WATER MANAGEMENT KEY CHALLENGES AS IT RELATES TO NON REVENUE WATER AND DEBT MUNICIPAL MANAGERS FORUM 20 FEB
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1 WATER MANAGEMENT KEY CHALLENGES AS IT RELATES TO NON REVENUE WATER AND DEBT MUNICIPAL MANAGERS FORUM 20 FEB 2018
2 q SERVICE DELIVERY CONTENT q KEY ISSUES q LOSS IN REVENUE (Non Revenue Water) q WATER DEBT q DELIVERY MECHANISMS q TECHNOLOGY AND INNOVATION q SUGGESTED WAY FORWARD
3 SOUTH AFRICAN MUNICIPALITIES 257 Munics 8 metros 44 DMs 205 LMs LIMPOPO DMs and LMs NORTH WEST DMs and LMs GP MPUMAL -ANGA Lms and DMs NORTHERN Cape LMs and DMs FREE STATE Lms, DMs and Metro KWAZULU NATAL Lms, Dms and Metro WESTERN CAPE Lms, DMs and Metro EASTERN Cape Dms, LM and Metros
4 Product Quality 81% of South Africans believed their tap water is safe to drink ü ü % of South Africans believed their tap water is safe to drink Source: SALGA/WRC perception study 2015
5 How would you describe the municipality's water and sanitation service in the area where you live? Percentage (%) % ,5% Very good/excellent Good Mixed Bad Very bad
6 NON REVENUE WATER AND WATER DEBT
7 Media Report(s)
8 Behavioural Change
9 How much water does your household use? [CATEGORY NAME] [PERCENTAGE] [CATEGORY NAME] [PERCENTAGE] [CATEGORY NAME] [PERCENTAGE]
10 A CLOSER LOOK AT THE PROBLEM: EXAMPLES (REVENUE VS NON-REVENUE WATER) Month Total Purchases (kl) Value of Water Purchases (Without Interest) Jul /16 financial year 4,693,199 R 44,741, Aug-15 3,648,217 R 39,308, Sept-15 3,717,127 R 39,667, Oct-15 7,729,213 R 44,928, Nov-15 4,054,253 R 41,419, Dec-15 4,162,951 R 41,984, Jan-16 5,056,319 R 46,628, Feb-16 4,112,075 R 41,720, Mar-16 4,052,123 R 41,408, Apr-16 5,080,248 R 46,753, May-16 4,021,490 R 41,249, Jun-16 4,779,541 R 45,190, TOTAL (2015/16) 52,106,756 R 515,000, Non-Revenue Water 24,799,698 R 245,109,526.98
11 A CLOSER LOOK AT THE PROBLEM: EXAMPLES (REVENUE VS NON-REVENUE WATER) Month Total Purchases (kl) Value of Water Purchases (Without Interest) 2016/17 financial year Jul-16 3,769,948 R 42,987, Aug-16 3,771,033 R 42,993, Sept-16 4,832,046 R 48,835, Oct-16 3,981,353 R 44,151, Nov-16 3,771,936 R 42,998, Dec-16 3,959,194 R 44,029, Jan-17 4,910,068 R 49,265, Feb-17 4,775,761 R 48,525, Mar-17 3,947,870 R 43,967, Apr-17 3,988,102 R 44,188, May-17 4,983,207 R 49,668, Jun-17 4,879,838 R 49,098, TOTAL (2016/17) 51,570,356 R550,711, Non-Revenue Water 26,902,948 R287,292,125.44
12 The Water Debt The escalating debt in the water sector is a concern Non payment of services rendered to municipalities by Department and Water Boards has resulted in a debt of R10.7b A combination of Current and Historical Legal Action has been taken on defaulting municipalities such is at various stages The Department is threatened to cut off or suspend water supply to municipalities owing over R50m effective 8 December 2017 if some payment arrangements are not entered into Some Municipalities have entered into payment arrangements which we suspect are not sustainable
13 Characteristics of Municipalities, Cost of Service vs Equitable Share Easier Harder R359,04 per household per month for a package of free basic services Free basic services R41 billion Water and Sanitation R24 billion 10% Is for Maintenance R2,4B for Water and Sanitaton
14 Repairs and Maintenance
15 Bulk as % Total Expenditure
16 SUGGESTED WAY FORWARD
17 Funding mix for social and economic infrastructure (4Ts) Trading Resource Recovery Taxes (property rates) Tariffs Transfers (equitable share and grants) Ø Ø Waste to Energy Renewables Ø Valuation Roll Ø Ø Ø Optimisation Cost of Service Cost Reflecting Pricing ü Under Review Ø Access Ø Maintenance Ø Renewal Infrastructure Development, operations and maintenance
18 The Business Cycle
19 SUGGESTED INITIATIVES GOING FORWARD National Costing and Pricing structure Model/Instruments Basic service was done and need to expand it to overall service costing Initiate a National Programme on Non Revenue Water Behavioural Change Infrastructure Investment Technology Engage with Munics to undertake due diligence for debt management Role of Technology and Innovation Explore optimum Water and Sanitation Delivery Mechanism(s)
20 TECHNOLOGY AND INNOVATION
21 Research Results Analysis of 18 site specific decision scenarios indicate: 44% of plants employ less suitable (inappropriate) technologies when matched to their resource base, capacity to manage and effluent quality requirements 33% of plant technologies are questionable and may not be the best fit for the operational and management environment 22% of assessment plant employ suitable and sustainable technology options 44% 33% No of 'right fit' technology plants No of possibly 'right fit' technology plants 22% No of 'inappropriate fit' technology plants
22 Objectives of Each Platform Platform to explore challenges and opportunities in advancing the technoscape of municipalities and uptake of new innovations A collaborative platform to undertake joint conceptualization, lobbying and fund/investment sourcing efforts Platform for information sharing, knowledge exchange and networking amongst municipal leaders and stakeholders Enable identification and acceleration of potential disruptive innovations Enable municipalities and technology developers to develop the skills to manage new technologies Utilisation of South African solutions, where possible for water challenges and increase the export potential of new technologies
23 Objectives of Each Platform Scan, sort and undertake assessment in regard to the viability and technical claims of proven technologies for the South Africa Market Collation, sharing and profiling of available and proven technologies Provide guidance on how to approach and work with local municipal partners Upfront identification of demonstration sites for local and international technologies Matching of relevant technologies and demonstration sites/partners Learning and collaboration platform for institutions, municipal engineers, managers and learners
24 Objectives of Each Platform Identify and address common and localized R&D needs of municipalities Development of tangible and user friendly products/decision-support tools Create knowledge links across municipalities and academic partners Develop a pipeline of appropriate and relevantly skilled engineers, technicians and scientists in municipalities Provide training, exposure and learning opportunities for emerging professionals across municipal processes and emerging technologies Support the re-skilling of current engineering and professional municipal capacity
25 Various platforms WEIR Water engineer inspire programme: Training, skills development, knowledge exchange Water technology Forums R&D Agenda Coordination platform for regional and national R&D initiatives WADER Water technologies demonstration programme for emerging technologies Streamliner Facilitating (inter)national established technology into SA water sector Platform to coordinate, prioritize and share results Interfacing with other sectors & national level Test beds Facilities to test new technologies
26 STRENGTHENING CAPACITY BUILDING IN NON REVENUE WATER
27 Technology and Innovation Energy Generations from water supply- Water Research Commission Pour Flush Energy Recovery Sludge to Energy: City of Joburg Dewats Plant EThekwini
28 THANK YOU William Moraka Director: Water Sustainability and Innovations
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