1. Regional Bulk Infrastructure Grant / Programme (RBIG) Grant and Policy
Workshop with Water Boards
30 April 2010

2. Purpose of the grant
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)

3. Bulk Infrastructure Program Drivers
Basic Services
Basic supply
Wet sanitation
Housing
Integrated Solution
Economic Development
Growth
Business
Industrial
Service Quality
Drinking water
Wastewater
Water losses
Interruptions
Flagship projects
Olifants
Sedibeng
Political priorities
Sustainable & Asset management
Condition
Replacement
Refurbishment

4. 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.

5. 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.

6. Structure of policy document
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
ACCOUNTABILITY, INTEGRATION, TRANSPARENCY
LEGISLATION AND REGULATIONS
RESPONSIBILITIES

7. Objectives of the policy
Identify all regional bulk project requirements, through appropriate planning processes.
Assist with the implementation of infrastructure projects and where necessary assist in the funding of projects through RBIG
Ensure that existing regional bulk infrastructure is properly operated and maintained.
Facilitate the development of institutional arrangements and capacity to ensure the implementation and effective operations and maintenance of regional bulk infrastructure.

8. Ch 3, Purpose of the programme

9. 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

10. WS an integrated process
Water Services
Water Resources
Local Government
Water, sewerage and effluent infrastructure
Environmental
Social
Management
Institutional arrangements
Financial arrangements
Customer
Bulk supply infrastructure
Reticulation
Sanitation
Services
Water
Resource

11. Ch 5: Management of Grant
5.1 Governance of RBIG 5.2 Project identification and project selection 5.3 Funding Processes

12. Governance

13. Rules for implementation projects
All infrastructure developed must be owned by a relevant WSI or a water board.
The need for, and choice of, a regional bulk solution must be confirmed and accepted.
Projects must be “implementation ready”.  
 There must be available co-funding for the portion of the water to be supplied that is not for social users.  
Projects must provide for realistic longer-term development scenarios and “total needs”
 Projects must be environmentally acceptable (approved EIA and environmental management plan).
Standard agreements between all key role players must be signed.

14. Criteria General criteria (screening) Prioritization criteria
Other specific criteria include:
Social criteria:
Economic criteria
Technical criteria
Institutional criteria
Financial criteria
Legal criteria
Sustainability criteria

15. Project identification

16. Grant Funding allocation process
Consolidate all provincial project lists into a national list
Determine the national cost allocation per province according to the following key allocation guidelines.
According to cost allocation per province identify the priority projects that can be funded from the provincial lists.
Convene the overview committee consisting of DWA, COGTA, NT and SALGA, and review the list of projects and funding allocation.
Submit overview committee recommendations for approval by DWA: Minister

17. Ch 6: Funding
6.1 Funding options 6.2 Factors affecting funding options 6.3 Support on funding options by DWA

18. Ch 6.1 Funding options Funding from lending institutions.
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.
Raising bonds
Funding by Water boards Where applicable WSA must consider the opportunity of allowing water boards to develop and fund regional bulk infrastructure.
Private sector co-funding: WSA must ensure that they obtain private sector co-funding for the component of water use by them
Private -Public partnership with consumers: Join development of schemes with large consumers (i.e. mines)
Private – Public Partnership with private water utilities

19. Factors Affecting Funding Issues
Financing
Social
Economic
Viability
Funding availability
Borrowing capacity
Etc.

20. Funding & Financial Management
Financing, Planning
& Organizing
Own funding
Loan funding
Cost recovery
Institutional
O&M grants
Equitable Share
Tariffs
Costing
Viability
Funding & Financial management
Co-funding
Grant funding (MIG)
Grant funding (BIG)
Grant funding (BIG)
Other

21. Ch 7: Management of all infrastructure development
7.1 Planning process 7.2 Planning by Water Boards 7.3 Support of projects not funded by RBIG 7.4 Monitoring

22. Ch 8:Oversight of Operation and Maintenance
8.1 Monitoring 8.2 Support on Operation and Maintenance

23. 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 23

24. 10, LEGISLATION AND REGULATIONS
10.1 Legislative provisions 10.2 Proposed regulatory policies for the management of bulk

25. 11, Responsibilities
11.1 DWA management structure 11.2 Specific roles and responsibilities 25

26. The End