Alternative funding model for water conservation

African Water Leakage Summit

7 September 2011, Midrand

Thembi Mkhize Chief Director, Metsi-a-Lekoa water services unit, Emfuleni Local

Municipality

Andries Meyer Manager, Sustainable Water

Sasol New Energy

Joint presenters

Presentation overview

– Vaal River system water availability & risks

– Stakeholder interests

– Vaal system analysis and water conservation targets

– Emfuleni opportunity

– Development partnership

– Funding and implementation model

– Governance structures

Southern African perspective

Integrated Vaal River systemVaal system as part of Orange-Senqu

Integrated Vaal River system

Vaal River

Vaal Barrage

Vaal River

Vaal Dam2600 mil.m3

LHWP780 mil.m3/a

Gauteng

Rand Water1450 mil.m3/a

Return flowTo Vaal

Return flowTo Crocodile

Sasol Infrachem,Sasolburg22 mil.m3/a

Katse Dam1500 mil.m3

Sasol Synfuels90 mil.m3/a

Mohale Dam850 mil.m3

VRESAP pipelineVlakfontein

Canal

Knoppiesfontein

Eskom290 mil.m3/a

Grootdraai Dam350 mil.m3

Trichardstfontein

Komati & Usututransfer schemes

Sterkfontein Dam

2600 mil.m3

Vaal River

Tugelatransferscheme

Woodstock Dam

Tugela River

Heyshope & Zaaihoek

transfer schemes

ELM

Polihali Dam(430 mil.m3/a

future)

Main risks to Vaal River system

• Unlawful irrigation: estimated volume of 222 mil.m3/a abstracted unlawfully from Vaal system

• Acid mine drainage (quality and quantity)

• Municipal water losses estimated at 420 mil.m3/a

Vaal system analysis and water conservation targets

15 % WCWDM target

Vaal catchment stakeholder interests (1)

• Department of Water Affairs– “Half water losses by 2014” Pres. Jacob Zuma– 15% Municipal water conservation targets

• Emfuleni Local Municipality (Metsi-a-Lekoa)– Water Service Authority in terms of Water Services Act– Responsible for provision of water services to consumers in

Emfuleni municipal area– Committed to sustainable catchment management

• Orange-Senqu River Commission (ORASECOM)– River basin organisation representing interests of Lesotho, RSA,

Botswana & Namibia– Seek WCDM PPP model that can be replicated– In support of SADC objectives

Vaal catchment stakeholder interests (2)

• GIZ Transwater SADC– German Agency for International Cooperation involved in trans-

boundary water management projects in SADC region– Supports people & societies in developing countries in shaping their

own future and improving living conditions

• Sasol– Fuel and chemicals production facilities dependant on water supply

from Vaal River system– Committed to sustainable catchment water management as

endorser of UNGC: CEO Water Mandate

Emfuleni Local Municipality

• Fourth largest municipality in Gauteng Province

• Main city/town areas of Vereeniging , Vanderbijlpark and peri-urban

townships of Sebokeng, Evaton, Sharpeville, Boipatong, Bophelong

and Tshepiso

• Covers an area of 987 km2

• Total population of 658 422 (Stats SA 2001)

• Current total population estimate of 1 200 000

• 159 811 Formal stands

• 2 849 km of water pipelines

• 14 Potable water reservoirs

• Largest advanced pressure control installation in the world

• Savings of R150m over 5 year period

• Fully implemented customer care awareness programs (e.g. education

and awareness campaigns)

• Leak repair projects conducted in:

–Bophelong

– Ironside/Debonairpark

– Beverly Hills

– Sharpeville

Emfuleni water conservation successes

Emfuleni Municipality water balance

Water balance elements 2009/10 water volumesmil.m3/a

Water cost(1)

R mil

Input (purchased from Rand Water)

81 (100%) 372

Billed metered consumption 25 (31%)

Billed unmetered consumption 20 (25%)

Non-revenue water / losses (input volume less billed consumption)

36 (44%) 165

(1) Calculated at Rand Water bulk tariff of R4.59/m3

Emfuleni residential water losses

External plumbing Internal plumbing

Lack of awareness Consumer behaviour

Development partnership

Emfuleni water

conservation project

Emfuleni LM (Metsi-a-Lekoa)

Sasol (Private sector

partner)

GIZDevelopment funding

Community

Savings from reduced losses

Funding from ringfenced

savings Seed funding

Reduced riskOff-setting

Seed funding,governance, auditing role

Local economic

activity

Emfuleni & GIZ/Sasolpartnership agreement (MoU)

GIZ/SasolDevelopmentpartnership

Funding model

Municipality ‘09/10 water demand

(mil.m3/a)

15% targeted savings

(mil.m3/a)

Value

(R mil./a)

Emfuleni 81 12 62

Sasol R 5 mil Seed funds and skills to initiate a project to help

achieve target by end

2014

GIZ / AusAid/ UKAid

R 5 mil

Implementation model

• Principle of Implementing Agent acting within collaborative governance

structures

• Main focus on physical water loss reduction

• Includes awareness and education program (behaviour change)

• Selected priority areas (Sebokeng / Evaton wards)

• Retrofitting and repair of leaking pipes, taps, toilets, valves

• Local skills development. Seek alignment with DWA “War on Leaks”

• Spend bulk of funding on local providers (plumbers, materials)

• Responsibilities and skills transfer to Emfuleni

• Excludes revenue enhancement initiatives (done by ELM)

Role of GIZ/Sasol as Implementing Agent

• Provide seed funding and in kind contributions

• Project management

– Managing Contractor

• Sustainability initiatives– Facilitate community education and awareness – Facilitate training in line with DWA “War on Leaks”– Transfer of project skills and responsibilities to Emfuleni

• Provide procurement, commercial and financial systems

• Provide for financial and project results auditing

Project governance structures

Project Steering Committee

• Providing strategic direction and high level decision making.

• Agree on key measures of success

• Manage and prioritise allocation of funds

• Set milestones for handovers to Municipality

• Set criteria for enablement training of local labour

• Monitoring and evaluation of project

Project governance structures

Community Stakeholder Committee

• Enlist community representation – Community Liaison Officers

• Facilitate and advise on community desires, needs and preferences

• Advise on selection of local labour and service providers.

• Facilitate access to the project areas (incl. private homes)

• Monitor the communities’ perceptions of success

Project Management Committee

• Responsible for detailed Project Plan and Project Budget

• Oversee administration, management and delivery of the project

• Liaise with Community Stakeholder Committee regarding local issues

Development partnership - Questions?