National Planning Commission comments on National Water Resource Strategy

1. National Planning Commission comments on National Water Resource Strategy Mike Muller Commissioner, National Planning Commission  Portfolio Committee on Water and Environmental Affairs Parliament, 30th October 2012

2. Our future - make it work NATIONAL DEVELOPMENT PLAN 2030 28 September 2012

3. National Development Plan on water resources: • Need the NWRS! • Four priority areas • Four areas of policy importance • Investment programme  

4. Cycle of development

5. Four priority areas • Establish NWRIA • Reduce demand • Manage agricultural use better • Investigate water reuse and desalination

6. Four areas of policy importance • Enhanced management capacity will be needed to address the increasing pressures on water resources. • Institutional arrangements for water-resource management, specifically • the number of water-management areas to be established, • the mechanisms through which users will be involved in water management, • organisation of major water resource infrastructure. • Review existing water allocations – compulsory licencing • where new users are seeking access, but current users already take more than can reliably be provided. There is statutory provision for these reviews, which if not undertaken, will result in a rise of illegal use and the over-allocation of the resource. This will reduce supply reliability, jeopardise existing social and economic uses and damage the environment. • Strategic planning decisions needed to guide water-management approaches, • on general economic and social development, as well as environmental protection in key geographic areas

7. A comprehensive investment programme • For water-resource development, bulk-water supply and wastewater management must be established for major centres and should be reviewed every five years. This programme must include the major investment projects, with clear allocation of responsibilities for financing and implementation and set targets for completion

8. NWRS2 • How does it measure up?

9. The NWRS2 • Welcome its release (early alignment with NDP targets) • But disappointed with its contents • The NWRS2 needs to comply with the requirements of the National Water Act (1998) (NWA) specifically, it does not • provide the information required by the NWA • report on progress since NWRS2004 was adopted • provide sufficient information to evaluate the proposals made • It is internally contradictory in crucial respects; and • It contains proposals that, if implemented, would threaten water security for South Africa and all South Africans. • If this NWRS2 is adopted as a guide to DWA’s programme of action, the goals that it sets for itself are likely not to be achieved. 

10. Serious challenge to Committee, Parliament and country • Can a department simply ignore the law? • Why does the NWRS2 not follow the structure outlined by the NWA? • NWA 1998 requires a national information system • DWA says that is not there, it will be ready by 2019 (21 years later!) “A key challenge was the need to provide detailed updated information per water management area. This detailed information was not available in appropriate format and location and could not be reflected.” • No updated estimates of water use since 2000! • DWA’s desire for water to be at the centre of planning will not be taken seriously if it cannot share information with stakeholders • The core of an information system should be put in place within 12 months, before the decentralisation of activities to CMAs, to guide the development of their information management systems

11. It does not report on progress since NWRS2004 was adopted • Demand Management is highlighted in NWRS2 • But in NWRS1 (2004) already stated that: “An effective WC/WDM programme for the water supply and sanitation services sector is essential because, although it accounts for only about 15 per cent of total national water use (excluding water supplied to industries by water services authorities), it is the sector with the highest expected growth in demand. More efficient use of water will reduce the costs of purifying and distributing water to consumers and of the subsequent treatment of wastewater.” • What has happened in the past 8 years? • What progress has been made against targets set? • What problems have been encountered • What solutions proposed and action to be taken?

12. Internally contradictory: for example, the ecological reserve • NWRS2 gives the impression that process is proceeding well: In many water management areas, the ecological portion of the “Reserve”, which specifies the quantity and quality of water required for the protection of aquatic ecosystems, is not yet fully implemented. • Actual situation reported elsewhere in the document is that in many catchments – Limpopo, Olifants, Komati, Vaal, - it cannot be implemented without major socio-economic impacts, if at all. • If environmental protection is an important objective of water resource policy and strategy, this challenge must be recognised and addressed

13. Institutional proposals • The proposal to establish CMAs repeats 2004 • Reduction in numbers may help • But it will reduce stakeholder engagement • How will that be addressed? • Proposal on National Water Resource Infrastructure arrangements avoids the challenge • Two agencies (TCTA and DWA) doing same job, often in same place • Uncertainty about responsibility causes delays • DWA high costs have been criticised • Performance acknowledged to be poor • Why not rationalise, given DWA’s poor performance? • Amalgamate the two organisations!?

