1. PORTFOLIO COMMITTEE PRESENTATION 17/10/2006
Mhlathuze Water Contribution Towards Rural Development in Water, Sanitation & Forestry!
BY: LAWRENCE SITHOLE
17 OCTOBER 2006.

2. MHLATHUZE WATER [MW] SERVICES FOCUS
To Open MW Services to Serve ALL 41/2 WSA’s in its area.
To Provide Business Solutions RATHER Services to WSA’s.
To Promote Economic Growth & Reduce Poverty.

3. MW AS A WATER BOARD NEEDS TO BALANCE:
A Healthy Triple Bottom Line
Contribution Towards Government Objectives.
Social Responsibility.
Fulfilling Developmental Mandates.
As Such MW Does Not Look At Water Service Provisioning In Isolation!

4. HOW IS MHLATHUZE WATER CONTRIBUTING TOWARDS RURAL DEVELOPMENT?
The Three (3) Water Utilities in KZN:
Thukela Water, Umgeni Water & Mhlathuze Water:
In Answering This Fundamental Question Have Come Up With:
“KZN Bulk Regional Water Concept”
[KZN BRWS]

5. Coming Out The KZN Water Summit!
The KZN Bulk Regional Water Concept was formally adopted at the KZN Water Summit in September 2005.
The 3 Water Utilities [WU] were tasked with the responsibility to ensure the concept receives the buy-in of and is owned by the WSA’s.

6. THE KEY OBJECTIVES OF THE KZN BRWS ARE:
Integrated Solutions On A Regional Scale For Sustainability & Affordability.
Integrating Water Services With Water Resources For Optimal Water Resource Utilisation.
Gearing Private Sector Funds For Augmentation of Central Allocations.

7. THE KEY OBJECTIVES OF THE KZN BRWS ARE (Cont.):
Rationalisation of Fragmented Systems For:
Economies Of Scale
Cost Effectiveness & Affordability
Efficiency
Addressing Backlogs As Augmented Product.
Promote Economic Development – Water to Lead Development.

8. HOW MHLATHUZE WATER CAN ADD VALUE TO WATER SERVICE AUTHORITIES?
Planning Across Municipal Boundaries.
Providing Comprehensive Solutions and Total Package [Bulk, Reticulation, Financing, Operating Model, Appropriate Institutional Arrangements, Unlocking Development Potentials etc.]

9. We can report the following progress:
PROGRESS TO DATE!
Following The Portfolio Committee Visit (July/August 2005), The KZN Water Summit (Sept. 2005) and Presidential Imbizo At Ilembe (Dec 2005) –
We can report the following progress:

10. ILEMBE DISTRICT MUNICIPALITY!
Bulk Regional Scheme Pre-feasibility concluded and Proposal Presented to the Ilembe on 31st May 2006.
Council approval/decision is awaited
The Proposal is By a Partnership Between DBSA, Bigen Africa and Mhlathuze Water.

11. ILEMBE DISTRICT MUNICIPALITY!
The System Covers:
Rural Communities [Maphumulo, Mathonsi & Macambini]
Industrial Nodes [Isithebe, Sappi mills, Tongaat Hullett, Gledhow]
Urban Areas [KwaDukuza, Mandini , Darnall]
Coastal Developments [Thukela Mouth, Zinkwazi Beach, Prince’s Grant, New Guelderland etc]
Integration of 8 WTP into 1 AND 7 Sewerage Plants into 3.

13. Tugela / Mvoti initiative
Project development assistance cont…
Tugela / Mvoti initiative

14. ILEMBE DISTRICT MUNICIPALITY!
The System is Intended:
Unlocking coastal development potential
Address the backlog (rural)
Support housing initiatives
Support Industrial/Commercial growth
Tax / Income base for the Municipality.

15. ILEMBE DISTRICT MUNICIPALITY: Institutional & Financial Arrangements
Capital Injection: R502 Million.
Private Funding:
Government Funding:
Effective Bulk Tariff: R2.54 kl
Ownership & Control by Ilembe DM
Operated by Mhlathuze Water.
R322 Million
R180 Million

16. UMKHANYAKUDE DISTRICT MUNICIPALITY!
Regional Master Plan has been Concluded.
Projects Have Been Identified.
Quantification Still to be Finalised.
Submission Due to be Made to Council.

17. UMKHANYAKUDE DM CONTEXT:
Unemployment figures of 60% - 70%.
Has Water Backlogs of 68%.
Is a Presidential Node.
Has got the 1/3 largest dam in SA.
Economic drivers are Agriculture & Tourism
No water service solutions will be affordable and sustainable anywhere unless there is local capacity to afford and sustain them!

18. WATER SERVICE PROVISIONING CONSTRAINTS
Mkhanyakude Water Services cannot be Addressed in Isolation from Area’s Economic Capacity.
The development in Mkhanyakude Region is held back by non-availability of water!
MW PHILOSOPHY:
“Water should never be constraints to development BUT a catalyst!”
THAT SHOULD BE A DEPARTURE POINT FOR EVERY ROLEPLAYER IN THE SECTOR!

