Alternative funding model for water conservation

1. Alternative funding model for water conservation African Water Leakage Summit 7 September 2011, Midrand

2. Joint presenters Thembi Mkhize Chief Director, Metsi-a-Lekoa water services unit, Emfuleni Local Municipality Andries Meyer Manager, Sustainable Water Sasol New Energy

3. 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

4. Southern African perspective

5. Integrated Vaal River system Vaal system as part of Orange-Senqu

6. Integrated Vaal River system Return flow To Crocodile Eskom 290 mil.m3/a Gauteng Trichardstfontein Sasol Synfuels 90 mil.m3/a Knoppiesfontein Komati & Usutu transfer schemes Rand Water 1450 mil.m3/a Return flow To Vaal ELM Vlakfontein Canal VRESAP pipeline Heyshope & Zaaihoek transfer schemes Vaal Barrage Vaal River Vaal River Vaal River Grootdraai Dam 350 mil.m3 Vaal Dam 2600 mil.m3 LHWP 780 mil.m3/a Katse Dam 1500 mil.m3 Tugela River Tugela transfer scheme Woodstock Dam Sterkfontein Dam 2600 mil.m3 Sasol Infrachem, Sasolburg 22 mil.m3/a Mohale Dam 850 mil.m3 Polihali Dam (430 mil.m3/a future)

7. 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

8. Vaal system analysis and water conservation targets 15 % WCWDM target

9. 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

10. 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

11. 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

12. Emfuleniwater conservation successes • 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

13. Emfuleni Municipality water balance (1)Calculated at Rand Water bulk tariff of R4.59/m3

14. Emfuleni residential water losses External plumbing Internal plumbing Lack of awareness Consumer behaviour

15. Development partnership Emfuleni & GIZ/Sasol partnership agreement (MoU) Sasol (Private sector partner) Emfuleni LM (Metsi-a-Lekoa) Funding from ringfencedsavings Seed funding Reduced risk Off-setting Savings from reduced losses Emfuleni water conservation project GIZ/Sasol Development partnership Local economic activity Community Seed funding, governance, auditing role GIZ Development funding

16. Funding model

17. 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)

18. 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

19. 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

20. 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

21. Development partnership - Questions?