1 A NATIONAL PERSPECTIVE KIEVITS KROON TSWANE Towards building sustainable and efficient water management institutions Presentation by Ms Thoko Sigwaza Institutional Oversight Nov 2010

2

3

4 Policy and legislative mandates In South Africa the Constitution make a distinction between water as a natural resource and water as a municipal service. The key government policies pertaining to water are set out in two policy papers as follows: the National White Paper on Water Policy (1997) and The Strategic Framework for Water Services (2003) The legislative mandates follow from these policies and are set out in two pieces of legislation: The National Water Act (Act 36 of 1998) and The Water Services Act (Act 108 of 1997). In terms of the current policy and legislative mandates, it is the Minister who is the custodian, policy maker and regulator for the water sector. There is no independent regulator for water, (intention to establish an economic regulator) although a Water Tribunal was established by the National Water Act to provide independent reviews& dispute resolutions.

Policy and legislative mandates Catchment Management Agencies Are statutory bodies established in terms of Chapter 7 of the National Water Act and listed as schedule 3a entity under the PFMA-service delivery Public Entity. The main purpose of a CMA is to delegate Water Resource Management (WRM) to a catchment level and to involve local communities to achieve government objectives of equity, sustainability, efficiency, and representivity Water User Association Are established in terms of Chapter 8 of the National Water Act and are responsible for the management and regulation of water at a localised level.

Context Key Strategic projects within DWA Review of the National Water Resource Strategy. Development of economic regulator. Revision of the pricing strategy. Institutional Reforms & Realignment. Review of Legislation. 6

Context Outcomes Approach to service delivery Improved quality of basic education A long and healthy life for all south africans All people in south africa are and feel safe Decent employment through inclusive economic growth. A skilled and capable workforce to support an Inclusive growth path An efficient, competitive and responsive economic infrastructure network Vibrant, equitable and sustainable rural communities and food security for all

Context Outcomes Approach to service delivery Sustainable human settlements and an improved quality of household life Responsive, accountable, effective and efficient local government system Environmental assets and natural resources that are well protected and continually enhanced Create better south africa and contribute to a better and safer africa and world. An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship

9 Competition for scarce water NWRS, 2004 The National Challenge

10

11

The Institutional Challenge The current institutional landscape is complex with about 184 institutions reporting to the Minister of Water & Environmental Affairs. 2 functional Catchment management agencies and 5 gazetted. Water user associations & irrigation boards = 167 Water boards = 13 OR 14? Water Research Commission Trans-Caledon Tunnel Authority (TCTA) Water Tribunal National Water Advisory Committee

Oversight of institutions Oversight is concerned with the reviewing, monitoring and overseeing of the affairs, practices, activities, behaviour and conduct of the state entities, inorder to be satisfied that the entities affairs and business are conducted in the manner expected and in accordance with all normal commercial, legislative and other prescribed or agreed norms. The Minister as a shareholder is concerned with suitable return on investments and ensuring financial viability. As a policy maker she is concerned with policy implementation and service delivery and as a regulator she should be concerned with industry practices, pricing structures and interests of consumers.

CURRENT STATUS OF CATCHMENT MANAGEMENT AGENCIES The two CMAs are semi-functional Not all functions have been delegated to them. DWA provides seed funding of +_R22 million a year. DWA supports their capacity in planning and implementation through MOU and twining projects Staff transfers from proto CMAs has been slow and sometimes no staff transfers at all –meaning CMA starts with new people completely. Governance has not been easier need rethink.

10/28/ PROGRESS OF CMA ESTABLISHMENT WATER MANAGEMENT AREA PROGRESS TO DATE InkomatiPerforming initial functions however, require delegation of WRM functions in order to be effective and sustainable MOU signed between DWA Region and ICMA Process to appoint new Governing board initiated Operational and third business plan approved by Minister 1st order CMS completed to be gazetted Annual reports tabled in parliament Breede-Overberg,Governing board and CEO appointed Operational and second plan approved by Minister MOU not yet signed between DWA Region and BOCMA Initiated CMS, inception report completed and public participation initiated in Feb 2010 Annual reports tabled in parliament Crocodile West Marico, Mvoti to Umzimkulu Usuthu to Mhaltuze, Thukela, Olifants Doorn, Gouritz CMAs gazetted for establishment. However, appointment of governing board halted due to Institutional Realignment process

16 RegionsNumber of IB (initial) Number of WUA transformed from IB New WUA established (HDI/ multisectoral/) Number of IB to be transformed Limpopo7374 KZN Western Cape Eastern Cape Northern Cape North West2000 Free State8721 Gauteng4004 Mpumalanga TOTAL

GOVERNMENT SCHEMES TRANSFERRED TO WUAs NAME OF SCHEMENAME OF WUAs / PROVINCEDATE OF TRANSFER Orange-Riet (Riet River Settlement and Orange Riet Canal Orange Riet (Free State)2002 Orange River (Kakamas) Kakamas (Northern Cape)March 2003 Orange River (Boegoeberg Dam) Boegoeberg (Northern Cape)March 2003 Vaal River (Vaalharts)Vaalharts (Northern Cape & NorthWest) January 2003 Sand-VetSand-Vet (Free State)

