KOMATI BASIN WATER AUTHORITY KOBWA (A WORKING SHARED WATERCOURSE INSTITUTION) Mr. F.A Mntambo and Dr. B.L Mwaka Commissioner and Board Chairman, KOBWA 1

SUMMARY OF THE PRESENTATION Legal context South African Legislation Treaties Establishment of KOBWA Need for Bi-national Executive Arrangement Mandate Progress on implementation Infrastructure development Relocation Operational Funding Capital Operational Benefits Future challenges and options 2

LEGAL FRAMEWORK UN Convention on Non-navigational uses of International Waters Article 3(3) says, “Watercourse States may enter into one or more agreements, hereinafter referred to as ‘watercourse Agreements’, which apply and adjust the provisions of the present Convention to the characteristics and uses of a particular international watercourse or part thereof.” SADC PROTOCOL ON SHARED WATERCOURSES Article 3(5) “State Parties undertake to pursue and establish close cooperation with regard to the study and execution of all projects likely to have an effect on the regime of the shared watercourse.” Article 5(3)(a) “Watercourse States undertake to establish appropriate institutions such as watercourse commissions, water authorities or Boards.” 3

NATIONAL WATER ACT (1998) Article 102, “The Minister may, in consultation with Cabinet, by notice in Gazette, establish a body to implement any international agreement entered into between South African Government and a foreign government relating to (a) investigating, managing, monitoring and protecting water resources; (b) regional cooperation on water resources; (c) acquiring, constructing, altering, operating and maintaining a waterwork or (d) the allocation, use and supply of water.” TREATIES Signed in 1992 between South Africa & Swaziland: – Joint Water Commission (JWC) Treaty Technical advisor to Parties on matters relating to development and utilisation of water resources of common interest – Treaty on the Development and Utilisation of water resources of the Komati Basin Provide in principle for the joint development of the water resources of the Komati River by South Africa and Swaziland Establishment of KOBWA to implement phase 1 4

MAIN OBJECTIVES OF THE PROJECT To optimise the utilisation of the water resources from the system recognizing the rights of Mozambique To reduce the risk of existing commercial farming by increasing the assurance of water supply Provide water for new development Especially Emerging PDI Farmers Peak power generation using irrigation water THE KOMATI BASIN WATER AUTHOURITY (KOBWA) Rationale for Bi-national Structure Bi-national Project hence for Sovereignty Reasons one Government cannot run it in both Countries Two Dams and Supporting Infrastructure Located in two Different Countries Conjunctive use of the Dams thus increasing System Yield Enables Legal Entity Status in both Countries Enables Harmonization of the Different Government Systems Autonomy and Neutrality Acceptance by Transboundary Stakeholders 5

KOBWA Legal status Established in terms of the Treaty on the Development and Utilization of the Water Resources of the Komati Basin signed in 1992 between the Republic of South Africa and the Kingdom of Swaziland. Legal status in both countries through Government gazettes. Government of South Africa Government of Swaziland JWC 3 Members from each country BOARD (3 Members from each country) Management INSTITUTIONAL AND REPORTING FRAMEWORK KOBWA 6

Design, construction, operation and maintenance of Dams and Accessory Infrastructure – CORE FUNCTION Project finance Facilitating Development and Implementation of operating rules Equitable Water Distribution among Parties Develop decision support systems Implementing Relocation Programs in both Countries (Maguga dam CMP 1998 and Lake Matsamo CMP 2003 / Driekoppies Dam RAP 2004) Environmental monitoring in Project Area Transboundary Stakeholder Consultation Develop and Implement Transboundary Communication Systems in Project Area KOBWA FUNCTIONS: 7

SYSTEM OPERATION Main task – Evaluate hydrology – Decision support systems – Effective water supply rationing – Water resources accounting system – Facilitate communication and discussion Komati Joint Operations Forum (KJOF) MONITORING & TECHNICAL Collect, analyze and store data Disseminate information Quality and quantity of water resources Designs, sets-up, operates and maintain hydro-meteorological and water quality monitoring systems – Static and Real-time 8

RISK & UNCERTAINTY Mapping exposed areas Monitoring and predicting extreme climatological events Early warning systems Emergency procedures Liaison with authorities AQUATIC ECOSYSTEM Monitor water quality Assess compliance Monitor and control Invasive Alien Plants AREA OF OPERATION The current area of Operation Consist of the Komati River Basin up-stream of the Confluence of the Komati and the Crocodile rivers at Komatipoort Komati and Lomati Rivers in South Africa and Swaziland 9

FINANCIALS Driekoppies Dam R/E 450 million Maguga DamR/E 660 million Infrastructure DefR/E 242 million CMP/RAP DD/RSAR/E 141 million DD/SDR/E 51 million MDR/E 244 million Monitoring (CMP/RAP)R/E 5 million Water ManagementR/E 16 million TOTALR/E1 805 million Not funded by the project Hydro-Power Station R/E 190 million Project Capital Cost 10

PROJECT LOAN FUNDING R/E DBSA (Dec 2020) 488,401,000 Nedcor Bank ( Sept 2019) 233,000,000 Gensec Bank (Dec 2016) 165,000,000 Hambros Merchant Bank (Bulk payment Oct 2027) 380,000,000 Rand Merchant Bank (Aug 2019) 380,000,000 TOTAL LOAN FUNDING1,646,401,000 11

PROJECT BENEFITS TO PARTY STATES Increased Utilizable Water Supply by 312-million cubic meters per annum at Higher Assurance Increased Irrigated Land (hectare) SA SD TOTAL (Ha) Existing irrigation New irrigation Increased Productivity of Existing Irrigated Agriculture: US 14,5 million (R/E 102 million) p.a. Value of production on new land US 45,0 million (R/E 315 million) p.a. 12

JOB AND BUSINESS OPPORTUNITIES Employment and Procurement Policy of Regional Preferences Employment: Driekoppies 1993/1997 Max 800 Maguga 1998/2003 Max 1500 Use of local and emerging contactors during construction Community involvement: Project vs. Community savings IMPLEMENTATION OF SUSTAINABLE UTILISATION PLAN KOBWA is assisting in the implementation of sustainable utilisation plans where in South Africa a first expression of interest was advertised for the recreational activities around the dam, which covers among others: Boating and jet skiing Hotels and lodges Bird watching Caravan park Braai areas and picnics Swimming pools etc. Residential A trust for the seven affected communities has been formed and will benefit these communities from the revenue generated by the SUP. It is envisaged that this project will create around 400 permanent employment 13

CHALLENGES Water abstraction measurement in Certain Sections of the River Land claims Ecological Water Requirement Mozambique Involvement and Beneficiation 14

THANK YOU 15