Transcript WB policy v2 S. Mthembu FINAL

Regional Bulk Infrastructure Grant /
Programme (RBIG)
Grant and Policy
Workshop with Water Boards
30 April 2010
Purpose of the grant
1.
2.
3.
4.
5.
6.
7.
8.
9.
Distinguish between direct service delivery of reticulation
schemes that MIG is targeting
Water availability & scarcity (Link Water Resource
Strategy and planning)
Benefit of scale
Integrated management (multi users)
Institutional aspects & arrangement (ownership,
implementation, O&M)
Socio-Economic development
Financial issues (Viability & funding)
Implementation options
Sustainable management (water resources, O & M)
Bulk Infrastructure Program Drivers
Basic Services
Economic
Development
Service Quality
Flagship projects
Sustainable & Asset
management
•Basic supply
•Wet sanitation
•Housing
•Growth
•Business
•Industrial
•Drinking water
•Wastewater
•Water losses
•Interruptions
•Olifants
•Sedibeng
•Political priorities
•Condition
•Replacement
•Refurbishment
Integrated
Solution
Conditions for the grant
•
•
•
•
•
Only for regional bulk infrastructure
Only for social component
No duplication (only co-funding)
Implementation readiness
Confirmed need & solution (Feasibility)
 Technical
 Water resources
 Environmental & legislative
 Governance e.g. IDP
• Institutional arrangement in place
 Implementation
 O&M (Sustained management)
 Ownership
• Financing confirmed: Social & Economic component.
Special grant conditions as per DoRA
• DWA must ensure appropriate involvement
• Role players must understand implications
• Agreement prior to implementation to be reached on:
 Ownership
 Implementation
 Operation & Maintenance
 Social & Economic component funding
• Total business planning.
Structure of policy document
1.
2.
3.
4.
5.
6.
7.
8.
INTRODUCTION
BACKGROUND
PURPOSE OF THE PROGRAMME
OVERVIEW OF THE PROGRAMME
MANAGEMENT OF RBIG
FUNDING
MANAGEMENT OF INFRASTRUCTURE DEVELOPMENT
OVERSIGHT OF OPERATION AND MAINTENANCE OF
REGIONAL BULK INFRASTRUCTURE
9. ACCOUNTABILITY, INTEGRATION, TRANSPARENCY
10. LEGISLATION AND REGULATIONS
11. RESPONSIBILITIES
6
Objectives of the policy
1. Identify all regional bulk project requirements, through
appropriate planning processes.
2. Assist with the implementation of infrastructure projects
and where necessary assist in the funding of projects through
RBIG
3. Ensure that existing regional bulk infrastructure is properly
operated and maintained.
4. Facilitate the development of institutional arrangements and
capacity to ensure the implementation and effective operations
and maintenance of regional bulk infrastructure.
Ch 3, Purpose of the programme
Regional Bulk Infrastructure Grant Programme
Planning
Infrastructure Project
evaluation
RBIG
Facilitating other
funding
Support O & M
Support,
implementation
Institutional
arrangements,
capacity
Training and skill
development
monitoring
regulations
Ch4 : Overview; 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 multimunicipal 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
WS an integrated process
Water Services
Water Resources
Local Government
Financial arrangements
Institutional arrangements
Management
Water
Resource
Social
Customer
Reticulation
Environmental
Bulk supply infrastructure
Customer
Sanitation
Services
Water, sewerage and effluent infrastructure
Ch 5: Management of Grant
5.1 Governance of RBIG
5.2 Project identification and project selection
5.3 Funding Processes
11
Governance
Grant Governance
Process
Objectives
Rules
General / key
rules for funding
planning
project
identification
/ registration
Evaluation
Conditions
Criteria
Implementation
conditions
stipulations (must be
included in
agreements)
criteria by which
projects will be
evaluated
financial conditions
prerequisite (must
be illustrated in
implementation
ready report
criteria by which
project funding will
be reallocated
project
management
requirements
Feasibility
studies
Adjudication
for funding
Implementation
Rules for implementation projects
a) All infrastructure developed must be owned by a relevant WSI or a water
board.
b) The need for, and choice of, a regional bulk solution must be confirmed
and accepted.
c) Projects must be “implementation ready”.
d) There must be available co-funding for the portion of the water to be
supplied that is not for social users.
e) Projects must provide for realistic longer-term development scenarios and
“total needs”
f) Projects must be environmentally acceptable (approved EIA and
environmental management plan).
g) Standard agreements between all key role players must be signed.
