Response to the National Planning Commission Diagnostic Report by Department of Water Affairs Presentation to the Portfolio Committee on Water and Environment 13 September 2011

1. Purpose of Presentation to Portfolio Committee To present DWA’s response to the Diagnostic Overview as released by the National Planning Commission (NPC) To present and highlight specific issues with regards to the findings in the report To share some key water planning messages that should be incorporated in future NPC reports towards the 2030 vision. 2

It is about the “Diagnostic Overview” and Water It is about the “Diagnostic Overview” and Water 3

DWA acknowledges and fully supports the Commission in terms of its business and functions DWA takes note of the planned actions and deliverables of the NPC DWA appreciates and supports the prioritizing of our water resources as a key issue 2. DWA Response- General Statement 4

Diagnostic Overview and Water Aspects of water and water resources are covered in various sections: 1.Access to water services and associated challenges are reflected in the introduction and sections 4,5 & 7 (spatial challenges and public service performance) 2.Water Infrastructure and planning are reflected in Section 3 (Inadequate infrastructure) 3.Water as a critical and essential resource is reflected in Section 4 (Natural resources, addressing climate change) 5

Response to key aspects 6

Access to water services and associated challenges 2.1 Access to water services and associated challenges (Introduction, sections 5 & 7) DWA appreciates the acknowledgement of the significant progress made in terms access to water as well as the importance and impact of such services DWA support the principle to identify and address weaknesses and challenges in delivery DWA appreciates and supports the need to urgently address specific issues such as skills, maintenance of infrastructure and poor economic/financial management DWA supports the need to address organisational stability, leadership, accountability, effectiveness and clarity on roles and responsibilities 7

2.2 Inadequate Infrastructure (Section 3) DWA appreciates the acknowledgement that water management plays an important role in and impacts on social and economic activities DWA appreciates the acknowledgement of the role and importance of national water resource planning The need and principle to timely translate identified solutions into action is supported. To facilitate such delivery the Department has initiated the development of a water investment framework and strategy. It must however be stated that delays in implementation can in many cases be ascribed to inadequate integrated planning and inadequate financing and not only to poor organizing. 8

Inadequate Infrastructure (2) (Section 3) With regards to the “delay in producing the National Water Resource Strategy 2” the Department acknowledge the concern and confirms that this issue is receiving the highest attention. The fact that this issue is raised under the “inadequate infrastructure” section however creates the impression that the role and purpose of the National Water Resource Strategy as “the” national water management framework is not properly understood. To relate the delay in producing the strategy to inadequate infrastructure is supported at all. 9

Inadequate Infrastructure (3) (Section 3) The principle that infrastructure is not just about bricks and mortar but also about people, maintenance and operation of complicated systems is fully supported and is currently viewed as such. It is also agreed that water management and associated infrastructure development requires a regional perspective and approach and appropriate institutional arrangements, which is how we currently approach it. 10

Specific comments 1 NPC – “… the national resource planning process has identified the supply needs and management alternatives …” DWA made presentations to the NPC about the planning work being done by the Department – statement above acknowledges this work 11

Specific comments 2 NPC – “While the national resource planning process has identified the supply needs and management alternatives, in an increasing number of cases this knowledge is not being translated into timely action” DWA has created Strategy Steering Committees for big systems to assist with implementation of recommendations We have also resorted to utilising TCTA more, for bigger projects 12

Strategy Steering Committees Members from all institutions Functioning of SSC is improving all the time as process develops Don’t have executive powers as committees and only make recommendations to “implementing” institutions The SSCs need strengthening Implementing Institutions must take the necessary decisions (DWA included) 13

Specific comments 3 NPC – “Given the country’s low savings ratio, capital is relatively scarce. South Africa has to be careful about what and how it builds, and what risks it takes. Making the correct decisions will require a level of institutional coordination between government and state-owned enterprises that has yet to be achieved. In addition, providing effective guidance through policy and regulation to support the financing, delivery and maintenance of infrastructure requires sound and effective institutions and leadership. Infrastructure is not just about bricks and mortar; it is about people and the systems involved to plan, design, build, maintain and operate complicated and expensive systems over a long period of time.” DWA – see next slide 14

