Infrastructure

Unbundling in South

AfricaKartikeya Pandey

Faculty of management studiesUPES

500021353

South AfricaAt the southern tip of Africa.

Has 9 provinces and has 2,798 kilometres (1,739 mi) of coastline.

25th largest country in the world by area

24th most populous country with over 48 million people.

multi-ethnic nation

On 31 May 1961 it became a republic.

Factsranked as an upper-middle income economy

by the World bank.

the largest economy in Africa & 28th-largest in the world.

South Africa has the 5th highest per capita income in Africa.

newly industrialized country

quarter of the population is unemployed and lives on less than $ 1.25 a day.

Infrastructure Unbundling

This term means the rate at which the diversification in the infrastructure & its rate since a particular time to present.

Infrastructure in South AfricaEnergyTransportTelecommunicationsWaterFunding

EnergyPetroleumNatural GasElectricityCoalRenewable alternativesNuclear

The Department of Energy's Hydrocarbons and Energy Planning Branch is responsible for

CoalGasLiquid fuelsenergy efficiencyrenewable energy energy planning the energy database. 

The liquid fuels industry was licensed in 2005 for the first time

PetroleumCrude Oil: 16.93%Oil Product Exports: 0.03%The Petroleum, Oil and Gas Corporation of

South Africa (PetroSA) has the monopoly on the oil, fuels and

natural gas sectorsSouth African fuels and chemicals company,

SASOLSASOL has the monopoly on the Coal-to-

Liquid sector in South Africa.

Petrol Prices

PetroSAThe Petroleum, Oil and Gas Corporation of

South Africa (PetroSA) manages the country's commercial assets in the petroleum industry, including the world's largest commercial gas-to-liquids plant at Mossel Bay in the Western Cape.

SasolSasol, the biggest local company listed on South

African stock market the JSE, produces synthetic fuels from low-grade coal and a from natural

gas. It operates the world's only coal-based synthetic fuels facility

produces 36% of liquid fuels consumed in South Africa. Produces automotive fuels for consumers, premium fuels and

lubricants for industry, jet fuel, fuel alcohol and illuminating kerosene.

It also converts natural gas to more environmentally friendly fuels and chemicals.

The company has a gas-to-liquids partnership in Nigeria

a cross-border pipeline linking the natural gas fields in Mozambique to Sasol's gas conversion plant at Secunda in South Africa's Mpumalanga province.

O & G Sector While South Africa's own deposits of oil,are small,

its refining and downstream oil sector is developing fast. The country has been positioning itself to supply services

including design Engineering fabrication Logistics shipping - to the growing west African oil and gas industry.

Cape Town harbour's infrastructure is well suited for oil rig repair and maintenance and construction

Saldanha Bay, situated about 60 nautical miles north-west of Cape Town, is the deepest and largest natural port in southern Africa. Saldanha Bay was made in late 2007.

The R284-million (approximately US$40-million), 220 000 square metre fabrication centre, built by German manufacturing company MAN Ferrostaal, will drastically reduce the lead and towing times for platforms used which until now had to be built and brought in from Europe, the Middle East, the US and south-east Asia.

The National Energy Regulator of South Africa (NERSA) is the regulatory authority established in terms of the National Energy Regulator Act, in 2004

The South African Petroleum Industry Association (SAPIA) is the voice of the petroleum industry in South Africa. It represents the collectives interests of its members which are BP Southern Africa (Pty) Ltd, Chevron South Africa (Pty) Ltd, Engen Petroleum Limited, PetroSA (Pty) Ltd, Sasol Limited, Shell SA (Pty) Ltd and Total South Africa (Pty) Ltd.

Natural GasMajor objectives in fulfilment of energy

objective of the White Paper on Energy Policy.The Department of Minerals and Energy has

formulated: The Gas Act 2001, Act 48 of 2001 and the

Government / Sasol regulatory agreement referred to in section 36 of the Act, which aims to Promote the orderly development of the piped gas

industry; Establish a national regulatory framework; and Establish a National Gas Regulator as the custodian and

enforcer of the national regulatory framework

Role Players

iGas is the official state agency for the development of the hydrocarbon gas industry in Southern Africa.

PetroSA; the government-owned oil and gas company has been given the mandate by cabinet to lead developments in gas infrastructure in the Western Cape.

