11

VISIONVISIONA leading Municipality of excellence that empowers the community to prosper A leading Municipality of excellence that empowers the community to prosper

through service deliverythrough service delivery

MISSIONMISSION

To enhance the quality of life of all people in the Nkomazi Local Municipality through a To enhance the quality of life of all people in the Nkomazi Local Municipality through a sustainable developmental system of local Government and rendering of efficient, sustainable developmental system of local Government and rendering of efficient, effective and affordable serviceseffective and affordable services

22

Nkomazi Local MunicipalityWATER SERVICES

DEVELOPMENT

33

WATER SERVICES GOALSThe Nkomazi WSA is committed to eradicating water and sanitation backlogs and the progressive improvement of levels of services. The water services sub-goals provide an indication of how the WSA intends to give effect to its constitutional obligation of ensuring the right of everyone within its jurisdiction to access to water and sanitation services. The Nkomazi WSA will further ensure that the achievement of these goals will be undertaken in a sustainable manner, within the resources available to the WSA.

Sub-goals

Provision of water servicesProvide all households with access to at least minimum safe water services by 2010All indigent households will receive the first 6 kilolitres per month of water free of any charge.

Provision of basic sanitation services

Provide all households with basic VIP sanitation or waterborne sanitation by 2015

Higher levels of water services Provide all households with at least a yard tap by 2010

Higher levels of sanitation services Full waterborne sewage to all residents by 2030 (50%)Maintaining current levels of service in developed areas

Provide and maintain reliability of supply in all established areas.

44

INTEGRATED WATER RESOURCE MANAGEMENT SUB-GOALS

Sub-goals

Water resource protection

Promote integrated catchment planning and managementDevelop an approach to the management of storm water run-off which integrates environmental and engineering considerations, including adequate provision for on-site attenuation and open space drainage areas, and action plans for the restoration of natural storm water systemsEnforce responsible land use and development practices alongside water coursesReduce pollution of the water resourcesManage all wastewater systems effectively (80% of sewage bursts to be restored within 48 hours)Maintain waste water effluent quality above national standards

Water Conservation and Water Demand Management

Manage all water supply systems effectively (90% of mainline water bursts to be restored within 48 hours)Promote affordable tariffs while reflecting the social and economic value of waterManage water demand to ensure the long-term sustainability of the water resources, and the efficient utilization of existing and future water supply infrastructure• Reduce unaccounted-for-water to 20% by 2011.

55

WATER SERVICES INSTITUTIONAL ARRANGEMENTS SUB-GOALS

Sub-goals

Water services authority (WSA) overall capacity and institutional arrangements

Ensure effective, efficient, affordable, economical and sustainable access to water services that promotes sustainable livelihoods and economic development.Effectively regulate water services provision Ensure that water services are provided in an effective, efficient manner, striving to meet and exceed recognized best practice benchmarks.Ensure that water services are provided in a customer orientated approach that meets the needs of the consumers

66

PHYSICAL & SOCIO-ECONOMIC PROFILEREGIONAL SETTING

The Nkomazi Local Municipality is the authorized as the Water Services Authority for the Nkomazi Area, effective 1 July 2003

The Nkomazi Local Municipality (MP324) forms part of the Ehlanzeni District Municipality. It forms the eastern section of the Lowveld area of Mpumalanga and consists of a wedge of land between the Kruger National Park (north), Mozambique (east), Swaziland (south) and Mbombela and Umjindi Municipalities (west).

77

Farmland2%

Scattered0% Dense

0%

Urban14%

Village84%The Nkomazi population increases at an average rate of 5.5% per year.

