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Presentation from the 2013 World Water Week in Stockholm www.worldwaterweek.org ©The Author(s), all rights reserved www.siwi.org
South African Strategic Water
Partners Network (SWPN-SA)
Case Study: Partnership on
Effluent and Wastewater
Treatment
nandha.govender@eskom.co.za
2 September 2013
Key messages from National Water
Resources Reconciliation Strategies
The recently published National Water Resources Strategy Revision 2, states
that water-sector dependent businesses can no longer take water for granted
regardless of the sector they operate within.
Decreasing water availability and reliability of supplies together with
deteriorating water quality will increase competition between businesses
and local communities for this resource.
Government and the private sector increasingly have to work together by
forging new types of partnerships to address the water risks and
challenges facing the country while rethinking the form of their traditional
relationships.
The National Department of Water Affairs has identified strategic priorities
which are explicit in defining the role of the SWPN-SA. These priorities are
paramount to free up freshwater and identify new water sources now and
for the future. The SWPN-SA is a water management partnership
between Government, the private sector and civil society
The SWPN-SA is an identified PPP instrument of the National Water
Resources Strategy 2 and has a high priority and support by Government.
Key Focus Areas of South African
Strategic Water Partners Network
• The SWPN-SA focusses on reducing the 17% water resources demand gap in
2030 and in severely stressed catchments whose water balance is in deficit.
• It is possible to make more water available anywhere in the country in the
future, but at sharply rising costs: The SWPN-SA has formed three working
groups focussing on the following:
• Water use efficiency, reducing water losses and water wastage. Focus
on the Municipal Sector- Led by Nestle (South Africa) and Sasol
• Water use efficiency, reducing water losses and water wastage. Focus
on Agricultural Supply Chain and irrigated agriculture- Led by Coca
Cola (South Africa)
• Huge potential for increasing reuse of waste water - At the coast as well
as in inland systems. Focus on mine water and municipal effluent
treatment- Led by Eskom Holdings SOC and Johannesburg Water
(Pty) Ltd
SWPN-SA Governance and Management Structure
Delegate to MANCO
STEERCOM MANCO
WRG DWA CORE INVITED Report PSC DWA Funders NBF
COs ORGS
STRATEGIC DIRECTION AND CONTROL • Management and
control.
Working Groups Report to SECRETARIAT
Steercom
DWA COMPANIES • Admin support to
Report
Steercom, WGs and
PROJECT IDENTIFICTION AND CONTROL Project teams
• Technical support to
inform direction,
Report policy, strategy
Project Steering Committee to WGs • Stakeholder
PM
identification and
WG Funder
management
PROJECT OVERSIGHT • Support to project
formulation
• Project management
• Funding mobilization
• Hosted by NBF
2030 projections depict net deficit
of 2.7 billion cubic meters.
(Estimated supply = 15 billion
cubic meters)
Under plausible climate change
scenario, deficit could increase to
3.8 billion cubic meters
Source: WRC, DWAF, Statistics South Africa, 2030 Water Resources
Group, McKinsey
Perspective: The basic water requirement to sustain human life is 18.25 cubic meters per year per person.
Opportunity for Mine Water Treatment
Schemes in the Olifants Catchment
One of the key water reconciliation strategies is the development and utilisation of
the water from coal mining operations in the Olifants River Catchment which
contains South Africa’s coalfields.
The Reconciliation Strategy assumed that the mine water can contribute an
additional water resource
The current installed mine water treatment capacity of 40 ML/day (14.6 million m3/a) is anticipated to be
expanded to 80 ML/day (29.2 million m3/a) by 2015;
An estimated installed treatment capacity of 143 ML/day (52.2 million m3/a) could be operational
6
by 2020.What is the scope of SWPN-SA- Mine
Water Treatment
• Establish real issues, opportunities and constraints inherent in the
treatment and re-use of mine water
• Identify root causes of problems and develop innovative
institutional, pricing, funding and business models for
sustainable mine water treatment and re-use
• Implement solutions to create an enabling policy, regulatory, legal
and business environment for private and public sector intervention
and contribution in the sector
• Upscale and replicate mine water treatment projects to be more
sustainable beyond life of mine operations- focusing initially on
Olifants River Catchment
7Project Scope Phase 1- Agreement of problem statements related to policy, institutional and pricing arrangements
Desired Outcomes of Phase 1 Study 1) Identification of real issues, opportunities and constraints with assumptions, available facts, data or analysis for the creation of an enabling environment for development and implementation of mine water treatment and re-use facilities 2) Undertake a robust and structured process of defining and prioritising the problems and developing high level tasks in preparation for scoping Phase 2 of the project. 3) Development of a risk matrix associated with the defined problem statements. However, key to the identification of the problem statements is to understand the magnitude of the problem, the sustainability of the proposed end solutions, the current gaps within existing policy and regulatory frameworks and the appropriate institutional, pricing, funding and business models to support the development and implementation of mine water treatment and re-use projects at a local or regional level.
