Water Sector Planning ApproachDWS IDP Support

6 – 7 November 2014Free State Province

IDP Manager Rep Forum

Water Sector: IDP Planning Support Challenges1. IDP’s are backlog eradication based, not socio economic development planning

a) Capex Grant funding, versus Own revenue and borrowingb) Social grants – focus on Indigents instead of infirm and frailc) Budgets not cash backed; None revenue servicesd) Repair and maintenance ratios below 7%; Staffing ratiose) Capex investment into new and existing infrastructure not 60% versus 40%

based; Asset Registers not unbundledf) Unfunded projects not indicated – thus no Infrastructure investment

frameworks; no CIP’sg) Strategic business planning strategies ? CSF’s; Mandates; KPA’s???? ; Not

integrated planning [WSDP’s not revised or adopted]2. IDP assessment take place in the absence of benchmarking – e.g. only IDP and not

SDBIP or MTREF Budgeta) Not all revenue collectedb) Revenue models exhausted – too many indigentc) Unfunded Mandatesd) Service CUC [Consumer Unit Costs] are very highe) Does not look into future [30 years ahead]; WCWDMf) High water/energy - loss which are not Accounted for

3. Overlap of IDP planning activitiesa) Multiple sessions same time framework spread over countryb) Unavailability Provincial IDP Process Plan’s

• In Integrated development planning we need to split National Backbone and Local Backbone Consumer Unit Costs [CUC]:– Fund National backbone out of National Revenue [PAYE; VAT;

etc.]; Dams; Transfer Schemes; etc.– Fund Local backbone out of Local revenue [rates and taxes;

fines; levies; etc.]; Reticulation; Works; etc.– Improve efficacy:

– Doing right things – effective– Doing things right – efficiency– More value per buck– Timely planning– Preventative

Latest Development1. Developed water sector SCOA – MFMA – July 2017 – Council accountability2. Revised WSDP’s [water services development plans - SCOA]3. Expediting Licensing Process [ water use licensing application – could take

up to 18 months / backlog outstanding licenses / illegal WSA operations] = Water security plus biodiversity

4. Participation in IDP support Activities are unfunded Mandates – e.g. it is an over and above function [benchmarking efficacy]

5. Draft NEMA Regulations: Vlei Land; estuary and coastal management6. Does not provide for:

• Climate change; Disaster; Drought; Floods; Abstraction; Inter basin transfer – none related outflow; Outflow and Abstraction interdependence; etc.

• X8 National Department / Provincial Department – Licenses and Permits

7. Total Outflow Overview Strategy Study Partnership between eThekwini Metro and DWS dovetailed with WCWDM

8. Blue Drop; Green Drop; No Drop

Six Themes / Areas have been identified:1.Regulatory Framework2.Governance & Development

Planning + Agencies3.Justice System & Certification4.RPMS5.ME&R6.Benchmarking

1

2

3

4

5

6

All are interdependent

and relate

Water Sector Regulatory Process

Piloting: Partnership between eThekwini Metro and DWS

Tongaat(2/115)

uMdlotiRegional(0/110)

PhoenixUmhlanga

(5/60)

KwaMashu(32/0)

Amanzimtoti(5/27)

Central(29/0)

Dassenhoek(3/6)

Fredville(0/0)

Hammarsdale(2/45)

Isipingo(7/0)Kingsburgh

(0.5/20)

KwaNdengezi(1/3)

Mpumalanga(5/0)

Mzinyathi(0/10)

Northern(10/27)Southern

(59/0)

Umbilo(12/0)

Umhlatuzana(5/26)

uMkhomaziRegional

(0/16)

N

Wastewater Masterplan 2012/13 - Anticipated Ultimate Wastewater Treatment Systems (Current Spare

Capacity / Additional Capacity Required for Ultimate in Ml/day)