    Urban Dense Village Scattered

Farmland Total

1 Total Population 68 913 0 415 466 120 10 634 495 1332 No. of household consumer units 13 946 0 69 513 20 1 772 85 252

3 No. of dry industrial consumer units 0 0 0 0 0 0

4 No. of wet industrial consumer units 0 0 0 0 0 0

5 No. of commercial consumer units 281 0 0 0 0 281

6 No. other (non-residential) 158 0 0 0 0 1587 Total consumer units 14 385 0 69 513 20 1 772 85 691

REGIONAL SETTING

88

PHYSICAL PROFILE

•The Nkomazi Water Services Authority comprises an area of 3 219 km2 •60 Residential settlements•Urban areas are concentrated around the southern sector of the region and on the northern side of the Maputo Corridor•Agriculture is the predominant economic activity

99

SOCIO-ECONOMIC PROFILE

Of the total population, only 30% is formally employed. More than 70% of the households in this area earn less than R800 per month. Only 7% earn more than R 3,200 per month.

The male female ratio in the Nkomazi WSA area is balanced at 47% male and 53% female.

Approximately 41% of the population is estimated to be under the age of 14 years.

The primary economic activity is in agriculture

Agriculture46%

Transport3% Retail

8%

Undetermined6%

Private Households6%

Mining2%

Community13%

Business4%

Construction4%

Manufacturing7%

Employment profile

Employed30%

Unemployed21%

Not Economically

Active49%

Labour force profile

1010

R1 - 80022%

R801 - 32004%

R3201 - 128001%

Over 128000%

None73%

R801 - 160015%

R1601 - 32008%

R3201 - 64004%

Over R 64003%

R0 - 80070%

Average monthly family income Average monthly individual income

SOCIO-ECONOMIC PROFILE

1111

SERVICE LEVEL PROFILE

The Water Services Development Plan assessed the impact of different levels of services on the water services profile of the Nkomazi Water Services Authority and concluded that the preferred option should be to provide yard connections to all customers and increased sanitation services, where appropriate.

The provision of an increased level of service is motivated as follows:

• Supports the Nkomazi Integrated Development Plan visions and goals for a higher level of service

• To promote the development of the local communities

• To ensure that the service is equitable and accessible

• To promote long-term financial sustainability

• To promote economic development, by creating opportunities to those communities which are marginalized

• To promote economic development, through job creation

• To promote cost recovery

• Minor impact on resource utilization (the additional water required to be obtained from water loss savings)

1212

Water Service Option Description of Option

Profile Customer density

limitationCustomers Optimal Solution

per km2 Current 2005 Future 2010

None or Inadequate Insufficient and rudimentary water supply n/a 22237 0Basic Standpipes within 200 meters walking distance 24 58195 2133

Low Pressure Connection

Restricted flow connection at stand with standpipes within the residential area to serve as backup and/or alternative

100 0 0

Full Pressure Connection

Full pressure connection at stand with standpipes within the residential area to serve as backup and/or alternative

100 5377 109812

Business Full pressure connection at business 100 310 395Industrial Bulk water connection at industry 100 0 0Special Connection at premises < 24 72 163Raw Water consumers   n/a 0 0Total     86190 112504

Sanitation Service Option Description of Option

Customer density

limitationCustomers Optimal Solution

per km2 Current 2005 Future 2015

None or Inadequate Insufficient sanitation facilities n/a 57417 0Basic: Dry Ventilated Improved Pit Latrine 24 21363 101376Basic: Wet Septic Tanks / Tanker service 24 2196 2573Intermediate Small bore sewer to treatment 250 0 0Full waterborne Sewerage system 400 3130 12474Business Sewerage system 400 310 415Industrial Bulk sewererage system 400 0 0Special Connection at premises < 24 0 0Own Treatment Industries treating own effluent n/a 2 2Total     86190 116840

1313

CUSTOMER SERVICE PROFILE

Water Sanitation

0%

20%

40%

60%

80%

100%

2005 2006 2007 2008 2009 2010

No. o

f con

nections

No basic water supply Basic water supply Low pressure Full pressure

0%10%20%30%40%50%60%70%80%90%

100%

2005 2006 2007 2008 2009 2010

No. o

f con

nections

None or Inadequate Basic: Dry Basic: Wet Full waterborne

1414

CUSTOMER SERVICE PROFILEDelivering water …….

