1. WATER ALLOCATION REFORM (WAR) Portfolio Committee on Water and Environmental Affairs 16 April 2013

2. PURPOSE To appraise the PCWEA on the WAR program and provide progress to date

3. LEGISLATIVE FRAMEWORK The Constitution, 1996 Fundamental Principles & Objectives for a New South African Water Law, 1996 National Water Policy, 1997 National Water Resource Strategy, First Edition, 2004 National Water Act, 1998 Implications for Water Allocation Reform

4. POLICY OBJECTIVES The overarching objective of these National Water Policies is to achieve – ► Equity - in access to water resources and services, the use of water and the benefits from water use ► Sustainability - through measures to protect water resources to ensure indefinite availability for human use ► Efficiency – in the way all water is used Equity, sustainability and efficiency are all intimately related to Water Allocation Reform

5. WHY DO WE NEED A PROGRAMME FOR WATER ALLOCATION REFORM? 1) To promote proactive action for redress 2) To achieve sustainable and equitable development 3) To support poverty eradication & economic development 4) To help balance resource protection, equity and growth

6. WHAT ARE THE UNDERLYING CONSIDERATIONS? 1)The way we allocate water can have severe economic, political, social and ecological consequences 2)Where we must re-allocate water – minimise the impacts on the economy 3)We must make sure that everyone has the capacity to use the water productively and responsibly 4)We must support development – but in an ecologically sustainable way

7. IMPLEMENTATION OF WAR There are two options of implementing WAR and are depending on the water status of the catchment WHERE WATER IS AVAILABLE the water use licensing process is being implemented taking into account the redress requirements (sec. 27 of the NWA) WHERE WATER IS NOT AVAILABLE Compulsory licensing process is undertaken (sec. 43 – 48 of the NWA)

8. APROACHES TO ACHIEVE EQUITY IN TERMS OF WAR STRATEGY The Water Allocation Reform Strategy (WARS) proposes strategic mechanisms to achieve the set targets: Set-Asides General authorizations ( very limiting ) Strategic alignment with other national initiatives Compulsory Licensing Partnerships Review of the current WAR strategy

9. WHAT IS COMPULSORY LICENSING ? COMPULSORY LICENSING IS A PROCESS WHERE YOU PUT ALL THE WATER BACK

10. THEN DIVIDE THE REST UP MORE FAIRLY IN THE BEST INTERESTS OF ALL SOUTH AFRICANS (locally, regionally & nationally) SET ASIDE SOME FOR THE RESERVE, STRATEGIC AND INTERNATIONAL REQUIREMENTS WHAT IS COMPULSORY LICENSING?

11. COMPULSORY LICENSING CAN BE USED TO [43(1)]:-  ACHIEVE FAIR ALLOCATION IN STRESSED CATCHMENTS  REVIEW CURRENT WATER USE TO ACHIEVE EQUITY  PROMOTE THE BENEFICIAL USE OF WATER  FACILITATE MANAGEMENT AND PROTECT QUALITY IT ALSO:  LEVELS THE PLAYING FIELD (benefits for all)  LOOKS AT THE BIGGER PICTURE (aligns water allocations and other planning processes)  FOCUSES RESOURCES ON ACHIEVING EQUITY, AND  GIVES GREATER SECURITY TO EXISTING USERS. WHY DO COMPULSORY LICENSING?

12. PROCESS FOR COMPULSORY LICENSING… Call for Compulsory Licensing All existing and potential new users are invited to apply for water use licences [section 43(2)] (60 day notice period) Proposed Allocation Schedule 60 day notice period [(section 45(2)] Preliminary Allocation Schedule section 46(1) Final Allocation Schedule section 47(1) Issue Water Use Licenses according to the schedule - section 47(2) 12

13. 13 PROGRESS ON COMPULSORY LICENSING CL has been initiated in 3 catchment namely Mhlathuze ( KZN) Tosca ( Northern Cape) Jan Dissel ( Western Cape) To date : Tosca has been completed Jan Dissel Preliminary Allocation Schedule gazetted Mhlathuze Proposed Allocation Schedule gazetted

14. SUMMARY OF TOSCA ALLOCATION WATER USE SECTORHDINON HDITOTAL (WATER) % HDI PER SECTOR Cubic Metres IRRIGATION2 616 5816 983 8279 600 40828% MUNICIPAL 340 870 N/A 340 870100%

15. SUMMARY OF JAN DISSEL ALLOCATION WATER USE SECTORHDINON HDITOTAL (WATER) % HDI PER SECTOR Cubic Metres IRRIGATION2 422 2381 763 1854 185 42258% MUNICIPAL AND INDUSTRIAL 373 565 71 155 444 72084% STORAGE590 608 8501 199 44049%

