Presentation to the Portfolio Committee: Water & Environment

1. Presentation to the Portfolio Committee: Water & Environment Water services and regulation Presentation byMr Helgard MullerActing CD: Regulation16 – 17 March 2010

2. Reasons for amendment of WS Act • Align Act with other legislation such as MFMA, changes in local government and other policy changes, • Better regulate Water Services • Right of Minister to intervene directly in case of non-compliance • Streamline governance of water boards • Tariff regulation needs strengthening • Gaps identified that require addressing- vague areas such as industrial water

3. Process to amend WS Act • Amendment process produced a first draft- then placed on hold pending outcomes from Mazibuko court case • Review of draft Bill to start once more. • Draft Water Services Act submitted to Cabinet to get approval for public comment • Passed in Parliament

4. Drinking Water QualityStatus • Generally the status of DWQ in South Africa is good: • In 2008 (12month period) the average compliance nationally was 93.3%. • Compliance figures for August 09 was 96,5%;May 09 recorded 94%. • The compliance target is 97%; in line with the National Standard’s (SANS 241) compliance requirements. • There is an evident consistent improvement.

5. Drinking Water QualityStatus However, while this all sounds promising, the Department is more concerned about the areas not being monitored; or those inconsistently monitored. (One cannot manage nor regulate what is not being measured.) No monitoring leaves the affected communities at risk. • Municipal Monitoring frequencies must improve to be in line with national standard requirements (SANS 241:2006). Special attention to monitoring of DWQ is especially required in the smaller villages.

6. Blue Drop Certification • This incentive-based regulation initiative had its 1st public report launched in May 2009. • This concept was presented to the Regulation Network of the World Health Organization in Singapore (June 2009). It was very well accepted; • This innovative regulatory concept seeks to amalgamate legal requirements and best practices within the domain of drinking water quality management towards sustainable improvement. • (Simplistic) Objectives: • Serves as a DWQ goal Name and Praise • Stimulate proactive DWQ management. • Brings the Public Opinion into the equation; Revealing performance

7. Blue Drop 2009 Findings • In spite of relatively good performance; Challenges remain in: • Labs not accredited • Water Services Institutions not always sufficiently prepared for adverse incidences. • Generally DWQM is underfunded • The 2009 Blue Drop Standard was set high; 2010 will be slightly higher; • National Average BD Score: 53% (70% of all systems were assessed). • 435 Water supply systems were assessed; 23 systems achieved Blue Drop status.

8. The South African Municipal Waste Water Business • Approximately 900 waste water treatment works; • Transporting and treating about 7 589 Mega liters of waste water per day. • Capital replacement value of >R23billion. • Required operational expenditure of >R3.5billion per annum. • The South African Municipal Waste Water Services business is generally found to be far from acceptable.

9. The South African Municipal Waste Water Business • This state of disrepair is mainly due to: • Lack of proper Asset Management; • Lack of proper Infrastructure investment; • Rapid development of formal sanitation services (causing overloading); • Inadequacies in process controlling capacity; etc.

10. Green Drop Certification • Incentive-based Regulation approach for waste water services- the Green Drop • The first national audit produced the first Green Drop report. • Release the Green Drop Report at a date to be announced by the Minister and also introduce an action plan. • Some findings: • 449 systems assessed • 203 systems scored better than 50% • Rest needs drastic improvement

11. Proposed Actions to improve situation • Dedicated support to low-capacity municipalities, • Cost determination to assist municipalities and sector partners to plan and budget realistically • Training & mentoring programs for artisan, process controllers and plant managers • Implementing a world-best-practice regulatory system using a 3-pronged approach: • DWA allocated R 200 million to refurbishment of WWTW • Appoint private sector providers to operate and maintain on behalf of municipalities

12. Proposed Actions to improve situation (2) • Assisting municipalities with license preparations and fast tracking license processing • Improving communication with the media, in ensuring that media receive factual information • Strengthen programs aimed at providing information • Exploring the ‘opportunities’ offered by wastewater facilities in terms of job creation, • Exchange programmes with international expert institutions

13. Amount owed to WBs • According to the latest report to National Treasury water boards reported a total outstanding debt • of R 1,1 billion: • Some examples of monies owed: • Bushbuckridge: approximately R145m owed by Bushbuckridge LM • Bloem Water vs Mangaung LM = appr. R28m • Sedibeng Water vs Dikgatlong LM = R5.4m as at • Sedibeng Water vs Tsantsabane LM = R4.6 m • Rand Water vs Madibeng LM R19m

14. Progress made on Water Board disputes • Successfully resolved Umgeni/Msunduzi and Bloem Water/Ukhahlamba • Bushbuckridge Water vs LM – DWA team investigated and tabled regulator report to resolve the dispute. Currently working on processes to implement those recommendations • Bloem Water vs Mangaung LM – recommendations have been finalised. Will be tabled soon to both parties • Dikgatlong LM & Naledi LM – claim that they are unable to pay, therefore requesting financial assistance • Madibeng LM and Nala LM – are under administration • Phokwane LM; Ditsobotla LM & Matjabeng LM – have started paying off their debts • Kungwini LM – NT still monitoring the debt