PRESENTATION TO THE PORTFOLIO COMMITTEE ON DWAF 17 OCTOBER 2006 IN CAPE TOWN

1. PRESENTATION TO THE PORTFOLIO COMMITTEE ON DWAF17 OCTOBER 2006IN CAPE TOWN THE ROLE OF BUSHBUCKRIDGE WATER IN RURAL DEVELOPMENT OF WATER AND SANITATION FOR SOCIO-ECONOMIC GROWTH Presented By: Mr. RS. Matsebula (Chief Executive) Ms. TP. Nyakane-Maluka (Chairperson)

2. TABLE OF CONTENTS • Comments on the DWAF 2005/06 Annual Report 2. Background on Bushbuckridge Water 3. BWB’s Service Area And Its Challenges 4. Primary Activities Towards Socio-Economic growth 5. Secondary Activities Towards Socio-Economic growth 6. Challenges 7. Conclusion

3. Comments on the DWAF 2005/06 Annual Report • It is always a big challenge to assemble issues that commands relevancy to the majority of readers of our annual reports. • The DWAF 2005/06 annual report; • is much reader friendly than the previous reports • It should contain more information on the value that Water boards as a collective are adding in the water supply chain. • Major omitions include the water quality monitoring programs in Mpumalanga which dates back to pre-1994. • It is unfortunate that there is yet another qualification and disclaimer of audit opinion. • We strongly believe that the situation will be turned around during the next financial year.

4. BACKGROUND ON BUSHBUCKRIDGE WATER BOARD (BWB) • BWB was established in December 1997 in accordance with the Water Services Act, Act 108 of 1997 • Our primary responsibility is the provision of bulk water services to other water services institutions • BWB accepted secondment of staff (174 people) and infrastructure from DWAF in April 2000, and currently employs 246 people. • 76 employees are contract employees involved in the Nsikazi Project (Secondary activities). • BWB operates 9 water schemes in Bushbuckridge Local Municipality (BLM), and 2 water schemes together with 1 sewage treatment system since 2001 in the Mbombela Local Municipality (MLM) areas. • Major institutional allies include BLM and SALGA – Mpumalanga.

5. BWB’ S SERVICE AREA AND ITS CHALLENGES • The socio-economic profile of the service area is characterized as rural small villages and dense villages with total population of 1.2 million people residing in the BLM and MLM areas respectively. • These communities are classified as poor with high unemployment rate (65%) and they rely mainly on subsistence farming. • Cost recovery for services rendered remains a huge challenge, hence DWAF subsidies are playing a major role in sustaining water supply to communities. • Only 260 ha are arable land from the 26 000ha of the BLM land. The challenge brought by the drought compounds the problem even more.

6. Primary Activities Towards Socio-Economic growth • Expansion of Service Coverage • DWAF and DPLG provided funding for upgrading two schemes during 2005/06 financial year. • The upgrading performed in the Bushbuckridge Municipality area amounted to an additional 26 Ml/day. • BWB operates and maintain these schemes whose added capacities has afforded about 300 000 people excess to potable water. • This figure would account for 30% of the national achieved target of 1 million additional people receiving water as reported in the DWAF report. • BWB’s implements the BBBEE and this has improved from 20 to 30%.

7. Secondary Activities Towards Socio-Economic growth • BWB together with Bushbuckridge Municipality is establishing a call centre which caters for all municipal services. The call centre receive customer complaints and redirect them to legitimate sectors/teams for a solution. • BWB and BLM are currently setting up systems for effective cost recovery. This will lead to creation of jobs for meter readers within the communities. • BWB has been very instrumental during the formulation, implementation and monitoring of WSDP, IDP, FBW policy, indigent policy • An induction workshop for BLM councilors of BLM as a WSA is being planned by both BWB and DWAF to empower BLM in its regarding water services.

8. Secondary Activities Towards Socio-Economic Growth (Cont.) • BWB was involved in the following activities to support socio-economic growth; • BWB conducted numerous water conservation education program at a number of schools. The program aims at educating pupils and also highlighting the value of water and how water can be conserved. • Bushbuckridge Water supported and participated during National Water Week and Arbor week in partnership with the Department of Health, the Municipalities and DWAF. • Due to the high level of crime, BWB together with the SAPS conducted several crime awareness campaigns called “Captain Crime Stop programs” at various schools in BLM and MLM areas

9. Secondary Activities Towards Socio-Economic growth (Cont.) • BWB was involved in the following activities to support socio-economic growth; • BWB is involved in maintaining irrigation canals in support of subsistence farmers in the Thulamahashi area. • Internship is provided to a maximum of four unemployed graduates annually in order to help them gain experience in their relevant field of study. • Kanyamazane Works host student doctors and nurses once per month for practical training in water technology conducted by BWB. • BWB sponsored MLM, BLM & Ehlanzeni District Municipality during their water awareness campaigns and Local Economic Development summits respectively.

10. Challenges • The disestablishment of Bohlabela DM (former WSA) gave birth to the new WSA. This require that BWB starts new negotiations with BLM (new WSA). • Cost recovery has always been a challenge in the area resulting in limited resources to implement capital projects and refurbishment. • Serious competition emerged between BWB and Bi-Water (Private company operating in the Nelspruit concession area). This led to serious mud slinging and bad publicity. • Poor coordination and support within government institution in the province. • Undefined ownership of infrastructure transferred to BWB by DWAF during 2000. • Political tensions within municipalities • New appointments of top management by Municipalities (MM & CFO)

11. CONCLUSION Bushbuckridge Water acknowledges that; • there is a duty on all spheres of government to ensure that National government priorities are implemented in a manner, which is efficient, equitable and sustainable. • Eradication of poverty and attention to service backlogs are top on the national agenda • water has also become a key pivot for socio-economic development of our communities.

17. THANK YOU