Overview of programmes and latest developments

21 AUGUST 2014

By: Lerato Mokoena

WS Infrastructure Programme

Contents

1. Latest Developments1. Government Outcomes2. SONA3. Strategic Planning (Minister’s presentation)4. NT bid 5. Capacity Plan6. Grant Review process

2. RBIG review3. MWIG review4. WSOS review5. Conclusions

1: Latest Developments;1.1 Government OutcomesActions Indicators / measures 2014 targets

41 Develop comprehensive investment programme for water-resource development, bulk-water supply and wastewater management, assessing requirements to achieve universal access, and prioritise a new dam on the Umzimvubu River

100% capacity in place by dates approved

43 Establish regional water and waste-water utilities to support municipalities

Percentage of municipalities covered by approved functional regional utilities created

100% of municipalities covered by approved functional regional utilities created by 2019

45 Urgent review of water and sanitation norms and standards together with the financial provisions to meet these

Completion of the review process of water and sanitation norms and standards; % Implementation of approved recommendations

Review report by Oct 2014; 100% implementation as per approved timelines

46Additional water supplies for Lephalale area

% completion of the Mokolo and Crocodile River (West) Augmentation Project phase 1

100% completion by December 2015

47 Establish a dedicated national programme to provide support to local and sectoral efforts to reduce water demand and improve water-use efficiency in the Agricultural sector

Support programme in place Approval by June 2015; target completion as per plan

48 Investigate and implement water re-use and desalination projects and continue with applied research.

Cabinet memorandum on research findings

Jun-15

Current: Water Resources Current: Bulk Water Regional Schemes : Programme ongoing

Municipalities

Current: Water Boards Projects: Programme ongoing

Water Boards

Outcome 6: An efficient, competitive and responsive economic infrastructure network

Sun Outcome 4: Maintenance and supply availability of our bulk water resources infrastructure ensured: dams and inter-basin transfers, bulk water and wastewater

67

Sub Outcome 6: Coordination, planning, integration and monitoring implementation of strategic integrated projects in the National Infrastructure Plan

SIP 18: Water and Sanitation InfrastructureMaster Plan

…OutcomesOutcome

Sub-Out

Actions Indicators / measures 2014 targets

7

5 Increased access to quality basic infrastructure and services, particularly in education, healthcare and public transport in rural areas

Provide access to piped water in rural areas % of rural households with access to piped water

100% of households by March 2019

9

1 Members of society have sustainable and reliable access to basic services.

Support municipalities to plan, implement, operate and maintain infrastructure projects or implement alternative delivery mechanisms where local municipalities and or districts lack technical capacity.

• Institutional support plans for municipalities developed or alternative delivery mechansims utilized

Dec-16

5 Proactively build capacity of non-profit implementing agencies and participants through skills development at site level.

• Capacity building strategy and programme developed.• Number of participants trained to enhance ability for self-help.

New institutional arrangements implemented

5 Establish 15 new sites in identified municipalities.

15 additional sites established with a minimum of 1000 participants per site.

15 000 new work opportunities by March 2015 giving a cumulative total of 187000 participants

101 Implement strategies for water conservation

and demand managementPercentage reduction of projected demand for 8 large water supply

20% by 2019

1 Water resources protection Number of sites with River Health Programme implemented

550 river sites

2 Sub-outcome 2: An effective climate change mitigation and adaptation response

2 Development and Implementation of sector adaptation strategies/plans

Number of sector adaptation strategies/plans completed

5 Sectors by 2019

1 Sub-outcome 1: Ecosystems are sustained and natural resource are used efficiently

Responsive, accountable, effective and efficient developmental local government system

PROTECT AND ENHANCE OUR ENVIRONMENTAL ASSETS AND NATURAL RESOURCES

5 Local public employment programmes expanded through the Community Work Programme.

Comprehensive Rural Development

1.2: SONA SONA requirments RBIG projects1)      Mining

a.       Motlosana noneb.      Emalahleni, 2 projectsc.       Sekhukhune, 4 projectd.      Lephalale, 1 projecte.      West Rand and (Mogale City, Merafong City, Randfontein and Westonaria) 3 projectsf.        Matjhabeng. none

