SELECT COMMITTEE

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SELECT COMMITTEE

• INTERGOVERNMENTAL FISCAL REVIEW
• CHAPTER 10WATER SANITATION
• 6 September 2004

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PURPOSE provide insight into government
finances for policy makers, policy analysts,
representatives etcsupport Parliament in
debating and overseeing budgets and plans for
essential services
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OVERVIEW

• Backlogs and size of the sector
• What is the WS sector?
• assets R 102 billion
• annual turnover R 12 billion
• municipalities are responsible for water supply
  and sanitation at local level

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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 Challenges

• 300 000 people 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.

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Overview of recent reforms

• Mention the Strategic Framework for Water
  Services as a comprehensive policy framework for
  water services
• list the set of goals as in the SFFWS
• institutional reform (not mentioned)
• regulatory strategy (not mentioned)
• MIG (mentioned)

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Important trends in expenditure and budgets

• Table 10.2 Total WS budget decrease from (03/04)
  R 2608 million to R 1334 million in 04/05.
• Table 10.3 Capital expenditure on DWAF budget
  down from R 1102 million in 03/04 to R 160
  million in 04/05 and zero by 2006/07
• Table 10.4 Municipal Infrastructure Grant (MIG)
  is R 4 400 million in 04/05.
• Table 10.4 Water and Sanitation allocation is R
  2 300 million of this.

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Important trends (2)

• DWAFs operating support will be phased out as
  schemes are transferred to municipalities
• Move of capital funds from DWAF to municipalities
• MIG allocations are made in terms of a formula,
  based on backlogs,powers and functions and
  poverty.
• Significant allocations to Water and sanitation
  but...

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Important Issues/Comments

• Budget still inadequate to erase backlogs on time
  especially sanitation and in light of demands on
  higher levels of sanitation
• corresponding operational grant (Equitable share)
  to cover running expenses for all this new
  infrastructure is a growing concern.
• Disputes about backlog figures between some
  municipalities and national government

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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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Important trends in expenditure and budgets (2)

• Table 10.5 Bulk of money is in the metros
• Table 10.6 There are 4 water boards that seems
  to have problems with financial viability I.e.
  where operating expenditure exceeds income.
• Table 10.7 Interesting facts about employees in
  the sector----please note that DWAFs figures is
  not correctly reflected--it excludes all
  operating staff in provinces.
• Page 138 Staff to be transferred is from WS
  function to LG and not WR function.

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Conclusions

• Reforms are important but will take time.
  (Institutional and regulatory reforms)
• Agree on huge challenges for transfers.
• MIG on its own will not speed up delivery unless
  there is the capacity to spend money well and
  effectively
• Support strategies (and actions) to LG crucial
• Sustainability and operations important
• Monitoring and reporting on progress key

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The END

• Thank you