1. STRATEGIC FRAMEWORK FOR WATER SERVICES
Presentation to Parliamentary Portfolio Committee on Water Affairs & Forestry
18 February 2004

2. Outline of presentation
Background
Process to get to the Strategic Framework
Document Structure
Policy highlights and issues
Challenges identified by SALGA
Way Forward

3. Background
More than 11 million, including 9 million rural people served by all spheres of government since 1994 with access to a safe water supply : substantial achievement.
Sanitation high priority and increasing speed of delivery.
Efficient services essential for economic growth and poverty eradication.

4. Total population : 46.2million
Water Supply Perspective (Figures based on Census 2001 updated to March 2003)
Standpipes further than 200m + boreholes
Unacceptable
River, pool,
dam, stream
Standpipes less than 200m
Water in house or in yard
28.3 m
(61.3%)
6.7 m
(14.5%)
6.2 m
(13.4%)
5 m
(10,8%)
Total population : 46.2million
5 m
(10,8%)
Note : These figures reflect access to infrastructure, not necessarily effective services e.g water quality, flow & sustainability
11.2 m
(24,2%) .
17.9 m
(38,7%)

5. Total population : 46.2million
Sanitation Perspective (Figures based on Census 2001 updated to March 2003)
Unacceptable
None, pit latrine, buckets, chemical (1.8 m buckets)
Flush toilet (connected to sewer systems or septic tank)
VIP
24 m
51.9%
4.1m
8.9%
18.1m
39.2%
Total population : 46.2million
18.1 m
(39.2%)
Note : These figures reflect access to infrastructure, not necessarily effective services.
22.2 m
(48%)

6. Process to develop the Strategic Framework
“Issues and options” document and consultation thereon: April 02-June 02
Draft ‘White Paper”: Sept 02
Second round of consultation
Review with Core Group (DWAF, SALGA, SAAWU, DPLG, NT): Jan - May 2003
Inputs Minister and final edits: Jul - Aug 03
Approved by Cabinet as Strategic Framework: 17 Sept 03
Now official national water services policy

7. Style of document 10 year vision for sector (not only DWAF)
Comprehensive framework (replaces 1994 White Paper)
Summary of key policies whilst leaving out “guidelines" & detail

8. Document structure Preface by minister & sector overview Introduction
Sector vision, goals and targets
Institutional framework
Financial framework
Planning framework
National norms and standards
Regulatory framework
Support & monitoring framework
Conclusion

9. Policy Highlights 1: Targets
Bold step: targets for sector with dates and responsibilities
Developmental targets - Examples:
Access to basic services / 2010
Free basic services / 2010
Transfers
Sector Invest 0.75% of GDP annually
Institutional reform – 2013 (strategy 2004)
DWAF reports annually

10. Policy Highlights 2: Mandates
Ensuring access, planning, regulation and provision.
Policy,regulation,support and information management.
Regional WSP’s for bulk regulated by DWAF and retail WSP’s (regulated by contract with WSA)
Municipalities:
DWAF:
Water Boards:

11. Policy Highlights 3: Institutional Reform
Agreement that reform is required
Objectives, principles and approach defined
Reform process set out
national leadership
bottom-up approach
case by case
national institutional reform strategy + finance for implementation
Diverse outcomes likely

12. Policy Highlights 4: Finances
Decentralised fiscal framework
MIG (sector specific conditions)
Tariff policy & setting (use of ES)
Credit control
Financial sustainability

13. Policy Highlights 5: Principles in credit control
Compassion
Communication
Fair and transparent process
Warning
Restricting and not disconnecting, except if tampering or system failure

14. Policy Highlights 6: Planning
Importance of planning (IDP and WSDP)
Integrate water services with water resource planning
Water conservation and water demand management strategy as part of WSDP
Plan for ongoing operations and maintenance

15. Policy Highlights 7: Stepping up the ladder
Provision of basic services most important priority but is only the first step up the ladder (RDP)
Over time water services authorities are expected to provide intermediate and higher levels of service:
wherever practical and
provided it is financially viable and sustainable to do so
Sector to develop financial instruments with funding agencies and National Treasury
Review definition of basic services

16. Policy Highlights 9: Regulation
Importance of planning (IDP and WSDP)
Local regulation by WSA
National regulatory oversight
Format of national regulator to be investigated
Regulation of regional WSPs
Regulatory strategy being developed