Specific comments 4 DWA is developing a Consolidated Water Investment Plan that will assist in difficult decisions on how to spend limited financial resources Strengthening of local government is crucial to ensure proper management and maintenance of water infrastructure DWA has initated a special project: Institutional Restructuring and Re-alignment process. DWA has adopted the lifecycle and value chain approach 15

2.3 SA’s growth path is highly resource-intensive (Section 4) The principle that South Africa’s resources are challenged is confirmed and supported. The challenge however will occur and even more if all relevant parties don’t act appropriately. The acknowledgement of the importance of water but also it’s scarcity and potential impact on growth and development is appreciated and fully supported The need to improve water management including effective use and resource protection, is non negotiable The importance to address climate change is supported and is incorporated into DWA business approach, hence we are developing the National Water Resources Strategy 2. 16

Specific comments NPC – “Moreover, many of South Africa’s challenges, such as managing water and ecosystems, reducing the effects of climate change, and developing infrastructure (road, rail, water, energy and broadband) require both a regional perspective and regional initiatives.” DWA – Planning already pointed out the relationship between food and water and the potential to grow food in neighbouring countries, while using scarce water in SA for high value use 17

2.4 Important cross-cutting elements and reflections The need to address water management in an integrated manner with social and economic sectors within a sustainable environmental framework is fully supported This includes spatial planning and alignment. The issue of integrated programme coordination and leadership responsibilities needs to be addressed The role of water and water services in various social, economic and environmental strategies and programmes is acknowledged(centrality of water): – Addressing the poor – Addressing public health (access to and quality of water) – Job creation – Agriculture 18

Specific comments NPC – “To answer these questions, it will be necessary to have a coherent vision of the role of agriculture. Based on the experience of other countries, South Africa’s agricultural sector could provide substantial livelihoods for more people than it does today. But does South Africa have the capacity, the will and even the desire to do this? Or have we already made the “agricultural transition” that, in other countries, has seen the number of people engaged in agriculture shrink dramatically? DWA – link between agriculture and availability of water already mentioned earlier, must be emphasised 19

Specific comments NPC – “Recent data suggests that in addition to processes of rural-urban migration, there is considerable mobility within rural areas with the expansion and densification of rural informal settlements. In some former homeland areas, there is an emerging trend for “rural” populations to concentrate along transport corridors. What infrastructure could improve basic livelihoods by enhancing the economic potential of rural areas? Should basic household infrastructure be combined with roads, access to water and irrigation services, improved extension services and complementary social infrastructure to support agriculture or should it rather focus on the emerging “corridors of opportunity”?” (Section 5) DWA – A clear national policy on where infrastructure should be provided will greatly assist in focusing water supply However, water resource limitations must be acknowledged and incorporated into this planning 20

Specific comments NPC – “But the solution does not lie in complete centralisation or decentralisation. Rather, it lies in strengthening the planning responsibilities of municipal government, to ensure that national and provincial government’s sect oral infrastructure initiatives are aligned with municipal plans. The capacity of municipalities to plan effectively is a significant challenge that needs to be addressed, supported by the efforts of national and provincial government.” (Section 5) DWA – in full support of this assessment 21

Regional and municipal planning DWA is working with provincial governments to mainstream water into provincial development planning which includes amongst others: – The provision of baseline water resources information to inform provincial choices on development opportunities as articulated in Provincial Growth and Development Strategies (PGDS); – Development of province-specific water sector strategies supported by province-wide infrastructure master plans; – Establishment of provincial intergovernmental and collaborative forums as joint forums for planning, coordination and integration. 22

2.4 Important cross-cutting elements and reflections (2) Addressing the following aspects (also impacting on water management) is fully supported (sections 7 & 8): – Skills development and capacity building – Funding and financial management – Accountability and authority structures (Clarity on roles and responsibilities) – Corruption – Improved governance and performance – Need for effective and good leadership – of water) – Job creation 23

Specific response:The skills challenge DWA agrees that skills is a serious challenge- also applies to the water sector DWA has set up a Learning Academy - to fast track graduates in engineering & scarce skills-provision of training programmes; career pathing and mentoring Training is provided for staff of DWA schemes that have been transferred to Local Government DWA will be running a Councillor development programme targeted at 166 Councillors DWA in collaboration with the LGSETA is running a training programme for process controllers. A Water Leadership Group skills task team has worked closely with DWA to develop the capacity building chapter of the National Water Resources Strategy II. Framework programme for research, education and training in the water sector (FETWATER) Phase 3 to focus on key priority training needs in the water sector 24

