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Kenneth

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Aug 3, 2024, 5:40:20 PM8/3/24
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Honourable Chairperson of the National Assembly
Honourable Chairperson of the Portfolio Committee
Honourable Members of Parliament
Chairpersons of Boards and CEOs of Water Entities
Distinguished Guests
Ladies and Gentlemen:

Bagaetsho, a ke tseye tshono eno go le gopotsa ka Mme Matsheko Pine yo o ileng a nna segatlhamela masisi mo go itsiseng MoPresidente ka mathata a metsi kwa Ngobi. Matsheko bagaetsho, o nnile sekai se sentle go Ma Afrika Borwa ka go nna karolo ya Puso mo go iseng ditirelo ko bathong, go na le go tlhagisa maikutlo a gagwe kago thiba ditsela, le go fisa dikago, ka gonne seo se tsenya matshelo a MaAfrika Borwa a mangwe mo kotsing.

Even more worrying is the fact that there are areas where post-1994 infrastructural deficiencies are still characterised by taps that have run dry due to poor maintenance or operational problems. Such an unacceptable state of affairs dictates that functional water infrastructure and quality services to the remaining 5.3% of the population become a task to be undertaken with a sense of urgency.

Ladies and Gentlemen, it is critical that our water policies should support and act in unison with the goals of a democratic developmental state. We are conducting a policy review during this financial year, in parallel with a review of the three pieces of legislation that fall under our jurisdiction: the National Water Act, the Water Services Act, and the Water Research Act.

This new approach is reflected in our National Water Resource Strategy which we are revising and will be released for public comments, input and involvement in July this year. Furthermore, a significant consultation and listening process will be put in place for the public participation on how we should manage our water resources for the benefit of all.

My Department has identified the need to support and enhance the capacity of local government within the water delivery chain. We are required to provide more effective leadership in the entire water sector. It is within this context that we recognise that a lot of work still needs to be done in order to strengthen our capacity in this regard.

Honourable Members, Ladies and Gentlemen: In July last year, we brought together thirteen professionals to form a Business Process Re-engineering (BPR) Committee. They have a variety of experience and a range of skills in fields that include law, finance, policy, organisational design, ICT and human resource management. Their mandate is to investigate challenges in all their respective professional fields. From its inception, the BPR Committee has been working closely with the Management Team of the Department implementing strategic changes where they are required. On the basis of the challenges and solutions that have been identified, I will highlight a few of these interventions.

Very significant progress has already been made in re-engineering the financial management systems, addressing theissues raised by the Auditor-General. Their mandate is to deal with the following: human resources, information technology, governance, out-sourcing arrangements, review of mandate of strategy, policy and legislative review, institutional realignment, asset and infrastructure re-evaluation and audit preparations.

In the previous financial year, my Department spent 91% of its allocated R 9.028 billion budget. The current budget allocation is R8.8 billion, of which R2.5 billion is earmarked for the Regional Bulk Infrastructure Programme; and R2.2 billion is earmarked for water resources infrastructure development and rehabilitation projects.

We are also pleased with the sterling work that we are doing regarding the thorny issue of water use authorisations. In addressing the backlog, just during the past financial year we have finalised 1 049 applications by means of our backlog eradication project. We are confident that strategic industries will no longer be held back on the basis of non-completion of their license applications. Currently the Department prioritises the applications from historically disadvantaged individuals and is finalising the compulsory licensing projects in pilot areas (Tosca, Jan Dissel and Umhlathuze).

We are looking at an integrated authorisation process together with the Department of Environmental Affairs that will cover water use licences, environmental impact assessment authorisations and waste licences with a view to later integrating further permits to streamline the regulatory processes.

We have to ensure that water is placed at the heart of all planning decisions taking place in the country; and ensure that any decisions taken that rely on the steady supply of water, both in quantitative and qualitative terms, adequately factor in water availability.

I now wish to turn to the very important issue of skills in the water sector. While there is an enormous challenge in this regard, especially with regard to the scarcity and misalignment of artisans, engineering and technical skills, my Department is making sure that the gap is reduced significantly in this regard.

I am pleased to announce that we have partnered with the Department of Public Works to tap into their database of retired engineers. As I speak, four of these retired engineers are current mentors and coaches for the young and prospective engineers in my Department. Additionally, our graduate recruitment programme has since its inception also played its part and recruited a total of 240 graduate trainees; 35 of whom have been placed as candidates in various engineering positions.

While we recognise the need to expand our national infrastructure I must stress that Water Conservation and Water Demand Management has been identified as a most critical step that has to be implemented to give effect to our reconciliation strategies.Therefore all users and all sectors, including Local Government, have to implement these necessary measures. While the funds have been allocated for this activity and there are some good examples of success where the Department is supporting municipalities with a target of 10 municipalities this year and a targeted savings of 720 million cubic meters of water, we are engaging local government to also allocate additional resources for this activity.

We have been working with several municipalities on water conservation programmes in order to minimise water losses which programmes the DM will elaborate on. We are currently also working closely with the Agriculture, Industry and the Mining Sectors to set water use efficiency targets for their sub-sectors

The Department is very mindful of negative water use behaviour which impacts on the resource both quantitatively and qualitatively. We are currently exploring a potential mix of mechanisms to change this behaviour, which include regulatory frameworks, market-based instruments, self-regulation, water awareness and education, and it will match appropriate mechanisms to mitigate offending behaviour.

One of the issues that is very clear to me is that the challenges in the water sector are such that if we do not work together, across the sector, both public and private, we will not achieve our goals. The following three possible areas of collaboration must be highlighted.

We have entered into a partnership arrangement with the World Economic Forum (WEF) and have established a SA Strategic Water Partners Network, focussing on water efficiency, supply chain with a focus on agriculture and water quality.

Firstly we have to bring in the private sector as a partner in the planning, management and implementation processes. There is much that the private sector can contribute to our water delivery agenda, whether it is the financing of infrastructure, the design and construction of infrastructure, or supporting the improved management of sustainable service delivery.

During this financial year, we will investigate how best to structure the economic regulation not only of the delivery of water services, but water resources as well. The correct pricing of water is an important element, recognizing the real cost of delivering water in a water scarce country, during this year we will also be revising the raw water pricing strategy, and I assure you that we will consult broadly with all stakeholders.

Our department has reviewed the status of asset management within the water trading entity to ensure not only compliance with the Government Infrastructure Asset Management Act but to identify critical areas in respect of which improved management will enhance the efficiency, reliability and sustainability of the infrastructure.

In support of our New Growth Path and IPAP 2, in partnership with the sector partners, and the Department of Science and Technology, we are developing a robust water research strategy in order to find new technological solutions for the water sector to improve our production capabilities. These will address the current research challenges and gaps including technology needs, that will contribute to a cleaner technology approach.

We are pleased to announce that for the current financial year, the regional bulk programme has been allocated R2.597 billion, an increase that illustrates both the infrastructure need as well as the ability and capacity of my Department and our entities to spend and deliver on these projects. In the previous financial year 173 625 people benefited from completed projects and in this current year, we expect about 550 000 people to benefit as this will go a long way in addressing the 2014 water targets. Furthermore, skills development will continue to be an integral part of the programme, focusing on training of plant operators to ensure efficient operation and maintenance of the infrastructure when it is completed.

Ladies and Gentlemen, while we have surpassed our MDGs in water and sanitation, we are continuously working hard to provide good quality water. We are concerned about the decaying state of the current water and sanitation infrastructure in certain areas which is proving to be a threat to the gains we have made since 1994.

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