Water and Sanitation:Water and Sanitation:Water Services Water Services Development Plan Development Plan (WSDP) 2007/08 - (WSDP) 2007/08 - Executive SummaryExecutive Summary

Rev 1 Date: 16 March 2007

Presented by: J de Bruyn

Head: WSDP

CRITICAL CHALLENGESCRITICAL CHALLENGES

Eradicate sanitation services backlogKeep pace with basic services to cater for influxIntensify Water Demand Management strategyTreated effluent quality (not complying with DWAF standards) Greywater runoff (greywater management)Provide infrastructure for City development Maintain existing infrastructure Financial sustainability

High financial requirements Cost recovery and debt managementFair, cost-reflective tariffs that encourage water saving

Increase efficiencyInstitutional arrangements

To become a leader in the provision of equitable, sustainable, people-centred, affordable and credible water services to all

VISION OF WATER SERVICESVISION OF WATER SERVICES

EQUITABLE

To provide access to a basic water supply to all informal settlements by 2008 (Achieved in 2005/06)

To provide access to a basic sanitation service to at least 70% of all informal settlements by 2010

SUSTAINABLE

The availability and reliability of water resources is ensured at all times

The supply of safe drinking water that meets quality standards is ensured at all times

The protection of the environment is improved by ensuring that by 2010, 90% of treated effluent is in compliance with 1984 DWAF standards

STRATEGIC GOALSSTRATEGIC GOALS

PEOPLE-CENTRED To ensure that at least an 80% level of satisfaction of all customers with the provision of basic water services is reachedTo create an environment that develops and utilises the skills, competencies and innovation potential of all employees in order to meet the objectives of the organisationTo create an enabling environment that ensures development of meaningful relationships with all stakeholders

AFFORDABLETo establish fair tariff that ensures all residents have access to basic water and sanitation services, including indigent households.

CREDIBLE To ensure the implementation of international best management practices in the provision of water services.To become the preferred water services institution for all customers

STRATEGIC GOALSSTRATEGIC GOALS

ERADICATE BASIC SERVICES BACKLOGERADICATE BASIC SERVICES BACKLOG

Backlogs in informal settlements

Substandard access to sanitation - approx 30 000 New technologies being investigated

Huge strides made in 2005/0635 000 hh received basic water - backlog eradicated

17 050 hh received basic sanitation

Mainly informal areas, but some in unserviced rural farm population

Backyard dwellers considered to be serviced from main dwelling

Solutions being implemented:

Emergency level of service to 95% of the ~ 170 informal settlement areas

Upgrading informal settlement services continually

Identify additional / external funding sources

ERADICATE BLACK BUCKETERADICATE BLACK BUCKET

Black buckets in formal areas

3 outstanding houses will be upgraded in 2007

Black buckets in informal areas

2 857 at 2 857 households

Will be eradicated over a 5-year programme

Related better technologies such as chemical toilets & Hundred-litre containers

7 462 chemical toilets in use, serving 37 300 households

1 049 Hundred litre containers in use, serving 5 200 households

Will continue to be used as emergency services

COSTING OF BASIC SERVICESCOSTING OF BASIC SERVICES

INFORMAL SETTLEMENT SANITATION BACKLOG

Informal households without basic sanitation 30 000Service Standard (hh/service) 5No. of new services needed 6 000Unit cost of provision R 6 000Total cost of service provision 36 000 000Years to provide 5Total annual cost of new service provision R 7 200 000

COSTING OF BASIC SERVICESCOSTING OF BASIC SERVICES

BASIC SERVICES FOR INFORMAL SETTLEMENT INFLUX

Water SanitationInflux informal hh / annum 8 000 8 000No of service needed / annum 320 1 600Unit cost of provision R 1 500 R 6 000Total cost of new service provsion per annum R 480 000 R 9 600 000

COSTING OF BASIC SERVICESCOSTING OF BASIC SERVICES

SERVICING HOUSING DEVELOPMENTS

BACKLOGInformal households 115 000Backyard dwellers, other 145 000Total Backlog 260 000unit Cost of service provision: water and sanitation R 10 000Total cost of service provision R 2 600 000 000Years to provide 20Total annual cost of service provision R 130 000 000

INFLUX

No of houses needed per annum 8 000Total annual cost of service provision R 80 000 000

PROGRAMME FOR BASIC SERVICESPROGRAMME FOR BASIC SERVICES

INFORMAL SETTLEMENTS - W&S BUDGET 0708 0809 0910 1011 1112 1213 1314 1415 1516 1617

Sanitation backlog eradication (5 yrs) 7.2 7.2 7.2 7.2 7.2 0.0 0.0 0.0 0.0 0.0Sanitation replace buckets etc except chemical (5 yrs) 13.6 13.6 13.6 13.6 13.6 0.0 0.0 0.0 0.0 0.0Water hh influx sustain 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5Sanitation hh influx sustain 9.6 9.6 9.6 9.6 9.6 9.6 9.6 9.6 9.6 9.6TOTAL 30.9 30.9 30.9 30.9 30.9 10.1 10.1 10.1 10.1 10.1