No. Scheme 200

5200

6200

7200

8200

9201

0

1 Driekoppies

2 Langeloop

3 Nyathi

4 Tonga5 Masibekela

6 Sibange

7 Madadeni

8 Magudu

9 Mbuzini10 Louieville

11 Kaapmuiden

12 Stentor

13 Mkwaru-kwaru

14 Malelane

15 Mhlatikop

16 Hectorspruit

17 Marloth Park

18 KomatipoortLevel of Service Legend

Inadequate: Insufficient and rudimentary water supply

Basic: Standpipes within 200 meters walking distance

Full: metered supply, full pressure connection at stand

1515

No. Scheme 2005 2006 2007 2008 2009 2010 2011 2012

1 Driekoppies

2 Langeloop

3 Nyathi4 Tonga5 Masibekela

6 Sibange

7 Madadeni

8 Magudu9 Mbuzini10 Louieville

11 Kaapmuiden

12Stentor

13 Mkwaru-kwaru

14 Malelane

15 Mhlatikop16 Hectorspruit17 Marloth Park18 Komatipoort

Delivering sanitation ……..

Level of Service Legend

Inadequate: Insufficient sanitation facilities

Basic: VIP’s or septic tank system

Full: Waterborne

Partial service

1616

WATER RESOURCE PROFILE

Water is abstracted for municipal use from several water sources, including:

1. Crocodile River – primary supply to Malelane, Mhlati Kop, Hectorspruit, Marloth Park and Komatipoort water schemes

2. Driekoppies Dam – primary supply to the Driekoppies water scheme

3. Mlumati River – primary supply to the Langeloop and Nyathi water schemes

4. Nkomati River – primary supply to the Tonga, Madadeni, Sibange, Magudu and Masibekela water schemes

5. Mbuzini Dam – primary supply to the Mbuzini water scheme ( DWAF, ICMA AND Dala to intervene for a long term solution due to silting)

6. Boreholes – primary supply to the Louieville, Kaapmuiden and Mkwaru-kwaru water schemes; secondary supply to certain towns in the Driekoppies, Langeloop, Tonga, Magogeni and Figtree water Schemes

8. Water tankers – primary supply to the Stentor, Goba, Mtata, Mbangwane, Mbekisburgh, Block B (Joe Slovo), Mangweni, Sikhwahlane, Block C (Dindela), Hoyi, Magogeni, Boschfontein (Gomora), Jeppesreef, Schuzendal, Buffelspruit, part of Langeloop, Mbuzini, Thambokhulu and part of Schoemansdal. (Being phased and looking at Boreholes for interim solution)

1717

Future Water SourcesThe following conclusions are made with regards to the future water source requirements:

1. It is estimated that the total present volume of water loss (due to leakages, illegal water connections, etc.) is unacceptably high. By reducing water losses, the future demand on the existing surface water resources can be greatly reduced. It is proposed that a comprehensive water loss/management strategy be launched.

2. Sufficient water is available from the respective sources to address the future municipal requirements. It is proposed that a comprehensive water resources study be launched to confirm the longer term adequacy of the main water sources including consideration of agricultural requirements

3. The reliance on boreholes as a primary water source should be minimised wherever possible by the provision of formal surface water infrastructure

4. Formal water sources would have to be investigated and established for the Stentor community which cannot be served from the main municipal infrastructure

5. A long-term surface water source for the Kaapmuiden community from the Crocodile River would have to be investigated and established

WATER RESOURCE PROFILE

1818

Nkomati river

Mlumati river

Crocodile river

Mbuzini dam

0

5000

10000

15000

20000

25000

30000

35000

2005

2007

2009

2011

2013

2015

Wat

er A

bstr

acte

d (M

l/a)