Supporting water services delivery at municipal level The DWA provides technical and advisory support to municipalities to ensure that water services are provided to communities. Key intervention for 2011/12 financial year include the following: – Supporting 76 municipalities to improve compliance with Water Quality Standards – Supporting 73 municipalities to improve compliance with Wastewater Quality Standards – Support 10 municipalities (score < than 30% with improved Blue Drop score) – Supporting 15 municipalities (score < than 30% improved Green Drop score) – Supporting 40 municipalities to align their Water Services Development Plans (WSDPs) to the Integrated Development Plans (IDPs) – Supporting 40 municipalities to implement community infrastructure projects – Supporting 40 municipalities to rehabilitate their waste water treatment facilities – Refurbished 51 transferred water schemes 25

The key message and issue 26

NPC summary of situation “Water resources are another constraint. South Africa is the30th driest country in the world and the “intensity” of South Africa’s water use, at 31 percent of the available resource, is high by world standards, far greater than other countries in the region. As water use approaches 40 percent of average annual availability, South Africa will face a binding water constraint. Already, although there is still a surplus of water in the country as a whole, there are deficits in many regions and an extensive infrastructure network is needed to store and transport water between and within river basins. As a result of climate change, parts of the country are expected to become dryer while rainfall variability, which is already high, may be aggravated. Water demands will increase as communities and their economies develop and living standards rise and it will become more difficult and expensive to meet domestic needs and supply water to agriculture and industries. As well as building new infrastructure to increase supplies and reuse more water, action is also needed to improve water resource management, promote more efficient municipal, agricultural and industrial usage and protect the resource from pollution. Implementation of these reforms is proving to be challenging, given the diverse and complex nature of the country’s water resources and their use.” 27

Key messages from All Town Studies NEED to focus on improved management The largest portion of immediate problems is associated with poor management: – No metering – WSAs have no idea how much water is used or wasted – Large wastage of water evident – Per capita use much too high – Free water provided far above indigent level obligations – Poor cost recovery- refer to 2011 Household Survey by STATS SA – Consider incentives for efficient water use – Lack of proper maintenance and skilled operators – Technical competency low Groundwater a very important resource for towns 28

Water resource situation- a DWA planning summary perspective Comprehensive presentation made to PC on 3 August 2011 based on NWRS 1, Reconciliation Strategies and All Town Studies Short summary of main messages given below These summary comments will be part of the NWRS2 Comments to be fed to NPC to put into the 2030 Vision report 29

DWA key strategic messages (1) Water management is complex Solutions entail much more than just addition of dams WC/WDM extremely important in all areas – SA can not afford to waste water, anywhere, anytime Groundwater important, currently under-valued and under-used Huge potential for increase in re-use, at coast but also in inland systems i.e. Vaal River system 30

DWA key strategic messages (2) Limited opportunity for more dams Dams and inter-basin transfers inevitable in certain areas – very expensive Desalination – Small scale seawater desalination already being done – Mine water desalination important – Large scale seawater desalination imminent Possible to make more water available anywhere in the country in the future, but at steeply rising costs Zambezi water too costly 31

Key strategic messages (3) Water for increase in irrigation in SA very limited Moving some unused allocated water from irrigation to other use must be considered in certain areas Food could be grown by SADC countries and traded to SA – regional perspective important Catchment rehabilitation, clearing of invasive alien plants and rainwater harvesting must be undertaken to optimise rainfall (both at catchment and household level) 32

Summary of DWA Planning perspective Water management is complex Is SA going to run out of water? If we use water more efficiently we can go a long way with the current developed water resources (water services infrastructure roll-out remains a challenge) We can also make more water available as needed, but it must be accepted that it is going to cost more and more as we go into the future Therefore, to meet the future, it is critical that plans to reconcile water supply and demand are developed and timeously implemented. This means coordinated action at all levels of the water sector. Action is needed by all parties involved! 33

Closing comments In line with the current review of the National Water Resource Strategy (NWRS) it is important to note: – The critical status of the water situation in SA – the critical role of water in the economy and social development – The need to promote the centrality of water in development decision making – The need for advanced and smart water management (its more than just infrastructure) 34

Thank you 35