Water Boards Workshop RBIG 30 April 2010 TB FINAL

Report
Regional Bulk Infrastructure
Grant (RBIG) programme
Workshop with Water Boards
30 April 2010
Trevor Balzer
1
Contents
1.
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9.
Introduction
SONA
Overview
a. RBIG Policy
b. Definition of Regional Bulk
c. Project Criteria
d. Implementation Readiness
Budget Allocation
Progress
Refocusing RBIG Approach
MTEF Allocation
New Priorities
Introduction
Regional Bulk Infrastructure Programme
 Grant mechanism established in 2007 to
supplement the financing for the development of
regional bulk water infrastructure and regional bulk
sanitation collection as well as regional water and
waste water treatment works (social component
only)
 Budget Allocation (2010 MTEF) R4.42 billion
 Estimated R60 billion investment required
SONA (Extracts)
 In addition, we will work to improve the effectiveness of local
government, infrastructure development and human
settlements
 We are not a water rich country.
 Yet we still lose a lot of water through leaking pipes and
inadequate infrastructure.
 We will be putting in place measures to reduce our water
loss by half by 2014.
 This government will ensure that our environmental assets
and natural resources are well protected, and are
continually enhanced.
4
How does RBIG respond to SONA
 Support and assist WSA with Bulk infrastructure
operations and maintenance
 Ensure that WC/WDM is effectively addressed
before approving RBIG projects
 Ensure adequate O & M, and asset management
measures are part of the new RBIG projects
 Promote where possible WC/WDM related RBIG
projects i.e. Wastewater recycling (re-use)
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RBIG Policy
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Aim: This fund aims to support Government’s development targets (e.g.
eradication of basic water supply and basic sanitation backlogs) as well as
socio economic priorities such as the 2010 Soccer World Cup, enablement of
growth and development initiatives as well as addressing specific water risks
(e.g. water availability, water quality and environmental challenges).
Responsibility: DWA is responsible and accountable for the management of
this specific-purpose Water Services Regional Bulk Infrastructure Grant.
Accountability: The transfer from National Treasury to DWA will take place
as per DoRA and bi-lateral arrangements.
Assessment / Allocation: The fund is project focused and each case is
assessed and selected on merit. It is not formula based and not generically
allocated.
Co-funding; While this fund must enable economic development, the
proportional capital cost for higher levels of domestic, commercial and
industrial uses must be obtained from suitable co-funding or financing
mechanisms
6
Policy – Definition of Regional bulk
The infrastructure required to connect the water resource, on a macro or
sub regional scale (over vast distances), with internal bulk and reticulation
systems or any bulk supply infrastructure that may have a significant
impact on water resources in terms of quantity and quality.
– “Macro” is defined as infrastructure serving extensive areas across
multi-municipal boundaries
– “Sub-regional” is defined as large regional bulk infrastructure serving
numerous communities over a large area normally within a specific
district or local municipal area
– Over “vast distances” is considered as any distances greater than 5 km
– Bulk infrastructure that has a “significant impact on water resources”
includes:
• Any bulk scheme that is designed for maximum demand of 5 Ml/day or more
• Any waste water treatment plant that discharges into a fresh water resource
system
• Any water treatment plant that is designed for a maximum demand of more
than 2 Ml/day
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Project Criteria
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Funding is only allocated for implementation once the Projects is
“implementation ready”.
Projects must be aligned with regional and national water resource
development strategies, including compliance to WC/WDM.
Projects must provide for realistic longer-term development scenarios and
“total needs”
Projects must have stakeholder involvement and commitment.
Projects must be environmentally acceptable (approved EIA and
environmental Management plan).