Petroleum Agency of South Africa has the responsibility to promote the exploration and exploitation of natural oil and gas, both onshore and offshore, in South Africa and to undertake the necessary marketing, promotion and monitoring of operations.

Petronet owns, operates, manages and maintains a network of 3 000km of high-pressure petroleum and gas pipelines, on behalf of the South African government.

ElectricitySouth Africa supplies two-thirds of Africa's

electricity and is one of the four cheapest electricity producers in the world.

90 percent of South Africa's electricity is generated in coal-fired power stations.

Koeberg is a nuclear station near Cape Town, provides about 5 percent of capacity. A further 5 percent is provided by hydroelectric and pumped storage schemes. In South Africa there are few, if any, new economic hydro sites.

Eskomnational wholly state-owned utility, which

also owns and operates the national electricity grid.

supplies about 95 percent of South Africa's electricity.

the utility is among the top seven in generating capacity, among the top nine in terms of sales, and has one of the world's biggest dry-cooled power stations: Matimba Power Station.

ESCOM Profile45% of the electricity used in Africa.Generates,

transmits and distributes electricity to industrial, mining, commercial, agricultural and residential customers and redistributors.

Eskom buys electricity from and sells electricity to the countries of the Southern African Development Community (SADC). The future involvement in African markets outside South Africa (that is the SADC countries connected to the South African grid and the rest of Africa) is limited to those projects that have a direct impact on ensuring security of supply for South Africa.

Taking back ESCOMEskom was converted into a public

company on 1 July 2002. It is financed by net financial market liabilities and assets as well as reserves. While Eskom does not have exclusive generation rights, it has a practical monopoly on bulk electricity. It also operates the integrated national high-voltage transmission system and supplies electricity directly to large consumers such as mines, mineral benefactors and other large industries.

Between January 2003 and January 2004, South Africa increased its electricity output by 7.1 percent, with a peak demand of 34 195MW on 13 July 2004, as opposed to the 31 928MW peak in 2003. Of the new capacity to be built, Eskom will target about 70 percent (in MW), with the balance from independent power producers (IPPs).

Due to a sharp increase in the demand for electricity, the Eskom Board of Directors took a final decision in 2003 for the return to service of the three power stations, Camden in Ermelo, Grootvlei in Balfour and Komati between Middelburg and Bethal, that were mothballed in the late 1980s and early 1990s. Unit 6 at Camden Power Station was then identified as the first unit to be commissioned. Another two units will be commissioned in 2006, three units in 2007 and the last of the eight units in 2008.

NERSAnational energy regulator of south africa The National Electricity Regulator (NER) was

the regulatory authority that presided over the electricity supply industry (ESI) in South Africa. In November 2005, the NERSA replaced the NER.

NERSA is responsible for regulating the price of pipeline gas and petroleum, reducing monopoly in the energy sector, improving competition and boosting economic growth. 

NERSA, established in terms of the National Energy Regulator Act of 2004, is mandated to regulate South Africa's electricity, piped gas and petroleum industries and to collect levies from people holding title to gas and petroleum.

The idea behind a single regulator for the three industries was to improve efficiency and cut costs. It is also expected to boost private sector participation in the energy sector.

As an economic regulator, NERSA will ensure a level playing field and prevent abuse by monopolies. While legislation exists to govern the gas and petroleum pipeline industries, they were previously not subject to control by a regulatory body.

The regulator is important as it will encourage greater access and competition in a sector dominated by single major players: Eskom in electricity, Petronet in petroleum and Sasol in gas.

NERSA's functions include issuing licences, setting and approving tariffs and charges, mediating disputes, gathering information pertaining to gas and petroleum pipelines, and promoting the optimal use of gas resources.

Independent power producers In 2003, Cabinet approved private-sector participation in the

electricity industry and decided that future power generation capacity will be divided between Eskom (70 percent) and independent power producers, or IPPs (30 percent). 

The Department of Energy was mandated with the responsibility of ensuring private-sector participation in power generation through a competitive bidding process and that diversified primary energy sources be developed within the electricity sector without hindrance. 

A power generation investment plan was drawn up to take into account this 30 percent private-sector participation in power generation. The planning and development of transmission systems will be undertaken by the transmission company, subject to the government's policy guidelines. 