13
Criteria
a) General criteria (screening)
b) Prioritization criteria
c) Other specific criteria include:







Social criteria:
Economic criteria
Technical criteria
Institutional criteria
Financial criteria
Legal criteria
Sustainability criteria
Project identification
interim yr 1
Regional level
Needs
assessment
Consolidate
known projects
from all
stakeholders
Review by
Regional
planning Forum
Regional
Deliverables
Preliminary list
of projects per
region
National level
S.A. Overview
revision a
National
Deliverables
S.A. Overview
(within 2-3 yrs)
Master Plan
Prioritisation
process by
regional pla.
Forum
Regional list of
Proposed
Feasib. studies
S.A. Overview
revision b
Prioritisation by
National
Planning forum
National list of
Proposed
Feasib. studies
15
Grant Funding allocation process
a. Consolidate all provincial project lists into a national list
b. Determine the national cost allocation per province according to the
following key allocation guidelines.
Category of project
emergency/flagship
Water services backlog
Water services economic / housing
Waste Water Treatment Plants
Refurbishment of aging infrustructure
Total
2011
10%
65%
15%
10%
0%
100%
2012
10%
55%
15%
15%
5%
100%
2013
10%
50%
20%
15%
5%
100%
2014
10%
45%
20%
15%
10%
100%
2015
10%
40%
20%
15%
15%
100%
c.
According to cost allocation per province identify the priority projects
that can be funded from the provincial lists.
d. Convene the overview committee consisting of DWA, COGTA, NT
and SALGA, and review the list of projects and funding allocation.
e. Submit overview committee recommendations for approval by DWA:
Minister
16
Ch 6: Funding
6.1 Funding options
6.2 Factors affecting funding options
6.3 Support on funding options by DWA
17
Ch 6.1 Funding options
a. Funding from lending institutions.
b. Funding from WSA budget: The financially strong WSA must consider
funding regional bulk projects through their own budgets generated from
providing water services to their consumers.
c. Raising bonds
d. Funding by Water boards Where applicable WSA must consider the
opportunity of allowing water boards to develop and fund regional bulk
infrastructure.
e. Private sector co-funding: WSA must ensure that they obtain private
sector co-funding for the component of water use by them
f. Private -Public partnership with consumers: Join development of
schemes with large consumers (i.e. mines)
g. Private – Public Partnership with private water utilities
Factors Affecting Funding Issues
• Financing
 Social
 Economic
• Viability
• Funding availability
• Borrowing capacity
• Etc.
Funding & Financial Management
Financial Management
Financing, Planning
& Organizing
Own funding
Loan funding
Funding &
Financial
management
Co-funding
Grant funding (MIG)
Grant
(BIG)
Grant funding
funding (BIG)
Other
•Cost recovery
•Institutional
•O&M grants
•Equitable Share
•Tariffs
•Costing
•Viability
Ch 7: Management of all
infrastructure development
7.1
7.2
7.3
7.4
Planning process
Planning by Water Boards
Support of projects not funded by RBIG
Monitoring
21
Ch 8:Oversight of Operation and
Maintenance
8.1 Monitoring
8.2 Support on Operation and Maintenance
22
Ch 9:Accountability, Integration,
Transparency
9.1 Integration requirements within DWA
9.2 Integration with other government dept
9.3 Integration with MIG and other
stakeholders
23
10, LEGISLATION AND
REGULATIONS
10.1 Legislative provisions
10.2 Proposed regulatory policies for the management
of bulk
11, Responsibilities
11.1
11.2
DWA management structure
Specific roles and responsibilities
The End