GOVERNMET SCHEMES WHERE WUAs HAVE NOT YET BEEN ESTABLISHED AND TRANSFER WILL OCCUR LATER PROVINCENAME OF SCHEMES Free StateOrange River (Van der Kloof Canals) Rhenoster River (Koppies Dam) MpumalangaMapochs-Gronde (Ton-Teldoos, Vlugkraal Dams) North-WestMooi River (Boskop and Klerkskraal Dams) Klein Marico River (Klein Marico-Poort Dam) Marico River (Marico Bosveld and Kromellen- Boog Dams) Elands River (Lindleyspoort Dam) Schoonspruit (Elandskuil and Rietspruit Dams) Sterkstroom River (Buffelspoort Dam) LimpopoSterk River (Doorndraai Dam)

TABLE BELOW GIVES A SUMARY OF STAFF TRANSFER ISSUES PROVINCEWUA / NUMBER OF SECONDMENT COMMENTS Free StateSandvet Modder River Vand Der Kloof (32) Second for 12 months Northern CapeBoegoeberg Kakamas (49)Kakamas no longer willing to take transfer of staff due to the delayus in transfer Western CapeVredendal (35)Nehawu dealing with the issues of transformation before staff transfer to LORWUA

Emerging consensus There is a consensus within the sector of the need to reform and realign water sector institutions fundamentally to ensure sustainable, efficient and effective institutions now and in the future.

Emerging Issues There is a need to develop an institutional framework that clearly defines roles, responsibilities and accountability within the water value chain. Water sector institutions to have sufficient economies of scale inorder to be efficient and have financial resources to employ skilled managers, professional staff and technicians plus ability to raise sufficient capital funds for investment in essential water infrastructure. Need to promote good governance and corporatisation of water sector institutions thereby ensuring separation of policy making, shareholding, and regulation functions. Are we ready for expert based boards?

Emerging Issues Harmony with water systems :Water follow hydrological boundaries. The institutional landscape should have regard for the water systems. Strategic asset management : Water industry is a capital intensive industry requiring substantial investments in the infrastructure.  A whole-of-lifecycle approach is required in effectively managing the large and complex asset base.  Developing competence in strategic asset management is a vital element in the journey to become an efficient and effective water service provider. Benchmarking and publish performance. Financial Incentives: Cost reflective Tariffs. Rationalise and align the number of institutions reporting to the minister inorder to have an effective span of control and viable water institutions Regulation : Publicly owned water institutions require regulation to ensure prices reflect the most efficient service delivery costs and that sufficient investment is made in renewing old infrastructure 22

Proposal1 Make 2 (Inkomati & BOCMA) established CMAs fully functional Delegation of functions Transfer of staff Change role of DWA regions-Regulation?? New functions to migrate from DWA regions to CMAs by end of March 2010 Review CMA business plan for 2011/12 Start discussing revenue, tariffs –trading account Task Team :2 Regional Heads, 2 Chief executives + IO by end of March

Proposal 2 Cautiously proceed with establishment of priority CMAs Criteria :  Gazetted CMAs Crocodile West Marico, Mvoti-Mzimkhulu Usuthu-Mhlathuse, Thukela Olifants Doorn, Gouritz.  Proto CMA readiness  WRM challenges  Institutional capacity  Stakeholder participation 24

Merge gazetted CMAs as per IR Business Case report GouritzBreede WC South Coast Olifants/ Doorn Berg WC West Coast

Proposal continued Inkomati Usutu- Mlhatuze Nkomati /Usutu/ Pongola Thukela Mvoti 2 Umzimk ulu KZN Rivers Croco dile(W) & Marico Limpopo

High Priority in terms of water resources management challenges and economic development Upper Vaal Middle/ Lower Vaal Vaal Luvuvhu Olifants

28 Mzimvubu 2 Keiskama Fish 2 Tulukama EC Coastal Upper Orange Lower Orange Orange Should start in two years time

29

Proposal 3 Make Proto-CMAs functional and ready Develop proto- CMA strategies for each proto CMA (update ISPs) Create functional governance structure for each proto-CMA to include water users(to discuss the form & nature and guidelines) Each proto-CMA to have its own business plan to be known to water users with effect from 01 April Head of proto-cma (Regional Head) to report and account to water users in the region. 30

31

Proposal 4 Intensify Transformation of Irrigation Boards & water user Associations Transformation Score Card –to be finalised and launched before end of March. Regions targets on irrigation boards transformation by end of January Task Team with SAAFWUA 32

Proposal 5 Finalise roles & responsibilities between regions and national Establishment Governance Compliance Protocol for submission of documents. Document on Rules of engagement to be circulated for comments-(Task Team)??? 33

Proposal 6 Staff Transfer Regional task teams to be revived. National Task Team is functioning. Change management support currently negotiated through contract. Regional targets to be set. 34

Conclusions Develop detailed understanding of our various stakeholders’ needs Differentiate ourselves through the way we do business - provide excellent services, with strong local identity Develop reputation as a value for money provider of top quality services Never forget the importance of water quality, public health, environment Be recognized as a leading national player

Conclusions Create a business where the best people want to work and develop Provide the means for employees to develop their skills and capabilities actively Reward individual and team contributions Create the atmosphere for performance Communicate and share lessons

37 Conclusions; Leadership Sometimes the best leadership is allowing others to take the lead! DO’sDON’T’s Guiding / influencingAutocratic / dictatorial Shared responsibilitySole responsibility Enabling / informingCards kept to chest Listening but decisiveOne way – my way Recognising othersTaking the kudos Best for the wholeMe & my organisation Taking actionAll talk

“We are on track but we have mountains to climb” 39