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A NATIONAL PERSPECTIVE A NATIONAL PERSPECTIVE KIEVITS KROONKIEVITS KROON

TSWANE TSWANE

Towards building sustainable and efficient water management institutions

Presentation by

Ms Thoko SigwazaInstitutional Oversight

04-05 Nov 2010

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Policy and legislative mandates• In South Africa the Constitution make a distinction between water as a

natural resource and water as a municipal service.

• The key government policies pertaining to water are set out in two policy papers as follows: the National White Paper on Water Policy (1997) and The Strategic Framework for Water Services (2003)

• The legislative mandates follow from these policies and are set out in two pieces of legislation: The National Water Act (Act 36 of 1998) and The Water Services Act (Act 108 of 1997).

• In terms of the current policy and legislative mandates, it is the Minister who is the custodian , policy maker and regulator for the water sector.

• There is no independent regulator for water, (intention to establish an economic regulator) although a Water Tribunal was established by the National Water Act to provide independent reviews& dispute resolutions.

Policy and legislative mandates

• Catchment Management Agencies

Are statutory bodies established in terms of Chapter 7 of the National Water Act and listed as schedule 3a entity under the PFMA-service delivery Public Entity. The main purpose of a CMA is to delegate Water Resource Management (WRM) to a catchment level and to involve local communities to achieve government objectives of equity, sustainability, efficiency, and representivity

• Water User Association

Are established in terms of Chapter 8 of the National Water Act and are responsible for the management and regulation of water at a localised level.

ContextKey Strategic projects within DWA

• Review of the National Water Resource Strategy.

• Development of economic regulator.• Revision of the pricing strategy.• Institutional Reforms & Realignment.• Review of Legislation .

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ContextOutcomes Approach to service delivery

• Improved quality of basic education• A long and healthy life for all south africans• All people in south africa are and feel safe• Decent employment through inclusive economic growth.• A skilled and capable workforce to support an

Inclusive growth path• An efficient, competitive and responsive economic

infrastructure network• Vibrant, equitable and sustainable rural communities

and food security for all

ContextOutcomes Approach to service delivery

• Sustainable human settlements and an improved quality of household life

• Responsive, accountable, effective and efficient local government system

• Environmental assets and natural resources that are well protected and continually enhanced

• Create better south africa and contribute to a better and safer africa and world.

• An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship

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Competition for

scarce water

NWRS, 2004

The National Challenge

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The Institutional Challenge

• The current institutional landscape is complex with about 184 institutions reporting to the Minister of Water & Environmental Affairs.

• 2 functional Catchment management agencies and 5 gazetted.• Water user associations & irrigation boards = 167 • Water boards = 13 OR 14?• Water Research Commission• Trans-Caledon Tunnel Authority (TCTA)• Water Tribunal• National Water Advisory Committee

Oversight of institutions

• Oversight is concerned with the reviewing, monitoring and overseeing of the affairs, practices, activities, behaviour and conduct of the state entities, inorder to be satisfied that the entities affairs and business are conducted in the manner expected and in accordance with all normal commercial, legislative and other prescribed or agreed norms.

• The Minister as a shareholder is concerned with suitable return on investments and ensuring financial viability. As a policy maker she is concerned with policy implementation and service delivery and as a regulator she should be concerned with industry practices, pricing structures and interests of consumers.

CURRENT STATUS OF CATCHMENT MANAGEMENT AGENCIES

The two CMAs are semi-functional • Not all functions have been delegated to them.• DWA provides seed funding of +_R22 million a year. • DWA supports their capacity in planning and

implementation through MOU and twining projects• Staff transfers from proto CMAs has been slow and

sometimes no staff transfers at all –meaning CMA starts with new people completely.

• Governance has not been easier need rethink .

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MANAGEMENT AREA

PROGRESS TO DATE

Inkomati • Performing initial functions however, require delegation of WRM functions in order to be effective and sustainable

• MOU signed between DWA Region and ICMA• Process to appoint new Governing board initiated • Operational and third business plan approved by Minister• 1st order CMS completed to be gazetted • Annual reports tabled in parliament

Breede-Overberg, • Governing board and CEO appointed • Operational and second plan approved by Minister• MOU not yet signed between DWA Region and BOCMA• Initiated CMS, inception report completed and public

participation initiated in Feb 2010 • Annual reports tabled in parliament

Crocodile West Marico, Mvoti to Umzimkulu Usuthu to Mhaltuze, Thukela, Olifants Doorn, Gouritz

• CMAs gazetted for establishment. However, appointment of governing board halted due to Institutional Realignment process

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Regions Number of IB (initial)

Number of WUA transformed from IB

New WUA established(HDI/ multisectoral/)

Number of IB to be transformed

Limpopo 7 3 7 4

KZN 28 9 1 19

Western Cape 113 30 8 83

Eastern Cape 33 3 1 30

Northern Cape 22 6 4 16

North West 20 0 0 20

Free State 8 7 2 1

Gauteng 4 0 0 4

Mpumalanga 44 1 8 43

TOTAL 279 59 31 220

GOVERNMENT SCHEMES TRANSFERRED TO WUAs

NAME OF SCHEME NAME OF WUAs / PROVINCE DATE OF TRANSFER

Orange-Riet (Riet River Settlement and Orange Riet Canal

Orange Riet (Free State) 2002

Orange River (Kakamas)

Kakamas (Northern Cape) March 2003

Orange River (Boegoeberg Dam)

Boegoeberg (Northern Cape) March 2003

Vaal River (Vaalharts) Vaalharts (Northern Cape & NorthWest)

