IMPLEMENTATION REVIEW OF THE Deputy Director General: NATIONAL WATER ACT Act 36 of 1998 Deputy Director General: Policy and Regulation 24 OCTOBER 2008

CONTENTS What has not worked? Water for Growth and Development as an approach to tackling some of the challenges Roll-out Plan for Corrective Action Project plan for the review of the National Water Summary and Conclusions

WHAT HAS NOT WORKED

WHAT HAS NOT WORKED The regulation to support the implementation of the Act has not been integrated. The Water Allocation Reform programme is lagging behind and this has resulted in redress and equity not being effectively achieved The establishment of WMIs has been delayed due to uncertainties around the future and transfer of staff Challenges with developing a sound asset data base for all the WR infrastructure in the country

WHAT HAS NOT WORKED Not clearly defined the roles and responsibilities around asset maintenance and operation by the various WMIs Delegation of functions and responsibilities between the various WMIs has not yet been finalized The capacity of the department is a serious concern and a number of skilled people continue to leave, albeit remaining within the sector.

WHAT HAS NOT WORKED The issuing of water licensing has been a long and complex process due to the fact that delegations have not completed to proto-cma’s Recognition of the importance of WUAs due to lack of transformation has always been a problem Have not had a strong communication and marketing strategy (especially for water resources management) Generally water resources management is completely under resourced

CASE STUDY - VAAL SYSTEM Illegal Water Abstraction Unlawful abstraction puts system currently in deficit Losses equivalent to LHWP 1B (Mohale Dam). 100 litres per month per household for 8.5 million households. Deficit masked by good rainfall previous season DWAF is very weak in enforcement efforts

OTHER CHALLENGES Main sources of impact on water quality are: discharge of urban and industrial effluent to rivers high salinity irrigation return flows wash-off (run-off) and leachate from mining operations (Acid mine drainage) wash-off (run-off) from areas with insufficient sanitation (dense settlements) Climate change Discharges from Municipal Waste Water Treatment Plant

DRINKING WATER QUALITY Under-budgeted and under-resourced function in many municipalities Poor water quality impacts on people’s lives, particularly those with low immune systems Monitoring and reporting improving but still inadequate Many rural water schemes and small schemes not monitored at all

WATER SERVICES INFRASTRUCTURE Ageing, poorly maintained infrastructure leading to increased failures Lack of investment in refurbishment Poorly managed waste water and sewage infrastructure leading to pollution VIPs get full, leaving households without functioning toilets Bulk infrastructure not sufficient for growing demand

WATER FOR GROWTH AND DEVELOPMENT-MEETING THE CHALLENGES HEAD-ON

GROWTH & DEVELOPMENT IMPERATIVES Economic growth rate of 6% requires additional water supply Halve poverty by 2014 (deal with access backlog and responding to the anti-poverty strategy) Already, the Vaal system gets its water from other catchments (Senqu, Tugela & Usuthu) Effluents from the Vaal already augment the Crocodile/Olifants systems (Mines/Energy) Transfer of water for long distances is expensive Some economic activities also impact negatively on water quality (acid mine water)

Quantity Sufficient water can be made available at all significant urban and industrial growth points in the country for water to enhance economic development However, given the long lead times for developing new water schemes, co-operative planning is required between water users and water management institutions in order to ensure that water can be made available when it is needed.

Water Demand / Supply Scenarios Nandoni dam that was construction in Luvuvhu/Letaba WMA improved situation All 4 big Metros need serious consideration

SA had good runoff in recent years Country’s dams at 81% CURRENT STORAGE SA had good runoff in recent years Country’s dams at 81% Limpopo, NW and EC around 70%, other areas above 80% Isolated very low storages – serious at Middle Letaba for domestic needs 13 years of good runoff - a drought period could happen at any time

ALL DAMS vs DWAF DAMS vs CURRENT WATER USE

Current water availability At 98% assurance level, SA water is constituted as follows: 77% surface resources 9% ground water 14% return flows

Proportional water use/sector Agriculture 62% Domestic 27% Urban 23% Rural 4% Mining 2.5% Industrial 3.5% Power generation 2.0% Afforestation 3.0%

Water availability vs use Current water use match water (yield) availability Potential for further resource development still exists in KZN (south) & East of EC Limited potential for further resource development in most areas Water demand and availability projections for 2025 (National Water Resource Strategy, 2004). Blue bars = water availability; Green bars = water use; Red bars = water development potential.