2)      Clanwilliam Dam 2 projects3)      Objective is to complete new projects over the next 12 months 57 projects RBIG4)      Alfred Nzo District 3 projects5)      Lukhanji Local Municipality 1 projects6)      OR Tambo District municipality 2 projects7)      Mbashe Local Municipality ; WW and water quality 3 projects8)      Ngaka Modiri Molema 2 projects

9)      Moqhaka Local Municipality , bucket eradication1 project

10)   Bucket eradication plan 2 RBIG projects

Provided significant

budget increase

1.3: DWS Strategic Planning session (15 Aug)(Extract of Minister’s presentation)Scene Setting• This approach in the delivery of service should be

people-centred and underpinned by the notion “there is nothing about us without us.”;

• At all times communities have to be involved and consulted, not in a peripheral manner, but in a more inclusive and engaging approach, to ensure that there is a shared-vision for every development we bring.

….Minister’s presentation• Transition Plan from the Dept of Water Affairs to Dept

of Water and sanitation:– The Presidential Proclamation no. 43 of 2014 (dated 8 July

2014) paves way for the establishment of a new Department of Water and Sanitation (DWS) in support of the new ministerial portfolio;

– The Department of Water and Sanitation thus incorporates the mandates of the Department of Water Affairs and the sanitation function transferred from the Department of Human Settlements (DHS).

8

Key Areas of The Declaration of the Summit

1. Innovative Service Delivery Model

2. Water & Sanitation 10 Year Plan (2015-2025)

3. Effective use of Knowledge & Information

4. National Water Resource Strategy 3

Or National Water & Sanitation Resource Strategy 1

SERVICE DELIVERY MODEL

Introduction of Regulatory Reform

Integrated Planning and Implementation processes for both Infrastructure and Water

Resources

Effective licensing regime

National Water Services Policy

Partnerships, participation and stakeholder relations

Water Loss target regime

7% Operations and Maintenance Investment

1. Innovative Service Delivery Model

Efficient and Effective Service Delivery Model

Implemented

Evaluation of powers and functions of local/district municipalities as Water

Service Authorities

Procurement Reform

10

…Minister’s PresentationGAME CHANGERS

– Reconsideration of water ownership patterns and water use rights;

– Educate and create awareness on water conservation; preservation, innovation and security;

– Harmonise roles and responsibilities of institutions and all spheres of government.

1.4: NT Bid summary

PROG StatusR (X 1000) 2015 MTEF R ( X 1000)

2014/15 2015/16 2016/17 2017/18total 2015 MTEF

RBIGexisting R 4 654 148 R 5 313 764 R 5 726 895 R 6 070 509 R 17 111 168proposed   R 10 647 373 R 12 140 846 R 9 528 940 R 32 317 159increase   R 5 333 609 R 6 413 951 R 3 458 431 R 15 205 991

RBIG New scope, Asset Management

existing   R 0 R 0 R 0 R 0proposed   R 580 000 R 680 000 R 880 000 R 2 140 000increase   R 580 000 R 680 000 R 880 000 R 2 140 000

MWIG Schedule 5bexisting R 524 826 R 1 291 729 R 1 511 545 R 0 R 2 803 274proposed   R 1 291 729 R 1 511 545 R 1 602 238 R 4 405 512increase   R 0 R 0 R 1 602 238 R 1 602 238

MWIG Schedule 6bexisting R 534 150 R 1 380 205 R 1 302 002 R 0 R 2 682 207proposed   R 1 435 413 R 1 354 082 R 1 435 327 R 4 224 822increase   R 55 208 R 52 080 R 1 435 327 R 1 542 615

WSOS Schedule 5bexisting R 499 558 R 470 238 R 495 160 R 519 918 R 1 485 316proposed   R 470 238 R 495 160 R 519 918 R 1 485 316increase   R 0 R 0 R 0 R 0

WSOS Schedule 6bexisting R 142 013 R 151 185 R 159 199 R 0 R 310 384proposed   R 151 185 R 159 199 R 0 R 310 384increase   R 0 R 0 R 0 R 0

ACIPexisting R 246 959 R 246 959 R 246 959 R 246 959 R 740 877

proposed   R 350 000 R 350 000 R 350 000 R 1 050 000increase   R 103 041 R 103 041 R 103 041 R 309 123

TOTALexisting R 6 601 654 R 8 854 080 R 9 441 760 R 6 837 386 R 25 133 226proposed   R 14 925 938 R 16 690 832 R 14 316 422 R 45 933 193increase   R 6 071 858 R 7 249 072 R 7 479 037 R 20 799 967

Key proposalsMWIG: 1) the DWA has selected not to request for an increase in funds

for the 2015/16 & 2016/17 for project implementation until such a time that the MWIG programme is performing satisfactory and is fully utilising its current allocation.

