1. Draft National Water Resources Strategy BUSA submission to Portfolio Committee on Water and Environment October 2012

2. Water - a global challenge requiring local solutions the world has some serious water problems:the world has some serious water problems: –growing demand, competition and backlog in basic water and sanitation services –persistent water pollution and ecosystem deterioration and climate change concerns –inequitable benefit sharing water is a key issue on the business sustainability agendawater is a key issue on the business sustainability agenda

3. Preferred approach to revision Review of current strategyReview of current strategy Identification of implementation challengesIdentification of implementation challenges Development of a revised approach based on reviewDevelopment of a revised approach based on review Inclusion of clearly articulated high level objectivesInclusion of clearly articulated high level objectives Objectives supported by implementation instruments, which may be legislation, sub strategies, action plans etcObjectives supported by implementation instruments, which may be legislation, sub strategies, action plans etc Support measuresSupport measures

4. Water sector challenges Security of supplySecurity of supply Complex regulatory regime which is not achieving required objectivesComplex regulatory regime which is not achieving required objectives Availability and mobilisation of necessary resourcesAvailability and mobilisation of necessary resources Inadequate maintenance and operation of infrastructureInadequate maintenance and operation of infrastructure Lack of clarity on functional responsibility in some areasLack of clarity on functional responsibility in some areas Private sector participationPrivate sector participation Monitoring and evaluationMonitoring and evaluation

5. Security of supply Universal access to basic water supplies must be prioritised and a clear action plan to achieve the required coverage by 2014 must be included in the strategy.Universal access to basic water supplies must be prioritised and a clear action plan to achieve the required coverage by 2014 must be included in the strategy. Water for productive purposes needs to be aligned with sectoral development strategies.Water for productive purposes needs to be aligned with sectoral development strategies. Water Demand Management is also an important intervention in stretching current use of the resource.Water Demand Management is also an important intervention in stretching current use of the resource.

6. Security of supply (2) Demand side management Should be pursued much more aggressively, particularly in the water supply systems, where water losses remain unacceptably high.Should be pursued much more aggressively, particularly in the water supply systems, where water losses remain unacceptably high. Engagement with the private sector on possible joint initiatives on water lossesEngagement with the private sector on possible joint initiatives on water losses Industry sectors are currently working with the Department on developing audit protocols to be applied in industrial facilities.Industry sectors are currently working with the Department on developing audit protocols to be applied in industrial facilities.

7. Complex regulatory regime Reference to regulatory reform welcomedReference to regulatory reform welcomed No indication that there is common ground on the challenges.No indication that there is common ground on the challenges. Business priorities:Business priorities: –Consideration of a nationally harmonised approach to licensing –Review of licensing processes –Introduction of a tracking system for license applications –Review of the approach to development of Receiving Water Quality Objectives Enforcement of requirementsEnforcement of requirements

8. Availability and mobilisation of necessary resources Resource requirements should be included.Resource requirements should be included. Activities should be prioritisedActivities should be prioritised It is considered impossible to undertake all the proposed actions in the five year period without a reprioritisation of resourcesIt is considered impossible to undertake all the proposed actions in the five year period without a reprioritisation of resources Business recognises the need for a more appropriate funding model for the sector.Business recognises the need for a more appropriate funding model for the sector.

9. Inadequate maintenance and operation of infrastructure Long standing recognition of the challenge of water lossLong standing recognition of the challenge of water loss Possible joint initiatives with the private sector should be investigated along the lines of demand response interventions in electricity.Possible joint initiatives with the private sector should be investigated along the lines of demand response interventions in electricity. Lack of maintenance, particularly at municipal level, is impacting negatively on security of supplyLack of maintenance, particularly at municipal level, is impacting negatively on security of supply Should compensation be available for loss of production as a result?Should compensation be available for loss of production as a result?

10. Lack of clarity on functional responsibility in some areas The strategy refers to numerous institutional arrangementsThe strategy refers to numerous institutional arrangements Sound business case should be developed for establishment of institutionsSound business case should be developed for establishment of institutions Functional responsibility needs to be clearly defined, particularly between DWA and new institutions.Functional responsibility needs to be clearly defined, particularly between DWA and new institutions. Water Tribunal needs to be reviewed to ensure functionality.Water Tribunal needs to be reviewed to ensure functionality.

11. Private sector participation Reference to partnership with the private sector is welcomedReference to partnership with the private sector is welcomed Practical action to achieve it should be includedPractical action to achieve it should be included

12. Monitoring and evaluation Reference to information management welcomedReference to information management welcomed A clear plan to implement a management information system that allows all monitoring information to be stored and used is considered a top priorityA clear plan to implement a management information system that allows all monitoring information to be stored and used is considered a top priority Implementation of any action in the strategy needs to be monitored and evaluated.Implementation of any action in the strategy needs to be monitored and evaluated. Progress with implementation of the strategy should be included in the annual report of the Department.Progress with implementation of the strategy should be included in the annual report of the Department.

13. Conclusions Draft requires better organisationDraft requires better organisation Have clear quantitative indicators of performance with action plansHave clear quantitative indicators of performance with action plans Priorities from a business perspectivePriorities from a business perspective –Universal access to water and sanitation –Use of water to support job creation –Regulatory reform –Establishment of catchment management agencies