16. SUMMARY OF MHLATHUZE WATER USE SECTORHDINON HDITOTAL (WATER) % HDI PER SECTOR Cubic Metres IRRIGATION29 433 84373 609 635103 043 47829% FORESTRY 34052 19448 53500 63%

17. WATER APPLICATIONS AND ALLOCATIONS URBAN / MUNICIPAL & INDUSTRIAL MHLATHUZE

18. INCORPORATION OF WAR INTO LOCAL GOVERNMENT PLANNING(IDP) The Evaluation Framework for Municipal IDP developed under the Municipal Systems Act No.32 of 2000, requires that sector departments(provincial and national): Assess all the adopted (or draft) IDPs; Participate in the development of IDPs and adoption of IDPs; and Provide names of relevant senior officials to participate in the IDP assessment sessions.

19. INCORPORATION OF WAR INTO LOCAL GOVERNMENT PLANNING(IDP) CONT... In line with these requirements, the DWA undertook to: Ensure that the national Evaluation Framework for Revised IDP incorporates water to be allocated for economic use and the balance between economic sectors. Participate in national and provincial planning and IDP forums which coordinates the IDP process(development and implementation) through COGTA. Provide written comments/input into the approved IDP, with a specific focus in ensuring that water issues are taken into account when doing project plans. These activities are ongoing and through this platform DWA is able to identify and support those projects with quick wins in achieving WAR targets.

20. WATER SET ASIDE WATER MANAGEMENT AREA AMOUNT OF WATER SET ASIDE (IN HECTARES OF IRRIGATION) AMOUNT OF WATER SET ASIDE (IN 000m/ 3 ) AMOUNT ALLOCATED 7. UTHUKELA1 0003 000350 ha 1050 000 m3 10. LOWER VAAL(NC) 6 600 (Taung Irrigation Scheme) 60 324 3900 ha allocated and the remaining 2700 ha is awaiting the infrastructure revitalisation that will improve capacity for uptake. 13. UPPER ORANGE(FS) 3 000 (FS) 1000 (EC) 26 000 9 000 1089.1 ha allocated(COMBINED) 14. LOWER ORANGE(NC)4 00070 050 2601 ha allocated. Current applications recommended by CCAW and the 1000 ha reserved for BOSRA development already exceed the 4000ha. 15. FISH TO TSITSIKAMMA(Lower Sundays) 4000 ha38 000No recorded uptake TOTAL OF WATER SET ASIDE IN WMAs 15 270178 374

21. PROGRESS ON WATER USE AUTHORISED TO HDIs

22. SUMMARY OF LICENCES ISSUED TO HDI’s AND BREAKDOWN PER REGION AND VOLUME REGIONAL OFFICESTOTALS ECFSGPKZNLPMPNCNWWC Total Licences Issued 48321815414704253846651493374284 Total Licences Issued to HDI’s 11411210512991930211518 Total Volume Allocated (m3/a) 262096832 216110536. 2 1581232270 387919574. 4 113143730 314473381. 4 1411893900 256131369. 8 136849244. 5 4 679 850 838.3 HDI’s Volume(m3/ a) 742796669235201018000506020535804022267830312565788.9208103107500072 760 907.9 HDI’s Allocated Volume Percentage (%) 2,8%3,2%0,06%1,3%31,6%0,8% 0,08%0,8%1.6%

23. SUMMARY OF LICENCES ISSUED TO HDI’s AND BREAKDOWN PER SECTOR AND VOLUME SECTORS AGRICULTUREMININGFORESTRY LOCAL GOVERNMENTINDUSTRYTOTALS Total Licences Issued 17973121553435187 4284 Total Licences Issued to HDI's 32726116212 1518 Allocation/Volume per sector 1190279118m 3 /a1509598460m 3 /a 17983.022 HECTARES797124202.8m 3 /a929897051m 3 /a Allocation/Volume per sector for HDI's 66277998m 3 /a34016609m 3 /a 7784.7 HECTARES0258000m 3 /a

24. ISSUES/ CHALLENGES ASSOCIATED WITH THE IMPLEMENTATION OF WAR  Disproportionately large number of authorisations still in the hands of Whites;  Most water use applications being received from whites without any demonstration/indications of how they are to contribute to redress and equity;  Water resources in some catchments already depleted;  Difficulties experienced by blacks to participate in water resource management and to use water for productive purposes.

25. PROPOSED SOLUTIONS TO WAR CHALLENGES  Promote awareness to HDI on access to water for economic development;  Prioritizing validation and verification of water use so as to release water for equity;  Strengthening cooperative governance with (DRDLR; DAFF) other departments to ensure water footprint in HDIs related projects;  Legislative review to allow improved implementation of the program

26. CONCLUSION Water Allocation Reform (WAR) is a complex and costly exercise; Its success depends on cooperative governance arrangements and political support;