1. The Municipal Conundrum.......
Jay Bhagwan
Water Research Commission

2. South Africa at tipping point
4-May-19
File name
Problem Statement
South Africa at tipping point
What is required of municipalities to comply with
What need to be achieved
What is appropriate and necessary
To ensure an acceptable and reliable level of performance and compliance

3. Three key aspects Technical : Non revenue water (NRW)
Financial : Tariffs, cost recovery and expenditure
Social : People’s perceptions and expectations

4. Non- Revenue Water
Non-revenue water
Revenue water
Based on 132 data sets of a potential 237 municipalities

5. % NRW Distribution / Municipal Category

6. Estimated Cost of NRW

7. Tariffs and cost recovery
Municipal Tariffs
Bulk water tariffs
Bulk water coasts as a proportion of retail

8. Summary of Water Tariffs
Raw water costs contributes minimally to total water costs.
Raw water costs formed between 11% to 14% of total water costs
Bulk water costs form a significant portion to total water costs.
These ranged between 43% and 47%.
Retail costs also added a significant portion to total water costs.
These were between 39% and 44% over the period
The water services components of the value chain comprised between 86% and 89% of total water costs over the period

9. Social Protests (services delivery....) source www.mlgi.org.za
In the first 8 months of 2012 there were more protests (208) than in any other year.
The first 8 months of 2012 averaged protests per month had the second highest average of monthly protests with 17.
From there was an average of protests per month.

10. Provincial Distribution

11. Violence

12. Grievances

13. Access for all – what will it take to achieve?
uThukela R2.5 billion
uMzinyathi R2.8 billion
Zululand R3.2 billion
uThungulu R3.6 billion
Ilembe R3.2 billion
Ugu R4.0 billion
Sisonke R2.6 billion
Total R21.9 billion
MTEF MIG for above is R4.3 billion i.e. approx 15 years required