HOUSING DEVELOPMENTS - HUMAN SETTLEMENT's BUDGET

Water and sanitation backlog eradication (20 years) 130 130 130 130 130 130 130 130 130 130Water and sanitation influx 80 80 80 80 80 80 80 80 80 80TOTAL 210 210 210 210 210 210 210 210 210 210

Amounts in Rand Million

WATER DEMAND MANAGEMENTWATER DEMAND MANAGEMENTPrinciples:

Water is a strategic, scarce resource that cannot be wasted

Measure and account for all usage (UAW currently approx. 19%)

Reduce unconstrained water demand by 20% by 2010 or better20% reduction = 2% pa growth = Low water demand curve

future infrastructure planning based on this goal

attempt to better this and achieve 1% pa growth - will postpone costly infrastructure

as at 30 June 200628% below unconstrained demand curve

13% below low water demand curve!

Intensify implementation:Implement ALL WDM strategies in parallel with water resource strategies

Re-use treated effluent as an additional resource - generate further income

Reduce losses especially non-revenue demand

Water leaks projects

Pressure Reduction projects

Flow limiters to defaulters

High Benefit/Cost ratio (R750 each)

Can make major impact on Debt growth, Payment ratio

WATER DEMAND MANAGEMENTWATER DEMAND MANAGEMENT

11 YEARS OF DAM LEVELS % OF STORAGE CAPACITY11 YEARS OF DAM LEVELS % OF STORAGE CAPACITYCITY OF CAPE TOWN DAMS: 12 YEAR GRAPH INDICATING % OF TOTAL STORAGE CAPACITY

0

20

40

60

80

100

120

19

-Ja

n

02

-Fe

b

16

-Fe

b

01

-Ma

r

15

-Ma

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29

-Ma

r

12

-Ap

r

26

-Ap

r

10

-Ma

y

24

-Ma

y

07

-Ju

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21

-Ju

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05

-Ju

l

18

-Ju

l

02

-Au

g

16

-Au

g

30

-Au

g

13

-Se

p

27

-Se

p

11

-Oct

25

-Oct

08

-No

v

22

-No

v

06

-De

c

20

-De

c

DATE

% F

UL

L

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

BULK WATER DEMAND CURVESBULK WATER DEMAND CURVES

CCT Demand Projections

0

100

200

300

400

500

600

700

19

91

19

93

19

95

19

97

19

99

20

01

20

03

20

05

20

07

20

09

20

11

20

13

20

15

20

17

20

19

Year

Bu

lk S

up

plie

d (

mill

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s)

Existing Supply

Supply incl. BWP

Unconstrained

Low Water Demand

Actual

WATER RESOURCESWATER RESOURCES

DWAF “Reconciliation” Strategy for Western Cape

Draft far advanced

Water resources sufficient to 2013 (with Berg River Scheme)

Sources of Raw water: 70 - 75% from DWAF (Western-Cape Water System)

30 - 25% from own sources

Groundwater resources currently only 1% of total yield

Under investigationTable Mountain Group Aquifer Option (groundwater) - exploratory drilling phase to be complete by 30 June 2008

Desalination Option (seawater) - negotiations with V&A Waterfront progressing slowly

EXTENT OF TMG AQUIFEREXTENT OF TMG AQUIFER

Study area

Study area

BULK WATER INFRASTRUCTUREBULK WATER INFRASTRUCTURE

Northern areas under stress during peak demand

Northern area bulk infrastructure augmentation scheme

Reservoir and WTP originally planned to start early in 2007/0

Capital requirement 2007/08 to 2009/10:

R40M R350M R500M

Delay in EIA process by 6 month

Delays increase the probability of water restrictions in the northern area

Critical to secure funding immediately

WATER BULK WATER INFRASTRUCTUREWATER BULK WATER INFRASTRUCTURE

Programme to implement Bulk Water Infrastructure.Jul-05

Jul-06

Jul-07

Jun-0

8

Jun-0

9

Jun-1

0

Jun-1

1

Planning (Conceptual &EIA)

Detailed Design (Reservoir)

Tender Period (Reservoir)

Commissioning (Reservoir.)

