PORTFOLIO COMMITTEE WORKSHOP

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PORTFOLIO COMMITTEE WORKSHOP

• WATER SERVICES
• 03 AUGUST 2004

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KFA 10 Ensure provision of sustainable basic
water supply and sanitation for improved quality
of life and poverty alleviation

• (will discuss backlogs,MIG,sanitation and free
  basic water)

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Water Supply Perspective(Census 2001 updated to
Mar 2004)
Standpipes further than 200m boreholes
Unacceptable River, pool, dam, stream
Standpipes less than 200m
Water in house or in yard
31.5 m (66)
5.5 m (12)
6 m (13)
4.4 m (9)
Total population 47.4million
4.4 m (9)
Perspective 1 People to be brought up to a bare
minimum supply I.e. safe source but still
lacking quality
10.4 m (22)
Perspective 2 Total people to be brought to
within 200m.
15.9 m (34)
Perspective 3 Total people to be brought up to
in-house/yard connections.
Note These figures reflect access to
infrastructure, not necessarily effective
services e.g water quality, flow sustainability
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Sanitation Perspective(Census 2001 updated to
Mar 2004)
Unacceptable None, pit latrine, buckets, chemical
(1.8 m people using buckets )
Flush toilet (connected to sewer systems or
septic tank)
VIP
26.1 m 55
4.2m 9
17.1m 36
Total population 47.4million
17.1 m (36)
Perspective 1 Total people to be brought to VIP.
21.3 m (45)
Perspective 2 Total people to be brought up to
flush toilet level of service.
Note These figures reflect access to
infrastructure, not necessarily effective services
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Sanitation Backlog

• - 17 million people lack access to basic
  sanitation.
• 11.7 of schools have no access to adequate
  sanitation
• 15 of clinics lack access basic sanitation
• 400 000 households still use bucket sanitation.

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Sanitation Delivery 1994 March 2004

• DWAF 1.31 million people
• DPLG 2.53 million
• Housing 2.71 million
• DPW/DoE/schools 0.24 million
• Loc Gov/NGOs 0.34 million
• TOTAL 7.1 million

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Sanitation Challenges

• 300 000 households to be served this year
• Backlog to be cleared by 2010
• All schools to be served by March 2005
• All buckets eradicated by 2006
• Budget allocated to municipalities through MIG.
• Uncertainties in the roll out of MIG

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Sanitation Challenges

• Sanitation not a priority of other Departments
• Sanitation not well addressed in WSDPs/ IDPs
• High expectation for Higher levels of services
• Lack of understanding of community-based approach

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RECOMMENDATIONS

• Political mobilisation of WSAs to prioritise
  sanitation
• Budget allocations has to match backlog
  eradication targets
• Establish support needs of WSAs and develop
  programme of support
• Health and Hygiene education programme must be
  part of the sanitation programme
• Sanitation to be well covered in WSDPs
• Establish mechanisms to ensure MIG funds meet
  Sanitation goals.

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The MIG and DWAFs new role

• Funds for basic services directly allocated to
  municipalities.
• Interim phase in period
• MIG is a conditional grant
• DWAF negotiated set of sector conditions
• Planning very important-DWAF to guide and support
  process

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MIG and DWAFs new role (2)

• Ensure that governments objectives are met.
• Monitor and regulate against national policy and
  conditions
• Share information and intervene where necessary
• Report progress to Cabinet.

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Free Basic Water Progress

• Pop served is 30.55mil (65.6 of total, or 73.4
  of those with infrastructure)
• Of the estimated 29.38mil poor, 51.5 are
  currently served
• 161 of the 170 WSAs (94.7 ) claim to be
  implementing FBW
• But if above is true, then why do so many claim
  not to be receiving FBW?
• 1. Some provide FBW only in part of municipality
• 2. Some provide only to the poor
• 3. Many without access.