17. Policy Highlights 10 Mechanisms of Support
Capacity building grant
Knowledge networks (peer to peer)
Advisory service (expertise on demand)
Guidelines and tools (practical)
Strategic support initiatives
Skills development (education, training and capacity building)

18. STRATEGIC FRAMEWORK FOR WATER SERVICES
Challenges identified by SALGA

19. Institutional Reform and Section 78
Need to proceed with institutional reform to reduce costs and increase accountability
Section 78 assessments are ahead of the institutional reform process due to legal requirements
Defining the scope of the section 78 assessments are a challenge when regional options could be considered, therefore such areas require specific focus.
Ensuring sufficient capacity to undertake & support these activities remain a challenge

20. Transfer Challenges
Joint implementation of the transfer policy remains a challenge, particularly with regard to:
agreement on the condition of assets to be transferred
the number of staff to be transferred
the financial impact on the recipient municipality
“Joint Response Team” approach in dealing with the implementation challenges is welcomed

21. Sanitation
Meeting sanitation targets are a major challenge in the current policy environment
Increased capital and operating funds required to meet the sanitation challenge, including free basic sanitation
DWAF needs to clearly define basic sanitation for dense (often urban) areas. Current policy only caters for less dense (rural) areas, in the form of a VIP per household. This option is not viable in most dense settlements

22. Free basic services policy
The message reaching communities is 'free services' and not 'free basic services'
Communication needs to be improved to prevent negative (financial) impacts on municipalities

23. Planning
Planning initiatives of municipalities, national and provincial government need to be properly aligned.
Also relevant to water services & resource planning.
Linking planning activities of the departments of housing, education and health to municipal planning requires more effort.

24. Support
DWAF support needs to be closely integrated with the work being done by SALGA and must be targeted to those municipalities most in need of assistance.
Continued cooperation between SALGA & DWAF through the Masibambane (sector) approach should ensure optimal use of resources

25. STRATEGIC FRAMEWORK FOR WATER SERVICES
WAY FORWARD
DWAF SALGA Collaboration

26. Way Forward: Implementation
DWAF and SALGA ‘Communication Roll Out’ to ensure municipalities and sector understand implications of the SFWS
SFWS is a framework – much of the detail is still to be clarified
SALGA / DWAF Summit of October 2003 resulted in Declaration to cooperate and jointly implement the SFWS
All further work to be done through sector task teams

27. Implementation (2) Institutional Reform Principles of Reform
Sector task team established (SALGA, DWAF, NT, DPLG, SAAWU)
Consultant support in place
Strategy development to be completed by June 2004
Principles of Reform
WSA’s are responsible
WSP’s accountable to WSA
Bottom-up process
National government will lead process
Incremental and case-by-case
Existing and sound business case
Accountability of regional WSPs to WSA
Transform, rather than establish new institutions

28. Implementation (3) Regulatory Strategy development initiated
Review of sector legislation scoping initiated (amendments to WS Act)
Strategic Assessment of “State of Sector” reporting initiated
Developing a format and scoping of report

29. Implementation (4) Institutional Support Strategy being initiated
Funding
MIG: sector conditions set (next slide)
Investment modeling to be done at provincial & municipal level
Measuring target achievement complex
Sector collaboration
Great achievements, but much still to be done, particularly in some provinces
Capacity in sector still a challenge

30. MIG Conditional Grant – cross cutting and sector specific conditions
For basic services only (backlog & the poor)
DWAF and SALGA engaged with other sector stakeholders to set policy and procedures
DWAF concerned about capacity of some municipalities to implement MIG
DWAF must support LG on implementation of projects through MIG

31. Transfer Challenges
The target for transfer of all DWAF owned schemes is June 2005
Currently slightly behind schedule
Possible special arrangements where municipalities are weak in terms of administrative and / or technical capacity
Limpopo a particular challenge

32. Transfer Progress
11 Transfer Agreements signed (8 municipalities and 3 water boards)
Negotiations at advanced stage with 21 municipalities (likely to be concluded before 2003/4 financial year end). This represents 34% of agreements.
48 schemes have been transferred
Total asset value transferred is R648.5m
316 staff transferred
R25.9m has been transferred to municipalities and water boards for refurbishment

33. Water is Life !
Sanitation is Dignity !