During 2003, Eskom implemented a revised business model to prepare for capacity requirements and the impending restructuring by splitting its business into regulated and non-regulated divisions. Eskom's core business, its strategic support businesses, and target markets were reviewed and agreed on. The generation division will continue to be part of Eskom. 

In 2003, the power stations in the division were paired together to form clusters to prepare the generation sector for flexibility to accommodate different options in a changing electricity supply industry (ESI). The transmission division takes responsibility for the electricity grid. Worldwide transmission is a natural monopoly. 

In 2003, the power stations in the division were paired together to form clusters to prepare the generation sector for flexibility to accommodate different options in a changing electricity supply industry (ESI). The transmission division takes responsibility for the electricity grid. Worldwide transmission is a natural monopoly. 

In South Africa, an efficient regulatory body must be established that will grant all players access to the grid. For example, customers could buy from sources other than Eskom, such as the Southern African Development Community (SADC) electricity pool or IPPs, but still use the same transmission infrastructure to have power delivered to them. 

The government's policy on the Electricity Distribution Industry (EDI) requires the division to be separated from Eskom and merged with the electricity departments of municipalities to form a number of financially viable regional electricity distributors (REDs). An interim body, called EDI Holdings Company, is overseeing the transition period.

Electricity policy In December 1998, government released the White Paper on

Energy Policy, which sets out its policy objectives for the entire energy sector.

These objectives are to increase access to affordable energy services, improve energy governance, stimulate economic development, manage energy-related environmental impacts and secure energy supplies through diversity.

Restructuring aims to improve the quality of life of all South Africans and to increase economic growth and redeploy assets. To ensure non-discriminatory and open access to transmission lines, and taking into consideration the financial stability of Eskom, government, in the medium term, is to establish a separate state-owned transmission company.

southern african power pool

The SAPP, or Southern African Power Pool, is the first formal international power pool in Africa. It was created with the primary aim of providing reliable and economical electricity supply to the consumers of each of the SAPP members, consistent with the reasonable utilisation of natural resources and the effect on the environment. 

The objectives of the SAPP are Co-ordinate and co-operate in the planning and operation of electricity

power systems to minimise costs, while maintaining reliability, autonomy and self-sufficiency;

Increase interconnectivity between SADC countries to increase the reliability of power supplies;

Harmonise relationships between member utilities and facilitation of cross-border electricity trading;

Provide a forum for the development of a world-class, robust, safe, efficient, reliable and stable interconnected electrical system in the southern African region;

Co-ordinate and enforce common regional standards of quality of supply, measurement and monitoring of systems performance;

Facilitate the development of regional expertise through training programmes and research;

Increase power accessibility in rural communities; Implement strategies in support of sustainable development priorities; and Recover costs of operations and equitably share benefits, including

reductions in generating capacity and fuel costs, and improving use of hydroelectric energy.

major challengesLack of infrastucture to deliver electricityLack of maintenance of infrastructure;Limited

funds fo finance new investmentsInsufficient generation - running out of excess

capacity by 2007High losses.

utilities of SAPP membersMozambique (Electricidade de Mozambique, HCB,

Motraco);Botswana (Botswana Power Co-operation);Malawi (Electricity Supply Commission of Malawi);Angola (Empresa National de Electricidade);South Africa (Eskom);Lesotho (Lesotho Electricity Corporation);Namibia (Nam Power);DRC (Societe National d' Electricite);Swaziland (Swaziland Electricity Board);Tanzania (Tanzania Electric Supply Company);Zambia (Zambia Electricity Supply Corporation);Zimbabwe (Zimbabwe Electricity Supply

Authority).

Coal 77 percent of South Africa's primary energy

needs are provided by coal large coal-mining industry has developed. 28 percent of South Africa's production is

exportedSouth Africa the fourth-largest coal exporting

country in the world.Many of the deposits can be exploited at

extremely favourable costs and, as a result, a large coal-mining industry has developed. 

 the Bredell report estimated South Africa's coal reserves as 55-billion tonnes and 115 billion tonnes of resources) is based on the Bredell report of 1987. The study to ascertain the amount of coal reserves and resources in South Africa is in progress.

