MSB III Final Evaluation

WSLG18 November 2011

Presentation Structure• Introduction• Overview of the document• Methodology• Performance against KPIs• Some key evaluation outcomes

– Sector leadership– Water services – Water resources– Sector collaboration– Alternative Finance– Civil Society organisations

• Where to from here?

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Masibambane III

• Themed “Water for Growth and Development”

• Integration of the water resources and water services components

• From 2007/08 to 2011/12• Donor funding from EC, Irish Aid, Swiss

and Flemish• Last period of a decade of donor

support to the SA water sector

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Overview of the documentSection Contents

Executive summary

Section 1 MSB Context and Evaluation Approach

Section 2 Key Performance Indicators

Section 3 The proficiency of municipal water services provision and the role of Masibambane in enhancing it

Section 4 Implementation of Integrated Water Resources Management under MSB III

Section 5 Sector Collaboration and Sector LeadershipSection 6 Role of Civil Society

Section 7 Alternative Finance Mechanisms

Section 8 Cross cutting issues

Section 9 MSB III Budget and Expenditure

Section 10 Findings and Recommendations4

Key Result Areas

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1. Stakeholder collaboration is in place and focussed on sustainable water management for all South Africans

2. Catchment management agencies are established and operational

3. Municipalities are proficient in their designated water resource management and water service roles

4. DWAF is a strong, capacitated leader providing policy direction, regulation and support to the water sector

5. Civil society organisations are able to provide training, and support to, and advocacy in the water sector

6. Review of alternative financing mechanisms for sustainable delivery of water services and water resource management

7. Water service providers are operating in an effective and efficient manner, meeting norms and standards

8. Sustainable, ecosystem based IWRM is contributing to social development

Methodology

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Assessment of

12 KPIs

KRA 1 Stakeholder collaboration; KRA 2 Catchment management agencies; KRA 3 Capacity building of municipalities; KRA 4 DWAF is a strong, capacitated leader providing policy direction, regulation

& support to the sector; KRA 5 Civil society organisations (CSOs); KRA 6 Alternative financing mechanisms; KRA 7 Water service providers; KRA 8 Sustainable, ecosystem-based integrated water resource management.

KPI 1- Decrease in population without access to a basic water supply facility

KPI 2 - Decrease in households without access to a basic sanitation facility KPI 3 - Decrease in number of schools without access to a basic water / sanitation services KPI 4 - Decrease in number of clinics without access to a basic water and sanitation services KPI 5 – Eradication of bucket toilet system in formal established settlements KPI 6 - Institutional Management & Planning Skills of WSAs KPI 7 - Enhanced Water Service Provider Capacity KPI 8 - Establishment and Development of CMAs KPI 9 - Implementation of Integrated Water Resource Management in priority areas KPI 10 - Enhanced role of Civil Society Organisations KPI 11 - Strengthening collaborative structures and processes KPI 12 – DWA Sector Reporting

Interviews with 200+ key

informants

Reports and database analysis

Analysis of 8 Key Result

Areas RESULTS

INDICATORS

MSB III FINAL EVALUATION - Key Performance Indicators REVISED Target for year 3 WeightingScore Weighted

score (2009/10)

 

Reduction in Service Backlogs   0.35 ---- 0.29KPI 1- Decrease in population without access to a basic water supply facility 1.2 million people 0.35 75% KPI 2 - Decrease in households without access to a basic sanitation facility 350,000 HH 0.25 70% KPI 3 - Decrease in number of schools without access to a basic water / sanitation services 100% 0.2 100% KPI 4 - Decrease in number of clinics without access to a basic water and sanitation services 100% 0 100% KPI 5 – Eradication of bucket toilet system in formal established settlements

