1. BRIEFING THE PORTFOLIO COMMITTEE ON WATER AND SANITATION ON
THE TRANSFORMATION OF IRRIGATION BOARDS (Irrigation Board)
Presented by:
Mr D Mashitisho
Director-General
20 June 2017
PRESENTATION TITLE
Presented by:
Name Surname
Directorate
Date

2. Acronyms Abbreviation Definition CCAW
Co-ordinating Committee for Agricultural Water
CMA
Catchment Management Agency
CMS
Catchment Management Strategy
DAFF
Department of Agriculture, Forestry and Fisheries
DRDLR
Department of Rural Development and Land Reform
DWS
Department of Water and Sanitation
HDIs
Historically Disadvantage Individuals
IWRM
Integrated Water Resource Management
IBs
Irrigation Boards
NDP
National Development Plan
NWA
National Water Act
NWRS
National Water Resource Strategy
O/M
Operations and Maintenance
RPF
Poor Resource Farmers
RWU
Regional Water Utilities
WMA
Water Management Area
WSA
Water Services Authority
WUA
Water User Association
WUL
Water User Licence

3. Contents
Section A Background to the existing status quo and transformation challenges
Section B
Approved policy positions & principles to reform Irrigation boards and water user associations
SECTION C Departmental support programme to achieve transformation objectives

4. Section A Background to the existing status quo and transformation challenges

5. Background to Irrigation boards
The irrigation boards originated from Irrigation and Conservation of Water Act, Act 8 of 1912, which was repealed and replaced by Water Act No 54 of 1956.
Sec 79 (2) An irrigation board shall be a body corporate, capable of suing and being sued in its corporate name and of performing all such acts as are necessary for or incidental to the carrying out of its duties or the performance of its functions
According to sec 89 some of their powers and functions were;
to protect the sources of the water of any public stream in the said irrigation district;
to prevent the waste of the water of any public stream in the said district;
to prevent the leakage or flow of any public water from the surface into subterranean channels;
to prevent any unlawful abstraction or storage of public water etc.
to exercise general supervision over all public streams within the irrigation district
Water Act 54 of promoted riparian rights system and vested most of the rights to water resources in commercial farmers in irrigation districts.
Formed primarily in former irrigation districts– primary purpose was to support farming among poor white farmers
Received govt. support in terms of infrastructure and start-up loans

6. Background to Water User Associations
The 1956 Act was replaced by the National Water Act (Act 36 of 1998), which promotes transformation within the water sector and as such, all irrigation boards were to be transformed to new institutions called Water User Associations (Water User Associations)
Water User Associations are established in terms of Chapter 8 of the National Water Act, (Act No 36 of 1998),
To enable better participation by historically disadvantaged individuals in the management of water resource
To provide a basis for local integrated management of water resources (benefit sharing )
But sec 98 (2)...an irrigation boards continues to exist until it is declared to be a Water User Association in terms of subsection (6) or until it is disestablished in terms of the law by or under which it was established, which law must, for the purpose of such disestablishment, be regarded as not having been repealed by this Act.
Sub sec 6 -If the Minister accepts the proposal, the Minister must by notice in the Gazette - declare the board to be a water user association, give it a name, determine its area of operation and approve its constitution.

7. Historical institutional transformation

8. Govt water Schemes & map
The 1956 Act still continued to protect riparian rights and also established govt. control areas where Irrigation Boards and later Water User Associations actively participated in the control of water resources.

9. Local WRM and its strategic benefit
Change the way land and water resources are managed, so that their long-term productivity is optimised and sustained
Support implementation of water allocation reform through water use monitoring and curb illegal water use
to the economic and social well-being of all within the shared water resource environment
Ensure a safe and high-quality supply of agricultural product through and integrated support plan form various departments
Safeguard the livelihood s and well-being of farmers, farm workers and their families
Ensure efficient water resource management & maintain healthy, functioning agricultural ecosystems
Facilitate implementation of an Integrated support from various Departments plans
Support the plan to mitigate and adapt to climate change at a local level.