Which are the barriers that the SWPN-SA has been established to overcome? Review of existing Policies and Regulations • Review of existing water and environmental and pricing policies, regulations, strategies and plans to create a stable regulatory and enabling environment for upscale and replication of mine water treatment projects • Consultation and agreement on appropriate resource quality standards for discharge purposes and the need to drive sustainable and innovative solutions for waste treatment management to suit different water users quality standards • Alignment and integration of National, Catchment and Local water resources planning (quantity, quality and assurance of supply) with water services and economic and spatial development planning- need to develop a long term national and catchment wide Water Reconciliation Plan which extends beyond the life of the coal mines. • Changing public perception on the use of mine water such as treated mine is expensive, use of treated mine water for drinking purposes has a negative effect on human health, Mine water treatment plants will not be operated and maintained sufficiently, Mining companies are trying to shift their liability to the State
Creating a conducive Institutional
Landscape
• The institutional landscape needs to be facilitated for the establishment of an
appropriate mine water treatment and re-use institution/organisation. Water
related institutions/organisations needs to take into account capacity,
experience, quantum of the mine related environmental and financial liabilities,
leadership and governance issues
• Regional schemes provides the advantages of scale (optimized location and
sizing of infrastructure and plants) and sharing of resources.
• The regulatory capacity to implement the enabling legislation and regulations,
cooperative governance between national, provincial and local government
remain constraints.
• Role and mandates of Government (Policy, Regulation and Implementation)
and the Private Sector and Project Partners
• Role of Catchment Management Agencies, Water User Associations,
National Bulk Water Infrastructure Agency, Municipalities and Water Utilities
• Sustainable management of waste water treatment plants, waste and funds
during the life of mine and post closure;Water Pricing and Funding Models needs to be reviewed • Different funding models and sources of funding and revenue may be considered. It is necessary to first consider / establish an mine water treatment related institution/organisation, before selecting the appropriate funding and revenue models/mechanisms. • The price of treated mine water will vary from full cost recovery for a privately owned/leased/operated plant versus a Government water utility where the price may be regulated for affordability reasons • Transition from local operational treatment plants (individual responsibility) to regional schemes (collective responsibility) to treat and discharge or re- use mine water and the associated legal and financial liabilities • Development of consistent and cost reflective water tariffs in the catchment. In most catchments, the easily available, “affordable” water has been exhausted. The cost of water from any new resource development project will be significantly higher than users have been accustomed to pay. • The number and type of Project Partners complicates the commercial arrangements on the project: Complex company structures and compliance to legislative and regulatory requirements, capital investments will need to be done in a tax efficient manner and competition issues to be dealt with.
Who are the stakeholders involved
and what are their incentives?
• National Departments of Water and Environmental Affairs and
Department of Mineral Resources:
• Creation of additional ‘new water’ from waste water treatment plants in the
catchment for the benefit for all- allocation of freshwater water for domestic
use and allocation of treated effluent and waste water to other users such as
industry
• Establishment of Catchment Managements Agencies, Water User
Associations, National Water Resources Infrastructure Agency and Economic
Regulator to be established
• Protection and reduction of pollutants entering the environment and the need for
dilution of pollutants
• Implementation of Waste Discharge Charge System- piloting in the Olifants River
Catchment (Incentive and Mitigation charges)
• Development and implementation of National Water Resources Strategy 2 sub-
strategies and review of the National Water Pricing Strategy
• Management of water decant from abandoned or derelict mines now under
Government’s responsibility
13
• Management of mine closure funds (cash and sureties)Who are the stakeholders involved
and what are their incentives?