 51 percent of South African coal mining is done underground and about 49 percent is produced by open-cast methods

 The coal-mining industry is highly concentrated with five companies accounting for 85 percent of saleable coal production. 

These companies are: . Ingwe Collieries Limited, a BHP Billiton subsidiary; . Anglo Coal; . Sasol; . Eyesizwe; and . Kumba Resources Limited, accounting for 85 percent of the saleable coal production.

About 21 percent of the run-of-mine coal produced is exported, and 21 percent is used locally (excluding power-station coal). The rest is not saleable and is discarded. 

The remainder of South Africa's coal production feeds the various local industries: . 62 percent is used for electricity generation; . 23 percent for petrochemical industries (Sasol); . 8 percent for general industry; . 4 percent for the metallurgical industry (Mittal); and . 4 percent is purchased by merchants and sold locally or exported. 

Renewable EnergyThe target:

Add about 1.667MW new renewable energy capacity, with a net impact on GDP as high as R1.071-billion a year;

Create additional government revenue of R299-million;

Stimulate additional income that will flow to low-income households by as much as R128-million, creating just over 20 000 new jobs;

Contribute to water savings of 16.5-million kilolitres, which translates into a R26.6-million saving.

The DoE has strengthened international relationships in this area via partnerships established during the World Summit on Sustainable Development.

Global Village Energy Partnership and the Renewable Energy and Energy Efficiency Partnership

10 000GWh is the 2013 target into perspective, this would be equivalent to electrifying approximately two million households having an annual electricity consumption of 5 000 kWh.

Technologies include:  Sugar-cane bagasse (the fibre that comes from

crushing the sugar cane) for cogeneration;  Landfill gas extraction;  Mini-hydroelectric schemes;  Commercial and domestic solar water heaters

Nuclear energyThe mandate of the Department of Energy

is to administer all matters related to nuclear energy as required by legislation and international agreements.

three key activities Nuclear Safety Nuclear Technology Nuclear Non-Proliferation

NECSANecsa is also responsible for the following

institutional obligations on behalf of the state: Decommissioning and decontamination of past

strategic nuclear facilities Management of nuclear waste disposal on a

national basis  Application of radiation technology for scientific

and medical purposes  Operation of the Pelindaba site and accompanying

services; Execution of the safeguards function

The implementation of the Nuclear Energy Policy of 2008 is a key mission of the Department of Energy. The policy provides a framework within which prospecting, mining, milling and use of nuclear materials as well as the development and utilisation of nuclear energy for peaceful purposes shall take place.

South Africa is a member of INPRO together with 21 other countries. The objective of INPRO is to support the safe, sustainable, economic and proliferation-resistant use of nuclear technology to meet the global energy needs of the 21st century

TransportThe Department of Transport is

responsible for regulation of Transportation in South Africa, that is, public transport, rail transportation, civil aviation, shipping, freight and motor vehicles. 

Public entitiesRAF (road accident fund)The south african national road agency limitedACSA (airport company south Africa)South African Airport AthuorityRoad traffic management corporationSAMSA (south African maritime shipping safety

AthourityATNS (Air traffic navigation System)Ports regulator of south AfricaPassenger rail agency of south AfricaRailway safety RegulatorCross border road transport Agency

RAF (road accident fund)Is the funds set up by the South african

government for the relief of the citizens under the road Accidents

responsible for providing  appropriate cover to all road users within the borders of South Africa; rehabilitating and compensating persons injured as a result of motor vehicles in a timely and caring manner

Prior to 1997, the system of compulsory motor vehicle accident insurance was governed by the following legislation:

Motor Vehicle Insurance Act, 1942 (Act No. 29 of 1942)

Compulsory Motor Vehicle Insurance Act, 1972 (Act No. 56 of 1972);

Motor Vehicle Accident Act, 1986 (Act No. 84 of 1986); and

Multilateral Motor Vehicle Accidents Fund Act, 1989 (Act No. 93 of 1989)

compulsory social insurance cover to all users of South African roads

levy on fuel used for road transportation social insurance cover, does not extend to

drivers that are found to be negligentowned by the South African publiclisted as a national public entity

Governance

SANRAL The south african national road agency

limitedIncharge of tolls

New projects Existing roads

Road taxesIncharge of social economic developments

of roadsRoad network managementIncharge of national highways

ACSA (airport company south Africa)

South Africa’s airports were owned and operated by the state until 23 July 1993, when ACSA was officially established and nine airports were transferred to the company. ACSA's sole shareholder from then until partial privatisation was the state, through the Ministry of Transport.

majority owned by the South African Government, through the Department of Transport, the Company is legally and financially autonomous and operates under commercial law.

