Water Dialogues Chris Hani District Municipality Case Study

1. Water Dialogues Chris Hani District Municipality Case Study Presentation to Local Dialogue Queenstown 8 July 2009

2. Introduction • The Water Dialogues – South Africa (WD-SA) wants to understand best institutional models for SA to achieve universal access to water and sanitation services. • WD-SA invited key stakeholders from government, private companies, civil society, and unions to discuss important issues and challenges facing water and sanitation sector. • Through research & discussions WD-SA seeks to understand the process of choosing institutional approaches, as well as the impact different approaches have on the quality and level of services • WD-SA has been conducting research in DMs across the country • Conducted interviews with municipal officials, SSAs and participatory community workshops in four areas of each DM • Research tries to understand the situation and challenges of both the provider (government) and recipients (community members) of the services.

3. Methodology • Qualitative research using in-depth interviews and participatory community workshops • Desktop review • Feedback to communities • Local Dialogue Choice of communities within CHDM • Study specifically addresses the issue of Community Based Organisations (CBOs) as WSPs. • Decided to select one area where the local municipality is the WSP and the other three where the CBO model is being implemented. • Choice of communities was made using as many “points of difference” as possible, i.e. type of scheme, access to services etc. • Historical and current political and socio-economic realities within the province have resulted in similar problems and challenges faced by most communities.

4. Background • Case study investigates the approach taken by the Chris Hani District Municipality (CHDM) to the provision of water services. • CHDM is the legislated WSA for its entire area of jurisdiction and has completed a Section 78 • The recommendations of the Section 78 were that the most appropriate water service provision arrangement is a combination of both internal and external mechanisms and this was accepted by the Municipality. Recommended that the 4 western local municipalities should be appointed as WSPs for their areas of jurisdiction and that the DM should retain the WSP function for the 4 eastern municipalities in the short to medium term as they lack the capacity to fulfil the WSP function. • Seen as interim solution and the DM is required to build the capacity of these local municipalities so that they can eventually be contracted as full WSPs.

5. Institutional time-line (2003-present) It is important to note that CBOs have been in place prior to 2003 and have been continuously involved and increasingly formalised as CSPs at local level.

6. History and institutional structures • CHDM adopted Section 78 recommendations in December 2005. • Steering Committee was established to drive process of formalising the relationships between CHDM and the new WSPs. • For the four eastern municipalities, where CHDM retained the WSP function, a contract was entered into with an external service provider (Amatola Water Board) to assist the Municipality with this function. • DM has encountered numerous challenges related to provision of water services. One of the major difficulties was that numerous water schemes had been implemented by NGOs in the district and in some cases the DM did not even know where these schemes were situated. A primary task was to engage communities who had received water services and draft an asset register of all rural schemes. • Found that a number of the schemes were in bad condition and some not operational – also established that in most areas the communities had been paying for O&M costs themselves.

7. History and institutional structures • The CBO WSP model already existed in many areas (more than 600 stand alone schemes), although in some instances this was by default – where a CBO Project Steering Committee (PSC) became the WSP once the project had been implemented and in the absence of other institutional arrangements being put in place. Most of the CBOs were doing a good job of ensuring ongoing water services provision, particularly regarding quick turnaround time for attending to breakdowns. • The DM decided that it would be very complicated for them to engage directly with large numbers of CBOs principally in terms of labour and health and safety issues, and that it would be more effective if they were to contract an SSA to fulfil this function. • SSAs were appointed to focus on specific areas in the 4 identified LMs and Tsolwana to a certain extent. Their brief was to focus on rural areas and to ensure that CBOs were formed for all new water schemes.

8. History and institutional structures • Contract with Amatola Water ends in June 2009 • Given the challenge of accessing appropriate WSP technical skills in the local municipalities which are currently being assisted by the DM (SSAs) – the proposed future model is as follows: • CHDM would second a team to each of the designated LMs to run water services. • These teams would be accountable to the LM in order to cut down on turnaround times and it is envisaged that the CBOs already in place will remain but will take instruction from the foremen and ISD officers.

9. Case Study Findings

10. Issues raised by Participating Communities • Upper Woodhouse • Tsojana • Qoqodala • Tarkastad

11. Community participation • In all 4 areas community members were not fully involved in the implementation of water and sanitation projects. Community members feel that they were taken advantage of - did not raise their concerns as they thought that this might jeopardise the possibility of getting any water. • Almost all Service Providers involved dealt almost exclusively with influential people in the community and took decisions that affected the whole community without involving them. • In Qoqodala - people claimed that the material that was delivered for the building of toilets was insufficient and the builders used the material for themselves. The community members never reported this as they were not informed about the channels to use for complaints. • Ward Councillors have also failed to inform community members about their role in the project. • Also complaints that youth are not participating in projects as they should.

