• Program started slow, general progress satisfactory and budget will be spend by end March 2008

GAUTENG





• Project Status


• 1 Implementation readiness project PSP appointed

• Progress satisfactory, R 1.1 million spent on feasibility (63%), budget will be spend by end March 2008

FREE STATE





• Project Status


• Discussion with Ninham Shand, Jagersfontein project. Intervention in place. R 16 mill will be spend.

• Discussion with Ngwathe Municipality. Intervention in place and R 4.8 mill will be spend.

• 3 Implementation readiness projects PSP appointed in November 2007

• Progress average, funds will be spend by end March 2008, needs close monitoring

MPUMALANGA





• Project Status


• Kabokweni project funded by MIG and R 6 mil reallocated to Mbombela Stadium project.

• Management funds (R 3.3 mil) reallocated to Delmas project.

(Reallocation funds from other projects to Delmas)

• 2 Implementation readiness projects PSP appointed

• R 12.2 mill of work completed and to be submitted (34%)

• Progress slow, needs support and close monitoring

Total spend to date /Projections• R49,8 BAS (Basic Accounting System), end

Dec 2008

• Projection R 126 end Jan 2008

• Projection R 207 end Feb 2008

• Projection R 300 end Mar 2008

Key Challenges-Regional level

• Municipalities slow in procuring PSP’s for feasibility study development

• Required agreements not yet in place• Slow submission of invoices on work

completed• Inadequate capacity for adequate project

management• Ownership of project and O & M for

infrastructure that is shared between local authorities.

Key Challenges- National level• Delay in the start of implementation

threatening the ability to utilize the budget • Limited budget • Inability to take firm action against

municipalities that are not performing• Sustainability of programme – Will it continue

after 3 years ?• Inter Departmental politics between DPLG,

DWAF and NT• Multiple reporting interface with National

Treasury

Conclusions• Programme structure is now well established• Implementation of projects could only start after

Sep 2007 due to the planning process • Allocation of funds for the first 3 years is almost

complete• Implementation of projects in current financial year

will meet targets /goals in all provinces • R30 million may need to be re-allocated • Reporting processes to NT are currently been urgently

addressed.

THANKS

Water Services Bulk Infrastructure Programme January 2008.

Documents

programme management

project approval conditions

dwaf institutional d

special dora conditions

monitoring of implementation

regional management

project approval agreements

project proposals criteria