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PORTFOLIO COMMITTEE PRESENTATION 17/10/2006. Mhlathuze Water Contribution Towards Rural Development in Water, Sanitation & Forestry! BY: LAWRENCE SITHOLE 17 OCTOBER 2006. MHLATHUZE WATER [MW] SERVICES FOCUS. To Open MW Services to Serve ALL 4 1 / 2 WSA’s in its area.

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    1. PORTFOLIO COMMITTEE PRESENTATION 17/10/2006 Mhlathuze Water Contribution Towards Rural Development in Water, Sanitation & Forestry! BY: LAWRENCE SITHOLE 17 OCTOBER 2006.

    2. MHLATHUZE WATER [MW] SERVICES FOCUS • To Open MW Services to Serve ALL 41/2 WSA’s in its area. • To Provide Business Solutions RATHER Services to WSA’s. • To Promote Economic Growth & Reduce Poverty.

    3. MW AS A WATER BOARD NEEDS TO BALANCE: • A Healthy Triple Bottom Line • Contribution Towards Government Objectives. • Social Responsibility. • Fulfilling Developmental Mandates. As Such MW Does Not Look At Water Service Provisioning In Isolation!

    4. HOW IS MHLATHUZE WATER CONTRIBUTING TOWARDS RURAL DEVELOPMENT? The Three (3) Water Utilities in KZN: Thukela Water, Umgeni Water & Mhlathuze Water: In Answering This Fundamental Question Have Come Up With: “KZN Bulk Regional Water Concept” [KZN BRWS]

    5. Coming Out The KZN Water Summit! • The KZN Bulk Regional Water Concept was formally adopted at the KZN Water Summit in September 2005. • The 3 Water Utilities [WU] were tasked with the responsibility to ensure the concept receives the buy-in of and is owned by the WSA’s.

    6. THE KEY OBJECTIVES OF THE KZN BRWS ARE: • Integrated Solutions On A Regional Scale For Sustainability & Affordability. • Integrating Water Services With Water Resources For Optimal Water Resource Utilisation. • Gearing Private Sector Funds For Augmentation of Central Allocations.

    7. THE KEY OBJECTIVES OF THE KZN BRWS ARE (Cont.): • Rationalisation of Fragmented Systems For: • Economies Of Scale • Cost Effectiveness & Affordability • Efficiency • Addressing Backlogs As Augmented Product. • Promote Economic Development – Water to Lead Development.

    8. HOW MHLATHUZE WATER CAN ADD VALUE TO WATER SERVICE AUTHORITIES? • Planning Across Municipal Boundaries. • Providing Comprehensive Solutions and Total Package [Bulk, Reticulation, Financing, Operating Model, Appropriate Institutional Arrangements, Unlocking Development Potentials etc.]

    9. PROGRESS TO DATE! Following The Portfolio Committee Visit (July/August 2005), The KZN Water Summit (Sept. 2005) and Presidential Imbizo At Ilembe (Dec 2005) – We can report the following progress:

    10. ILEMBE DISTRICT MUNICIPALITY! • Bulk Regional Scheme Pre-feasibility concluded and Proposal Presented to the Ilembe on 31st May 2006. • Council approval/decision is awaited • The Proposal is By a Partnership Between DBSA, Bigen Africa and Mhlathuze Water.

    11. ILEMBE DISTRICT MUNICIPALITY! The System Covers: • Rural Communities [Maphumulo, Mathonsi & Macambini] • Industrial Nodes [Isithebe, Sappi mills, Tongaat Hullett, Gledhow] • Urban Areas [KwaDukuza, Mandini , Darnall] • Coastal Developments [Thukela Mouth, Zinkwazi Beach, Prince’s Grant, New Guelderland etc] Integration of 8 WTP into 1 AND 7 Sewerage Plants into 3.

    12. Project development assistance cont… Tugela / Mvoti initiative

    13. ILEMBE DISTRICT MUNICIPALITY! The System is Intended: • Unlocking coastal development potential • Address the backlog (rural) • Support housing initiatives • Support Industrial/Commercial growth • Tax / Income base for the Municipality.

    14. ILEMBE DISTRICT MUNICIPALITY: Institutional & Financial Arrangements • Capital Injection: R502 Million. • Private Funding: • Government Funding: • Effective Bulk Tariff: R2.54 kl • Ownership & Control by Ilembe DM • Operated by Mhlathuze Water. R322 Million R180 Million

    15. UMKHANYAKUDE DISTRICT MUNICIPALITY! • Regional Master Plan has been Concluded. • Projects Have Been Identified. • Quantification Still to be Finalised. • Submission Due to be Made to Council.

    16. UMKHANYAKUDE DM CONTEXT: • Unemployment figures of 60% - 70%. • Has Water Backlogs of 68%. • Is a Presidential Node. • Has got the 1/3 largest dam in SA. • Economic drivers are Agriculture & Tourism No water service solutions will be affordable and sustainable anywhere unless there is local capacity to afford and sustain them!