1. Inter-basin transfer causing none related outflow

2. Cultural Council choice not to use re-cycle water directly

3. Implication CUC rising from 40 cent per unit to R1-80 per unit

4. Water loss needing to build dams causing CUC to rise from R1-80 to R2-40 per unit

5. Need to revise CAPEX financing model

B: Balance: Outflow

dovetailed with WCWDM

Y: Appropriate Treatment &

Disposal

X: Classification Framework; SCOA

Reserve

Rivers; Dams; Ground water

Marine Outfall

Estuaries

Socio- Economic Objectives

Cultural & Political

Objectives

T: Technology, Assets, Cost & Time

W: Water Use Allocation

P: Protection- RQO Reserve

Z: License /

Permit

WTW

WWTW

W{S}DP

IDPBudget / MTREF

SDBIP

CIPIIF

SDFLED

LG & WSA & WSP Governance & Development Planning

C:Compliance Requirements

Regulatory Framework

R: Regulatory Performance Management

System

No-Drop

AG Audit Report

Blue Drop

Green Drop

Context Diagram: Sustainable Compliant-Outflow- dovetailed with WCWDM Governance – use and protection (Ver. 8.0)The DWA: Sub-Directorate WS Planning [ proprietary – may not be reproduced without DWA approval]

• Redress• Justice• Corrective Action• Act's, Rules,

Regulation, by-laws, Guidelines

• Legal Framework

• Clean Audit• Blue-, Green-

No-Drop• Blue Flag

WSDP Audit

Municipal Bio Diversity Plan

yxi

yxii

yxiii

yxivyxvi

yxvii

y

x

zii

w

t

bi

bii

biiip

License: z = {c & W, etc.

Balance: b = {y & x, etc.

Compliance: c = {w & t & p & du & eia & swd & cm etc.

zi

c

NDP

Biodiversity

Compliance & Efficacy: Cuc; Reserve; RQO; Biodiversity; Backlog; Fiscal health; None revenue [all services];

Strategic Plan

Administrative /Criminal /Civil Justice System & Certification

RPMS

RPMS: r = {f & bd & g & s , etc.

f

g

bd

s

DWA: WS NIS

Benchmarking

ME&R

Six Themes / Areas:1. Governance & Development

Planning2. Justice System & Certification3. RPMS4. ME&R5. Benchmarking6. Regulatory Framework 7. Governance Agencies

Infrastructure Assets

yxv

Discharge Uses / requirements

Nema: EIA Requirement

NEMWA: Solid / Waste Disposal

Coastal & Marine Management Requirement

du

cm

swd

eia

bvii

bvii

bvbiv

Blue Flag

SDC + RDM

bviisrdm

Agencies

SDC + RDM

yxix

NWRS

WAR

WAR

yxx

1a

1b

2

34

5

6

bfInstead of WSDP WDP???

Zi: Discharge

std’s

Housing

Terms and AcronymsAG Auditor General NEMWA National Environmental Waste Act

bBalance: Sustainable Complian- Outflow Governance dovetailed with WCWDM Governance NRW Non-Revenue Water [IWA model as adapted DWA: No-Drop]

bd Blue Drop Status PPE Property Plant and Equipment [Assets]bf Blue Flag PES Present ecological stateCAPEX Capital Expenditure R&M Repairs and Maintenance

RDM Resource Directed MeasuresCIP Comprehensive Infrastructure Plan RPMS Regulatory Performance Management Plan

REC Recommended ecological controlcuc Consumer Unit Costs RQO Resource Quality Objectives

Efficacy Effective and Efficient [doing right things right] s

Service Delivery: Backlogs; Service Interruptions; Vacancies; Unfunded Mandates; Non-Revenue Water [Services]; Non-Compliance; Supply Chain

f

Financial Health: MFMA Circular 71; Unqualified Audit; Balanced CAPEX investment new + existing infrastructure; R&M =>8% of Budget [PPE]; Cash backed;

Fiscal Health

Affordable sustainable compliant services within SCOA framework and Regulatory Performance requirements and socio-economic growth based financial performance

NRWS National Water Resource Strategy SCOA Standard Chart of Accounts (DWA water sector inputs for MFMA]g Green Drop status SDBIP Service Delivery Budget Improvement PlanIDP Integrated Development Plan SDF Spatial Development Framework

SDC Source Directed ControlsIIF Infrastructure Investment Framework t Technology & Assets & Cost & Time

WAR Water allocation reformLED Local Economic Development WCWDM Water Conservation and Water Demand ManagementME&R Monitoring, Evaluation and Reporting WSA Water Services AuthorityMFMA Municipal Finance Management Act WSP Water Services Provider

MTREF Medium Term Reporting Expenditure FrameworkWSDP / WDP

Water Services Development Plan / WATER DEVELOPMENT PLAN

NDP National Development Plan WTW Water Treatment WorksNEMA National Environmental Act WWTW Waste Water Treatment WorksNIS National Information System WS Water Services