2) The DWA is however requesting that the MWIG programme is increased to a fifth year and a budget allocation is made for the 2017/18 financial year of R 1.602 billion for schedule 5b and R 1.435 billion for schedule 6b.

3) Additional funds are requested for managing the schedule 6b programme allocations and for implementing a required training and capacity building plan.

4) The additional funds for MWIG programme management costs and for direct training and support are limited to a 4% of the total budget allocation of MWIG schedule 6b, and is calculated as R 55.2 million , for 2015/16  

Key proposalsWSOS:

1. The WSOS is coming towards its end of its life span, and therefore no additional funds are required over and above its existing 2014 MTEF allocation for the schedule 6b. The funds allocated under schedule 5b which are for the cost of seconded staff will however continue.

ACIP:

1. ACIP programme drivers:– Significant refurbishment needs of aging infrastructure.– Significant need for WC/WDM.– The increasing number of service delivery related “hot-spots”

2. The current budget of ACIP for the 2014/15 financial year is R247 million. It is proposed that as from 2015/16 the budget for ACIP is increased to R350 million p.a.

..RBIG

2015/16 2016/17 2017/18R000 R000 R000

5 313 764 5 726 895 6 070 509 17 111 168

Programme Management/ Feasibility Studies

92 109 103 293 109 490 304 892

Other projects 1 368 986 1 761 455 1 518 453 4 648 894

Flagship 666 735 803 491 643 045 2 113 271

Bulk Water 27 DM 2 669 028 2 722 342 3 589 902 8 981 272

WWT 516 906 336 314 209 619 1 062 839

Total Budget allocation committed

5 313 764 5 726 895 6 070 509 17 111 168

Net fund available (1) 0 0 0 02015/16 2016/17 2017/18R000 R000 R000

Other projects 537 598 595 766 -45 000 1 088 364

Flagship 1 146 651 622 924 0 1 769 575

Bulk Water 27 DM 1 635 855 1 997 149 593 268 4 226 272

WWT 341 297 -18 297 0 323 000

Total 3 661 401 3 197 542 548 268 7 407 211

Other projects & hot spots 319 183 517 815 380 000 1 216 998

Flagship 0 0 0 0

Bulk Water 27 DM 239 000 627 000 735 000 1 601 000

WWT 292 725 183 500 61 235 537 460

Total 850 908 1 328 315 1 176 235 3 355 458

Other projects & hot spots 404 300 664 877 1 109 928 2 179 105

Flagship 145 000 270 000 0 415 000

Bulk Water 27 DM 240 000 919 217 600 000 1 759 217

WWT 32 000 34 000 24 000 90 000

Total 821 300 1 888 094 1 733 928 4 443 322

Total Additional Requirements

5 333 609 6 413 951 3 458 431 15 205 991

Total MTEFBaseline allocation

Additional funds required

Projects currently in feasibility phase (2nd priority) or projects identified

Total MTEF

Committed Programme

Existing committed projects (projects in construction)

Projects currently in feasibility phase (1st priority)

1.5 Capacity Plan for MWIG /RBIGLetter received from NT

Overview of skills / training strategies

MINI PLAN

WATER SECTOR CAPACITY PLAN

LOCAL GOVERNMENT CAPACITY PLAN

Draft DWS Mini skills transfer capacity plan

1. Initiative A: Capacity programme to implement sustainable reticulation projects to ensure basic water services (meet the requirements of MIG /MWIG/ACIP). – Annual Workshops

2. Initiative B: Capacity programme to implement and maintain bulk infrastructure projects.- Annual Workshops

3. Initiative C: General capacity programme for planning and managing water services.- Annual Workshop

4. Initiative D: Conditions, Regulations, governance and inter- governmental co-operation.

5. Initiative E: Mentorship and skills transfer programme6. Initiative F: Institutional capacity assessment and capacity

development support

1.6 Grant Review process (DWS Proposal (draft)

Small Water Resource (dams)

