Presentation to the Parliamentary Portfolio Committee on Water Affairs & Forestry 23 August 2006

1. Water Allocation Reform with regard to Riparian Rights and Licensing in order to bring about Sustainable Livelihoods. Presentation to the Parliamentary Portfolio Committee on Water Affairs & Forestry 23 August 2006 Ashwin Seetal – Director: Water Allocation Johan van Aswegen – Regional Director: Mpumalanga

2. A Brief Recap & Update … • Phase I: Vision & Approach • Position Paper: “Water Allocation in South Africa A Framework for Water Allocation Reform” (Finalised end-May 2006) • Phase II: Implementation • 1. Toolkit for Water Allocation Planning – A Manual for Race & Gender Reform (Draft 4 completed) 2. DWAF Regional WAR Champions (nominated May 2005 – Training June, October & December 2005) 3. Regional Implementation Plans (drafts compiled; currently being finalised – original target end-June 2006) 4. Licensing Processes (being streamlined, simplified & consolidated where necessary)

3. Phase III: Monitoring, Auditing & Evaluation (framework currently under development) • Baseline Assessments • Informed Target Setting • Performance Monitoring, Evaluation & Audits • Project Review

4. EXAMINE NWRS/CMS/ISP/ RDM VERIFY EXISTING LAWFUL USE [S32-35] IDENTIFY INEFFICIENT USE & ALIEN VEG (WCDM & WfW) PREPARE A CATCHMENT ASSESSMENT REPORT • DEVELOP STRATEGIES FOR YIELD ENHANCEMENT • UNLAWFUL USE • VOLUNTARY REDUCTIONS • ALIEN VEGETATION • DEVELOPMENT OPTIONS • PROMOTE EFFICIENT USE THE WAR PROCESS PRE-POSITIONING PHASE “What is going on” IDENTIFY CATCHMENT OPTION 1 RAPID PROCESS OPTION 2 DETAILED PROCESS

5. ESTIMATED COSTS OF WATER ALLOCATION REFORM PER WMA PREPARATION & PLANNING (cost range = R 8.5 to 17 million) Validation & Verification Costs: R1500-3500 / user DWAF Resources: 8-10 months Project Duration: 18-24 months WCDM Costs: R 1.5-2 M DWAF Resources: 12 months Project Duration: 1-3 years Improved Yields & Operations Costs: R 5-10 M DWAF Resources: 12 months Project Duration: 2-5 years Develop a Catchment Assessment Report Costs: R500K DWAF Resources: 1 person month Project Duration: 06-18 months Decide on an approach to Water Allocations Option 1: RAPID PROCESS Option 2: DETAILED PROCESS Develop a Draft Water Allocation Plan Costs: R500K DWAF Resources: 6 months Project Duration: 6-10 months Develop a Draft Water Allocation Plan Costs: R 1.5 M DWAF Resources: 12 months Project Duration: 18-24 months

6. OPTION 1 – WHERE THERE IS SUFFICIENT WATER AVAILABLE AFTER YIELD ENHANCEMENT PREPARE A DRAFT WATER ALLOCATION PLAN FOCUS ON UPTAKE OF AVAILABLE WATER BY HDIs LICENCES TO HDI ENTERPRISES SUPPORT EXISTING HDI ALLOCATIONS RESOURCE SPECIFIC GENERAL AUTHORISATIONS

7. INITIATE CATCHMENT WIDE RDM INITIATE CATCHMENT WIDE RDM EXISTING LICENCES EXISTING USERS INTEREST GROUPS MEDIA ORG COOPER. GOVERN. IDENTIFY OPPORTUNITIES FOR PRODUCTIVE USE BY NEW USERS (FOCUS ON HDI) ID LEVELS FOR DIFFERENT RESOURCES ID LEVELS FOR DIFFERENT RESOURCES EMPOWERMENT CAMPAIGN SET ASIDE WATER [S45 (3)] DEVELOP FRAMEWORK FOR (RE)ALLOCATION CALL FOR LICENCE APPLICATIONS [S43(3) & S44] RDM SCENARIOS RDM SCENARIOS DECIDE ON CURTAILMENTS USE INSTALLED MODELING SYSTEM TO RECONCILE OPTION 2 – COMPULSORY LICENSING ANNOUNCE CL [43 (2)]

