Presentation on theme: "Regional Bulk Infrastructure Grant / Programme (RBIG) Grant and Policy"— Presentation transcript:
1 Regional Bulk Infrastructure Grant / Programme (RBIG) Grant and Policy Workshop with Water Boards30 April 2010
2 Purpose of the grantDistinguish between direct service delivery of reticulation schemes that MIG is targetingWater availability & scarcity (Link Water Resource Strategy and planning)Benefit of scaleIntegrated management (multi users)Institutional aspects & arrangement (ownership, implementation, O&M)Socio-Economic developmentFinancial issues (Viability & funding)Implementation optionsSustainable management (water resources, O & M)
4 Conditions for the grant Only for regional bulk infrastructureOnly for social componentNo duplication (only co-funding)Implementation readinessConfirmed need & solution (Feasibility)TechnicalWater resourcesEnvironmental & legislativeGovernance e.g. IDPInstitutional arrangement in placeImplementationO&M (Sustained management)OwnershipFinancing confirmed: Social & Economic component.
5 Special grant conditions as per DoRA DWA must ensure appropriate involvementRole players must understand implicationsAgreement prior to implementation to be reached on:OwnershipImplementationOperation & MaintenanceSocial & Economic component fundingTotal business planning.
6 Structure of policy document INTRODUCTIONBACKGROUNDPURPOSE OF THE PROGRAMMEOVERVIEW OF THE PROGRAMMEMANAGEMENT OF RBIGFUNDINGMANAGEMENT OF INFRASTRUCTURE DEVELOPMENTOVERSIGHT OF OPERATION AND MAINTENANCE OF REGIONAL BULK INFRASTRUCTUREACCOUNTABILITY, INTEGRATION, TRANSPARENCYLEGISLATION AND REGULATIONSRESPONSIBILITIES
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 RBIGEnsure 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.
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 areaOver “vast distances” is considered as any distances greater than 5 kmBulk infrastructure that has a “significant impact on water resources” includes:Any bulk scheme that is designed for maximum demand of 5 Ml/day or moreAny waste water treatment plant that discharges into a fresh water resource system
10 WS an integrated process Water ServicesWater ResourcesLocal GovernmentWater, sewerage and effluent infrastructureEnvironmentalSocialManagementInstitutional arrangementsFinancial arrangementsCustomerBulk supply infrastructureReticulationSanitationServicesWaterResource
11 Ch 5: Management of Grant 5.1 Governance of RBIG 5.2 Project identification and project selection 5.3 Funding Processes
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 criteriaTechnical criteriaInstitutional criteriaFinancial criteriaLegal criteriaSustainability criteria
16 Grant Funding allocation process Consolidate all provincial project lists into a national listDetermine 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: Funding6.1 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 bondsFunding 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 themPrivate -Public partnership with consumers: Join development of schemes with large consumers (i.e. mines)Private – Public Partnership with private water utilities