Water Supply and Backlog Population – access to water supply 1994 – 38,9m population 59% of population had access to basic levels 15,9 million people had no access to safe water supply 2008 – 48,7 m population 88 % of population have access to basic levels 5,7 million people still without access to safe water supply

Concentration of Backlog

Water for Domestic Use Current population ~ 48.7m Projected growth rate ~0.82% Est. population by 2020 ~ 65.0m Implications for water demand are that domestic share of total water use will move from the present 27% to between 30 to 35% of the total national use

Reconciliation Strategies: to meet future demands in Metropolitan Areas (1) WC/WDM must be implemented as a matter of urgency in all metropolitan areas – if not, water restrictions will be inevitable Use of treated effluent is a huge potential resource – coastal cities discharges into ocean, but even in Vaal system direct re-use is imminent Groundwater resource must be developed more extensively, even for metros in specific cases Further surface water resource development and interbasin transfers will also be required

Reconciliation Strategies: to meet future demands in Metropolitan Areas (2) Unlawful water use reached critical dimensions in Vaal system, urgent action will be taken to eradicate Desalination of seawater is final option for coastal cities, detailed investigations will be done Inland cities don’t have luxury of desalination of seawater – inland water must be reserved for inland use Resources supplying metropolitan areas under stress – no further allocation for irrigation from these resources. Water may have to be moved from irrigation to urban over the long term

DWAF’s Response to strategic needs Energy Eskom & Sasol: VRESSAP (Vaal River Eastern Sub-system Augmentation Pipeline) Return flows into Crocodile (West) transferred to Lephalale area (Ellisras) for new power stations and Mafutha (Sasol) Construction of De Hoop and Mokolo Dams Mining – Crocodile West augmentation Construction of De Hoop Industry/urban - reconciliation strategies for Metros Agriculture – new schemes only in previously under-developed areas with potential for further development. Forestry – specific wet allocations Rural – accelerate delivery

Risks, Threats and Challenges Climate change Uncertainly of CC already factored into scenario planning Future requirements (security) major issue Water resource characteristics Adaptation and mitigation measures from a water perspective

Risks, Threats and Challenges Infrastructure (WR and WS) Assets in fair to poor condition wrt. maintenance and ops. Majority of capital investments made in 1970-1980s Thus approaching end of useful life – funds required for rehabilitation Maintenance backlogs – result of focus on new infrastructure development

Risks, Threats and Challenges Scarce skills Experiencing critical skills shortages in water sector esp. in engineering, science , technical and artisan areas. An insufficient skills base and fierce competition in the sector for skilled personnel Huge loss in institutional memory along with strategic and operational decision-making capabilities due to high retirement figures in the next decade

Risks, Threats and Challenges Scarce skills The ongoing skills shortage within the water sector poses a threat to the achievement of the water and sanitation delivery and compliance targets as well as the implementation of sustainable water resources management. Skills development is by nature a long term process.

