1. Mis..Alignment of National Plans and the impact on the water sector 4-Jan-16File name1 Eiman Karar Executive Manager Water Research Commission eimank@wrc.org.za Skype: immany3 Mobile: +27832907231 Abstract This paper highlights some of the key principles, process and pitfalls to be considered in facilitating the alignment of national plans. It draws experience of the review of the alignment of the South African National Development Plan, New Growth Path and National Water Resources Strategy.

2. Vision and Objectives To create sustainable water sector institutions that will facilitate effective service delivery The overall trusteeship /custodianship of the water value chain is with the Minister of Water and Sanitation. The Department will set policy, regulate, plan and provide support to water management and water services institutions The ownership, financing, development, management and operations and maintenance of national water resources infrastructure will be strengthened The development, financing, management, operation and maintenance of regional bulk water and wastewater services will be strengthened through the consolidation of existing water boards. Water resource management for each of the 9 newly defined water management areas is strengthened through consolidating into 9 economically viable CMAs.

3. Vision and Objectives The development and management of the four international river basins will be undertaken by trans-boundary water management institutions. Water research, information and knowledge management will contribute to improved water resource management and sustainable water service provision. Economic regulation will be strengthened and a Chief Directorate is being developed within the Department. Community Participation : To promote effective stakeholder participation and community participation at local level and Democratise decision making

4. PwC Scope of the Study 4 There can be no growth and development without water, so water must be at the heart of all our planning, financing and governance frameworks.” Minister Edna Molewa Objective of the study was to assess the alignment of National Strategic Plans with the NWRS Scope limitations Desktop study Study considered only what was included in the National Strategic Plans and may exclude other internal or emerging policy documents Did not deal with misalignments at an implementation level focused largely on policy related misalignments and gaps and not necessarily on misalignments in targets and timeframes

5. PwC Our approach 5 Defined focus areas, informed by the NWRS, based on key objectives and enabling strategies which were sufficiently broad and were likely to be addressed in all strategic documents covered in this review. Water as an enabler/catalyst for growth and development Water security Achieving social equity Water sector governance Building sustainable capacity in the water sector; and Infrastructure development

6. PwC Results Water Sector 6 July 2015

7. PwC Water as a catalyst for growth and development There is a need for greater clarity on the irrigation expansion targets. There is a need for greater clarity on the future of WUAs. Funding for infrastructure maintenance and refurbishment will be critical if water losses are to be reduced and water is to be made available for expansion of irrigation. Need for holistic perspective on the subsidization of the agricultural sector. 7 Expanding Irrigated Agriculture NDP 500 000 hectares land can be irrigated by 2030. NWRS a 50% (750 000ha) increase of irrigated land in South Africa. NWRS (NWRS2, 2013, p10). NGP NGP does not provide a target, the APAP speaks to only 145 000 ha

8. PwC Water as a catalyst for growth and development The reprioritized water allocation creates uncertainty for the power generation sector Need for improved coordination in government to address policy trade-offs (reduction in emission versus water requirements) Desalination presents a range of trade-offs, in particular higher energy consumption per m3 of water treated 8 Water for power generation NWRS NGP The water and energy dependencies are discussed at a sufficient level within the strategic plans

9. PwC Water as a catalyst for growth and development DWS has to take a holistic perspective on the water sector. Apart from ensuring that water services and water resources are managed effectively, it must create the platform for the development of local industries in the water sector. Important to establish the vulnerability of South Africa’s water sector to support decisions around local content and localization. 9 Industrialisation and localisation NWRS NGP All plans recognize the importance of developing local industry as a means of stimulating economic growth.

10. PwC Water Security Despite inclusion of WCWDM in the NWRS there is a strong supply side influence in the strategy “It is possible to make more water available anywhere in the country in the future, but at sharply rising costs” – if taken out of context could undermine water management initiatives Desalination is an augmentation option but there are trade – offs in terms of cost, power constraints and environmental impacts Water re use is supported but the details on critical aspects such as authorisations, incentives and implications for existing use need to resolved Optimisation of water use mix to meet the country’s socio economic objectives 10 The scarcity of water in South Africa is recognized in the NWRS, NGP and the NDP and there is general alignment between the documents

11. PwC Water Pricing Objectives There is a need for greater clarity on the objectives for water pricing of water and how they support the broader national socio economic objectives. Pricing is a critical water management tool and in addition to facilitating achievement of water sector objectives can support economic growth and development. Apart from espousing the user pay and cost recovery principles, the NWRS does not address how water use charges, subsidies, tax incentives, rebates and other such instruments can be applied to support economic growth objectives. Price capping for some sectors, is already contained in the pricing strategy. However, these are blanket cappings for water use categories. It will be important for DWS to define the objectives and specify the categories of use that qualify for capping. As an example, if food security is one of the national objectives, then water tariffs for food security crops should reflect any support or incentives intended for that objective. Water Sector 11 July 2015

12. PwC Conclusions the national plans reflect that Government is generally aligned in respect of water, recognizing its scarcity and importance for achieving socio economic goals. There appears to be cross pollination of concepts in the national plans pertaining to water, which is in itself indicative of the collaboration and coordination between the government departments. there were no major contradictions in the national plans, the review did highlight the need for improvement in harmonization of policy. It must be noted that the study did not identify or evaluate the effectiveness of water related inter departmental coordinating structures. The NWRS is a fairly comprehensive document and contains sound thinking on water management to guide the sector There are merits in developing a national integrated water plan 12

13. PwC Thank You 13