January 2003

Sand-Vet Sand-Vet (Free State)

GOVERNMET SCHEMES WHERE WUAs HAVE NOT YET BEEN ESTABLISHED AND TRANSFER WILL OCCUR LATER

PROVINCE NAME OF SCHEMES

Free State Orange River (Van der Kloof Canals)Rhenoster River (Koppies Dam)

Mpumalanga Mapochs-Gronde (Ton-Teldoos, Vlugkraal Dams)

North-West Mooi River (Boskop and Klerkskraal Dams)Klein Marico River (Klein Marico-Poort Dam)Marico River (Marico Bosveld and Kromellen-Boog Dams)Elands River (Lindleyspoort Dam)Schoonspruit (Elandskuil and Rietspruit Dams)Sterkstroom River (Buffelspoort Dam)

Limpopo Sterk River (Doorndraai Dam)

TABLE BELOW GIVES A SUMARY OF STAFF TRANSFER ISSUES

PROVINCE WUA / NUMBER OF SECONDMENT

COMMENTS

Free State Sandvet Modder River Vand Der Kloof (32)

Second for 12 months

Northern Cape Boegoeberg Kakamas (49) Kakamas no longer willing to take transfer of staff due to the delayus in transfer

Western Cape Vredendal (35) Nehawu dealing with the issues of transformation before staff transfer to LORWUA

Emerging consensus

• There is a consensus within the sector of the need to reform and realign water sector institutions fundamentally to ensure sustainable , efficient and effective institutions now and in the future .

Emerging Issues

• There is a need to develop an institutional framework that clearly defines roles, responsibilities and accountability within the water value chain.

• Water sector institutions to have sufficient economies of scale inorder to be efficient and have financial resources to employ skilled managers, professional staff and technicians plus ability to raise sufficient capital funds for investment in essential water infrastructure.

• Need to promote good governance and corporatisation of water sector institutions thereby ensuring separation of policy

making, shareholding, and regulation functions. Are we ready for expert based boards?

Emerging IssuesEmerging Issues• Harmony with water systems :Water follow hydrological boundaries.

The institutional landscape should have regard for the water systems.• Strategic asset management : Water industry is a capital intensive

industry requiring substantial investments in the infrastructure. A whole-of-lifecycle approach is required in effectively managing the

large and complex asset base. Developing competence in strategic asset management is a vital

element in the journey to become an efficient and effective water service provider.

• Benchmarking and publish performance.• Financial Incentives: Cost reflective Tariffs .• Rationalise and align the number of institutions reporting to the

minister inorder to have an effective span of control and viable water institutions

• Regulation : Publicly owned water institutions require regulation to ensure prices reflect the most efficient service delivery costs and that sufficient investment is made in renewing old infrastructure

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Proposal1Make 2 (Inkomati & BOCMA) established CMAs

fully functional• Delegation of functions • Transfer of staff• Change role of DWA regions-Regulation??• New functions to migrate from DWA regions to CMAs

by end of March 2010• Review CMA business plan for 2011/12• Start discussing revenue, tariffs –trading account• Task Team :2 Regional Heads, 2 Chief executives +

IO by end of March 2011.

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Proposal 2Cautiously proceed with establishment of

priority CMAs• Criteria :

Gazetted CMAs• Crocodile West Marico, Mvoti-Mzimkhulu• Usuthu-Mhlathuse, Thukela• Olifants Doorn, Gouritz.

Proto CMA readinessWRM challenges Institutional capacity Stakeholder participation

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Merge gazetted CMAs as per IR Business Case report

Proposal continued

High Priority in terms of water resources management challenges and economic

development

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Should start in two years time

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Proposal 3Make Proto-CMAs functional and ready

• Develop proto- CMA strategies for each proto CMA (update ISPs)

• Create functional governance structure for each proto-CMA to include water users(to discuss the form & nature and guidelines)

• Each proto-CMA to have its own business plan to be known to water users with effect from 01 April 2011.

• Head of proto-cma (Regional Head) to report and account to water users in the region.

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Proposal 4Intensify Transformation of Irrigation Boards &

water user Associations

•Transformation Score Card –to be finalised and launched before end of March.•Regions targets on irrigation boards transformation by end of January 2011.•Task Team with SAAFWUA

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Proposal 5Finalise roles & responsibilities between regions

and national

• Establishment• Governance• Compliance• Protocol for submission of documents.• Document on Rules of engagement to be

circulated for comments-(Task Team)???

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Proposal 6Staff Transfer

• Regional task teams to be revived.

• National Task Team is functioning.

• Change management support currently negotiated through contract.

• Regional targets to be set.

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Conclusions

• Develop detailed understanding of our various stakeholders’ needs

• Differentiate ourselves through the way we do business - provide excellent services, with strong local identity

• Develop reputation as a value for money provider of top quality services

• Never forget the importance of water quality, public health, environment

• Be recognized as a leading national player

Conclusions • Create a business where the best people want to

work and develop• Provide the means for employees to develop their

skills and capabilities actively• Reward individual and team contributions• Create the atmosphere for performance• Communicate and share lessons

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Conclusions;Leadership

Sometimes the best leadership is allowing others to take the lead!

DO’s DON’T’s

Guiding / influencing Autocratic / dictatorial

Shared responsibility Sole responsibility

Enabling / informing Cards kept to chest

Listening but decisive One way – my way

Recognising others Taking the kudos

Best for the whole Me & my organisation

Taking action All talk

“We are on track but we have mountains to climb”

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