Water and the New Growth Path - DWA Response -

1. Water and the New Growth Path- DWA Response - 16 February 2011 Fred van Zyl

2. Purpose of Presentation • To present DWA response to the New Growth Path(NGP) • To obtain a shared understanding on the role of Water in growth & development • To present existing & new activities supporting job creation • To highlight challenges, risks and success factors • To obtain strategic input for DWA and the water sector NGP support strategy

3. 1. Understanding The New Growth Path:Approach & Principles to Guide Sector Engagement • Create 5 million new jobs over the next 10 years (target large scale areas for employment creation) • Create sustainable employment & decent work • Targeting all people, particularly the poor • Phased development over short, medium and long-term (in the medium-term focus on sectors able to create employment on large-scale) • Collectively achieve more jobs (inter-sector partnerships, coordinated around core priorities vs disbursed action) • Fine-tune macro and micro policies to support more equitable and employment-intensive growth through

4. NGP Job Drivers Main economic sectors: Agriculture & agro-processing Mining and beneficiation Manufacturing (IPAP2) Tourism / other services Infrastructure 1 2 Look for employment opportunities in “job drivers” and implement policies to take advantage of them Spatial opportunities: Rural development African regional development New economies: Green economy Knowledge economy 5 Social capital: The social economy The public sector 4 3

5. Important Focus Areas for DWA • Infrastructure • Main Economic Sector • Agriculture & agro-processing • Mining and beneficiation • Manufacturing (IPAP2) • Tourism / other services • Spatial context (rural development + spatial footprint of water) • Smart solutions & technologies (Greening)

6. Main Performance Indicators • Jobs (number and quality) • Growth (growth rate, labour intensity and composition) • Equity (lower income and poverty) • Environmental outcomes

7. 2. DWA Response • DWA is a committed partner and supports the NGP • The core objective of water management is to support social & economic development • This is reflected in the National Water Act and the National Water Resource Strategy • Water sector activities are developed and implemented within this objective • The support activities + associated principles of the NGP (e.g. Job creation) are reflected in DWA’s strategic plan

8. NGP Job Drivers: Water Performance Areas Water support can be grouped into 4 performance areas: 1 Integrated water resource planning, availability & allocation activities 2 Job creation through water infrastructure development and management 3 Job creation through water resource management programmes 4 Job creation through water governance

9. 3. Understanding the Role of Water in Growth & Development

10. 1. Role of Water in Growth & Development EnablingResources NaturalResources Social 1 “Man”- power Water NationalGrowthand Development Money Earth Economic Material Air Environment Machines Energy

11. 1.1 Water Strategic Outcome Partnerships • Effective inter-sector partnerships • Implies integrated planning, strategies & targets(also reflected in IPAP2, NGP) • Integrated & aligned action and implementation • Extended & aligned enabling resources • Requires coordination & leadership (clarity on Roles) • Shared knowledge base • Respect spatial, business, sector and environmental values and principles • Requires resource alignment

12. 1.2 Sector Issues & Conditions EnablingResources NaturalResources Social “Man”- power Water NationalGrowthand Development Money Earth Economic Material Air Environment Machines Energy 2

13. 1.2 Sector Issues & Conditions • Water is a scarce and strategic resource • Water is a variable resource in space & time • Water quality is a priority action & concern • This implies: • improved water use efficiency (non-negotiable) • water resource protection (non-negotiable) • Negotiated water allocations (subject to availability, potential, existing vs new, reform, etc) • Allocations are subject to conditions • Risk management (floods & droughts) • New development requires lead-time (multi-year) • Water not only a resource but also a habitat (environment, social and economic development, recreation & tourism)

14. 1.3 Business Alignment 4 EnablingResources NaturalResources Cooperative Governance Social “Man”- power Water NationalGrowthand Development Money Earth Economic 3 Material Air Environment Machines Energy

15. 1.3 Business Alignment • Water must be high on all agendas (essential element of business) • Water contribution requires integrated outcomes planning • Water contribution requires aligned resourcing & management • National Water Resource Strategy (NWRS-2) is a pivotal framework for integrated water management • NWRS-2 is aligned with Outcomes & Development Strategies • NWRS-2 is aligning with Sector and Resource Strategies (e.g. energy, food) • Water Resource Management demands sector partnerships and alignment • High priority and success factor: Cooperative and integrated governance (mining development, food security, growth centres) • NB! NB! Integrated Programme Leadership and Coordination

16. Conclusion • DWA core business is aligned with NGP job driver 2 • The core contribution is : • To make water available for socio-economic development • To make water habitats available for socio-econ development • Various programmes and activities support these • Water in itself is not a major job creator; Job opportunities are within integrated sector partnership programmes

17. 4. DWA Programmes & Activities per Performance Area Water support can be grouped into 4 performance areas: 1 Integrated water resource planning, availability & allocation activities 2 Job creation through water infrastructure development and management 3 Job creation through water resource management programmes 4 Job creation through water governance

18. 4. DWA Oppertunities EnablingResources NaturalResources 4 Governance Social Integrated Programmes “Man”- power Water NationalGrowthand Development 1 Money Earth Infrastructure Economic 3 2 Material Air Environment Machines Energy