Detailed Design (WTP)

Tender Period (WTP)

Commissioning (WTP)

SUSTAINABLE ENVIRONMENT (WATER BODIES)SUSTAINABLE ENVIRONMENT (WATER BODIES)

Aim to achieve 1984 standard for Treated Wastewater Discharge

Need extensive upgrading of various WorksReceiving water quality

rivers and water bodies need to be protectedIn our favour:

limited use made of water from rivers around Cityshort run-off distances to the ocean

Health must not be compromised Solutions being implemented:

Develop strategy for complianceImproved operationsDevelop system for grey water runoff from standpipes

FINAL EFFLUENT QUALITY - % COMPLIANCEFINAL EFFLUENT QUALITY - % COMPLIANCEWORKS Susp Solids Chem Ox

DemandAmmonia E Coli

Athlone 98 98 98 0Bellville 78 82 62 2Borcherds Quarry 100 98 86 65Cape Flats 49 47 49 83Gordons Bay 100 98 96 93Klipheuwel 96 60 38 89Kraaifontein 98 92 76 89Llandudno 96 98 96 42Macassar 100 90 72 80Melkbosstrand 100 100 100 94Millers Point 69 29 76 95Mitchells Plain 98 96 92 48Oudekraal 79 67 85 81Parow 86 72 88 66Potsdam 86 26 20 26Scottsdene 96 89 96 91Simons Town 76 4 37 62Wesfleur – Domestic 100 98 100 100Wesfleur - Industrial 88 45 88 60Wildevoelvlei 94 94 100 96Zandvliet 98 100 92 98

MORE THAN 90% COMPLIANCE75% - 90% COMPLIANCELESS THAN 75% COMPLIANCE

PROVIDE INFRASTRUCTURE FOR CITY DEVELOPMENTPROVIDE INFRASTRUCTURE FOR CITY DEVELOPMENT

High demand for new housing and commerce

needs infrastructure as an enabler

Limited finances

Solutions being implemented:

Partnership approach with developers

Development contributions agreement for each area

Identify external funding sources (MIG etc)

Integrated planning to be improved

MAINTAIN EXISTING INFRASTRUCTUREMAINTAIN EXISTING INFRASTRUCTURE

Too little maintenanceDeteriorating infrastructure

Major pipe collapses, mainly sewersInfrastructure efficiency compromisedService interruptions

More expensive to replace ultimately

Solutions:Provide sufficient operational budget Address critical staff shortages at operational levelAlternative service delivery options

HIGH CAPITAL REQUIREMENTHIGH CAPITAL REQUIREMENT

5 YEAR CAPITAL BUDGET (FUTURE RAND VALUES)

-

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

2007/08 2008/09 2009/10 2010/2011 2011/2012

R

Informal settlements

Water Meter repl

Support Services

WDM

Bulk Water

Wastewater

Water Retic

Sewer Retic

OPERATING BUDGET REQUIREMENTOPERATING BUDGET REQUIREMENT

Year Budget (R Billion)

2007/08 2,953

2008/09 3,214

2009/10 3,540

2010/11 3,866

2011/12 4,167

This is based on the following assumptions: City growth: 1.50%

Inflation: 5.00%

Demand growth: 2.00%

HIGH FINANCIAL REQUIREMENTHIGH FINANCIAL REQUIREMENT

Under IDP Strategic Focus Area : Sustainable Infrastructure

Objective 3.1

“improved leveraging of the available funds without compromising the Council’s ability to

sustain service delivery”

COST RECOVERY, DEBT MGT & TARIFFSCOST RECOVERY, DEBT MGT & TARIFFS

City’s Credit control policy will be updated for 2007/08. Continue to:

Manage debt

Maximise income

Write off debt that has resulted from previous water leaks in low income and indigent areas

Ensure majority private dwellings in low income and indigent areas have minimal leaks and use only free portion - minimise future debt and need for credit control action

Cape Town tariffs low in comparison to other cities

Tariffs need to increase, but remain fair to different user categories

INCREASE EFFICIENCYINCREASE EFFICIENCY

New organisational structureReduce duplication and fragmentationOptimise for service delivery

Staff trainingImproved coordination and integrationImproved financial management - additional specialised staff requirement approvedOptimise systems and processesMeasurement, Balanced Scorecard, SDBIP, Performance indicatorsBenchmarking against peers : SALGA, CWMF and SAAWU

ESTABLISH NEW INSTITUTIONAL ARRANGEMENTESTABLISH NEW INSTITUTIONAL ARRANGEMENT

National Restructuring of the Water Services IndustryLegal requirement and Council resolution dated June 2004 Aim to improve operational & financial management and attract capitalMunicipal Systems Act, Section 78(1) requires choosing model:

internal ring-fenced business unit, orMunicipal Entity, orRegional Municipal UtilityIs this all – Wouter Loots mentioned 6 options???

IDP Objective 3.2 under Strategic Focus Area Sustainable Urban Infrastructure - develop alternative service delivery (ASD) and infrastructure funding or investment mechanisms. ASD mechanisms include:

PartnershipsConcessions (BOTT)Equity investments

Realistic tariffs and levies

Thank you

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