Civil Engineering Staff in Local Government in 2005

Risks, Threats and Challenges Unlawful water use and pollution (i.e. Vaal River System) Large amount of unlawful use Exceeding system yield – risk of water restrictions for lawful users Large urban areas, industries and mines all contribute to pollution

Risks, Threats and Challenges Raw and drinking water quality – often result of poorly managed WWTW (Municipalities) Major threats to sustained safe drinking water quality Inadequate Asset Management Failing infrastructure (Water Purification and Reticulation Infrastructure ) Waste Water Collection and treatment Capacity of Waste Water Treatment Facilities to meet effluent standards (non- compliance) Skills shortage (limited availability of trained process operators)

WWT Facilities surveyed 84 94 65 48 105 196 82 112 164 950 Waste Water Treatment Works

WWT Facilities managed/owned by WSA’s 59 77 57 45 102 133 82 84 153 792 WWTW Owned/Managed by WSA’s

WWT Facilities with no appropriate license/permit : 57% 81% 50% 41% 33% 70% 85% 47% 70% 46% 950 Waste Water Treatment Works

WWT Facilities with license not complying to license/permit conditions: 32% 9% 61% 8% 33% 65% 14% 15% 17% 43% 950 Waste Water Treatment Works

WWT Facilities exceeding design capacity :36% 64% 39% 0% 41% 55% 28% 28% 53% 23% 950 Waste Water Treatment Works

WWT Facilities discharge not monitored : 40% 73% 44% 0% 25% 50% 28% 62% 47% 20% 950 Waste Water Treatment Works

Risks, Threats and Challenges Pollution of water resources (mining, agriculture, industry) Pollution of fresh water resources due to Mining activities Acid mine drainage - heavy metal contamination Poor agricultural practices- increasing salt loads Eutrophication i.e. lack of Oxygen in the water leading to death of fish etc.

Surface water resources Key Recommendations Improve Water mix Desalination Set target for coastal municipalities Inland areas with saline water resources Surface water resources Augmentation especially in under-developed areas Multi-purpose

Key Recommendations Improve Water mix Ground water Return flows Promote use in surface-water deficient areas Promote conjunctive use Return flows Use of return flows as source for power stations & coal-to-liquid fuel plants Treated effluent especially for coastal cities

Water Conservation & Water Demand Management Key Recommendations Water Conservation & Water Demand Management Declare non-negotiable Set up sector specific targets Regulation through economic instruments Water Loss control Enforcement for all municipalities Set a target limit on this as a condition for all sectors

Promote water use efficiency Key Recommendations Promote water use efficiency Sectoral benchmarking Set Sectoral water use targets Infrastructure Promote construction of Inter-Basin Water Transfer (IBWT) & multipurpose dams Prioritise development according to needs Operation and Maintenance of existing infrastructure Refurbishment of existing ageing infrastructure

Irrigated agriculture Key Recommendations Unlawful Water use Clamp down Priority in stressed catchments Irrigated agriculture No further allocations except for new entrants linked to WAR Reduce total water use (target to be set)

Key Recommendations Afforestation expansion Aligned planning Promote Afforestation in line with LTMS Prioritise KZN & EC Aligned planning Water is central to all planning Misalignment with NSDF, PGDPs, IDPs, etc Encourage joint planning

Key Recommendations Water quality management & pollution control Roll-out of water resource classification system Adherence to licence waste discharge standards & conditions to be monitored rigorously Climate Change Develop mitigation and adaptation plans for the Sector

Key Recommendations Response to Anti-Poverty Strategy There are 4 pillars of the Anti-Poverty Strategy where DWAF can intervene directly. Pillar 1: Economic interventions to expand opportunities for employment and self employment Response programmes Invest and develop infrastructure that will promote small scale rural development Promote rain water harvesting Develop community benefits around dams Massification of programmes like Working for Water, Working for Wetlands etc Development of value added industries from cleared biomass

Key Recommendations Pillar 2 : Investment in human capital Response programmes Developing appropriate skills for the water sector e.g. the learning academy Providing community based training in programmes like WfW, WoF, Working on Wetlands Awarding bursaries and learnerships

Key Recommendations Pillar 3 :Basic Services and other non-financial transfers consisting of free basic municipal services such as water electricity, refuse removal sanitation and healthcare Response Programmes Accelerating access to water and sanitation services Access to free basic services

Key Recommendations Pillar 4: Good governance Response Programmes Supporting local government to deliver on its constitutional mandate Ensuring effective regulation

Corrective steps

COMPLIANCE AND ENFORCEMENT Sufficient funding for development of a strong Compliance, Monitoring and Enforcement function Prevent and control unlawful raw water use and pollution Discuss with National Treasury and Asset Forfeiture Unit the possibility of retaining assets seized during action against illegal water users. NEMA (Act) being amended to give powers to appoint DWAF officials as Inspectors to enforce compliance under both NEMA and the National Water Act.

