Presentation on theme: "Regional Bulk Infrastructure Grant / Programme (RBIG) Grant and Policy Workshop with Water Boards 30 April 2010."— Presentation transcript:
Regional Bulk Infrastructure Grant / Programme (RBIG) Grant and Policy Workshop with Water Boards 30 April 2010
Purpose of the grant 1.Distinguish between direct service delivery of reticulation schemes that MIG is targeting 2.Water availability & scarcity (Link Water Resource Strategy and planning) 3.Benefit of scale 4.Integrated management (multi users) 5.Institutional aspects & arrangement (ownership, implementation, O&M) 6.Socio-Economic development 7.Financial issues (Viability & funding) 8.Implementation options 9.Sustainable management (water resources, O & M)
Bulk Infrastructure Program Drivers Basic Services Basic supplyBasic supply Wet sanitationWet sanitation HousingHousing Economic Development GrowthGrowth BusinessBusiness IndustrialIndustrial Service Quality Drinking waterDrinking water WastewaterWastewater Water lossesWater losses InterruptionsInterruptions Flagship projects OlifantsOlifants SedibengSedibeng Political prioritiesPolitical priorities Sustainable & Asset management ConditionCondition ReplacementReplacement RefurbishmentRefurbishment 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.INTRODUCTION 2.BACKGROUND 3.PURPOSE OF THE PROGRAMME 4.OVERVIEW OF THE PROGRAMME 5.MANAGEMENT OF RBIG 6.FUNDING 7.MANAGEMENT OF INFRASTRUCTURE DEVELOPMENT 8.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
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 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
Water, sewerage and effluent infrastructure Environmental Social Management Institutional arrangements Financial arrangements Customer Bulk supply infrastructure Reticulation Customer Sanitation Services Water Resource Water Resources Water Services Local Government WS an integrated process
Ch 5: Management of Grant 5.1Governance of RBIG 5.2Project identification and project selection 5.3Funding Processes 11
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
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. 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 6.2Factors affecting funding options 6.3Support on funding options by DWA 17
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 Ch 6.1 Funding options
Factors Affecting Funding Issues Financing Social Economic Viability Funding availability Borrowing capacity Etc.
Funding & Financial Management Funding & Financial management Own funding Loan funding Co-funding Grant funding (MIG) Grant funding (BIG) Other Financing, Planning & Organizing Financial Management Cost recoveryCost recovery InstitutionalInstitutional O&M grantsO&M grants Equitable ShareEquitable Share TariffsTariffs CostingCosting ViabilityViability Grant funding (BIG)
Ch 7: Management of all infrastructure development 7.1Planning process 7.2Planning by Water Boards 7.3Support of projects not funded by RBIG 7.4Monitoring 21
Ch 8:Oversight of Operation and Maintenance 8.1 Monitoring 8.2Support on Operation and Maintenance 22
Ch 9:Accountability, Integration, Transparency 9.1 Integration requirements within DWA 9.2Integration with other government dept 9.3Integration with MIG and other stakeholders 23
10, LEGISLATION AND REGULATIONS 10.1Legislative provisions 10.2Proposed regulatory policies for the management of bulk
11, Responsibilities 11.1DWA management structure 11.2Specific roles and responsibilities