PORTFOLIO COMMITTEE PRESENTATION 17/10/2006

1
PORTFOLIO COMMITTEE PRESENTATION 17/10/2006

• Mhlathuze Water Contribution Towards Rural
  Development in Water, Sanitation Forestry!
• BY LAWRENCE SITHOLE
• 17 OCTOBER 2006.

2
MHLATHUZE WATER MW SERVICES FOCUS

• To Open MW Services to Serve ALL 41/2 WSAs in
  its area.
• To Provide Business Solutions RATHER Services to
  WSAs.
• To Promote Economic Growth Reduce Poverty.

3
MW AS A WATER BOARD NEEDS TO BALANCE

• A Healthy Triple Bottom Line
• Contribution Towards Government Objectives.
• Social Responsibility.
• Fulfilling Developmental Mandates.
• As Such MW Does Not Look At Water Service
  Provisioning In Isolation!

4
HOW IS MHLATHUZE WATER CONTRIBUTING TOWARDS RURAL
DEVELOPMENT?

• The Three (3) Water Utilities in KZN
• Thukela Water, Umgeni Water Mhlathuze Water
• In Answering This Fundamental Question Have Come
  Up With
• KZN Bulk Regional Water Concept
• KZN BRWS

5
Coming Out The KZN Water Summit!

• The KZN Bulk Regional Water Concept was formally
  adopted at the KZN Water Summit in September
  2005.
• The 3 Water Utilities WU were tasked with the
  responsibility to ensure the concept receives the
  buy-in of and is owned by the WSAs.

6
THE KEY OBJECTIVES OF THE KZN BRWS ARE

• Integrated Solutions On A Regional Scale For
  Sustainability Affordability.
• Integrating Water Services With Water Resources
  For Optimal Water Resource Utilisation.
• Gearing Private Sector Funds For Augmentation of
  Central Allocations.

7
THE KEY OBJECTIVES OF THE KZN BRWS ARE (Cont.)

• Rationalisation of Fragmented Systems For
• Economies Of Scale
• Cost Effectiveness Affordability
• Efficiency
• Addressing Backlogs As Augmented Product.
• Promote Economic Development Water to Lead
  Development.

8
HOW MHLATHUZE WATER CAN ADD VALUE TO WATER
SERVICE AUTHORITIES?

• Planning Across Municipal Boundaries.
• Providing Comprehensive Solutions and Total
  Package Bulk, Reticulation, Financing, Operating
  Model, Appropriate Institutional Arrangements,
  Unlocking Development Potentials etc.

9
PROGRESS TO DATE!

• Following The Portfolio Committee Visit
  (July/August 2005), The KZN Water Summit (Sept.
  2005) and Presidential Imbizo At Ilembe (Dec
  2005)
• We can report the following progress

10
ILEMBE DISTRICT MUNICIPALITY!

• Bulk Regional Scheme Pre-feasibility concluded
  and Proposal Presented to the Ilembe on 31st May
  2006.
• Council approval/decision is awaited
• The Proposal is By a Partnership Between DBSA,
  Bigen Africa and Mhlathuze Water.

11
ILEMBE DISTRICT MUNICIPALITY!

• The System Covers
• Rural Communities Maphumulo, Mathonsi
  Macambini
• Industrial Nodes Isithebe, Sappi mills, Tongaat
  Hullett, Gledhow
• Urban Areas KwaDukuza, Mandini , Darnall
• Coastal Developments Thukela Mouth, Zinkwazi
  Beach, Princes Grant, New Guelderland etc
• Integration of 8 WTP into 1 AND 7 Sewerage Plants
  into 3.

12
(No Transcript)
13
Project development assistance cont
Tugela / Mvoti initiative
14
ILEMBE DISTRICT MUNICIPALITY!

• The System is Intended
• Unlocking coastal development potential
• Address the backlog (rural)
• Support housing initiatives
• Support Industrial/Commercial growth
• Tax / Income base for the Municipality.

15
ILEMBE DISTRICT MUNICIPALITY Institutional
Financial Arrangements

• Capital Injection R502 Million.
• Private Funding
• Government Funding
• Effective Bulk Tariff R2.54 kl
• Ownership Control by Ilembe DM
• Operated by Mhlathuze Water.

R322 Million R180 Million
16
UMKHANYAKUDE DISTRICT MUNICIPALITY!

• Regional Master Plan has been Concluded.
• Projects Have Been Identified.
• Quantification Still to be Finalised.
• Submission Due to be Made to Council.

17
UMKHANYAKUDE DM CONTEXT

• Unemployment figures of 60 - 70.
• Has Water Backlogs of 68.
• Is a Presidential Node.
• Has got the 1/3 largest dam in SA.
• Economic drivers are Agriculture Tourism
• No water service solutions will be affordable and
  sustainable anywhere unless there is local
  capacity to afford and sustain them!

18
WATER SERVICE PROVISIONING CONSTRAINTS

• Mkhanyakude Water Services cannot be Addressed in
  Isolation from Areas Economic Capacity.
• The development in Mkhanyakude Region is held
  back by non-availability of water!
• MW PHILOSOPHY
• Water should never be constraints to development
  BUT a catalyst!