REGULATION AND COMPLIANCE IN WATER SERVICES DWAF to determine appropriate institutional arrangements for water services regulation, including institutional arrangements for national regulator revision of Water Services Authority (WSA) and Water Services Provider (WSP) functions to take into account de facto lack of separation of functions between the two. DWAF to strengthen drinking water quality regulation through strengthening of current capacity.

DRINKING WATER QUALITY Where appropriate, Water Boards to: assist in monitoring drinking water quality assist to audit the results submitted by municipalities on drinking water quality, or Act as WSP on behalf of a WSA. DWAF and NT to investigate ways to incentivise municipal asset management and sufficient budgeting for drinking water quality management and monitoring.

Augmentation and conservation Long time lines for establishing new infrastructure Water Conservation and Demand management (e.g. review irrigation technologies) Effluent re-use in coastal cities Unlawful water use – Vaal system

RESOURCE AVAILABILITY Water scarcity in economic heartland of South Africa Gauteng and Mpumalanga Highveld Lephalale Coal Fields Inland water should be reserved for inland water use? Local resources, e.g. groundwater and sea water need greater emphasis Dealing with pollution

Project plan for the Review of the National Water Act

KEY TASKS AND OUTPUTS Time Frame 1. Identify key sections that hindered Government from attaining its objectives 2. Obtain inputs per stakeholder grouping. Obtain inputs from internal stakeholders. Status quo and situational Analysis Report March 2007 Obtain inputs from external stakeholders. 22 October 2008 Obtain inputs from International and National Experts November 2008 3. Collate Comments and inputs into the report December 2008 4. Develop Draft Final Report Stakeholder Analysis Report December 2009 5. Distribute Draft report to all Stakeholders for final inputs January 2009 6. Consolidate final inputs into Final Report Final Report February 2009 7. Present final report via DWAF structures and to Parliament for final approval March 2009

CRITICAL SUCCESS FACTORS Impact on Success 1. Broad consultation. Create shared mindset and understanding of NWA Ensure by – in Enable effective / Quick implementation 2. Alignment to best practice. Clarify roles Address gaps Improve aspects of the Act Enhance sector performance improve accountability and transparency and build capacity and appropriate skills 3. Balanced Holistic approach. Enhanced performance and practices Improve efficacy and intergovernmental relationships - Review implementation 4. Sound Business Models and Mechanisms. Improve sector performance Improve CM+E Enhance participation Improve regulatory Governance Finalise Institutional Model for implementation of NWA.

SUMMARY & CONCLUSIONS

SUMMARY AND CONCLUSIONS National Water Act is a solid legislation acclaimed the world over As a principle we need to fact track the implementation of the NWA Regulatory Framework for the entire water value chain needs to be urgently put in place Alignment and common vision is critical for the entire water sector Stabilise institutional models and fast track delegations to institutions to adhere to the intent of the NWA Department of Water Affairs and Forestry

There is enough water resources There is a need to address challenges i.e. pollution, illegal water abstraction Institute water conservation and demand management Need to deal with causes for failures in DWQ

Municipalities will play a key role in both water supply and ensuring the DWQ standards - hence Municipal Indaba Need to deal with the issues of broadening access to water for the rest of South Africans Need to invest in new infrastructure as well as Operation and Maintenance Need to deal with the skills challenges Need to broaden the water-mix

THANK YOU