Sets standards of the Airports by Airports Council International’s (ACI) Airport Service Quality Programme.

ACSA was formed to own and operate the nine principal South African airports, including the three main international gateways of O.R. Tambo, Cape Town and King Shaka International Airports

Promotes tourismACSA’s revenue is generated from aeronautical

and non-aeronautical sources. The former is derived from government-regulated charges, or tariffs, paid by airlines and includes fees for aircraft landing, aircraft parking and a passenger service charge. Non-aeronautical income is derived from multiple sources that include retail sales, concession fees, property leases, parking fees, hotel operations, advertising and revenues from our involvement in international activities.

Same as India.

RMTC  partnership between national, provincial and local

sphere of government. enhance the overall quality of road traffic services

provision, and in particular ensure safety, security, order, discipline and mobility on the roads

protect road infrastructure and the environment through the adoption and implementation of innovative technology

phase out, where appropriate, public finding and phase in private sector investment in road traffic matters on a competitive basis

 introduce commercial management principles to inform and guide road traffic governance and decision making in the interest of enhanced service provision

optimise the utilisation of public fundsregulate, strengthen and monitor inter-

governmental contact and co-operation in road traffic matters

improve the exchange and dissemination of information and road traffic matters

stimulate research in road traffic matters and effectively utilise the resources of existing institutes and research bodies

develop human resources in the public and private sectors that are involved in road traffic matters

SAMSA promote South Africa's maritime interests and

development and position the country  Participating in the development and implementation of

national and international maritime safety and marine environment protection standards;

Enforcing technical and operational standards for all shipping operations in South African waters and for South African ships anywhere, to promote responsible operations in terms of seaworthiness, safety and pollution prevention

Enforcing training standards and competency of seafarers Managing the national capability to respond to marine

pollution incidents and other maritime emergencies Operating the Maritime Rescue Co-ordination Centre to

coordinate maritime assistance services and to detect, and coordinate the location and rescue

provision of maritime distress and safety communications services to discharge South 

Administering South Africa's voluntary ship reporting system (SAFREP) for identifying and tracking ships at sea for safety purposes and to provide a ships' database for responding to marine emergencies

Investigating maritime casualtiesDelivering related services including:

Public awareness and education in marine safety and pollution prevention;

Administration of South Africa's ship registration system Publication of, and access to, ship safety and environmental

standards

Main ObjectivesSAMSA delivers four main outputs

consistent with its mandate and responsibilities:

Safety and environment protection standards for responsible maritime transport operations;

An infrastructure for monitoring and enforcing compliance with safety and environment protection standards;

The capability to respond to marine pollution incidents and other maritime emergencies; and

The capability to detect, locate and rescue people in maritime distress situations.

Air traffic & navigation servicesATNS is responsible for air traffic control in

approximately 10% of the world’s airspaceThe supply of aeronautical information services,

technical maintenance and aerodrome services;Alert, search and rescue co-ordination services;Management of the flexible use of airspace through the

Central Airspace Unit (CAMU);Support for special events and special requirements

such as test flights, demonstration flights, etc;The implementation and maintenance of a terrestrial-

based navigational structure;The training of licensed air traffic controllers and

technical staff through the Aviation Training Academy (ATA).

Ports regulator of south AfricaExercise economic regulation of the ports

system in line with government’s strategic objectives;

Promote equity of access to ports and to facilities and services provided in ports;

Monitor the activities of the National Ports Authority to ensure that it performs its functions in accordance with this Act.

Hear complaints and appeals under the Ports Act

“The Authority is mandated with promoting, regulating, supporting, enforcing and continuously improving levels of safety and security throughout the civil aviation industry. The above is to be achieved by complying with the International Civil Aviation Authority (ICAO) Standards and Recommended Practices (SARPs) whilst considering the local context. This mandate relates to aviation safety and security oversight of airspace, airports, aircraft, operations and personnel.”

