department of water affairs and forestry portfolio committee workshop water services 03 august 2004

Department of Water Affairs and Forestry

PORTFOLIO COMMITTEE PORTFOLIO COMMITTEE WORKSHOPWORKSHOP

WATER SERVICESWATER SERVICES03 AUGUST 200403 AUGUST 2004


KFA 10 KFA 10

Ensure provision of sustainable Ensure provision of sustainable basic water supply and sanitation basic water supply and sanitation for improved quality of life and for improved quality of life and

poverty alleviation poverty alleviation

(will discuss (will discuss backlogs,MIG,sanitation and free backlogs,MIG,sanitation and free

basic water)basic water)


Water Supply PerspectiveWater Supply Perspective(Census 2001 updated to Mar 2004)(Census 2001 updated to Mar 2004)

Total population : 47.4millionTotal population : 47.4million

31.5 m31.5 m(66%)(66%)

5.5 m5.5 m(12%)(12%)

6 m6 m(13%)(13%)

4.4 m4.4 m(9%)(9%)

Perspective 1:Perspective 1: People to be brought up to a bare minimum supply People to be brought up to a bare minimum supply I.e. safe source but still lacking qualityI.e. safe source but still lacking quality

Perspective 2:Perspective 2: Total people to be brought to within 200m. Total people to be brought to within 200m.

Perspective 3:Perspective 3: Total people to be brought up Total people to be brought up to in-house/yard connections.to in-house/yard connections.

4.4 m4.4 m

(9%)(9%)

10.4 m10.4 m

(22%)(22%)15.9 m15.9 m

(34%)(34%)

Water in house or in yardWater in house or in yard

Standpipes Standpipes less than less than

200m200m

Standpipes Standpipes further than further than

200m 200m + +

boreholesboreholes

UnacceptableUnacceptableRiver, pool, River, pool, dam, streamdam, stream

Note : These figures reflect access to infrastructure, not necessarily effective services e.g water quality, flow & sustainabilityNote : These figures reflect access to infrastructure, not necessarily effective services e.g water quality, flow & sustainability


Sanitation PerspectiveSanitation Perspective(Census 2001 updated to Mar 2004)(Census 2001 updated to Mar 2004)

Total population : 47.4millionTotal population : 47.4million

26.1 m26.1 m55%55%

4.2m4.2m9 %9 %

17.1m17.1m36%36%

Perspective 1:Perspective 1: Total people to be brought to VIP. Total people to be brought to VIP.

Perspective 2:Perspective 2: Total people to be Total people to be brought up to flush toilet level of brought up to flush toilet level of service.service.

17.1 m17.1 m

(36%)(36%)

21.3 m21.3 m

(45%)(45%)

Flush toilet (connected to sewer Flush toilet (connected to sewer systems or septic tank)systems or septic tank) VIPVIP

UnacceptableUnacceptableNone, pit latrine, buckets, None, pit latrine, buckets, chemical (1.8 m people chemical (1.8 m people

using buckets )using buckets )

Note : These figures reflect access to infrastructure, not necessarily effective servicesNote : These figures reflect access to infrastructure, not necessarily effective services


Sanitation BacklogSanitation Backlog

• +- 17 million people lack access to basic +- 17 million people lack access to basic sanitation.sanitation.

• 11.7% of schools have no access to 11.7% of schools have no access to adequate sanitationadequate sanitation

• 15% of clinics lack access basic sanitation15% of clinics lack access basic sanitation• 400 000 households still use bucket 400 000 households still use bucket

sanitation.sanitation.


Sanitation Delivery 1994 – March 2004Sanitation Delivery 1994 – March 2004

• DWAF 1.31 million peopleDWAF 1.31 million people• DPLG 2.53 millionDPLG 2.53 million• Housing 2.71 millionHousing 2.71 million• DPW/DoE/schools 0.24 millionDPW/DoE/schools 0.24 million• Loc Gov/NGO’s 0.34 millionLoc Gov/NGO’s 0.34 million

TOTAL 7.1 millionTOTAL 7.1 million


Sanitation ChallengesSanitation Challenges

• 300 000 households to be served this year300 000 households to be served this year• Backlog to be cleared by 2010Backlog to be cleared by 2010• All schools to be served by March 2005All schools to be served by March 2005• All buckets eradicated by 2006All buckets eradicated by 2006• Budget allocated to municipalities through Budget allocated to municipalities through

MIG.MIG.• Uncertainties in the roll out of MIGUncertainties in the roll out of MIG


Sanitation ChallengesSanitation Challenges

• Sanitation not a priority of other Sanitation not a priority of other DepartmentsDepartments

• Sanitation not well addressed in WSDPs/ Sanitation not well addressed in WSDPs/ IDPsIDPs

• High expectation for Higher levels of High expectation for Higher levels of servicesservices