    17. WATER SERVICE PROVISIONING CONSTRAINTS Mkhanyakude Water Services cannot be Addressed in Isolation from Area’s Economic Capacity. The development in Mkhanyakude Region is held back by non-availability of water! MW PHILOSOPHY: “Water should never be constraints to development BUT a catalyst!”

    18. INTEGRATED APPROACH TO WATER SERVICES! • For sustainability & Effectiveness. • For bankability & Affordability. • Local Capacity to afford services. • Facilitate Capital Investment. [ASGISA]

    19. PONGOLAPOORT DAM POTENTIAL! Mhlathuze Water Re-Opening Pongolapoort Dam Argument! • The Dam was completed in 1970. [Never Filled till 1984] • Main Objective = 30 000ha of Sugar Cane under Irrigation. It has NOT Achieved this! It has NOT benefited Communities in this Region!

    20. MKHANYAKUDE ECONOMY? • Agriculture [Led By Sugar Industry]. • Tourism & Associated SMALL Industries. MAJOR CONSTRAINT: Lack of Water for Irrigation.

    21. PERCEIVED LACK OF WATER! System Capacity: 847 Mil.m3 p.a. Less: Allocations 785Mil.m3 p.a. • Reserve 172 . • Irrigation 294 . • Flood Releases 250 . • Afforestration etc 69 . Water Available 62 Mil.m3 p.a.

    22. MHLATHUZE WATER RECOMMENDATIONS MADE TO DWAF! • Make MORE Water Available for irrigation & economy [50% allocated to environment (422 {172 + 250} of the 847)] • Because of drought Flood releases have been +150 Mil.m3 p.a. {Allocate 150 instead of 250} Earnest Requests to DWAF!

    23. ECONOMIC OPPORTUNITIES • Sugar Industry: 18 000 Tons p.a.: R1.2 Billion investment: 6 000 to 10 000 Jobs.: R600 Million Annual T/O: 1 000 Houses • Holiday Resort & Golf Estate: 1 000 Jobs: R3.2 Billion Investment.: 600 High Cost Housing.: Hotels & Holiday Accommodation.

    24. ECONOMIC OPPORTUNITIES • Other Agricultural Activities: Cassawa: Starch Project [500 Jobs : R60 Annual T/O] Citrus Project: No Details! • Hydro-Power: No Water Consumption: Will generate much needed ENERGY & CASH for the Region.

    25. OUTCOMES OF EXTENDED CABINET LEKGOTLA • July 06; Provinces were challenged: • To identify concrete interventions to gear (ratchet) up economic growth towards 6%. • To identify measures to stimulate the economy while inspiring & unifying all our people behind a vision of shared growth. [Asgi-SA] • To identify and recommend strategic economic infrastructure projects in their PGDS with a “massification” effect.

    26. OUTCOMES OF EXTENDED CABINET LEKGOTLA • For KZN Makhathini Flats was mentioned as the possible project for KZN! • ALL Provinces mentioned the following as one of their frustrations: That: “Provided DWAF Co-operates!” Very serious statement for the SECTOR!

    27. MINISTER’S FRUSTRATION! At the Annual Women in Water Sanitation and Forestry Awards [11 August 2006] the Minister stated that: “One of her pressing frustrations was the fact that she does NOT have water to allocate to the poor and for economic developments” Again A Serious Political Statement!

    28. UNLOCKING PONGOLAPOORT DAM POTENTIAL! Unlocking These Opportunities will make providing Water Services at Mkhanyakude much more Achievable, Affordable & Sustainable! AND MW is Striving to Contribute towards Improving the Lives of the People of the Region in a integrated, empowering and sustainable manner.

    29. WATER SERVICES REGIONAL OPTION • Primary raw water sources • Pongola Poort dam • Umfolozi River [Unreliable] • Hluhluwe dam [Unreliable] • Lake Sibaya [Environmentally Irresponsible] LEAVES ONE OPTION! COMBINATION!

    30. KEY FEATURE OF THE OPTION MHLATHUZE IS LOOKING AT! • Key Features • Distribution infrastructure development – A total solution – No gaps: • Upgrade dysfunctional internal networks • New distribution networks • Implementation to be concurrent to bulk supply • Old treatment infrastructure will be decommissioned progressively • The existing Shemula water treatment works to be phased out • Appropriate Operation & Maintenance strategies to be developed

    31. UTHUNGULU & ZULULAND DISTRICT MUNICIPALITIES • Except for Mandlakazi Scheme integration with Mkhanyakude System – Little has been done in Zululand DM. • Uthungulu DM Concept is due for concluding soon: • The Southern part: Gingindlovu, Matigulu, Nyoni etc = Ilembe System. • The Northern part: South of Mfolozi = Mkhanyakude System. • Central-Eastern part: Mbonambi, Ntambanani = Mhlathuze City Systems. Separate Solution is Needed for Nkandla, Eshowe & Mthonjaneni!

    32. CONCLUSION It is believed that these initiatives will contribute towards Rural Developments through: • Integrated Service Provisioning • Facilitating Economic Developments • Gearing in Private Resources • Providing Affordable, Sustainable & Real Solutions. THANK YOU!