Establishment of the Civil Aviation Authority The South African Civil Aviation Authority (CAA) was established on 1

October 1998 following the enactment of the South African Civil Aviation Authority Act, No.40, in September of the same year. The Act provided for the establishment of a stand-alone authority charged with promoting, regulating and enforcing civil aviation safety and security.  It reflected the Government’s priorities and was in line with international trends in the aviation world where more and more states implemented this option.

Areas of OversightThe roles and responsibilities of the CAA

revolve around the following six areas of oversight:

Accident and Incident Investigation Aircraft Safety Aviation SecurityAir Safety InfrastructureAir Safety OperationsRisk and Compliance

PRASASustainability of passenger rail service

delivery;Improvement of passenger rail services in

terms of quality and passenger service levels;Improved efficiency in service delivery;Improved effectiveness of asset

management;Effective targeting of subsidies to achieve

socio-economic & transport objectives;Improved oversight by Government; andImproved accountability to users

DivisionsPRASA Rail Operations

Metrorail  Shosholoza Meyl 

PRASA Corporate Real Estate Solutions (PRASA CRES)

PRASA TechnicalAutopax PTY LtdIntersite Investments

HistoryPrior to 1990, road and rail based

passenger services were provided by the South African Transport Services (SATS), a state-owned entity.

From 1 April 1990, these functions became the responsibility of Transnet Limited and the South African Rail Commuter Corporation Limited (SARCC), companies created in terms of the Legal Succession to the South African Transport Services Act.

Railways Safety regulator

 The RSR is governed and controlled by a board of directors, appointed by the Minister of Transport, who hold office for a period of three (3) years.

The Railway Safety Regulator (“the RSR”) is a public entity established in terms of Section 4 of the National Railway Safety Regulator Act

Mandate  To oversee safety of railway transport, while operators remain

responsible for managing safety of their operations;  To promote improved safety performance in order to promote the use

of rail;  To monitor and ensure compliance through the conducting of audits,

inspections and occurrence investigations;  To develop regulations;  To conclude appropriate co-operative agreements or other

arrangement with organs of state to ensure effective management and overseeing of safe railway operations and to minimise duplication;

 To collect and disseminate information relating to safe railway operations;

 To develop, adopt or accept standards for safe railway operations;  To collaborate with and conclude contracts, where appropriate, with

any person, body or institution with the view to furthering the objects of the RSR, including scientific and technical information, and training;

 To promote the harmonization of the railway safety regime of South Africa with SADC railway operations.

The Cross Border Road Transport Agency is a Government Entity that manages the cross border road transport industry.

The Agency is a statutory authority established by an Act of Parliament, the Act 4 of 1998.  The Agency reports to the Minister of Transport and Parliament.  The Board of the Agency fulfils the role as stipulated by the Cross Border Road Transport Act, 4 of 1998 (Act 4 of 1998).  

ObjectivesThe Agency’s strategic intent aims to

support the Department of Transports objectives and fulfil its role in terms of national economy in terms of:

An enabler of economic growthFacilitating trade growth by increasing

South Africa’s competitiveness in the cross border road transport sector

Reducing the cost of doing businessDeveloping SMMEs and skills within the

cross border road transport industry

TELECOMTelecommunications infrastructure in South

Africa provides modern and efficient service to urban areas, including cellular and internet services. In 1997, Telkom, the South African telecommunications parastatal, was partly privatised and entered into a strategic equity partnership with a consortium of two companies, including SBC, a U.S. telecommunications company. In exchange for exclusivity (a monopoly) to provide certain services for 5 years, Telkom assumed an obligation to facilitate network modernisation and expansion into the unserved areas

A Second Network Operator was to be licensed to compete with Telkom across its spectrum of services in 2002, although this license was only officially handed over in late 2005 and has recently begun operating under the name, Neotel.

 Five cellular companies provide service to over 30 million subscribers, with South Africa considered to have the 4th most advanced mobile telecommunications network worldwide

The five cellular providers are Vodacom , MTN, Cell C, Virgin Mobile and 8-ta, which is run by Telkom

The first use of telecommunication in the Republic of South Africa was a single line telegraph connecting Cape Town and Simonstown.

post-1876, early undersea telegraph links were introduced, first connecting Durban and Europe.

network continued to develop through internal financing in a heavily regulated market as international technology developed.

 telephone services were operated by the South African Post Office. In the 1960s, South Africa was connected to 72 nations and total outgoing annual international calls numbered over 28,800

In the 1990s, South Africa launched its mobile operations, underwritten by Telkom in partnership with Vodafone. This subsidiary grew to be Vodacom, which Telkom sold in late 2008 in preference for its own 3G network.