10. Transformation: Components
Access to Water
Access to Land
Capacity & skills
Equal
Opportunity

11. Key Transformation Challenges
A) Water Resources availability
Over allocation of resources – Verification and validation
Most canals reached carrying capacity – additional demands difficult to serve
Efficiencies vs. aging infrastructure – huge water losses
Competing demands for agriculture and domestic food nexus
B) Extent of Liability on infrastructure
Some irrigation boards and privately financed infrastructure- have huge loans and debts -previously government funded infrastructure
C) Fees and levies
Affordability challenges for emerging farmers (repossession of land)

12. Key Transformation Challenges (cont…)
D) Disconnect between water reforms, land reforms & support to emerging farmers (programmes not aligned)
Lack of synergy between DWS, Agriculture, rural development and Land Affairs at programme level
E) Capacity of Emerging farmers (HDIs)
Lack of financial capacity to procure inputs and implements (do not have access to loans)
Lack of technical and business know-how
F) Governance issues
Composition of Board dependant on water allocation ( land and water)
Historically disadvantaged are not organised
CMA required for regulation

13. Specific challenges for HDIs
Not all beneficiaries of the land reform process aspire to be farmers - different support strategies are needed for different types of beneficiaries.
The difficulty is accessing capital to finance operations – most historically disadvantaged individuals do not qualify for financial support from banks & end up leasing the land back to commercial farmers
Credit risk and potential for loss of land due to failure to service debt arising from charges from Irrigation Boards and Water User Associations
Lack of skills transfer from mentorship/strategic partner arrangements

14. Section B
Approved policy positions & principles to reform Irrigation Boards and Water User Associations

15. Context towards policy review
Water Act No 54 of 1956
National Water Act, 1998 (Act No 36 of 1998)
National Development Plan
National Policy Review
Institutional Reforms and Realignment (IRR)
Act promoted riparian rights system
vested most of the rights to water resources in commercial farmers only.
NWA brought about the reform on the water rights
Minister is the custodian of the Nation water resources
Regional Water Utilities, CMAs and National Water Resource Agency supported.
The Minister will specify date by which Water User Associations and Irrigation Boards (Irrigation Boards) will cease to exist
IRR cabinet approval in 2013.
Cabinet Lekgotla February 2015 Resolutions (Presidential Review Committee)
In February 2015, Cabinet Lekgotla endorsed recommendations on the strengthening of SOE. The recommendations are focused on :
RATIONALISATION creating an INSTITUTIONAL FRAMEWORK that will support the advancement of the NATIONAL DEVELOPMENT PLAN OUTCOMES

16. Approved Policy Position December 2013
CMA in consultation with Minister, will determine the water institutional structures required to manage water within their jurisdiction
The Minister will specify date by which Water User Associations and Irrigation Boards will cease to exist
the appropriate functions related to a state-owned schemes being delegated to a CMA or Regional Water Utility
These necessitate a due diligence process to be conducted

17. The intentions of policy position
To enforce the DWS role as the regulator
Development of Local Water Resource Management Institutions to be accountable to CMAs
To ensure that water is distrIrrigation Boarduted equitably
To ensure that water resources are protected, used, conserved, managed and controlled.
To delegate water resource management to regional or catchment level and to involve local communities, within the framework of the NWRS2.
To promote employment, redress, poverty eradication, skills development, and employment creation.

18. Principles to reform Water User Associations and IB irrigation Boards Irrigation Boards
Developmental & integrated water resource management:
Shared water source / resource / course requires shared management of all users, with specific focus on redress in SA
Focus is use / utilization / management of source / resource / course, NOT only infrastructure ownership and management
Transformation agenda – high priority in whatever restructuring process
Representation in management structures
Equitable, just and fair allocation of water resources to emerging farmers (must be inclusive to women, youth and disability)
Adequate support and training for poor resource farmers
Provision of adequate Infrastructure
Review of resource poor farmers policy
Efficient local water resource management
Local water resource management functions will still be required
Address administrative challenges
Voluntary membership
Poor participation (from other users (inclusive participation)
Clearly defined roles and responsibilities
Clearly define and separate functions between catchment management functions, regional water utilities, Infrastructure Agency and Local Water Resource Institution
Division between regulatory and operational functions
Responsibility for Infrastructure (National, Regional &Local)
DWS to provide proper oversight and strategic leadership