• Lack of understanding of community-based Lack of understanding of community-based approachapproach


RECOMMENDATIONS RECOMMENDATIONS • Political mobilisation of WSAs to prioritise Political mobilisation of WSAs to prioritise

sanitationsanitation• Budget allocations has to match backlog Budget allocations has to match backlog

eradication targetseradication targets• Establish support needs of WSA’s and develop Establish support needs of WSA’s and develop

programme of support programme of support • Health and Hygiene education programme must Health and Hygiene education programme must

be part of the sanitation programmebe part of the sanitation programme• Sanitation to be well covered in WSDP’s Sanitation to be well covered in WSDP’s • Establish mechanisms to ensure MIG funds Establish mechanisms to ensure MIG funds

meet Sanitation goals.meet Sanitation goals.


The MIG and DWAF’s new role The MIG and DWAF’s new role • Funds for basic services directly allocated Funds for basic services directly allocated

to municipalities.to municipalities.• Interim phase in periodInterim phase in period• MIG is a conditional grantMIG is a conditional grant• DWAF negotiated set of sector conditionsDWAF negotiated set of sector conditions• Planning very important-DWAF to guide Planning very important-DWAF to guide

and support processand support process


MIG and DWAF’s new role (2) MIG and DWAF’s new role (2) • Ensure that government’s objectives are Ensure that government’s objectives are

met.met.• Monitor and regulate against national Monitor and regulate against national

policy and conditionspolicy and conditions• Share information and intervene where Share information and intervene where

necessarynecessary• Report progress to Cabinet.Report progress to Cabinet.


Free Basic Water ProgressFree Basic Water Progress• Pop served is 30.55mil (65.6% of total, or 73.4 Pop served is 30.55mil (65.6% of total, or 73.4

% of those with infrastructure)% of those with infrastructure)• Of the estimated 29.38mil poor, 51.5% are Of the estimated 29.38mil poor, 51.5% are

currently servedcurrently served• 161 of the 170 WSA’s (94.7 %) claim to be 161 of the 170 WSA’s (94.7 %) claim to be

implementing FBWimplementing FBW• But if above is true, then why do so many claim But if above is true, then why do so many claim

not to be receiving FBW?not to be receiving FBW?– 1. Some provide FBW only in part of municipality1. Some provide FBW only in part of municipality

– 2. Some provide only to the poor2. Some provide only to the poor– 3. Many without access.3. Many without access.


Free Basic Water Progress (2)Free Basic Water Progress (2)– 4. Experience has shown that some who claim not to 4. Experience has shown that some who claim not to

be getting FBW actually do, but don’t understand be getting FBW actually do, but don’t understand that their free allocation is limited to the basic that their free allocation is limited to the basic amountamount

– 5. Difficult for DWAF to verify WSA figures without 5. Difficult for DWAF to verify WSA figures without doing a national count. (Figures inflated?)doing a national count. (Figures inflated?)

• FBW lets local government apply credit control FBW lets local government apply credit control from a moral high ground - no one now has an from a moral high ground - no one now has an excuse for not paying for consumption above the excuse for not paying for consumption above the free basic amount. This is vital to municipal free basic amount. This is vital to municipal financial sustainability.financial sustainability.


Free Basic Water Challenges (1)Free Basic Water Challenges (1)Note: Most problems are not FBW specific, but Note: Most problems are not FBW specific, but

affect FBW neverthelessaffect FBW nevertheless• Equitable Share S-grant not used for basic Equitable Share S-grant not used for basic

services, (ES unconditional grant)services, (ES unconditional grant)• Some WSA’s claim financial constraintsSome WSA’s claim financial constraints• Inequitable allocation of ES, (in favour of more Inequitable allocation of ES, (in favour of more

larger, more capacitated WSA’s such as metros). larger, more capacitated WSA’s such as metros). Local government finance study should address Local government finance study should address this.this.

• Water tariffs do not reflect actual cost of water – Water tariffs do not reflect actual cost of water – our water too cheap.our water too cheap.


Free Basic Water challenges (2)Free Basic Water challenges (2)

• WSA capacity constraintsWSA capacity constraints• Inefficient operational and admin systems, Inefficient operational and admin systems,

especially regarding credit control. Thus poor especially regarding credit control. Thus poor cost recoverycost recovery

• Operating subsidies must not over time subvert Operating subsidies must not over time subvert capital grants i.e. inefficient schemes must not capital grants i.e. inefficient schemes must not consume all the moneyconsume all the money

• Poor are neglected, usually the last to benefit.Poor are neglected, usually the last to benefit.• DWAF to intensify support and investigations DWAF to intensify support and investigations

into reported casesinto reported cases


KFA 11 KFA 11 Ensure effective and sustainable Ensure effective and sustainable

delivery of water services to delivery of water services to underpin economic and social underpin economic and social

development development Discuss Strategic Framework for Discuss Strategic Framework for Water services, Regulation and Water services, Regulation and

planningplanning


What is the What is the Strategic Framework for Water Strategic Framework for Water ServicesServices (SFWS)? (SFWS)?

