Strengthening the provision of sustainable water services

1. Strengthening the provision of sustainable water services Towards a concept paper which: Reflects DWA and SALGA perspective Suggest some roles for sector partners

2. Background: DWA\SALGA meetings to discuss SALGA concerns August 2009 • Bulk supplies – many muns don’t have money or skills to increase supply • Institutional arrangements are deficient • Municipal skills gaps • Pricing across the water value chain • State of wastewater treatment September 2009 • Who will provide support to muns if DWAF pulls back from local government support Task: Develop a concept document to facilitate agreement on key challenges and appropriate interventions in the WS business and agree on roles and responsibilities

3. Some lessons of the past 15 years • Outcomes are what matter most • Importance of good leadership, the right skills , citizen engagement, effective communication, sound financial management and strong accountability systems • Requirements of sustainable water services provision have been under-estimated • Water services are complex and require a more professional approach and appointment of personnel with appropriate skills • Bulk supply, bulk infrastructure, maintenance, refurbishment, emphasis on sound ‘business’ management, etc • Weak financial and revenue management compounds problems with water pricing • Institutional diversity: one size doesn’t fit all • Institutional restructuring is complex, risky and disruptive to service delivery - wherever possible, consolidate and rebuild rather than restructure • Effective service delivery requires strong IGR and the support of all spheres of government • Quick fixes seldom deliver lasting benefits: need a long-term perspective

4. Competent Water Services Institutions needed • Integrated nature of water services process (water resource management; environmental management; technical; financial & admin dimensions) • Good management vital for national water security • Reliable supplies of safe drinking water in context of deteriorating raw water quality, rising demand and growing scarcity • Greater reliance on re-use and recycling

5. Responses to current challenges • Re-engage citizens as active participants in effective service delivery Prominent in LGTAS • Strengthen core governance and management systems in municipalities  Prominent in LGTAS • Strengthen financial sustainability of water services • Ring-fencing • Review pricing across the water value chain • Most water tariffs are too low – but price increases are not feasible without significant service delivery improvements • Prepare tariff-setting guidelines for municipal water services

6. Responses to challenges (2) Greater Professionalisation (key objective in LGTAS) • Acknowledgement and understanding of core competencies required for effective water services provision • Fill posts with appropriate personnel • Delineate functions of politicians and officials • Make better use of skills and competencies available • Drive longer term skills development initiatives • Run water services as a business • In some cases, consolidate existing capacity into a larger entity or shared services centre Lead Dept: Partners:

7. Risk-based Prioritisation to inform & direct water services support interventionsRisk Rating of Water Services Provision Functional / coping water services At risk High risk – potential to become within 8 months Crisis. Extremely high risk of disease outbreaks • Critical risk areas: Under Administration / Wastewater treatment capacity / Blue Drop and Green Drop results / Regulatory actions initiated, Lack of Technical Skills incl Process Controllers • 9% of munics are in severe crisis – contamination, disease • 38% most likely to reach same ‘crisis’ within 8 months • A further 42% at risk to reach similar high risk profiles, if early intervention and turnaround not actioned (DWA, Oct 2009) 7 7

8. Responses to Challenges (3) Dedicated water services support facility • Without effective support, the problems which result in non-compliance often cannot be fixed • Support and regulation are inter-dependent, and support is the key enabler of effective regulation • Additional resources needed to source hands-on specialist expertise through a “national resource pool” • Could be the specialist water services arm of the broader technical support units driven by COGTA • Business case and business plan needed Lead Dept: Partners:

9. Responding to Challenges (4) Strengthen sectoral skills development • DWA-led sector skills development strategy (aligning with educational bands and taking ‘pipe line” approach i.e. ensuring skills development for the sector takes place in each educational band) • Development of strategic management capacity for water services • Dedicated part-time training programme for WS managers • Hands on artisan and process controller training at dedicated municipal training facilities to support essential skills development for water service provision • Mentoring Lead Dept: Partners:

10. Responses to Challenges (5) Restructuring water services provision • No one size fits all approach – case by case assessments needed • Combining resources and skills of several munics into a large consolidated water utility or a combined services centre will enable greater scale economies than several small munic departments • Experience in setting up external stand-alone water utilities is mixed • Some form of institutional reform may be needed but wherever possible the emphasis should be on rebuild rather than restructure Lead Dept: Partners:

11. Responses to Challenges (6) Explore mechanisms to strengthen munic access to bulk supplies • Expand the footprint of water boards where financially feasible • Other mechanisms to be explored (REDS 5 + 1 approach?) in areas where it is not viable to provide wall-to-wall Water Board support (mechanism with comprehensive subsidies for areas where costs cannot be recovered from local users) Lead Dept: Partners:

12. Responses to Challenges (7) Strengthen sector monitoring and accountability mechanisms • Performance agreements in every WSA with firm, achievable targets • Strengthen resourcing and support for Regulations Performance Measurement System and other regulatory tools to drive early warning systems and response strategies • Promote local sector education initiatives to equip citizens and councilors to play a more pro-active role in strengthening service delivery • Achieve agreement on intervention protocols to enable swift responses to management and service shortcomings Lead department: Partners:

13. Response to challenges (8) Develop strategies and funding sources for informal settlements • Co-ordinated planning required as a matter of urgency • Categorise all informal settlements into 1 of 3 categories: • Imminent development • Urgent relocation required because of hazards • No settlement upgrading or relocation imminent • Focus on the vast majority for which there are no plans • Improved interim services, and / or incremental upgrading • Will require a dedicated funding mechanism as existing funding streams are inadequate Lead Dept: Partners:

14. Response to challenges (9) Strengthen IGR • Growing recognition that responsibility for municipal services does not lie with local govt alone • Integrated approach across three spheres of govt with clearly defined roles and responsibilities • Building on the LGTAS and Presidency’s proposals (policy paper M&E), build consensus on • Roles and responsibilities • Co-ordination and communication mechanisms • Mutual accountability mechanisms • Identify and address constraints to ensure any agreement is workable (funding, powers and functions, etc) • Clarify where responsibility for Sanitation lies

15. Way Forward • Are these the main issues? Do we agree with these responses? Any major gaps? • Looking at the responses - How do we ensure sector responds effectively? • What is in place? • Who leads / drives? Who are the key partners? • What funding exists or is needed? • How to position the sector? How to engage in the process and ensure readiness of sector?