Municipal Water Services in South Africa

Resource Overview2

Current water availabilityAt 98% assurance level, SA water isconstituted as follows:• 77% surface resources• 9% ground water• 14% return flows• Desalination < 1%3

Water availability4

Water requirements5

Water Use per economicsector6

Water Services7

national governmentSector Overview: Institutionalwater resourcemanagementchargemunicipal infrastructure grantlocal government equitable sharecapacity building grantwater services sectorprimary mechanismsfor national redistributioncatchmentmanagementagencywater services authoritysets retail tariff policy,sets retail tariffs,determines local subsidy frameworkindirect subsidypayment in terms of service delivery agreementagencysupplyingraw waterraw water tariff(or water resourcedevelopmentcharge)water services providerdirect or indirect subsidy payment for services receiveddirect subsidyconsumerKey: payments national subsidies local subsidies8

Bodies forInternationalAgreementsStatutory &AccountabilityMinisterDWA Head OfficeStatutory &AccountabilityNWRIA+TCTACooperation &consultationStatutory &AccountabilityRegionsStatutory &AccountabilityStatutory &AccountabilityWRCCMAStatutory &AccountabilityRegulatory &SupportWaterBoardsCooperation &consultationRepresentation &CooperationWSAContractualAccountabilityContractualWUAWSPMunicipalEntity9

Access to basic water services• MDG:– Halve the basic services backlog by 2015• Africa:– Support AU and AMCOW 2015 drive• South Africa:– Ensure all people in South Africa have access to Sustainable Basicwater supply and sanitation by 201410

SA -% Households with Access to:Water, Sanitation & Cell Phones% HH Coverage as % of HH59%48%% Households with Access to Water73%79%72.9% in 2008% Households Access to Sanitation32.2%% Households with Access to Cell Phones1994 2001 201093%11

Formal Historic Basic Water Service ChallengesGROUNDWATER & WATER QUALITY CHALLENGE•Scattered rural settlements (high poverty)• Low economic development potential• Groundwater dependent (with water quality risks)• Limited surface water development potential•Water reticulation needs (with O&M challenges)WATER AVAILABILITY CHALLENGE•Extensive water backlogs (villages)• Water stressed areas• Local WR limitations• Water quality challenges• Water demand management need• Requires WR development(De Hoop & others)• Requires major regional bulk infra• High capital and O&M cost• Major funding needsCONTEXT of CHALLENGE• water availability and accessibility• topographic and physical challengesimpacting on capital and operatingcosts• bulk infrastructure dependency withassociated funding andimplementation time frames• total life-cycle management withassociated skills and sustainablemanagement• phased approach providing forinterim solutions while addressinglonger-term sustainable developmentWATER DISTRIBUTION CHALLENGE•Extensive water backlogs (scattered)• Within water-rich WMA (but no access)• Requires WR developments• Requires major regional bulk infra• High capital and O&M cost (topography)• Major funding needs12

Urban Water Services Challenges & PerspectivesKEY URBAN WATER SERVICES CHALLENGES• Major urbanization and densification in mainurban areas with associated “new” basic servicesneeds (housing) and associated economic growthand higher levels of services.• Internal bulk infrastructure challenges withassociated service quality challenges (e.g. drinkingwater quality, wastewater management,interruptions, effective use, loss prevention andasset management)•Environmental impacts and risks (e.g. urban riverquality, health and recreation)13

WSA FINANCIAL FRAMEWORKOperating grants(Primarily equitableshare)Capitalgrants(MIG)OPERATINGCAPITALOwn sources(user charges;rates; levies etc.)BasicserviceHigher servicelevelOwn sources(capital funds,loans etc.)14

Principles for institutional reform• ensure the provision of an appropriate level of waterand sanitation services which are sustainable to allhouseholds in South Africa and to implement the freebasic water and sanitation policies effectively andefficiently;• ensure quality Asset Management and effectiveOperation & Maintenance of infrastructure that willcontribute towards sustainability• improve the performance of water services providers;• improve the financial viability and sustainability ofthe water services sector by significantly enhancingrevenue collection (from those who use in excess of abasic service) and improving consumer management;• improve the accountability of water servicesproviders to water services authorities and toconsumers;15

Principles for institutional reform• use existing capacity, skills and resources in thewater services sector in an integrated and optimalway and to attract, develop and retain the necessaryprofessional and technical skills, and improveemployment, disability and gender equity;• improve the efficiency of water use so as to ensurethe wise use of South Africa’s scarce water resourcesthrough appropriate demand management andconservation initiatives (UFW); and• improve the regulation of water services providersto ensure technical and environmental standards aremet, services are provided efficiently and servicesare appropriately priced.16

Thank you17