Water and the New Growth Path - DWA Response - 16 February 2011 Fred van Zyl

Purpose of Presentation To present DWA response to the New Growth Path(NGP) To obtain a shared understanding on the role of Water in growth & development To present existing & new activities supporting job creation To highlight challenges, risks and success factors To obtain strategic input for DWA and the water sector NGP support strategy 2

1. Understanding The New Growth Path: Approach & Principles to Guide Sector Engagement Create 5 million new jobs over the next 10 years (target large scale areas for employment creation) Create sustainable employment & decent work Targeting all people, particularly the poor Phased development over short, medium and long-term (in the medium-term focus on sectors able to create employment on large-scale) Collectively achieve more jobs (inter-sector partnerships, coordinated around core priorities vs disbursed action) Fine-tune macro and micro policies to support more equitable and employment-intensive growth through 3

NGP Job Drivers 4 Infrastructure Main economic sectors: Agriculture & agro-processing Mining and beneficiation Manufacturing (IPAP2) Tourism / other services Spatial opportunities: Rural development African regional development Social capital: The social economy The public sector New economies: Green economy Knowledge economy Look for employment opportunities in “job drivers” and implement policies to take advantage of them

Important Focus Areas for DWA Infrastructure Main Economic Sector – Agriculture & agro-processing – Mining and beneficiation – Manufacturing (IPAP2) – Tourism / other services Spatial context (rural development + spatial footprint of water) Smart solutions & technologies (Greening) 5

Main Performance Indicators Jobs (number and quality) Growth (growth rate, labour intensity and composition) Equity (lower income and poverty) Environmental outcomes 6

2. DWA Response DWA is a committed partner and supports the NGP The core objective of water management is to support social & economic development – This is reflected in the National Water Act and the National Water Resource Strategy – Water sector activities are developed and implemented within this objective The support activities + associated principles of the NGP (e.g. Job creation) are reflected in DWA’s strategic plan 7

NGP Job Drivers: Water Performance Areas Water support can be grouped into 4 performance areas: 8 1 Integrated water resource planning, availability & allocation activities 2 Job creation through water infrastructure development and management 3 Job creation through water resource management programmes 4 Job creation through water governance

3. Understanding the Role of Water in Growth & Development

Social Economic Environment 1. Role of Water in Growth & Development Water Earth Air Energy National Growth and Development 1 “Man”- power Money Material Machines Natural Resources Enabling Resources

1.1 Water Strategic Outcome Partnerships Effective inter-sector partnerships Implies integrated planning, strategies & targets (also reflected in IPAP2, NGP) Integrated & aligned action and implementation Extended & aligned enabling resources Requires coordination & leadership (clarity on Roles) Shared knowledge base Respect spatial, business, sector and environmental values and principles Requires resource alignment 11

Social Economic Environment 1.2 Sector Issues & Conditions Water Earth Air Energy National Growth and Development “Man”- power Money Material Machines Natural Resources Enabling Resources 2

1.2 Sector Issues & Conditions Water is a scarce and strategic resource Water is a variable resource in space & time Water quality is a priority action & concern This implies: – improved water use efficiency (non-negotiable) – water resource protection (non-negotiable) – Negotiated water allocations (subject to availability, potential, existing vs new, reform, etc) – Allocations are subject to conditions – Risk management (floods & droughts) New development requires lead-time (multi-year) Water not only a resource but also a habitat (environment, social and economic development, recreation & tourism) 13

Social Economic Environment 1.3 Business Alignment Water Earth Air Energy National Growth and Development “Man”- power Money Material Machines Natural Resources Enabling Resources 3 Cooperative Governance 4

1.3 Business Alignment Water must be high on all agendas (essential element of business) Water contribution requires integrated outcomes planning Water contribution requires aligned resourcing & management National Water Resource Strategy (NWRS-2) is a pivotal framework for integrated water management – NWRS-2 is aligned with Outcomes & Development Strategies – NWRS-2 is aligning with Sector and Resource Strategies (e.g. energy, food) Water Resource Management demands sector partnerships and alignment High priority and success factor: Cooperative and integrated governance (mining development, food security, growth centres) NB! NB! Integrated Programme Leadership and Coordination 15