8. WAR PROGRESS (1) • I. VALIDATION & VERIFICATION PROJECTS • In Progress • Mhlathuze Catchment (WMA 6 – KZN) • Inkomati WMA (WMA 5) • Olifants WMA (WMA 4) • Jan Dissels Catchment (WMA 17) • Upper Vaal WMA (WMA 8) • Mokolo Catchment (WMA 1) • To Commence Shortly • Upper Orange (WMA 13), Lower Orange (WMA 14), Middle Vaal (WMA 9, Lower Vaal (WMA 10), Breede (WMA 18), Luvubu & Letaba (WMA 2), remainder of Limpopo (WMA 1)

9. WORK PROGRESS WORK IN PROGRESS TO COMMENCE WITHIN THE NEXT YEAR

11. 1998 108 000 ha –19 OOO ha 1996 89 OOO ha 2004 122 000 ha –14 OOO ha ALL CROPS 1998 49 965 ha –11 677 ha 1996 38 653 ha 2004 67 129 ha –17 164 ha SUGAR HOWEVER, ……ANY EXPANSION OF WATER USE SINCE OCTOBER 1998 ISPOSSIBLY UNLAWFUL IRRIGATION IN THE INKOMATI WMA

12. THE DWAF REGIONAL OFFICE HAS BEEN HOLDING BACK SOME 18 000 ha OF APPLICATIONS FROM EMERGING USERS BECAUSE THERE IS “INSUFFICIENT WATER”

13. JULY 1998 APRIL 2004 SLIDE NO. 13

14. WAR PROGRESS (2) • II. SUSTAINABLE LIVELIHOOD SUPPORT PROJECTS • Resource Specific General Authorisations (October 2006) • Identification of local / regional development & reform initiatives (eg Land Reform projects, Integrated Development Plans, etc) • Specific intervention for poverty eradication & sustainable livelihoods • Obviates the need for licencing specific “small” water uses • Empowerment Strategy (March 2007) • Targeted beneficiary development & support • Cooperative Government Protocols (March 2007) • Local, Provincial, National spheres • Between departments • Formal, informal & relationship building • *** A, B & C are interlinked projects

15. THE COMPULSORY LICENSING PROCESS FOR THE INKOMATI WATER MANAGEMENT AREA

16. Proposed Programme Roll-out: Overview (Feb 2006)

17. TASK WHAT COST VALIDATION OF EXISTING WATER USE CORRECTNESS OF REGISTERED WATER USE R3.5 MILLION COMP. FEB 2006 VERIFICATION OF ELU LAWFULNESS OF EXISTING WATER USE R 1 MILLION COMP. START MAY 2006 DEVELOP A CATCHMENT ASSESSMENT REPORT CURRENT USE, RETURNS AND OPPORTUNITIES FOR FUTURE R 0.5 MILLION COMP. AUG 2006 TASKS ……

18. DEVELOP A DRAFT WATER ALLOCATION PLAN OUTLINES GOOD OPPORTUNITIES FOR REDRESS & CONSTRAINTS SEPT 2006 EMPOWERMENT PROGRAMMES BUILD CAPACITY TO PARTICIPATE R 2 MILLION START JAN 2007 DEVELOP WATER RESOURCES MODEL DETERMINES THE WATER BALANCE R 10.56 MILLION COMP. AUG 2008 TASKS CONT…… TASK WHAT COST

19. DEVELOP RECONCILIATION OPTIONS RECONCILES DEMANDS WITH AVAILABILITY R 2 MILLION START SEPT 2007 RDM STUDIES OUTLINES OPTIONS FOR THE RESERVE R 3 MILLION COMP + Ad Hoc - SEPT 2006 ADMIN SUPPORT PROJECT MANAGEMENT AND SUPPORT R 2 MILLION TASKS CONT…… TASK WHAT COST

21. THANK YOU