Nkomati river Mlumati river Crocodile river Mbuzini dam

WATER RESOURCE PROFILE

1919

WATER QUALITY & POLLUTIONSeveral water quality and environmental pollution concerns require urgent attention, specifically when considering the Environmental Legislation applicable to Water Services Authorities:

Compliance with legislation in terms of water quality monitoring and reporting, specifically for:

• Insufficient water quality monitoring in bulk water and reticulation systems to ensure an acceptable standard delivered to customers, specifically in the rural towns

• The quality of groundwater is monitored monthly to ensure the fitness for human consumption

• Water quality monitoring of wastewater effluent for Malelane, Hectorspruit and Komatipoort sewage treatment plants is undertaken (Upgrading of the plants is in process to improve quality)

Insufficient capacity to monitor and manage environmental pollution is of concern, specifically when considering:

• Pollution of local rivers by run-off from agricultural land

• Stormwater runoff from urban areas such as Malelane and Komatipoort.

2020

WATER CONSERVATION / DEMAND MANAGEMENT

WATER LOSSES (UNACCOUNTED) 35

%

31%

31%

49%

40%

34% 37

%

35%

31%

12%

23%

0%

10%

20%

10%

24%

13%

26%

0%

10%

20%

30%

40%

50%

60%

Driek

oppie

swa

ter

Lang

eloop

wate

rNy

athi

wate

rTo

nga w

ater

schem

eMa

sibek

elawa

ter

Siban

gewa

ter

Mada

deni

wate

rMa

gudu

wate

rMb

uzini

wate

rLo

w's C

reek

wate

rKa

apmu

iden

wate

rSte

ntor

wate

rMk

waru

-kw

aru w

ater

Malel

ane

wate

rMh

latiko

pwa

ter

Hecto

rspru

itwa

ter

Marlo

th Pa

rkwa

ter

Koma

tipoo

rtwa

ter

Estim

ated

& w

ater

loss

es

2121

WATER SERVICES INFRASTRUCTURE PROFILE

The main concerns with the existing infrastructure profile are:

•The average age of some individual infrastructure components exceed the typical design life of 30 years

•Insufficient provision is made at the municipal level to replace or refurbish the existing infrastructure

•Limited resources are allocated to maintaining the assets. The total maintenance budget is less than 1% of the replacement value of assets

•No capacity to perform preventative maintenance on assets•Limited availability of process diagrams and manuals required to operate efficiently

2222

Infrastructure components General description Replacement cost Boreholes - 33 usable boreholes R 4,000,000

Sub-surface water sources & abstraction

- Schoemansdal North infiltration gallery (redundant)

R 2,200,000

- Shongwe infiltration gallery (redundant)- Langeloop infiltration gallery- Masibekela infiltration gallery- Magudu infiltration gallery- Sibange infiltration shaft- Figtree infiltration gallery (redundant)

Water treatment plants- 9 water treatment plants R 87,300,000- 3 wastewater treatment plants R 15,000,000

Pump stations - 131 pumps & motors R 102,600,000Reservoirs - 26 reservoirs & elevated tanks R 51,400,000

Bulk pipelines- 407 km of bulk water mains

R 268,400,000- ?? Km bulk sewer mains

Reticulation- 54 rural towns & settlements

R 171,700,000- 6 urban towns- 800 km of reticulation

Total   R 699,350,000

WATER SERVICES INFRASTRUCTURE PROFILE

2323

OWNERSHIP ISSUESThe ownership of infrastructure is distributed amongst the Nkomazi Municipality and various state and private entities.