Conclusion DWA core business is aligned with NGP job driver 2 The core contribution is : – To make water available for socio-economic development – To make water habitats available for socio-econ development – Various programmes and activities support these Water in itself is not a major job creator; Job opportunities are within integrated sector partnership programmes 16

4. DWA Programmes & Activities per Performance Area Water support can be grouped into 4 performance areas: 17 1 Integrated water resource planning, availability & allocation activities 2 Job creation through water infrastructure development and management 3 Job creation through water resource management programmes 4 Job creation through water governance

Social Economic Environment 4. DWA Oppertunities Water Earth Air Energy National Growth and Development “Man”- power Money Material Machines Natural Resources Enabling Resources Governance 4 Integrated Programmes 1 Infrastructure 2 3

1: Water resource allocation activities (in support of NGP job driver-2) Existing programmes: New resource developments (benefitting mining, domestic, industrial, agriculture, environment and recreation) Water allocation and water allocation reform Universal access to water services: – Basic services programme – Bulk infrastructure – Water boards Water for food security (commercial & resource-poor farmers) 19

Existing DWA WR allocation projects & action 20 Performance AreaApplicationProjects (over 3yr MTEF) New resource developments Supporting sector job creation 7 new water augmentation schemes 16 desalination plants 167 new boreholes Water allocation Supporting sector job creation Water Allocation Reform LETSEMA programme (42 jobs) 219 licenses for resource poor farmers Universal access to water services Supporting WSA basic services 60 RBIG projects supporting WSA jobs Water for food resource-poor farmers household food security rainwater harvesting 4500 subsidies to resource-poor farmers 7 irrigation schemes rehabilitated (3 yrs) 21,000 additional rainwater harvest tanks

1: Water resource allocation activities (in support of NGP job driver-2 and IPAP2 *) Enabling programmes: Extended integrated planning (outcomes, energy, food-security, land reform and rural development, economic growth) National Water Resource Strategy (NWRS-2 strategic alignment) 9 new water reconciliation strategies Additional programmes Utilization of surplus water in existing schemes * Broadened use (multi-purpose dams, recreation & tourism) * e.g. Inyaka dam recreation & tourism 21

2: Water Infrastructure Development and Management (in support of NGP job driver-1) Existing programmes Raw water infrastructure development (beneficiaries: domestic, energy, irrigation, industrial and environment) Regional bulk infrastructure & transfers Refurbishment of water treatment works Infrastructure asset management Additional programmes & opportunities Water management monitoring and gauging stations Hydropower projects Refurbishment of water treatment works * Infrastructure asset management * 22 create jobs in municipalities through regulation

Existing DWA Infrastructure projects & actions 23 Performance AreaApplicationProjects (over 3yr MTEF) Raw water infrastructure development domestic energy irrigation industry mining 7 new schemes R21,8b 1400 jobs per year (+ LHWP, Letaba in outer years) Regional bulk infrastructure Water boards & WSAs for RBIP 60 schemes R4,56b (2 years) 9202 jobs per year (+31 additional schemes in planning) Refurbishment of water services schemes improve transferred municipal schemes 164 schemes to be refurbished (3yrs) Refurbishment of water treatment works (incl.O&M) DWA regulatory interventions Water board support actions Sustainable management 50 WTW 70 WWTW (3 yrs) Raw Water Infrastructure asset management dam safety rehabilitation water conveyance infra 25 dams to be refurbished 28 water conveyance systems to be upgraded

DWA & Water Institutions Infrastructure projects & jobs 24 PROJECTDEPARTMENT /SOE INVESTMENT (2011/12 & 2012/13) (R million) Est. No. of Jobs per year WATER AUGMENTATIONDWA WATER AUGMENTATIONTCTA DWA WATER SERVICES SCHEMESDWA REHABILITATION & REFURBISHMENTDWA RBIGLOCAL GOVT WATER BOARDS *WATER BOARDS TOTAL * Water User Associations to be included