100% 0.2 99% Institutional Development and Performance   0.4 ---- 0.251KPI 6 Institutional Management & Planning Skills of WSAs   0.225 ---- KPI 6.1: % of total number of WSAs reporting annually on progress against their WSDPs. 100% 0.65 30% KPI 6.2: WSAs with Council approved supplier and provider arrangements in place 100% 0.35 80% KPI 7 - Enhanced Water Service Provider Capacity   0.225 ---- KPI 7.1: Development of approved WSP business plans 100% 0.35 0% KPI 7.2: Development and dissemination of consumer charter Progress table 0.2 60% KPI 7.3: Implementation of tariff policy and consumer friendly billing 100% 0.3 86% KPI 7.4: Development of asset management systems Progress table 0.15 100% KPI 8 - Establishment and Development of CMAs Progress table  0.275 ---- KPI 8.1: Number of CMAs published in the Government Gazette Progress table 0.35 60% KPI 8.2: Number of CMA Governing Boards appointed Progress table 0.35 60% KPI 8.3: % of established CMAs with Business Plan and strategies in place Progress table 0.3 60% KPI 9 Implementation of Integrated Water Resource Management in priority areas   0.275 ---- KPI 9.1: Water Allocation Reform schedules finalized Progress table 0.2 80%KPI 9.2: Water conservation and demand management strategies Progress table 0.2 100% KPI 9.3: Compliance monitoring and enforcement strategy developed and implemented new cases (100%) & backlog (40%) 0.2 100% KPI 9.4: % Irrigation Boards transformed to Water User Associations 50% 0.2 100% KPI 9.5: Number of resource poor farmers established 432 0.2 50% Role of Civil Society   0.1 ---- 0.04KPI 10 Enhanced role of Civil Society Organisations   1 ---- KPI 10.1: Advocacy, lobbying and communication programme developed and rolled out. All CSOs working for muni’s 0.35 40% KPI 10.2: CSO capacity building 500 municipal staff 0.3 40% KPI 10.3: Involving communities in water resources management 20 CSOs fully 0.35 35% Sector Collaboration   0.15 ---- 0.14KPI 11 Strengthening collaborative structures and processes   0.5 ---- KPI 11.1 Sustainable collaborative structures in place at national & provinces. All 10 collaborative structures 0.25 80% KPI 11.2 Provincial Water Sector Plans developed and reviewed annually PWSPs reviewed and improved 0.25 90% KPI 11.3 National Water Sector Plan developed and reviewed annually NWSP reviewed and improved 0.25 60% KPI 11.4 Cooperation and integrated water resources management in Africa reported yrly Annual report on IWRM in Africa 0.25 100% KPI 12 – DWA Sector Reporting   0.5 --- KPI 12.1 % of WSAs reporting on DWQ management 100% 0.4 100% KPI 12.2 DWA reports annually against all 19 target areas in Strategic Framework for WS 0.6 100%

OVERALL 0.72

72%

Summary of evaluation outcomes

• Donor funding made up 1.3% of total sector funds but approximately 45% of funds available for strategic spending– Guidelines, plans & strategies; piloting

innovative approaches; technical assistance, support & training; collaboration & knowledge sharing

– At local, provincial and national levels• Sector budget support – money spent on

the priority of SA government ensured ownership

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Sector leadership (KRA 4)

Sector leadership (KRA 4)• Between 2004 and 2010

– the Minister of Water Affairs changed four times– three Directors General, and three Acting Directors General

• In July 2011, five out of the top eight DWA management positions were occupied by Acting managers

• Significant turnover of senior management• The effects of people being elevated into acting positions cascade down

• Substantial loss of institutional memory, strategic coherence and leadership consistency• Shifts in priorities, decisions deferred

• These discontinuities have profoundly shaped DWA’s capacity to play the sector leadership role it asserted for itself

• In general the regions have taken the initiative and provided leadership at a regional level

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Proficiency of Municipal Water Services Provision (KRA 3 and 7)

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• Improving access to basic services

• Strengthening institutional capacity

• Direct operational support

• Skills development

• Knowledge management and sharing

• Innovation and piloting

• Relationship building

• Immense value

Service coverage

Eradication of access backlogs

• Good progress

• Water backlog: 3.6-million people

– Will take three years to eradicate this– Five years in KZn

• Sanitation backlog: 2.7-m households

– Will take eight years at least

• More funds could accelerate progress, but municipalities are already currently struggling to utilise available funds

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Service backlog stats don’t include informal settlements

Backlog data• More nuanced backlog classification system

introduced in 2009

• Will take time to gather reliable data - No national summary available yet

• For now, we can only ask ‘For how many people have systems been constructed’?

• Expenditure is a poor indicator of coverage

– But it’s all we have till we get the 2011 census data

• Rising costs of supplying the un-served areas – Some rural areas R80,000 to R140,000 per household

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Reality check

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Functionality

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Does the data that DWA and municipalities are collecting highlight where the real problems lie?

Survey of 70 villages in 2 LMs, May 2011

The water – finance link• Most municipalities are under-funding water

services

• 10-fold increase in Equitable Share in past 10 years

• Relatively little Equitable Share is reaching water services

• Little distinction between free water and Free Basic Water in many areas– No metering, No billing, No credit management

• Unmanaged demand is leading to supply bottlenecks and fuelling massive capital programmes

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Spray-irrigating vegetables with potable water from an unbilled private connectionFree basic water?- While the next village frequently goes dry

How best to meet demand for multiple uses?

Bulk Infrastructure• Extensive investment needed to refurbish and expand bulk infrastructure

• Regional Bulk Infrastructure Grant (RBIG) an appropriate response by DWA - project finance together with technical scrutiny and project management support.