14. Proposals that threaten South Africa’s water security • Proposals on reducing water supply assurance troubling, suggest that the challenges are not understood • The challenge is that water is increasingly scarce • In a growing number of places, there is no additional water • This is not a crisis, but requires focused policy and action Approaches proposed are not encouraging: • 13. DWA will clear the backlog in water use licensing by 2016 and will put in place streamlined processes to ensure that licence applications are dealt with in a reasonable time • The problem is not licencing but saying “NO!” • No individual licences without compulsory licensing

15. Is the goal water security? • Water security is all about reliability and predictability, but “20. The implementation of the Water Allocation Reform programme will be given high priority by DWA … and will be addressed through a number of programmes, including compulsory licensing (which will be completed in 3 catchments by 2014) … The reduction of assurance of supply for existing water users as well as reduction of water losses will be critical components of making more water available to historically disadvantaged, small-scale users” • DWA must balance different needs, not avoid decisions • Must not choose to have water cuts, unneccessarily

16. NWA’s approach to scarcity • When sufficient water is not available, can:- • Allocate administratively • Requires extensive capacity • Allocate through trading • Effective but often inequitable for social uses • Do nothing, • Damages everyone as water becomes insecure • Current system is mixed • Overall allocation is administrative • Trading is allowed between commercial users • Compulsory licensing is mechanism in NWA • NWRS2 has no substantive proposal to do anything • 3 small catchments listed, same as in 2004?

17. Reading NWRS2 alongside NDP…suggest that:- • 1 core approach and 4 key themes should be prioritised • (not 23 strategies and 78 strategic actions!) • 1st, stick to existing policy and solve problems of implementation. Legislative review should only be done to simplify administrative processes not change policy principles • 2nd, implement compulsory licensing in critical catchments (to address competing needs, determine feasibility of environmental reserves) • 3rd, set up key institutions, CMAs, framework for stakeholder involvement, sensible water resource infrastructure organisation • 4th, provide investment framework with key projects, estimated costs, financing responsibilities, timelines and implementing agents (to include quality oriented projects as well as quantity) • 5th, provide information and establish structured framework for water resource information throughout water sector

18. NPC approach to implementation Integration of NDP proposals in dept implementation plans The NPC working with DPME – through existing channels - will advise departments, provinces, and local government on integrating the NDP proposals into their implementation plans. Proposals will also be included in the Medium Term Strategic Framework (5 year plan) from 2014 onwards Transformation zone i.e. the interaction between government implementation, contribution of social partners, and lessons from pilots will bring about change. Growing this will build trust between key players and increase investor confidence Piloting new proposals & feeding lessons into policy process Private sector & civil society identify aspects to get involved in The private sector, corporate foundations, labour movement, NGOs., the media and religious bodies will be mobilised to play an active role in the implementation of the NDP Working with government & other social partners, the NPC will undertake piloting to test proposals, demonstrate effect & feedback into policy process

19. NPC approach to implementation Approach to implementation... • We need to learn by doing – through piloting • We need to have the flexibility if the evidence tells us to • Involve key stakeholders in a facilitated planning and design of experiments – ensure high level of buy-in • Ensure participants understand the current system, external context, stakeholders, various components of the solution and performance • Implementation requires a clear accountability framework • Aim to achieve a co-designed rollout plan which takes into account the realities faced by all stakeholders NWRS2 has seeds of the same approach – harvest them! SECRET

20. Future work of the Commission • Commission is half way through its term • Over the next 2 years, will: • Mobilise support in society for the plan • Conduct research on long term priorities • Advise government and the broader society on implementation of the plan • Work with relevant bodies to report progress on the targets in the plan. • Available to support DWA and water sector generally to refine and strengthen the strategy

21. Simplify the NDP Message & catalyse the drivers of change The message applies equally to NWRS2: Simplify, prioritise, implement, learn SECRET

22. Thank you!