As a Water Service Authority, it is required that infrastructure ownership be consolidated. Infrastructure that must be transferred, include:

•The Kaapmuiden water scheme, currently owned by Spoornet•The Stentor water scheme, currently privately owned by the Kaapmuiden Citrus community•The Mkwaru-kwaru water scheme, currently privately owned by the Mkwaru-kwaru community•The Schoemansdal North water sub-scheme, currently owned by the Komati Basin Water Authority•The Louisville sewerage plant is operated by the Local Government

2424

WATER BALANCE (Excluding Agriculture)

Residential demand

39%

Commercial demand

7%

Demand: Schools, clinics,

etc19%

Water losses35%

2525

WATER SERVICES INSTITUTIONAL PROFILE

The Water Services Development Plan indicates the following institutional concerns:

•The Nkomazi water services business is not completely ring-fenced (absence of Kaapmuiden, Stentor & Mkwaru-kwaru infrastructure and re-structuring would be required to comply with legislation

•The Nkomazi indirect (overhead) cost of at least 45% of total operating expense does not make sufficient provision for these areas which are presently served by others

•Nkomazi will have to obtain additional funding of R634 million over the next five years in order to deal with the water services challenges.

•Nkomazi will have to establish additional institutional capacity to perform the Water Services Authority functions and responsibilities.; such as exploring additional and or external mechanisms.

•High Water losses (unaccounted water), due to illegal connections and system failures. Strategies are now in place such as water services by-laws which are currently dealt with in the form of workshops and consultations

2626

FINANCIAL PROFILE

Capital investment – Water: The required investment ( R253 m) in capital projects - in order to eliminate the backlog in basic water supply and to meet the demand in population growth within the next five years - cannot be funded internally (revenue or loans) without substantial grant funding

Capital investment – Sanitation: The required investment ( R381 m) in capital projects, in order to eliminate the backlog in basic sanitation and to meet the demand in population growth within the next five years - cannot be funded internally (revenue or loans) without substantial grant funding

Operating budget – Water: The operating budget for water services will not be sustainable without the provision of external O&M subsidy funding, in addition to the Equitable Share allocation towards water services.

Operating budget – Sanitation: The operating budget for sanitation services will not be sustainable in the short term and will need to be cross-subsidized by other retail services. The analysis indicates that the service will probably only be sustainable from Year 5 (2013/2014)

2727

Operating costs: Water

010,000,00020,000,00030,000,00040,000,00050,000,00060,000,00070,000,000

2004

/200

5

2005

/200

6

2006

/200

7

2007

/200

8

2008

/200

9

2009

/201

0

2010

/201

1

Purchase of bulk water Production costs Operating costsFinance charges Other

FINANCIAL PROFILE

2828

SUMMARY

• The majority of customers within the authority area (70%) are classified as indigent and therefore not able to pay for water and sanitation services. Intergovernmental grants and subsidies would be required to support the water business.

• There are 86 000 customers (495 000) people in the area of the Nkomazi WSA of which 22 000 (26%) DO NOT have access to basic water supply infrastructure and 57 000 (67%) DO NOT have access to basic sanitation facilities

• Nkomazi WSA lacks the appropriate level of institutional, administrative, systems, processes, resources management, customer care, operations and maintenance capacity and adequate resources to provide the required water services to its customers

• Sufficient water resources is available to accommodate the municipal water demand of the Nkomazi region. The needs of the agriculture sector and the resulting impact on the water resources must be considered

• Existing infrastructure is valued approximately at a R 699 million replacement value. Certain infrastructure components are extremely old and a comprehensive assessment of the required capital investment is urgently required to replace ageing infrastructure

• Insufficient allocation of resources to perform preventative maintenance is of concern.

2929

• The WSDP proposes the establishment of R 253 million of new water infrastructure within

five years and R 381 million of new sanitation infrastructure within ten years, amounting to a total capital input of R 634 million. The WSA would have to procure an additional R 563 million of grant funding over the next ten years to give affect to the water services development plan (R 5145 per household served)

• The WSA is severely restricted, due to limited capacity, to be able to render the complete water services function

• Insufficient processes, systems and resources are currently available to ensure an adequate level of customer care. The re-engineering of the customer care function is urgently required

• The assessment is concerned with regards to the indirect cost and available capacity of the WSA to render the water services. It is suggested that the provision of water services through a secondary service provider has been assessed and reflected that a municipal entity must be created as a water service provider for the Nkomazi Local Municipality.