19. Key issues to consider moving forward
Infrastructure investment – incentives to leverage investment (explore partnerships)
Share Lessons learned and expertise from the institutions that are operating well
Local water resources management institutions are required at the local level
Need to define structure and functions of the local water resource management institution
Each institution should be assessed based on case by case basis. Functionality, financial, infrastructure, and etc. issues
Use specifically developed indicators or criteria to determine whether to disestablish/ restructure or realign
Ensure business continuity

20. Intersectoral Interventions- Department of Water and Sanitation, Agriculture & Rural Development
Strengthen inter-sectoral planning between Land, Water & Agricultural sector to effectively address transformation objectives
Develop pro-active design of a land-water strategy that would accelerate agrarian reform.
Develop an Integrated funding model for Historically Disadvantaged Individuals
Support effective water use i.e. ‘doing the right thing’ to conserve water i.e. making use of the right kind of irrigation and agricultural practices to use as little water as possible.
Support water efficiency i.e., ‘doing things the right way’- specific kind of irrigation or agricultural technique, applying the technique correctly

21. Roadmap and Timelines
Parallel activities
Identify and finalise list of schemes to be transferred.
Classification of schemes according to National, Regional and Local.
DWS & CMAs to demarcate the scope, functional area, and membership for all Institutions
Strengthen Capacity of CMAs to oversee water management institutions
Minister approval for Roadmap December 2016
Conduct Case by Case due diligence April 2017 to March 2018
Review legislation July
Realigning the Local institutions April 2017 to March 2018 1 2 3 4

22. SECTION C Departmental support programme to achieve transformation objectives

23. Water allocation Reform

24. WATER ALLOCATION REFORM (WAR) WHY DO WE NEED A WATER ALLOCATION REFORM PROGRAMME?
To promote proactive action for redress
To achieve sustainable and equitable development
To support poverty eradication & economic development
To help balance resource protection, equity and growth
Allocation of water can have severe economic, political, social and ecological consequences
Determine water must re-allocated– minimise the impacts on the economy
Ensure that water is used productively and responsblyy
Support development in an ecologically sustainable way
WHAT ARE THE UNDERLYING CONSIDERATIONS?

25. Approaches to achieve equity in terms of water allocation reform strategy
Water allocation reform strategic mechanisms to achieve the set targets:
Set-Asides
General authorizations ( very limiting )
Strategic alignment with other Government initiatives
Compulsory Licensing
Partnerships
Development support
Water-based business enterprises

26. Summary of numbers of historically disadvantaged individuals supported through the Resource Poor Farmers support programme
Province
No of Projects
No of Farmers supported
RPF support programme
Budget spent NC 4 67
Water use charges, Bulk water infrastructure R NW 1 21
water use charges R FS 5 29
Water use charge
Bulk water distribution R WC
155 R EC
353 R MP 14
605
Water use charges, Bulk water distribution infrastructure R
KZN 3
195 R LP 8 30
Bulk water distribution infrastructure
R2 381 468
Total 45
1455 R

27. Summary of licences/water use issued to Historically disadvantaged individuals in the last 4 yrs
Number
Volume
Year
Number of Non-HDI
Number of HDIs
Total
Volume non-HDIs
Volume HDIs
2013/14
165 92
257
183.98Mm3/a
20.46 Mm3/a
204.46Mm3/a
2014/15
109 44
153
278.31Mm3/a
9.03 Mm3/a
287.34Mm3/a
2015/16
476
205
681
191.89Mm3/a
12.30Mm3/a
204.19Mm3/a
2016/17
235 98
333
194.54Mm3/a
64.22Mm3/a
258.76Mm3/a
985
439
1424
848.72Mm3/a
106.01Mm3/a
954.75Mm3/a

28. Compulsory licensing & water user authorisations
Compulsory licensing has since been completed in Mhlathuze, Jan Dissels and Tosca Catchments.
Upon completion of the on-going validation and verification of Existing legal use and the remaining Catchments will also be considered for compulsory licensing.

29. THANK YOU