Comprehensive approach to the provision Comprehensive approach to the provision of water services (water supply and of water services (water supply and sanitation)sanitation)

It puts forward a vision for the water It puts forward a vision for the water services sector for the next ten yearsservices sector for the next ten years

Sets out an umbrella framework to enable Sets out an umbrella framework to enable the sector vision to be achievedthe sector vision to be achieved

Updates the 1994 White Paper on Updates the 1994 White Paper on Community Water Supply & Sanitation.Community Water Supply & Sanitation.


Implementing the SFWS (1)Implementing the SFWS (1)

SFWS is SFWS is frameworkframework SALGA / DWAF: Declaration to cooperate & SALGA / DWAF: Declaration to cooperate &

jointly implement SFWSjointly implement SFWS Further work (detail strategies) to be coordinated Further work (detail strategies) to be coordinated

through sector task teams, through sector task teams, Joint communication roll-outJoint communication roll-out (complete) (complete) Legislative review Legislative review

to amend WSAct to reflect SFWS and align with to amend WSAct to reflect SFWS and align with other sector legislationother sector legislation

Strategic Assessment ReportStrategic Assessment ReportDWAF to report on sector performance and to DWAF to report on sector performance and to

recommend on strategic direction of sector.recommend on strategic direction of sector.


Implementing the SFWS (2)Implementing the SFWS (2)

Institutional Reform:Institutional Reform:

Regulatory StrategyRegulatory Strategy detail in later slidesdetail in later slidesMonitoring and information managementMonitoring and information managementCrucial for all functions.Crucial for all functions.

(detail in next slides)(detail in next slides)


WS RegulationWS Regulation• The overall objective of Water Services The overall objective of Water Services

Regulation is to protect the consumer and public Regulation is to protect the consumer and public interests by:interests by:

• Norms and standards regulation.Norms and standards regulation. Ensure Ensure compliance with national norms and standards. compliance with national norms and standards. E.g. drinking water quality,interruptions E.g. drinking water quality,interruptions

• Economic regulation.Economic regulation. The regulation of The regulation of investments, tariffs and service provision investments, tariffs and service provision efficiency.efficiency.

• Contract regulation.Contract regulation. The regulation of contracts The regulation of contracts between WSAs & WSPs.between WSAs & WSPs.


Actions:Actions:WS RegulationWS Regulation

To protect the consumer and public interests To protect the consumer and public interests the following is planned:the following is planned:

• Detail WS Regulatory Framework and Detail WS Regulatory Framework and proceduresprocedures

• Performance monitoringPerformance monitoring• Performance reporting on key indicatorsPerformance reporting on key indicators• Intervention strategyIntervention strategy• Surveys.Surveys.


KFA 12 KFA 12

Ensure effective water services Ensure effective water services institutionsinstitutions

Discuss institutional reformDiscuss institutional reform


Institutional reform of water services Institutional reform of water services provisionprovision

Why need to reform? sector?Why need to reform? sector?

Lack of financial Lack of financial viabilityviability

Under-investment Under-investment Poor revenue Poor revenue

managementmanagement Need for financingNeed for financing Lack of capacityLack of capacity Inefficiencies and Inefficiencies and

economies of scaleeconomies of scale

Reform objectivesReform objectives

Sustainable provisionSustainable provision Improve performanceImprove performance Improve financial Improve financial

viabilityviability Improve accountabilityImprove accountability Use capacity optimallyUse capacity optimally Improve efficiency of Improve efficiency of

water usewater use Improve regulationImprove regulation


Institutional reformInstitutional reform

• PHASE 1:PHASE 1: • A national institutional reform strategy will be A national institutional reform strategy will be

developed – including framework for co-developed – including framework for co-operation and decision makingoperation and decision making– Cabinet agreement to strategyCabinet agreement to strategy– Set up national restructuring task team (DWAF, Set up national restructuring task team (DWAF,

DPLG, SALGA, National Treasury, SAAWU)DPLG, SALGA, National Treasury, SAAWU)– Improve governance and regulation of Water Improve governance and regulation of Water

Boards.Boards.


Institutional reformInstitutional reformPHASE 2: PHASE 2: – Case-by-case investigations into institutional reform in terms Case-by-case investigations into institutional reform in terms

of national strategy and in response to local demandsof national strategy and in response to local demands

– Implementation of the institutional reform on a case-by-case Implementation of the institutional reform on a case-by-case basisbasis

– DWAF to ensure that national and regional interests are taken DWAF to ensure that national and regional interests are taken into account.into account.


The ENDThe END

Thank youThank you

department of water affairs and forestry portfolio committee workshop water services 03 august 2004

Documents