2. Water and sanitation Project: Katanga Project Development of draft Zero Project Scope (12 -20 Dec 2008) High-level resolutions taken at the Steering Committee meting for the Katanga Watsan Project (28 th Nov 08) and operational actions taken at meeting of 2 nd Dec 08): Res 1: that political buy-in by both parties is critical and the process be coordinated by DWAF as (water/sanitatoin)) sector leader with relevant institutions (DBSA, DFA, GP&LG and NEPAD BF) Res 2: that a Scope of Work outline be concluded by Mvd MerweB (APP), DNel (Hatch) and Lmuwila & ASubasuka (DBSA) and finalised after input by JRocha (NBF), RvTonder (SAACE) and WChunett (Turntown). Time frames: Zero Project Scope – 12 Dec 08 (completed) Solicit inputs – 20 Dec (underway) Incorporate input – 9 Jan (underway) Circulate Draft Scope for comments (20 Jan) Present draft Scope (early Febr) Visit DRC multi-discpl team (mid Febr) Present and recommend NBF cross sect- meeting (end Febr) Adoption and define next steps (March 09)

3. Background and conceptually, it is important that any planning be informed by the following: RSA assumed the Chair of SADC during the SADC Summit from 17-18 Aug 08 Prior to this event, RSA Government Cabinet Lekgotla endorsed a strategy for RSA tenure as SADC Chair containing several priorities for RSAs role in the region The NEPAD Pre-summit Conference on Corridor Projects held in Sandton 8 Aug 08 The Corridor that is targeted in this ‘Project Scope’ has been prioritised at the Sandton Head of States meeting The need to identify priority corridors in which support from DTI could be leveraged The DWAF Minister is requesting 3 projects to be implemented during her term (Katanga project strong candidate, meet all requirements) The need to leverage the competency and experience of DTI, DBSA, private sector and key role players in the implementation of the project The need to execute project within the existence of bilateral agreements on provincial (Gauteng/Katanga), national (RSA/DRC) and Inter-state (Corridor) That Council and Ministerial Decision on infrastructure development relating to specific countries (eg. DRC, Angola and Madagascar) continue to guide the prioritisation of some of the projects to be pursued at national level The process must also focus on ‘quick wins’ where early harvest could be achieved, based on circumstances on the ground and not in compromising long-term sustainability.

4. The outline project scope includes the following key areas and serves to: (i) solicit input from the project members; and (ii) build into a comprehensive Scope of Work Slide 5: The service delivery model for Katanga watsan project (as pilot 1), but pilot 2, 3... also to apply. This model considers compliance, performance monitoring, ROI and sustainability Slide 6-7: Learning from the RSA experience - the importance of SWAP approach and PDSUnit – as linked to development in identified corridor Slide 8: Recipient of support is REGIDISO in Katanga (main but not only beneifiary) Slide 9: Economic imperatives and constraints (important to identify upfront) Slide 10-11: Opportunity map and strategic imperatives Slide 12-13: Mapping out process that will ensure engagement of all stakeholders Slide 14-15: Deployment of structures in project workflow model Slide 16-21: PDSU strategic objectives and framework – towards setting up a central Project Delivery Support Unit, to expand as other project join the ‘programme’ Slide 22-26: Scoping outline (implementation, establishment, roll out) Slide 27: What, who, when,.... Slide 28: Deliverables & Closing Slide 90-30: Check and balances as comparing project scope against AfDB and AU requirements

5. WATER SECURITY New alternatives to provide a component of the service delivery function Economic Impact e.g. licensing, pricing, industry, recycling, etc. Resource Management Service Delivery Management Water Utilization Model Infrastructure delivery O&M Dimension Institutional Dimension Formalise appropriate allocation of roles & responsibilities ROI & Sustainability Performance Management Compliance Deon Nel©

6. SWAP Agreed process for harmonization of systems Government- Led process of Donor Coordination Systematic Mechanism for Consultation of beneficiaries Clear & agreed Sector policy And strategy Common Performance Monitoring/ reporting Sector MTEF (all local and External Resources) What is SWAP ? Sector Wide Approach.... an approach and mechanism that has worked well in infrastructure development in RSA, and resulted in meeting MDG targets ahead of target...

7. Conceptualising SWAP and PDSU – the RSA experience shows the importance of : Co-Ordination of funds + (Bankable) Projects that consider TECHNICAL, INSTITUTIONAL, FINANCIAL & ECONOMIC elements across the sector = Sustainable water services PDSUs, aligned with NEPAD development corridors, and applying SWAP will support countries in developing such bankable projects that will allow the flow of donor funds – and the gearing of these donor funds – to deliver sustainable water services towards AND BEYOND the achievement of MDG target 7c SWAP

8. DRAFT SCOPING DOCUMENT Katanga Water & Sanitation Pilot Project

9. Adequate supply of water & sanitation within the Katanga Province Satisfy growing demand from Mining & Industrial Sectors Institutional (capacity) Financial (budgets/revenue) Technical (infrastructure/O&M) EXECUTIVE SUMMARY ECONOMIC IMPERATIVESCONSTRAINTS

10. GENERIC OPPORTUNITY MAP Strategic Imperatives

11. Adequate supply of W&S to Katanga Province Economic Imperative 1 Economic Imperative 2 Satisfy growing demand for water from mining & industrial sectors Public Sector Delivery Model REGIDISO Domestic Customers Poor payment culture Public Entities Huge arrears Industrial Customers Most profitable The Economy