• Municipalities with greatest need unable to spend MIG and RBIG budgets – need support

Escalation of costs of supply ExampleDe Hoop Dam under constructionExpected raw water cost: R68 / kl, up from R2

Operation & Maintenance• Rural service delivery is weakest, and most complex

– Most DM WSAs are managing more water reservoirs, pumps, treatment works and network kms than the biggest metros

– With fewer staff, fewer vehicles and across a far wider area

• No off-the-shelf models for rural service delivery that work across a mix of settlement types, with different water sources and a mix of stand-alone and regional schemes

• Value of MSB forums has been to bring people together to share information and reflect on their experience

• District Water Managers’ Forum: brings together the DM WSAs serving the most challenged areas

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Need greater attention to municipal systems

• Siloes and weak communication between municipal Technical, Financial, HR and Procurement sections– Organograms don’t reflect service delivery requirements– Tariffs and budgets don’t reflect real costs– Technical departments focus on services, with limited

awareness of costs, affordability or collection rates– Supply chain management systems cumbersome

• Service delivery turnaround can’t be achieved without addressing management of the overall systems

• There are important lessons from the Blue Drop and Green Drop approach that can be applied to other areas warranting attention

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There is No Panacea• Municipal water services are highly complex and varied systems

• Feedback is the only way to manage and direct highly complex systems

– Assess the impact of what we do, and respond from there

– Carefully identify key indicators and measure them

– Tweak / Measure / Assess / Tweak / Measure

– Tweak and tinker towards steady improvement

• We have weak feedback systems for managing municipal water services

• We need to strengthen performance measurement

– particularly operational performance measurement

Key recommendations• More detailed measurement and regulation of municipal

service delivery performance outcomes – by municipalities and by DWA as regulator. Need to monitor continuity of service

• Need a more integrated approach to service provision, straddling Finance, Technical, HR and Procurement

• Give much more attention to budgeting, revenue management and use of the Equitable Share

– Needs close partnership between DWA, D-COG, National Treasury and SALGA

• Clarify roles between DCoG and DWA around direct support to municipalities

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Water Resources Management

KRA 2 Catchment management agencies are

established and operational

KRA 8 Sustainable, ecosystem based IWRM is

contributing to social development

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WRM – MSB Priority Areas

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1. CMA institutional establishment2. Water Conservation and Demand

Management3. Compliance Monitoring and

Enforcement4. Water Allocation Reform5. Support to Resource Poor Farmers6. Environmental issues (in cross cutters).

Establishing CMAs – some progress

• Institutional realignment stalled CMA establishment – needs clear direction from DWA

• Two existing CMAs have achieved:– Expected annual reporting standards – Expected business planning standards – Finalisation of CMS– Delegation of new functions – CMAs already

implementing • Pace of establishment slow with other CMAs

BUT much of the preparatory work completed

WCWDM – Findings

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1. Regulations finalised – major step2. Regional business plans in place3. Institutional development in regions4. Model bylaws drafted5. Reporting templates in place

But capacity to support ‘what it takes in practice is another story’.

WCWDMRecommendations

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• Drive forward the substantive foundational gains made in regions, particularly institutional aspects (fill positions)

• Continue the current training emphasis at Municipalities and regions

• Ensure continuation of on-call technical support until DWA capability stronger

CME – Findings

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1. Case backlog fully addressed2. Close and supportive working

relationships between regions and HO3. Expanded investigation team at HO4. Creative interventions - training

manuals for magistrates, website based case reporting internally

5. BUT - staff overcommitted and regions have extremely heavy travel burden

CME – Recommendations

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1. Regional personnel and budgets must be expanded if the response to the increasing case load is to be maintained.

2. Leadership must make faster decisions on strategic direction in relation to CME.

3. Technical support role under MSB III is critical to progress and must continue.

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WAR has achieved very little at grassroots level in getting volumes of water to the poor and to HDI’s for productive use.

Progress on Water licenses - BEE requirementLetsema - substantial progress 2nd half MSB

Progress on Compulsory licensingmarked progress - 3 catchments gazetted and CL frameworks are in place

Water Allocation Reform - findings

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Water for resource poor farmers – findings

Strong alignment between RFP subsidy and top national priorities of food security, poverty alleviation and agrarian reform

Positive embrace of whole enterprise evaluation for the subsidy – but capacity to assess is limited

More than 100,000 smallholder irrigators and 1.3 million black landholders – the subsidy is minute

RWH programme highly effective in getting water to some poor households for food and income. Stopped end 2009-10.

Strategic decision to use the RPF subsidy for services is directly opposite to policy intentions.

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DWA RWH Pilot Expansion Programme 2009-10

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Water for resource poor farmers- Recommendations

Review the prioritization of water uses under the Water Act to give meaningful effect to WAR

Support paper allocations with infrastructure so the poor actually get water.