19
INTEGRATED APPROACH TO WATER SERVICES!

• For sustainability Effectiveness.
• For bankability Affordability.
• Local Capacity to afford services.
• Facilitate Capital Investment. ASGISA

20
PONGOLAPOORT DAM POTENTIAL!

• Mhlathuze Water Re-Opening Pongolapoort Dam
  Argument!
• The Dam was completed in 1970. Never Filled till
  1984
• Main Objective 30 000ha of Sugar Cane under
  Irrigation.
• It has NOT Achieved this!
• It has NOT benefited Communities in this Region!

21
MKHANYAKUDE ECONOMY?

• Agriculture Led By Sugar Industry.
• Tourism Associated SMALL Industries.
• MAJOR CONSTRAINT
• Lack of Water for Irrigation.

22
PERCEIVED LACK OF WATER!

• System Capacity 847 Mil.m3 p.a.
• Less Allocations 785 Mil.m3 p.a.
• Reserve 172 .
• Irrigation 294 .
• Flood Releases 250 .
• Afforestration etc 69 .
• Water Available 62 Mil.m3 p.a.

23
MHLATHUZE WATER RECOMMENDATIONS MADE TO DWAF!

• Make MORE Water Available for irrigation
  economy 50 allocated to environment (422 172
  250 of the 847)
• Because of drought Flood releases have been 150
  Mil.m3 p.a. Allocate 150 instead of 250
• Earnest Requests to DWAF!

24
ECONOMIC OPPORTUNITIES

1. Sugar Industry 18 000 Tons p.a. R1.2 Billion
   investment 6 000 to 10 000 Jobs. R600 Million
   Annual T/O 1 000 Houses
2. Holiday Resort Golf Estate 1 000 Jobs R3.2
   Billion Investment. 600 High Cost Housing.
   Hotels Holiday Accommodation.

25
ECONOMIC OPPORTUNITIES

• Other Agricultural Activities Cassawa Starch
  Project 500 Jobs R60 Annual T/O
• Citrus Project No Details!
• Hydro-Power No Water Consumption Will generate
  much needed ENERGY CASH for the Region.

26
OUTCOMES OF EXTENDED CABINET LEKGOTLA

• July 06 Provinces were challenged
• To identify concrete interventions to gear
  (ratchet) up economic growth towards 6.
• To identify measures to stimulate the economy
  while inspiring unifying all our people behind
  a vision of shared growth. Asgi-SA
• To identify and recommend strategic economic
  infrastructure projects in their PGDS with a
  massification effect.

27
OUTCOMES OF EXTENDED CABINET LEKGOTLA

• For KZN Makhathini Flats was mentioned as the
  possible project for KZN!
• ALL Provinces mentioned the following as one of
  their frustrations
• That
• Provided DWAF Co-operates!
• Very serious statement for the SECTOR!

28
MINISTERS FRUSTRATION!

• At the Annual Women in Water Sanitation and
  Forestry Awards 11 August 2006 the Minister
  stated that
• One of her pressing frustrations was the fact
  that she does NOT have water to allocate to the
  poor and for economic developments
• Again A Serious Political Statement!

29
UNLOCKING PONGOLAPOORT DAM POTENTIAL!

• Unlocking These Opportunities will make providing
  Water Services at Mkhanyakude much more
  Achievable, Affordable Sustainable!
• AND
• MW is Striving to Contribute towards Improving
  the Lives of the People of the Region in a
  integrated, empowering and sustainable manner.

30
WATER SERVICES REGIONAL OPTION

• Primary raw water sources
• Pongola Poort dam
• Umfolozi River Unreliable
• Hluhluwe dam Unreliable
• Lake Sibaya Environmentally Irresponsible
• LEAVES ONE OPTION!

COMBINATION!
31
KEY FEATURE OF THE OPTION MHLATHUZE IS LOOKING AT!

• Key Features
• Distribution infrastructure development A total
  solution No gaps
• Upgrade dysfunctional internal networks
• New distribution networks
• Implementation to be concurrent to bulk supply
• Old treatment infrastructure will be
  decommissioned progressively
• The existing Shemula water treatment works to be
  phased out
• Appropriate Operation Maintenance strategies to
  be developed

32
(No Transcript)
33
UTHUNGULU ZULULAND DISTRICT MUNICIPALITIES

• Except for Mandlakazi Scheme integration with
  Mkhanyakude System Little has been done in
  Zululand DM.
• Uthungulu DM Concept is due for concluding soon
• The Southern part Gingindlovu, Matigulu, Nyoni
  etc Ilembe System.
• The Northern part South of Mfolozi Mkhanyakude
  System.
• Central-Eastern part Mbonambi, Ntambanani
  Mhlathuze City Systems.
• Separate Solution is Needed for Nkandla, Eshowe
  Mthonjaneni!

34
CONCLUSION

• It is believed that these initiatives will
  contribute towards Rural Developments through
• Integrated Service Provisioning
• Facilitating Economic Developments
• Gearing in Private Resources
• Providing Affordable, Sustainable Real
  Solutions.
• THANK YOU!