The Municipal Conundrum....... Jay Bhagwan Water Research Commission

South Africa at tipping point 4-May-19 File name Problem Statement South Africa at tipping point What is required of municipalities to comply with What need to be achieved What is appropriate and necessary To ensure an acceptable and reliable level of performance and compliance

Three key aspects Technical : Non revenue water (NRW) Financial : Tariffs, cost recovery and expenditure Social : People’s perceptions and expectations

Non- Revenue Water Non-revenue water Revenue water Based on 132 data sets of a potential 237 municipalities

% NRW Distribution / Municipal Category

Estimated Cost of NRW

Tariffs and cost recovery Municipal Tariffs Bulk water tariffs Bulk water coasts as a proportion of retail

Summary of Water Tariffs Raw water costs contributes minimally to total water costs. Raw water costs formed between 11% to 14% of total water costs Bulk water costs form a significant portion to total water costs. These ranged between 43% and 47%. Retail costs also added a significant portion to total water costs. These were between 39% and 44% over the period The water services components of the value chain comprised between 86% and 89% of total water costs over the period

Social Protests (services delivery....) source www.mlgi.org.za In the first 8 months of 2012 there were more protests (208) than in any other year. The first 8 months of 2012 averaged 28.25 protests per month. 2009 had the second highest average of monthly protests with 17. From 2007-2011 there was an average of 11.61 protests per month.

Provincial Distribution

Violence

Grievances

Access for all – what will it take to achieve? uThukela R2.5 billion uMzinyathi R2.8 billion Zululand R3.2 billion uThungulu R3.6 billion Ilembe R3.2 billion Ugu R4.0 billion Sisonke R2.6 billion Total R21.9 billion MTEF MIG for above is R4.3 billion i.e. approx 15 years required