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Free Basic Water Progress (2)

• 4. Experience has shown that some who claim not
  to be getting FBW actually do, but dont
  understand that their free allocation is limited
  to the basic amount
• 5. Difficult for DWAF to verify WSA figures
  without doing a national count. (Figures
  inflated?)
• FBW lets local government apply credit control
  from a moral high ground - no one now has an
  excuse for not paying for consumption above the
  free basic amount. This is vital to municipal
  financial sustainability.

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Free Basic Water Challenges (1)

• Note Most problems are not FBW specific, but
  affect FBW nevertheless
• Equitable Share S-grant not used for basic
  services, (ES unconditional grant)
• Some WSAs claim financial constraints
• Inequitable allocation of ES, (in favour of more
  larger, more capacitated WSAs such as metros).
  Local government finance study should address
  this.
• Water tariffs do not reflect actual cost of water
  our water too cheap.

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Free Basic Water challenges (2)

• WSA capacity constraints
• Inefficient operational and admin systems,
  especially regarding credit control. Thus poor
  cost recovery
• Operating subsidies must not over time subvert
  capital grants i.e. inefficient schemes must not
  consume all the money
• Poor are neglected, usually the last to benefit.
• DWAF to intensify support and investigations into
  reported cases

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KFA 11 Ensure effective and sustainable
delivery of water services to underpin economic
and social development

• Discuss Strategic Framework for Water services,
  Regulation and planning

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What is the Strategic Framework for Water
Services (SFWS)?

• Comprehensive approach to the provision of water
  services (water supply and sanitation)
• It puts forward a vision for the water services
  sector for the next ten years
• Sets out an umbrella framework to enable the
  sector vision to be achieved
• Updates the 1994 White Paper on Community Water
  Supply Sanitation.

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Implementing the SFWS (1)

• SFWS is framework
• SALGA / DWAF Declaration to cooperate jointly
  implement SFWS
• Further work (detail strategies) to be
  coordinated through sector task teams,
• Joint communication roll-out (complete)
• Legislative review
• to amend WSAct to reflect SFWS and align with
  other sector legislation
• Strategic Assessment Report
• DWAF to report on sector performance and to
  recommend on strategic direction of sector.

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Implementing the SFWS (2)
Institutional Reform

• (detail in next slides)

• Regulatory Strategy
• detail in later slides
• Monitoring and information management
• Crucial for all functions.

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WS Regulation

• The overall objective of Water Services
  Regulation is to protect the consumer and public
  interests by
• Norms and standards regulation. Ensure
  compliance with national norms and standards.
  E.g. drinking water quality,interruptions
• Economic regulation. The regulation of
  investments, tariffs and service provision
  efficiency.
• Contract regulation. The regulation of contracts
  between WSAs WSPs.

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ActionsWS Regulation

• To protect the consumer and public interests the
  following is planned
• Detail WS Regulatory Framework and procedures
• Performance monitoring
• Performance reporting on key indicators
• Intervention strategy
• Surveys.

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KFA 12 Ensure effective water services
institutions

• Discuss institutional reform

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Institutional reform of water services provision

• Why need to reform? sector?

Reform objectives

• Sustainable provision
• Improve performance
• Improve financial viability
• Improve accountability
• Use capacity optimally
• Improve efficiency of water use
• Improve regulation

• Lack of financial viability
• Under-investment
• Poor revenue management
• Need for financing
• Lack of capacity
• Inefficiencies and economies of scale

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Institutional reform

• PHASE 1
• A national institutional reform strategy will be
  developed including framework for co-operation
  and decision making
• Cabinet agreement to strategy
• Set up national restructuring task team (DWAF,
  DPLG, SALGA, National Treasury, SAAWU)
• Improve governance and regulation of Water Boards.

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Institutional reform

• PHASE 2
• Case-by-case investigations into institutional
  reform in terms of national strategy and in
  response to local demands
• Implementation of the institutional reform on a
  case-by-case basis
• DWAF to ensure that national and regional
  interests are taken into account.

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The END

• Thank you