19. INTEGRATED APPROACH TO WATER SERVICES!
For sustainability & Effectiveness.
For bankability & Affordability.
Local Capacity to afford services.
Facilitate Capital Investment. [ASGISA]

20. PONGOLAPOORT DAM POTENTIAL!
Mhlathuze Water Re-Opening Pongolapoort Dam Argument!
The Dam was completed in [Never Filled till 1984]
Main Objective = ha of Sugar Cane under Irrigation.
It has NOT Achieved this!
It has NOT benefited Communities in this Region!

21. Lack of Water for Irrigation.
MKHANYAKUDE ECONOMY?
Agriculture [Led By Sugar Industry].
Tourism & Associated SMALL Industries.
MAJOR CONSTRAINT:
Lack of Water for Irrigation.

22. PERCEIVED LACK OF WATER!
System Capacity: 847 Mil.m3 p.a.
Less: Allocations Mil.m3 p.a.
Reserve
Irrigation
Flood Releases
Afforestration etc
Water Available Mil.m3 p.a.

23. MHLATHUZE WATER RECOMMENDATIONS MADE TO DWAF!
Make MORE Water Available for irrigation & economy [50% allocated to environment (422 { } of the 847)]
Because of drought Flood releases have been +150 Mil.m3 p.a. {Allocate 150 instead of 250}
Earnest Requests to DWAF!

24. ECONOMIC OPPORTUNITIES
Sugar Industry: Tons p.a.: R1.2 Billion investment: to Jobs.: R600 Million Annual T/O: Houses
Holiday Resort & Golf Estate: Jobs: R3.2 Billion Investment.: 600 High Cost Housing.: Hotels & Holiday Accommodation.

25. ECONOMIC OPPORTUNITIES
Other Agricultural Activities: Cassawa: Starch Project [500 Jobs : R60 Annual T/O]
Citrus Project: No Details!
Hydro-Power: No Water Consumption: Will generate much needed ENERGY & CASH for the Region.

26. OUTCOMES OF EXTENDED CABINET LEKGOTLA
July 06; Provinces were challenged:
To identify concrete interventions to gear (ratchet) up economic growth towards 6%.
To identify measures to stimulate the economy while inspiring & unifying all our people behind a vision of shared growth. [Asgi-SA]
To identify and recommend strategic economic infrastructure projects in their PGDS with a “massification” effect.

27. OUTCOMES OF EXTENDED CABINET LEKGOTLA
For KZN Makhathini Flats was mentioned as the possible project for KZN!
ALL Provinces mentioned the following as one of their frustrations:
That:
“Provided DWAF Co-operates!”
Very serious statement for the SECTOR!

28. MINISTER’S FRUSTRATION!
At the Annual Women in Water Sanitation and Forestry Awards [11 August 2006] the Minister stated that:
“One of her pressing frustrations was the fact that she does NOT have water to allocate to the poor and for economic developments”
Again A Serious Political Statement!
IT WAS AFTER THESE SERIOUS STRATEGIC & POLITICAL STATEMENTS TOGETHER WITH THE FUNDAMENTAL NEED TO PROVIDE SUSTAINABLE & AFFORDABLE SOLUTIONS TO WSA’s THAT MW DECIDED TO OPEN THESE ARGUMENTS WITH DWAF MANAGEMENT!

29. UNLOCKING PONGOLAPOORT DAM POTENTIAL!
Unlocking These Opportunities will make providing Water Services at Mkhanyakude much more Achievable, Affordable & Sustainable!
AND
MW is Striving to Contribute towards Improving the Lives of the People of the Region in a integrated, empowering and sustainable manner.

30. WATER SERVICES REGIONAL OPTION
Primary raw water sources
Pongola Poort dam
Umfolozi River [Unreliable]
Hluhluwe dam [Unreliable]
Lake Sibaya [Environmentally Irresponsible]
LEAVES ONE OPTION!
COMBINATION!

31. KEY FEATURE OF THE OPTION MHLATHUZE IS LOOKING AT!
Key Features
Distribution infrastructure development – A total solution – No gaps:
Upgrade dysfunctional internal networks
New distribution networks
Implementation to be concurrent to bulk supply
Old treatment infrastructure will be decommissioned progressively
The existing Shemula water treatment works to be phased out
Appropriate Operation & Maintenance strategies to be developed

33. UTHUNGULU & ZULULAND DISTRICT MUNICIPALITIES
Except for Mandlakazi Scheme integration with Mkhanyakude System – Little has been done in Zululand DM.
Uthungulu DM Concept is due for concluding soon:
The Southern part: Gingindlovu, Matigulu, Nyoni etc = Ilembe System.
The Northern part: South of Mfolozi = Mkhanyakude System.
Central-Eastern part: Mbonambi, Ntambanani = Mhlathuze City Systems.
Separate Solution is Needed for Nkandla, Eshowe & Mthonjaneni!

34. CONCLUSION
It is believed that these initiatives will contribute towards Rural Developments through:
Integrated Service Provisioning
Facilitating Economic Developments
Gearing in Private Resources
Providing Affordable, Sustainable & Real Solutions.
THANK YOU!