Acid Mine Drainage

Regional Bulk water supply

Consolidating : part of RBIG, AMD, part of ACIP

Regional effl uent schemes

Regional WC/WDM schemes

Regional raw water supply

New scope: Regional raw water schemes,

WC/WDM

Internal BulkRefurbishment of WWTW and WTW

Water distribution

Consolidating : part of RBIG, ACIP, WSOS, MWIG,

RRU, MIG, RHIG

Water Demand Management

O & M and Asset Management

support

27 DMs (Backlogs in rural area)

New scope: O & M support, Institutional

capacity, planning

Rapid response / Hot-spots

Institutional capacity building

Planning support

(new) Municipal Water Infrastructure Grant

Regional Bulk Infrastructure Grant

Land aquisition ????

2: RBIG review• NT has complimented DWS on the

performance of RBIG• NT has complimented DWS fro being the only

Department to submit a capacity plan and on the quality of the plan

2. RBIG ; 2.1ChallengesA. Budget /cost

i. Overall programme budget insufficient (2016 MTEF Bid requests double in order to complete existing projects and implement new priority projects)

ii. A number of municipalities cannot afford the co-funding, which could create a significant risk to the programme. (not adequately budgeted)

iii. Some projects cost have escalated considerably B. Institutional capacity

(95 % of budget is on projects > R 100 million, 110 projects)i. WSA poor capacity to implement and manage projectsii. WSA often do not want Water Boardsiii. Often there is no adequate institution to operate /manage

infrastructure .iv. WSA are unsustainable due to lack of financial management

… Challenges

C. Scope of Programmei. Need to make RBIG part of holistic programme

addressing the following weaknesses:• WC/WDM• Asset Management• Financial Management• Institutional development• Planning

ii. Need to improve integration / alignment• MIG• Planning• Water Boards• Metros

…ChallengesD. Project implementation

i. Project /cost creepii. Completing initial large projects iii. Quality of procurementiv. Quality of planning

E. Sustainability /functionality after completioni. Inadequate O & Mii. Lack of institutional capacityiii. Lack of financesiv. Other commitments / projects not materialising

2.2 RBIG Recommendations

A. Budget /costi. Budget: High level discussion and assessment of DWA bid

(consequences /risks of budget constraints need to be acknowledged) ; Alternative funding streams must be considered.

ii. Co-funding: Establish an urgent inter-governmental review panel on co-funding.

iii. Project cost: DWA to review all large on-going projects and implement phases; DWA to introduce tighter controls.

….RBIG Recommendations B. Institutional capacity

i. RWU: Policy and the establishment of RWU should be acceleratedii. WSA capacity: A more dedicated/specific to WSA and integrated

capacity building programme involving all key role playersiii. IA: Escalation & political involvement in the choice of IA / WBs. iv. DWA to implement more stringent controls regarding weak WSA .v. Comprehensive guidelines on > R 100 projects developed vi. Facilitate and agree on process (through current legislation) to allow

easier intervention by National Government when WSA fail. C. Scope of Programme

i. RBIG scope: Discuss with NT a more holistic programmeii. Integration:

• DWA to develop /improve internal capacity for planning;• Improve the provincial planning committees.• Centralise the planning for the entire water supply chain

D. Project implementationi. Improve planning: governance and fundingii. Increase DWA capacity to project manage and M&Eiii. Introduce more stringent financial management controlsiv. Review scope /phasing of all large projectsv. Accelerate (budget permitting) completion of projects

E. Sustainabilityi. Propose to NT some O & M support for first 2 years ii. DWA to improve monitoring after project completioniii. Legislation ??!!! On Minimum O & M standards / liability.iv. Re-assess all IA of projects > R 100 million (60 projects)

….RBIG Recommendations

3 MWIG 3.1 Challenges

A. Project implementationi. Lack of capacity by many WSA to manage projects and Servicesii. Money transferred to WSA are not used to implement projectsiii. Resistance to the use of Water Boards by some weak WSAiv. Significant unit cost for rural water supply particularly in KZN v. Demographics: Scattered and informal settlements over vast

distances and over difficult terrainvi. Resistance/rejection to localised solutions, interim or intermediate

solutions and the use of Community based organisationsvii. Unsustainable, unaffordable operating and maintenance (O & M )

costs.viii. Inadequate planning, inadequate BP and technical reportsix. Lengthy delays due to various reasons.x. Lack of capacity / poor performance / long delays by Water Boardsxi. Schedule 5 syndrome by many WSA who tend to use the money as

they like or for other projects / initiatives besides the original BP.

