Presentation to the Portfolio Committee: Water

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Presentation to the Portfolio Committee Water
Environment
Regional Bulk Infrastructure Grant (RBIG)
programme

Presentation byMr Trevor BalzerProgramme
Manager Special Projects16 17 March 2010
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Contents

• Introduction
• SONA
• Overview
• RBIG Policy
• Definition of Regional Bulk
• Project Criteria
• Implementation Readiness
• Budget Allocation
• Progress
• Refocusing RBIG Approach
• MTEF Allocation
• New Priorities

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Introduction

• Regional Bulk Infrastructure Programme
• Grant mechanism established in 2007 to supplement
  the financing for the development of regional
  bulk water infrastructure and regional bulk
  sanitation collection as well as regional water
  and waste water treatment works (social component
  only)
• Budget Allocation (2010 MTEF) R4.42 billion
• Estimated R60 billion investment required

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SONA (Extracts)

• In addition, we will work to improve the
  effectiveness of local government, infrastructure
  development and human settlements
• We are not a water rich country.
• Yet we still lose a lot of water through leaking
  pipes and inadequate infrastructure.
• We will be putting in place measures to reduce
  our water loss by half by 2014.
• This government will ensure that our
  environmental assets and natural resources are
  well protected, and are continually enhanced.

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How does RBIG respond to SONA

• Support and assist WSA with Bulk infrastructure
  operations and maintenance
• Ensure that WC/WDM is effectively addressed
  before approving RBIG projects
• Ensure adequate O M, and asset management
  measures are part of the new RBIG projects
• Promote where possible WC/WDM related RBIG
  projects i.e. Wastewater recycling (re-use)

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RBIG Policy

• Aim This fund aims to support Governments
  development targets (e.g. eradication of basic
  water supply and basic sanitation backlogs) as
  well as socio economic priorities such as the
  2010 Soccer World Cup, enablement of growth and
  development initiatives as well as addressing
  specific water risks (e.g. water availability,
  water quality and environmental challenges).
• Responsibility DWA is responsible and
  accountable for the management of this
  specific-purpose Water Services Regional Bulk
  Infrastructure Grant.
• Accountability The transfer from National
  Treasury to DWA will take place as per DoRA and
  bi-lateral arrangements.
• Assessment / Allocation The fund is project
  focused and each case is assessed and selected on
  merit. It is not formula based and not
  generically allocated.
• Co-funding While this fund must enable economic
  development, the proportional capital cost for
  higher levels of domestic, commercial and
  industrial uses must be obtained from suitable
  co-funding or financing mechanisms

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Policy Definition of Regional bulk

• The infrastructure required to connect the water
  resource, on a macro or sub regional scale (over
  vast distances), with internal bulk and
  reticulation systems or any bulk supply
  infrastructure that may have a significant impact
  on water resources in terms of quantity and
  quality.
• Macro is defined as infrastructure serving
  extensive areas across multi-municipal boundaries
• Sub-regional is defined as large regional bulk
  infrastructure serving numerous communities over
  a large area normally within a specific district
  or local municipal area
• Over vast distances is considered as any
  distances greater than 5 km
• Bulk infrastructure that has a significant
  impact on water resources includes
• Any bulk scheme that is designed for maximum
  demand of 5 Ml/day or more
• Any waste water treatment plant that discharges
  into a fresh water resource system
• Any water treatment plant that is designed for a
  maximum demand of more than 2 Ml/day

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• Project Criteria
• Funding is only allocated for implementation once
  the Projects is implementation ready.
• Projects must be aligned with regional and
  national water resource development strategies,
  including compliance to WC/WDM.
• Projects must provide for realistic longer-term
  development scenarios and total needs
• Projects must have stakeholder involvement and
  commitment.
• Projects must be environmentally acceptable
  (approved EIA and environmental Management plan).

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• Implementation Readiness
• Comprehensive feasibility planning must be
  undertaken
• Prove socio-economic benefit
• Financial viability
• Illustrate sustainability
• Technical acceptability
• Institutional arrangements
• Agreement , commitments for both implementation
  and sustainable operation
• Projects must be environmentally acceptable
• A financing plan must be in place,
• Compliance to water conservation measures
• Acceptable asset management plans and systems
• Completed Environmental Impact Assessment, and
• Water licenses

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Budget allocation

• Previous financial years 2007/08 and 2008/09
• 2007/08 R 300.0 million
• 2008/09 R 444.7 million
• 2009/10 R 616.8 million
• 2010/11 MTEF Allocation
• 2010/11 R 893.0 million (Including the R54 mil
  Limpopo drought relief funding)
• 2011/12 R 1675.3 million
• 2012/13 R 1849.2 million

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Progress to date

• The total projects implemented since the start of
  the programme are as follows
• 107 projects were started since 07/08 financial
  year
• 50 implementation projects have been initiated
  and are in construction, design or tender phase
• 32 construction,
• 18 design / tender phase
• 57 feasibility / implementation ready studies
  underway (budget for implementation approximately
  R3 billion)
• 9 projects have been completed
• New projects can be funded from 2012/13

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Projects completed

• The projects completed to date are as follows
• 2007/08
• Chris Hani Tsomo RDP2 BWS
• Delmas Phase 1 Emergency
• Thaba Chweu BWS
• 2008/09
• Delmas Phase 2
• Maqwassi Hills RWS
• 2009/10
• Mbhashe North BWS
• Mathulini BWS
• Greater Mthonjaneni BWS Phase 1
• Van Wyksvlei Interim Solution

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Projects completed in next Quarter

• Projects to be completed in the next quarter
• Mthatha Bulk Water Intervention
• Jagersfontein BWS
• Groblersdal Lukau BWS
• Van Der Kloof/Petrusville BWS

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Jobs created

• RBIG has created 3,448 jobs,
• This equates to 188,825 person days.

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Project Challenges Risks

1. Transfer of funds
2. Misuse of funds by Municipalities
3. Many projects were not ready and were given
   funding
4. Non-Dora compliance (eg Roll over requests from
   NT)
5. Inadequate capacity by municipalities to manage
   implementation
6. Delays in implementation of projects and
   expenditure
7. High escalation costs
8. Approval process not followed
9. Sustainability of projects once completed
   (commitments by Municipalities to perform OM)
10. Lack of Co-funding by WSA

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Refocusing our approach

• DWA to take greater/direct control for
  implementing new RBIG projects utilising
• Project management capacity from DWA Regional
  and National Offices
• Utilising the capacity of Water Boards
• Utilising DWA construction
• Where feasible new assets to be transferred to
  Water Boards
• Focus on sustainability of projects and
  Operations and maintenance

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2010 MTEF ALLOCATIONS
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Total Needs Assessment as at Dec 08
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New Priorities (2010)

• Broadening access from under-utilised and single
  purpose dams (Taung and Josini)
• Desalination Strategy and roll-out
• Acid Mine Drainage
• Green Agenda
• Namakwa Water - refurbishment