12. Sanitation service provision • Workshop participants voiced a high level of dissatisfaction with the way that the municipality deals with their complaints when they reported spillages and failure of bucket collection when they are full (Tsojana). • Clearly a problem with communication between the LMs and the communities regarding roles and responsibilities - community members expect the LM to empty full VIPs while the municipality says that it not their responsibility and that the community should do it themselves.

13. Interruption of water supply • In Tsojana and Upper Woodhouse community members reported that they are always informed when there will be an interruption in supply and that this is very infrequent and does not last for long. • In Qoqodala there are constant interruptions in supply without notice and response times are very slow • This problem is significantly worse in Tarkastad.

14. Affordability • In Upper Woodhouse, Tsojana and Qoqodala people do not pay for water. There are no yard connections and they get their water from communal standpipes located in the streets. In these areas, people have full access to Free Basic Water. • In Tarkastad, although there are yard connections, residents pay very little for water and there were no reports of cut-offs due to non-payment

15. Transparency • Although community members generally claimed to have not been informed about Free Basic Water – this was principally the case in Tarkastad. • Number of complaints from community members regarding the process followed in deciding where to site communal standpipes and who should be responsible for the emptying of VIP latrines.

16. Key issues identified • Complex structure of contracts and their oversight and management creates a web of responsibilities that are difficult to sustain and likely to result in reduced accountability. • Contractual arrangements between CHDM and the AWB are cumbersome and do not appear to have added significant value to water services provision. It has, in some cases, delayed procurement processes, making rapid response times more difficult to maintain. • Lack of clarity regarding contractual agreements, and roles and responsibilities with regard to CHDM, AWB and LMs and it is recommended that this is clarified in detail in any future WSA-WSP contracts and that contracts with internal or external WSPs need to be monitored and regulated effectively • Current institutional and management arrangements are not optimal and come at a significant ‘premium’ to the DM. Current WSP arrangements are extremely expensive due to the multi-layered system that has been put in place - the longer the management chain, the more expensive it is, and the less cost efficient it becomes.

17. Key issues identified • Institutional arrangements within CHDM and the local municipalities weaken the organisational fabric required for delivery • Substantial lack of capacity within CHDM in terms of technical services and contractual management. CHDM as WSA also lacks capacity to regulate and monitor quality of service and affordability and enforcement as outlined in policy documents. • Lack of institutional memory within CHDM, which can partly be ascribed to high staff turnover - need to critically engage with issues of capacity within CHDM, at the level of the CSPs and at LM level. • Weak division between the WSA and WSP functions in some LMs as the municipality plays both roles, which makes real monitoring or regulation of provision problematic. • Ongoing changes in national policy and institutional responsibilities has undermined delivery and made regulation difficult. • Clear that CHDM is committed to providing high quality water services in rural areas – two key issues that might assist with improvement in this regard are for the municipality to conduct regular satisfaction surveys and to embark on a process of formulating a higher level of service policy.

18. Key issues identified Community participation in policy processes and oversight of delivery performance as well as participation of community service entities in such activities is limited and requires attention • Clear from findings that more optimal mechanisms need to be established for participation in IDP and WSDP processes • Recommended that a clear communication strategy be developed to deal with policy formulation, planning and service delivery as well as monitoring actual delivery • Perspectives of community level service providers could be more actively sought in the development of approaches to avoid excessive top-down decision making and the disempowerment that accompanies it

19. Key issues identified • The level and form of financing and the capabilities required to secure and utilise it place enormous strain on the WSS entities and reduce the impact of programmes. • The social and economic context of CHDM and the cross-cutting poverty in the area, results in difficulties with cost recovery for basic services in rural areas, but - nobody is using more than 6kl in rural areas. • In terms of financial management - there are currently no indigent registers in rural areas, therefore everyone is viewed as indigent and receives services accordingly. • Substantial lack of funds to cover operations and maintenance costs which puts increasing pressure on water and sanitation systems in CHDM.