12. Mapping out the project workflow that will engage all stakeholders

13. Engagement Model 1.Political Agenda, goals and objectives confirmed 2.Political Agreements aligned 3.Political Stakeholder’s matrix prepared 4.Project Scoping Objectives agreed 5.Collation of project information 6.Draft Scoping Document Prepared 1.Scope presentation to NBF Steercom 2.Steercom to proceed with procurement 3.Procurement process agreed 4.Engagement with Katanga Counterparts 5.Commence with short term interventions (IMPLEMENTATION PHASE) 6.Develop ToR for PDSU (ESTABLISHMENT PHASE) 7.Project Development (PROJECT ROLL-OUT PHASE)

14. Adopting and deploying available structures to the project workflow model

16. STRATEGIC OBJECTIVE OF THE PDSU Strengthen regional & continental partnerships across the entire water sector stakeholder spectrum focussing on: Private sector involvement Mobilising resources & partnerships Develop strategic partnerships Have an oversight role with sector initiatives, best practices, civil society & training. Strategic fundamentals must underpin the UN MDG report

17. The PDSU’s Strategic Framework: 1.Develop strategy with strategic enablers. 2.It has to be a multi-pronged approach. 3.Multi-pronged approach must create [development] opportunities. For the creation of opportunities, there is a strong need for financing, donor partnerships, and strong governance. 3 must translate into infrastructure upgrades. 4 must translate into economic growth. 5 must translate into hunger alleviation. 6 must translate into poverty alleviation. 7 must translate into MDG’s.

21. PDSU Main driver Project 1 MOU Delivery Channels & Support Sector Representatives Political Mandate Project 3Project 2 Project Sponsors Regional Focus on Delivery

22. DRAFT SCOPING OUTLINE IMPLEMENTATION PHASE Element A1 – CAPACITY BUILDING (institutional framework) – ZAR 2.0m –Commercial audit (costs, revenue, profitability) –Commercial Gap analysis –Organisational audit (strategy, structure, skills, governance, stakeholders) –Organisational Gap analysis –Development of skills matrix –Develop training template –Optimise structure –Redefine strategy –Develop Performance Measurement template

23. DRAFT SCOPING OUTLINE IMPLEMENTATION PHASE Element A2 – EQUIPMENT SUPPLY (technical) – ZAR 2.0m –Water & Sanitation asset audit –Define procurement schedule –Build asset register –Training needs and requirements fed through to element A1 –Develop performance measurement criteria Element A3 – O&M NEEDS ASSESSMENT (service delivery) – ZAR 1.5m –Operational audit –Operational Gap analysis –Water & Sanitation Quality compliance audit –Quality Gap analysis –Training needs and requirements fed through to element A1 –Develop performance measurement criteria –Expert skills necessary for A1-A3 legal, financial, organisational, CRM, business processes, change management

24. DRAFT SCOPING OUTLINE ESTABLISHMENT PHASE Element B1 – ESTABLISHMENT OF PDSU (technical) – ZAR 12.0m –Refine ToR from base concept –Develop strategic role –Outline operational parameters –Equip with operational tool set (to make MDG delivery happen) –Political empowerment (direct report) –Change management programme –Performance measurement framework (balanced scorecard) –Prepare resource recruitment plan –Expert skills necessary for B1 Sector specialisation, business process and workflow, project management, quality assurance, environmental sustainability, regulatory, political acumen

25. DRAFT SCOPING OUTLINE PROJECT ROLL-OUT PHASE Element C1 – WATER (project development) – ZAR 6.0m –Build PDSU platform and interaction with stakeholders –Create WSDP’s (linked to MDG targets) –Define and prioritise projects –Prepare project tenders –Engage in procurement process(es) –Manage the delivery process –Progress reporting Element C2 – HOUSING (service delivery) – ZAR TBDm –Match with economic growth plans –Determine housing roll-out plan –Expert skills necessary for C1-C2 Skills set identifies for PDSU, with an emphasis on project management

26. Implementation & Benchmarking – R 6m, 4months ( Tasks: A1-A3) 02/2009-06/2009 Establishment of PDSU -R 12m, 12months (Task B1) Project Development & Implementation -R 6m, 9months (Tasks C1-C2) 04/2009-03/2010 06/2009-03/2010 & beyond

27. WHATWHOWHENGUIDELINES/BENCHMARKSDELIVERABLE A102/09-06/09Water Security model, NBF project opportunity map – Appendix 2 Link to opportunity map and current challenges – Appendix 1 A202/09-06/09 A302/09-06/09 B104/09- 03/2010 PDSU framework document & operational brief Functional regional unit with political support C106/09- 03/2010 Apply the HATCH FEL 2,3 project life cycle process  Pilot project  Next level project C206/09- 03/2010

28. The End Project Deliverables: Capacity building – leadership, technical, social Supply equipment O&M of equipment (new and existing – asset mngt) Water/effluent quality testing and laboratory set up Housing and recreational development (additional, aligned) PDSUnit ‘centre of excellence’ (to grow & expand) Lesson learning, capture and publish Framework for other infrastructure projects (eg roads, energy, etc)

29. Checking against: AfDB identified key considerations in implementing water and sanitation: Push higher up the political agenda; Develop sound policies & strategies; Prepare sustainable action & investment plans; Put local authorities in the driving seat; Build sector capacity with a focus on local players; Develop sustainable financing strategies; Initiate partnerships with the private sector; Encourage innovation, cooperation and R&D; Monitor progress and evaluate impact.

30. 1.Develop &/or update national water management policies, regulatory frameworks, & programmes, & prepare national strategies & action plans for achieving the MDG targets for water & sanitation (W&S) over the next 7 years 2.mobilize increased donor & other financing for the W&S initiatives including national projects & rural W&S initiatives, the African Water Facility, Water for African Cities programme & the NEPAD Infrastructure Project Preparation Facility, as committed in the G8 initiatives on W&S 3.strengthen AMCOW as a key regional mechanism, & other regional stakeholders, as relevant, for promoting cooperation on W&S Checking Against AU Declaration Commitments