3: Water Resource Operational Management Programmes Existing programmes Water use efficiency Working for water River health programme Additional programmes & opportunities Water resource protection / water quality management Water systems management Water re-use Disaster management 25

DWA water management projects & action 26 Performance AreaApplicationProjects (over 3yr MTEF) Water use efficiency * Affecting all sectors To be extended WAR on water leaks (youth dev. program) 65 municipalities supported for WCDM (per year) Working for water 28,400 jobs per year (8900ha land) River health programme 13 river system improvements Adopt-a-river programme

4: Water Governance Activities (1) (activities mostly facilitating / low job opportunity) Existing programmes Legislative review NWRS-2 (pivotal role for growth & development) Sector leadership and governance Institutional review and alignment Water resources planning & reconciliation Water regulation Water tariffs & funding model Catchment management (3 CMAs to be established) 27

4: Water Governance Activities (2) (activities mostly facilitating / low job opportunity) Extended water business management Moving into a new era of “Smart” water management (water + infrastructure + operations + business processes) Inter-sector planning and governance Extended and shared business knowledge base Spatial referencing and context Sector skills development programme 28

Water support for NGP priorities Infrastructure / public investment – Maintain high level of public investment in line with Growth Commission (5% - 7% of GDP) – Jobs in construction √ – Overall economic efficiency, equity and emissions √ Agricultural value chain – New small holder schemes √ – A fundamental rethink of land reform √ – Commercial agriculture as central to food security and exports √ – Substantial up-scaling in community and school gardens – proposing a pilot through EU fund √ – Agro-processing based in IPAP2 √ 29

Water support for NGP priorities (cont…) Mining value chain – Increase mining prospecting, development and production √ Manufacturing – Projects in IPAP2 target substantial employment creation – Link to regional integration and production of inputs for local and regional infrastructure Tourism and high-level services – Tourism strategy to continue to upgrade services and skills and ensure improved infrastructure and more affordable transport √ Green economy – IRP2* foresees a third of new energy from renewables – how to make sure it happens AND develop new industries? √ 30 * [Energy] Integrated resource plan

31 Challenges, issues and risks (1) Water’s role as strategic resource is not understood and appreciated Facilitation of integrated programmes (shared strategy, actions & leadership) Adequate resourcing and inter-sectoral resource alignment Water availability & variability (space and time) = water security

32 Challenges, issues and risks (2) Sector principles and conditions: – Water footprint – Environmental & pollution risks – Water use protocol (effective use) – (NWRS and IPAP2) – Appropriate norms & standards and associated quality control (IPAP2) – Inappropriate water use (e.g. irrigated bio-fuels) – Appropriate water allocation & extended criteria (value chain, socio-economic importance) – Improved licensing process (negotiation process, fair decisions, within reasonable timeframes)

33 Challenges, issues and risks (3) Infrastructure development time frames Issue of temporary vs permanent jobs (e.g. construction jobs) Skill needs of job opportunities and appropriate employment

34 The Way Forward (1) The primary job contribution by the water sector is through the economic sectors (e.g. integrated programmes) with associated implications - NGP driver 2 Strategic opportunities identified to support growth & development (in line with IPAP2, e.g. multi-use of dams in support of tourism, recreation, aquaculture, agri-industry) – NGP driver 2 A major job contributor is through water infrastructure development (23,000 jobs per annum, note that most are interim jobs for 1-4 yrs) – NGP driver 1

35 The Way Forward (2) In the operational water management areas interim job opportunities exist through critical interventions such as water use efficiency, WWTW, water quality, asset management, etc. Job numbers in these areas are limited. Most require higher skills with associated training requirements. Labour-intensive practices to be applied Stronger integration between sector strategies must be facilitated Dedicated resourcing and programmes for governance activities Re-thinking the values of water (extended values & value chain) Formal alignment of the water strategies with outcomes and macro strategies is facilitated through the NWRS-2

Water to be high on the agenda for all decision-making ! 36