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Comprehensive Option Assesment - UNEP

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Case Studies<br />

Although approval to proceed with the project in principle had been given, work could not proceed until all the preconditions had been made.<br />

This was finally achieved in April 2003 when two agreements were signed between DWAF and Trans-Caledon Tunnel Authority (TCTA) relating<br />

to bulk water supply and implementation including the transfer to TCTA of revenue from water sales for the project. TCTA, a parastal, will<br />

implement the project and raise the funds from the private sector without a government guarantee. The Water Services Act requires full cost<br />

recovery where possible; thus, water users will pay for the scheme through what is called the Berg Water Capital Charge on the bulk tariff. The<br />

agreement includes targets such as the city of Cape Town achieving a 20 per cent water saving by 2010. There are also incentives such as<br />

domestic users not charging consumers the first 6,000 litres of water supplied and 4200 litres of sewage treated per month, after which they<br />

are billed according to a steeply rising incremental tariff that discourages high consumption. The provision of 6,000 litres of free basic water<br />

assists in alleviating poverty and, together with the affordable tariff increases, ensures that the poor are able to afford the cost of water for<br />

basic human consumption needs.<br />

Lessons<br />

The case illustrates that while longer-term options are pursued, immediate needs for water services can be met by a mixture of voluntary<br />

conservation measures and restrictions. Other lessons include:<br />

Legislative and regulatory provisions requiring that alternatives be prioritized before new dams can be approved were a catalyst for the<br />

options exercise to occur. They provided an enabling environment and a foundation for political support to implement demand management<br />

measures that helped meet immediate needs. The legislation also helped move options assessment 'upstream' in the planning process and<br />

institutionalize this practice on a regular basis.<br />

Trials can reduce the uncertainty over the impact of demand management measures in the short and longer term. Early and serious efforts<br />

in demand-side management can reduce disruptions to water supply and help avoid the worst conflicts.<br />

It is imperative that future water-resource planning starts at an early stage, as the lead time to implement a water resource scheme is about<br />

eight years.<br />

<strong>Comprehensive</strong> <strong>Option</strong>s Assessment for sustainable development of infrastructure<br />

Training Manual<br />

65

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