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Implementation Readiness
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Comprehensive feasibility planning must be undertaken;
Prove socio-economic benefit;
Financial viability;
Illustrate sustainability
Technical acceptability;
Institutional arrangements;
Agreement , commitments for both implementation and sustainable operation;
Projects must be environmentally acceptable;
A financing plan must be in place,
Compliance to water conservation measures;
Acceptable asset management plans and systems;
Completed Environmental Impact Assessment, and
Water licenses
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Budget allocation
Previous financial years 2007/08 and 2008/09
• 2007/08
R 300.0 million
• 2008/09
R 444.7 million
• 2009/10
R 616.8 million
2010/11 MTEF Allocation
• 2010/11
R 893.0 million (Including the R54 mil Limpopo
drought relief funding)
• 2011/12
R 1675.3 million
• 2012/13
R 1849.2 million
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Progress to date
The total projects implemented since the start of the
programme are as follows:
• 107 projects were started since 07/08 financial year;
• 50 implementation projects have been initiated and are in
construction, design or tender phase
 32 construction,
 18 design / tender phase
• 57 feasibility / implementation ready studies underway
(budget for implementation approximately R3 billion)
• 9 projects have been completed
• New projects can be funded from 2012/13
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Projects completed
The projects completed to date are as follows:
2007/08
• Chris Hani Tsomo RDP2 BWS
• Delmas Phase 1 Emergency
• Thaba Chweu BWS
2008/09
• Delmas Phase 2
• Maqwassi Hills RWS
2009/10
• Mbhashe North BWS
• Mathulini BWS
• Greater Mthonjaneni BWS Phase 1
• Van Wyksvlei Interim Solution
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Projects completed in next Quarter
Projects to be completed in the next quarter
• Mthatha Bulk Water Intervention
• Jagersfontein BWS
• Groblersdal Lukau BWS
• Van Der Kloof/Petrusville BWS
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Jobs created
RBIG has created 3,448 jobs,
 This equates to 188,825 person days.
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Project Challenges & Risks
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2.
3.
4.
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9.
Transfer of funds
Misuse of funds by Municipalities
Many projects were not ready and were given funding
Non-Dora compliance (eg Roll over requests from NT)
Inadequate capacity by municipalities to manage implementation
Delays in implementation of projects and expenditure
High escalation costs
Approval process not followed
Sustainability of projects once completed (commitments by
Municipalities to perform O&M)
10. Lack of Co-funding by WSA
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Refocusing our approach
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DWA to take greater/direct control for implementing new
RBIG projects utilising:
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Project management capacity from DWA: Regional and National
Offices
Utilising the capacity of Water Boards
Utilising DWA construction
Where feasible new assets to be transferred to Water
Boards
Focus on sustainability of projects and Operations and
maintenance
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2010 MTEF ALLOCATIONS
Budget
Allocation
2011/12
Budget
Allocation
2012/13
309,000,000
153,300,000
63,000,000
328,400,000
332,000,000
93,000,000
148,500,000
105,000,000
59,200,000
321,650,000
108,000,000
97,500,000
399,360,500
385,989,000
47,000,000
120,500,000
120,900,000
60,700,000
786,050,000
348,300,000
216,500,000
885,535,500
905,989,000
204,000,000
319,075,000
274,200,000
153,457,000
17.8%
7.9%
4.9%
20.0%
20.5%
4.6%
7.2%
6.2%
3.5%
4,000,000
5,000,000
5,000,000
Refurbishment of Namakwa WTW
4,000,000
15,000,000
25,000,000
Green Agenda
3,000,000
5,000,000
5,000,000
Acid Mine Drainage
2,500,000
3,000,000
3,000,000
HEAD OFFICE
39,393,000
55,940,000 149,507,500
TOTAL
893,000,000 1,675,340,000 1,849,107,000
14,000,000
44,000,000
13,000,000
8,500,000
244,840,500
4,417,447,000
0.3%
1.0%
0.3%
0.2%
5.5%
100.0%
REGION
EASTERN CAPE
FREE STATE
GAUTENG
KWAZULU NATAL
LIMPOPO
MPUMALANGA
NORTHERN CAPE
NORTH WEST
WESTERN CAPE
SPECIAL PROJECTS
Desalination Strategy and Rollout
Budget
Allocation
2010/11
155,400,000
87,000,000
56,000,000
157,775,000
188,000,000
64,000,000
50,075,000
48,300,000
33,557,000
Total budget
Allocation
% OF
TOTAL
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Total Needs Assessment as at Dec 08
Province
Eastern Cape
Free State
Funding required
R5 b (preliminary)
R5 b (R2.6b priority projects confirmed)
Gauteng
Kwazulu Natal
Limpopo
Mpumalanga
Northern Cape
North West
Western Cape
Total
R3 b (preliminary)
R12.5 b
R13.8 b
R3 b (preliminary)
R1.8 b
R8.6 b (preliminary)
R7.3 b
R60 b (preliminary)
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New Priorities (2010)
• Broadening access from under-utilised
and single purpose dams (Taung and
Josini);
• Desalination Strategy and roll-out
• Acid Mine Drainage
• Green Agenda
• Namakwa Water - refurbishment
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THANK YOU

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