In 2004, the Department of Communications redefined the Electronics Communications Act, which consolidated and redefined the landscape of telecommunications licensing in South Africa (both mobile and fixed)

The Department of Water Affairs is the custodian of South Africa's water resources. It is primarily responsible for the formulation and implementation of policy governing this sector. It also has override responsibility for water services provided by local government.

While striving to ensure that all South Africans gain access to clean water and safe sanitation, the water sector also promotes effective and efficient water resources management to ensure sustainable economic and social development.

Mission As sector leader, our mission is to serve the people of South Africa

by: making a positive impact on our country and its people as

custodians of our water resources, and as innovative and committed partners in the drive for sustainable development;

being service and delivery oriented. We strive to get it right the first time, every time, on time - ensuring that our citizens are provided water and sanition services they deserve;

leading our sector and enable partners with knowledge and capacity to ensure that all water services are delivered;

being committed to innovation and use cutting edge technology as a catalyst of positive change, connecting our people and enabling them to work anywhere anytime;

having a heart that values our investment in our people. We provide them with a caring and trusting environment that encourages personal development and is a breeding ground for talent.

Wastewater treatment 55% of wastewater treatment plants, especially smaller ones, do

not meet effluent standards and some do not even measure effluent quality. In analogy to the blue drop certification system for drinking water, the government has launched a green drop certification for municipal wastewater treatment. As of May 2011, 7 out of 159 water supply authorities were certified with the green drop, and 32 out of 1,237 wastewater treatment plants.In 2009, when 449 wastewater treatment plants were assessed, according to official government data 7% were classified as excellently managed, 38% "performed within acceptable standards" and 55% did not perform within acceptable standards.According to Bluewater Bio, an international firm specialized in wastewater treatment, out of 1,600 wastewater treatment plants in South Africa - not all of which were included in the Green Drop assessment - at least 60% are not meeting regulatory compliance requirements.

StakeholdersThe public water and sanitation sector in South

Africa is organized in three different tiers:• The national government, represented by the Department

of Water Affairs (DWA), as a policy setter.• Water Boards, which provide primarily bulk water, but also

some retail services and operate some wastewater treatment plants, in addition to playing a role in water resources management;

• Municipalities, which provide most retail services and also own some of the bulk supply infrastructure. Banks, the professional association WISA, the Water

Research Commission and civil society also are important stakeholders in the sector.

1997 Water Services Act2000: promise of free basic water and

management contract for Johannesburg

2001 basic sanitation white paper2002 National Strategy

The South Africa Development Fund (SADF), formerly known as Fund for a Free South Africa (FreeSA), was established in 1985 by Themba Vilakazi with a group of South Africans living in exile in the United States. They were joined by Americans active in the civil rights and anti-apartheid movements in developing a model of philanthropy to help bring attention and an end to South Africa’s apartheid system and to reverse its political and social impact.

Since its inception, the organization has facilitated cooperation between concerned Americans and South Africans to enhance social and economic justice in South Africa. SADF solicits funds from individuals and donor organizations, and works in partnership with community-based organizations to provide financial and technical support to communities still disadvantaged by decades of apartheid policies.

After the democratic elections in 1994, U.S. interest in South Africa began to dwindle. South Africa may have been finally free, but the residual impact of apartheid and the alarming spread of the nation’s AIDS pandemic made the need for donor support even greater.

In the beginning of 1997, FreeSA was reorganized to best serve the needs of South Africa. On July 1, 1997, a new board of directors was voted in. The board consists of seven South Africans all of whom spend a considerable amount of time in South Africa. The organization, now called South Africa Development Fund, opted to focus exclusively on its grantmaking program.

Over the years, SADF has used its grantmaking to focus on the needs of the most disadvantaged sectors of South Africa: women, children, rural people, unemployed, residents of informal settlements, elderly and disabled. Our grantee organizations are committed to non-sexist, non-racial, democratic practices.

Thank you