• Coal Mines: Promoting Corporate Water Stewardship- Focus on addressing
catchment risks and challenges
• Reduction in environmental liabilities and financial liabilities during operations
and post closure of mines
• Licence to operate- compliance to water use licence conditions and environmental
authorisations
• Management of excess mine water during operations to ensure continuous
production and security of coal supply to customers
• Sharing of lessons learnt, resources, skills, experience and knowledge for the benefit
all
• Power Generation: Promoting Corporate Water Stewardship- Focus on addressing
catchment and supply chain risks and challenges
• Supplement power stations freshwater use with treated mine water from nearby
coal mines and municipal wastewater treatment plants
• Coal mines environmental rehabilitation and mine water treatment costs 14
included in the price per ton of coal produced and delivered to power stationsWho are the stakeholders involved
and what are their incentives?
• Municipalities:
• Potential Water User: requires water for domestic use but at
affordable water tariffs
• Waste water treatment plants require investment in maintenance and
upgrades together with skills and resources to sustain increasing effluent
inflows
• Compliance to licensing conditions and licence to operate
• NEPAD Business Foundation (NBF):
• SWPN, Working Group and Project Steering Committee Secretariate,
Project Management, Stakeholder Management and mobilising
funding through networks.
• Furthering of NBF goals and objectives through the development, funding
and implementation of PPP projects and initiatives on the ground.
15Who are the stakeholders involved and what are their incentives? • NGO’s – Contribute to problem identification and solutions in support of mine water treatment projects to provide clean and affordable water to communities and to sustain the ecosystems. • Research Institutions and Technology Providers: innovative, technically feasible and cost effective treatment solutions to any “fit for use” quality for Acid Mine Drainage and waste disposal/re-sale and zero effluent technologies. • Contractors: Design, Build and Operate skills and knowledge to advance mine water treatment projects • Financial institutions: Opportunities to fund mine water projects (design, manufacture/build and operate) based on contractual water off-take agreements and promoting Public-Private Partnerships. Innovative funding and financing and business tools and models introduced • Donor and Development Institutions: Funding of various studies to advance technologies, mine treatment projects, policy and regulatory changes, skills and knowledge • Subject Matter Experts: Contribute to sustainable solutions (Policy, Institutional, Pricing and Funding) for developing mine water treatment plants16
PPP in the global scale?
• Focus of this PPP will be on a catchment level but case studies can be
developed for replication and up-scaling projects anywhere in the world
provide the environment is right:
• Water stressed catchments where excess mine water and waste is an option
• Fair water pricing to recover costs of producing and distributing treated mine
water and management of waste
• Investment appetite in wastewater treatment and re-use projects and utilities
• Policy and Regulatory changes to enable the development and management
of such projects and institutions
17Is the PPP designed to maximize
growth and inclusivity?
• Opportunity for contribution at Steering Committee and Working Group
Level of the SWPN-SA to share knowledge and lessons and direct the
initial work. Mine Water Treatment Projects will be developed and
implemented based on the agreed institutional and regulatory models
and commercial arrangement with the key project partners
• The PPP focusses on upscaling and replicating the re-use of treated
mine water and other effluent to make more water available and
improve resource water quality for the benefit of the catchment and
possibly transboundary river basins
• As the studies progress and projects are developed and implemented,
there is a need for key stakeholders (impact and influence) to be
involved at various stages of solutions and projects
18SWPN members
Secretariat Functions
STEERCOM MANCO
STRATEGIC OPERATIONS STRATEGIC MANAGEMENT
• Technical input to inform direction, policy, strategy. • Institutional development
• Implement strategic activities • Support to strategic planning
• Support funding mobilization for programme • Work planning
activities • Systems for governance and control
• Support Stakeholder mobilization and • Administrative and coordination
management support
• Prepare strategic communications • Fund management & Procurement
Working Groups
WG TECHNICAL SUPPORT WG MANAGEMENT SUPPORT
• Technical support to WG strategy • Support to funding mobilization for projects
development • Project management support
• Support to project formulation • Administrative and coordination support
• Fund management and Procurement
PROJECT IMPLEMENTATION
Project Steering Committee • Project management
• Administrative and coordination support
• Fund management and Procurement
• Technical supportYou can also read