Sharply increase the RPF subsidy in line with national priorities of agrarian reform, food security and small farmer development.

Expand the water harvesting programme to increase homestead water-security and support productive use.

WAR – employment – povertyDWAs Agric Water role ?

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In most productive water use initiatives, DWA sits in a detached bulk supply role. Incongruent with WAR and ensuring economic gain from limited water resources.

DWA needs to interrogate the potential to respond better to WAR, employment creation and poverty alleviation, through agric water in all of these.

WAR calls for the department to shoulder leadership beyond the limited supply mandate, and embrace social and environmental aspects of water pricing.

Sector collaboration (KRA 1) • Masibambane (lets work together) conceived as a

SWAp • Valued for Indabas, regional forums and

knowledge management.• SWAp being superseded? – increased emphasis on

IGR, 2014 outcomes approach – multi sectoral• Risk of losing the experience & perspectives of

CSOs and private sector• Collaboration opportunities in wider forums• But a more crowded space for collaboration

– Water sector role-players are having to learn to work more strategically beyond dedicated water-sector forums

– Stakeholder fatigue37

Sector collaboration• Revitalise WSLG to strengthen sector leadership and

collaboration at national level. Cultivate the attendance of appropriate people from all sector participants, including National Treasury and Human Settlements.

• Strengthen co-ordination and collaboration between DCoG, DHS and DWA, to provide more effective support to municipal water services.

• Revitalise the MCC to enable it to play a more constructive role in supporting the achievement of 2014 objectives; engage sector partners beyond DWA.

• Consider establishing a platform dedicated to addressing the challenges facing water services.

• Strengthen interaction with CSOs and the private and corporate sectors to mobilise their hands-on involvement in tackling sector issues.

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Alternative Finance (KRA 6)

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• Vast gap between funding available and funds required – Service coverage, refurbishment, expansion– Little provision being made for what MIG does not fund

• Most municipalities are not exploring options beyond MIG – Slow progress in improving services

Free Basic Water Special Intervention Programme • CoGTA, DWA, SALGA, provinces, municipalities, Magalies Water• How to fast-track infrastructure development to enable access to FBW

How to improve ‘bankability’• Integrated project development approaches• Project finance approaches Off-balance sheet financing for ring-fenced

project loans

• Good progress and detailed planning in 4 municipalities• DWAF revised funding priorities and the project came to an end

before approaches could be piloted

But funding constraints are not necessarily the main impediment …

MSB III CSO Programme (KRA 5)• Ensuring community voice is critical to

democracy - CSOs are key components• Programmatic development of CSOs in

the sector has largely failed– Identity crisis– Funding and financial pressures– Local gov’t perceptions & procurement– Institutional arrangements– Poor mngt (record-keeping; admin;

training coordination)

MOVING FORWARD – building and enabling environment

• Develop current momentum • Market CSOs to the sector – esp. local

government• Address funding flow challenges: (1) HO

to regions; (2) regional offices to CSOs• Implement tranche payment systems • Address procurement issues• Support CSO champions• Maintain CSO programme support

What is the future? Masibambane IV?

• Does Masibambane end with end of donor funding?

• Funding of the strategic interventions needed as much now as before

• WIN-SA dependent on Masibambane funding

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Exit Strategy Recommendations• Alert DWA leadership to the range of funding

gaps the end of MSB III leaves

• Align findings and recommendations with 2014 Outcomes for greater traction and impact

• Revive and retain WfGD as an over-arching sector framework

• Less may be more: identify strategic priorities and focus on them, rather than trying to be active across a wide range of areas, beyond available capacity and resources

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Exit Strategy cont.

• Municipalities need dedicated support beyond what D-COG is leading• ELGOSA, RRU

• Hands-on strategic and operational support to municipalities is High priority

• Communicate what IS working to Mayors and MMs

• Strengthen water services intelligence, learning and sharing capabilities – a critical gap in current sector thinking and analysis

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Exit Strategy cont.• Critical need for ongoing integration of WR and

WS, from both sides• District and provincial collaboration is good, but

needs ongoing resourcing and a greater emphasis on outcomes and benefits to participants

• DWA and partners needs to reach out and engage more with other sectors - beyond a sector-wide approach to a multi-sector approach

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Exit Strategy cont.• Secure dedicated funding to continue MSB activities and

approaches, with a programme plan and budget for Treasury with clear objectives, priorities and outcomes

• Use findings to shape DWA sector budgeting and planning for 2012/13

• Engage Treasury! It seems Treasury – and much of national government - is not aware of the extent of the (crisis) in the municipal water sector

• Water sector activities extend well beyond DWA, so Treasury needs to provide a pool of dedicated funds which DWA administers on behalf of the wider sector, and reports to WSLG on how it is spent

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Thank youThank you