19. 1: Water resource allocation activities(in support of NGP job driver-2) Existing programmes: • New resource developments (benefitting mining, domestic , industrial, agriculture, environment and recreation) • Water allocation and water allocation reform • Universal access to water services: • Basic services programme • Bulk infrastructure • Water boards • Water for food security (commercial & resource-poor farmers)

20. Existing DWA WR allocation projects & action

21. 1: Water resource allocation activities (in support of NGP job driver-2 and IPAP2 *) Enabling programmes: • Extended integrated planning (outcomes, energy, food-security, land reform and rural development, economic growth) • National Water Resource Strategy (NWRS-2 strategic alignment) • 9 new water reconciliation strategies Additional programmes • Utilization of surplus water in existing schemes * • Broadened use (multi-purpose dams, recreation & tourism) *e.g. Inyaka dam recreation & tourism

22. 2: Water Infrastructure Development and Management(in support of NGP job driver-1) Existing programmes • Raw water infrastructure development (beneficiaries: domestic, energy, irrigation, industrial and environment) • Regional bulk infrastructure & transfers • Refurbishment of water treatment works • Infrastructure asset management Additional programmes & opportunities • Water management monitoring and gauging stations • Hydropower projects • Refurbishment of water treatment works * • Infrastructure asset management * create jobs in municipalities through regulation

23. Existing DWA Infrastructure projects & actions

24. DWA & Water Institutions Infrastructure projects & jobs * Water User Associations to be included

25. 3: Water Resource Operational Management Programmes Existing programmes • Water use efficiency • Working for water • River health programme Additional programmes & opportunities • Water resource protection / water quality management • Water systems management • Water re-use • Disaster management

26. DWA water management projects & action

27. 4: Water Governance Activities (1)(activities mostly facilitating / low job opportunity) Existing programmes • Legislative review • NWRS-2 (pivotal role for growth & development) • Sector leadership and governance • Institutional review and alignment • Water resources planning & reconciliation • Water regulation • Water tariffs & funding model • Catchment management (3 CMAs to be established)

28. 4: Water Governance Activities (2)(activities mostly facilitating / low job opportunity) Extended water business management • Moving into a new era of “Smart” water management(water + infrastructure + operations + business processes) • Inter-sector planning and governance • Extended and shared business knowledge base • Spatial referencing and context • Sector skills development programme

29. Water support for NGP priorities • Infrastructure / public investment • Maintain high level of public investment in line with Growth Commission (5% - 7% of GDP) • Jobs in construction √ • Overall economic efficiency , equity and emissions √ • Agricultural value chain • New small holder schemes √ • A fundamental rethink of land reform √ • Commercial agriculture as central to food security and exports √ • Substantial up-scaling in community and school gardens – proposing a pilot through EU fund √ • Agro-processing based in IPAP2 √

30. Water support for NGP priorities (cont…) • Mining value chain • Increase mining prospecting, development and production √ • Manufacturing • Projects in IPAP2 target substantial employment creation • Link to regional integration and production of inputs for local and regional infrastructure • Tourism and high-level services • Tourism strategy to continue to upgrade services and skills and ensure improved infrastructure and more affordable transport √ • Green economy • IRP2* foresees a third of new energy from renewables – how to make sure it happens AND develop new industries? √ * [Energy] Integrated resource plan

31. Challenges, issues and risks (1) • Water’s role as strategic resource is not understood and appreciated • Facilitation of integrated programmes (shared strategy, actions & leadership) • Adequate resourcing and inter-sectoral resource alignment • Water availability & variability (space and time) = water security 31

32. Challenges, issues and risks (2) • Sector principles and conditions: • Water footprint • Environmental & pollution risks • Water use protocol (effective use) – (NWRS and IPAP2) • Appropriate norms & standards and associated quality control (IPAP2) • Inappropriate water use (e.g. irrigated bio-fuels) • Appropriate water allocation & extended criteria (value chain, socio-economic importance) • Improved licensing process (negotiation process, fair decisions, within reasonable timeframes) 32

33. Challenges, issues and risks (3) • Infrastructure development time frames • Issue of temporary vs permanent jobs (e.g. construction jobs) • Skill needs of job opportunities and appropriate employment 33

34. The Way Forward (1) • The primary job contribution by the water sector is through the economic sectors (e.g. integrated programmes) with associated implications - NGP driver 2 • Strategic opportunities identified to support growth & development (in line with IPAP2, e.g. multi-use of dams in support of tourism, recreation, aquaculture, agri-industry) – NGP driver 2 • A major job contributor is through water infrastructure development (23,000 jobs per annum, note that most are interim jobs for 1-4 yrs) – NGP driver 1 34

35. The Way Forward (2) • In the operational water management areas interim job opportunities exist through critical interventions such as water use efficiency, WWTW, water quality, asset management, etc. • Job numbers in these areas are limited. Most require higher skills with associated training requirements. • Labour-intensive practices to be applied • Stronger integration between sector strategies must be facilitated • Dedicated resourcing and programmes for governance activities • Re-thinking the values of water (extended values & value chain) • Formal alignment of the water strategies with outcomes and macro strategies is facilitated through the NWRS-2 35

36. Water to be high on the agenda for all decision-making !