…. MWIG challenges B. Programme management

i. Risk of role overs not been approved will have a significant impact on the overall budget of the programme.

ii. Limited internal capacity with DWA to deal with the many challenges and requirements of this new programme

iii. Additional priority DMs ?? 24 are now 27 DMsiv. Need for similar interventions outside the 24 DMs.(now 27 DMs)v. Lack of revenue connection /financial management (and

governance) of financial management in WSA threatens sustainability of interventions

vi. Moving target, new backlogs.vii. Overall costs are far greater than originally anticipated (MWIG budget

R 4,3 billion, revised estimate of need is greater than R20 billion.viii. Lack of integration of projects between various programmes.

3.2 MWIG Recommendationsi. Urgent escalation and engagement with Water Boards to

improve their performance.ii. Need to urgently secure funding for DWA to improve support on

planning (technical reports and BP) and programme management – bid proposes a PM fee of 4% of schedule 6b

iii. Increase / improve capacity and resources within DWA allocated to managing programmes.

iv. Escalate if necessary to political level disputes regarding IA and the involvement of Water Boards and resolve.

v. Introduce a comprehensive “term-contract” that will speed up/ improve procurement.

……MWIG Recommendations

vi. Introduce more stringent assessments of projects approved.vii. Improve DWA systems/procedures and guidelines.viii. Motivate for the expansion of the programme as from year 3 to

go beyond the 27 DMs and address all WSA with backlogs.ix. Develop and implement a capacity building programme for

specific WSA in conjunction with other key role players.x. Hold a National workshop to discuss / deliberate on interim /

intermediate and rural water supply.

ChallengesWSOS

4 WSOS4.1 WSOS Challenges

1. Ensuring compliance with the conditions of the grant and in accordance with the residual scope statement established in June 2013.

2. Under-expenditure & non-performance of certain WSAs is negatively impacting the completion of the programme.

3. Acceleration of refurbishment required in certain WSAs to ensure completion of the programme within the next two years. Capacity of the WSAs to enable such acceleration is questioned.

4. The insufficient attention to O & M by WSAs, including the adequate assignment of budget, are a serious concern to the Department and threatens the longer term sustainability of refurbishment projects.

5. Staff retained within the Department in Limpopo due to receiving WSAs not accepting the transfer of such staff.

6. > R100 million schemes not yet officially transferred to the books of receiving WSA’s, however the water services function has been transferred

Recommendations WSOS

4.2 WSOS Recommendations

1. Focused programme management (completion strategy) to ensure compliance and completion of residual scope

2. Implement alternative implementing arrangements for areas with ‘high’ residual need

3. Allocations to address and align with residual scope statements4. Finalize alternative institutional arrangements to enable transfer of

remaining staff and > R100 million schemes

5: Conclusion1. RBIG: Although there is always room for improvement

DWA is satisfied with the progress and achievements of RBIG.

2. MWIG: CD is very concerned with the slow progress and the number of challenges faced with MWIG and will be placing extra focus and resources to resolve the problems.

3. WSOS: The programme is coming to an end and DWA is developing /implementing an exit /completion strategy

…conclusion4. A number of the programme challenges require industry related

solutions involving all key role players:– Institutional arrangements / capacity– Governance and regulations– Integrated planning

5. The constraints of limited funding (RBIG) need to be addressed and / or the implication fully appreciated /acknowledged.

6. DWA’s new official role on sanitation, should have a significant impact on its infrastructure support programmes.

7. The following critical issues will require high level involvement from all key stakeholders to resolve:

– Lack of co-funding by WSA– Ownership / management and transfer of infrastructure for

projects > R 100 million (more than 65 projects)– Performance of Water Boards– Inadequate integrated planning