20. Key issues identified • MIG allocation and Equitable Share insufficient, but this should improve with future ring fencing. • Recommended that capacity created in CHDM for effective planning on extension of services, O&M, bulk water and reticulation as well as communication and consultation processes with users • Although rural communities do not pay for water, the FBW policy has not been adequately explained to them. In addition, billing and revenue collection in Tsolwana (peri-urban) is sporadic and neither efficient nor effective. Recommended that this confusion is addressed through transparent policies and communication processes with communities. • Currently no stepped tariff policy and some LMs still use a flat rate. Current financial management arrangements allocate collection of revenue responsibility to LMs, only some of which have revenue collection policies. • Huge service backlogs, both in terms of water and sanitation and an estimated R2.4 billion is needed to serve the unserved. This is clearly the development priority before higher levels of service in rural areas can be addressed.

21. Key issues identified • “Delivery” performance remains substantially short of targets but the particular arrangements with community level service provision at least ensure a level of service in areas that otherwise might have nothing. • Substantial delivery challenges in Tsolwana - significant backlogs & low levels of service - even a basic service level remains out of reach for many, particularly those living in rural areas. • Gender implications - places additional burdens on women, who have main responsibility for fetching water and caring for family & community, particularly those living with HIV. • Clear that service provision (particularly in rural areas) is better if WSP locally based but need to address the best way of structuring CBO-WSP relations. • Communities have expressed dissatisfaction regarding lack of information & assistance with the bucket system (Tsolwana) & the emptying of full VIP latrines in rural areas. No policy in place to address this. • Communities and CSPs in Upper Woodhouse, Tsojana and Qoqodala appear to have good working relationship with the SSAs. Question - given close working relationship between SSAs and communities, what will happen to the system if SSAs are removed and the less experienced and under resourced CHDM or LMs are working directly with CSPs? • CHDM IDP makes reference to relationship between HIV and AIDS and access to water and sanitation - recommended that implications of mainstreaming of HIV and AIDS at LG level is addressed as a matter of priority, given the prevalence of HIV in South Africa, as well as the impact on key service delivery issues.

22. Key issues identified • The conversion, over time of civil society partners in water delivery into commercial suppliers potentially threatens key elements of the existing system and the responsiveness that it has demonstrated. • Objective of current programme is to involve CSPs in local level O&M and case study shows that service provision (particularly in rural areas) is enhanced if the WSP is locally based and that water delivery and turn-around times for repairs is improved and there are minimal service interruptions. • There is a need to address the best way of structuring community WSPs, define their roles and responsibilities, their financial viability and contractual relationships with the municipality. • Many of the CSPs meet with each other on a regular basis to share knowledge and experiences but there are presently no mechanisms in place for the CSPs to engage directly with either the District or relevant Local Municipality. They do, however, engage with local residents and respond to water services related problems either directly or by contacting the relevant SSA.

23. Way Forward Number of options: • Upgrade skills of CSP members, employ them and become formally part of municipal delivery. Option rejected by municipality - says work required is not full time and not feasible to employ such large numbers of staff in light of labour regulations • Establish current CSPs as SMMEs and pay them for work done - will be much less expensive for CHDM than current contract with AWB. Assumes that CHDM able to deploy number of skilled and experienced staff to each of the LMs – the SMMEs will be procured by LM to perform specific tasks. This increases procurement problems and could lead to various other SMMEs being established and demanding to also be considered in tendering processes etc • Transform CSPs into classic CBOs empowered to make decisions related to water services delivery, strong management and governance capacity, accountable to communities, increased knowledge of water and sanitation planning and delivery frameworks and sufficient skills to operate and maintain their systems and obtain access to technical and institutional support when necessary. Payment and reporting mechanisms would need to be carefully considered. • Continue with current model but streamline contractual arrangements and consider appointing an Employers Representative - as DM has serious capacity constraints in this regard. Need to rationalise reporting mechanisms and critically engage with issues of capacity that would be required to make the current organisations into fully functioning WSPs

24. Community questions Qoqodala • What is the municipality’s policy on damaged and full toilets? • What are the procedures for awarding construction tenders? • How will the municipality make sure that people are consulted about development issues taking place in their community? • How will CHDM address the problem of undertaking both the WSA and WSP functions? Tarkastad • Why is it taking too long for their flush toilets to be finished? • What is the municipality’s plan for addressing the problem of water cut-offs? • The eradication of the bucket system? Tsojana • The criteria that is used to select contractors? • Who is responsible for inspecting the work of the contractor? • How the problem of communal tap shortages will be addressed? Upper Woodhouse • Who is responsible for fixing broken toilets and empty full ones? • What can be done to improve the quality of water?

25. Thank you