Partnering for Water Stewardship Collective Business Case - SWPN │ Sanjeev Raghubir, Nestlé

Addressing the water risk in SA requires partnership

SWPN Milestones

January Request by Minister Molewa to WEF Water Initiative to catalyse the SWPN partnership in Davos

May Declaration of partnership between the South African Department of Water Affairs (DWA) and WRG at the WEF Africa in Cape Town

November Public-private-civil expert leadership group – SWPN, formally launched at COP 17 in Durban

May – Aug Thematic working groups consider intervention options

Jan – Apr Thematic Working Groups formed and carry out sector analysis

August Initial local investment secured to establish the Secretariat

2011 2010

November Exploratory workshop by WEF and DWA at CEO Water Mandate conference in Cape Town

2012

Sep – Nov Thematic working groups fully functional and robust and prepare projects

SWPN partners building on private-public-civil society strengths

STEERCOM

CORE COs

DWA

WRG

Working Groups

COMPANIES DWA

Project Steering Committee

WG PM Funder

STRATEGIC DIRECTION AND CONTROL

PROJECT IDENTIFICTION AND CONTROL

PROJECT OVERSIGHT

MANCO

Funders DWA

SECRETARIAT

• Management and control.

• Admin support to Steercom, WGs and Project teams

• Technical support to inform direction, policy, strategy

• Stakeholder identification and management

• Support to project formulation

• Project management • Funding mobilization • Hosted by NBF

Report PSC

Report to WGs

Report to Steercom

Delegate to MANCO

Governance and management Structure

Report

INVITED ORGS

NBF

Strategic focus areas to close the water gap

Effluent and Waste Water Treatment

• Mine water management

• Municipal waste water management and reuse

Water Use Efficiency and Leakage Reduction

• Municipal and industrial water loss

Agricultural Supply Chain Water • Unlock funding and improve equity in

water access for irrigation schemes • Water use efficiency in irrigation

Priority areas based on: • Major impact on

future water demand or supply

• Potential for scalable action

• Opportunity for public-private partnership

Project example : Sustainable mine water management

• Mpumalanga is South Africa’s largest coal producing province

• Mines generate jobs, income but also pollution

• Basin projected to run into a water deficit by 2017

• Pollution

• Current mine water management not sustainable institutionally and financially

• Improved water quality and 52.2 million m3 per year, closing the regional Olifants water gap by 26.2% in 2020

• Developing the institutional and financial models and policy reforms required to support financially sustainable mine water management

• Includes: (i) options analysis of collaborative interventions mine area catchment scale; and (ii) establishment of a public–private coordinating body

The challenge

Potential solution

SWPN contribution

Projects addressing municipal water losses

The challenge

• Water loss in municipal systems is estimated at 32%. Non revenue water is 37% and is worth R7 billion .

SWPN response

1. No Drop programme

• Scorecard and strategy to incentivize municipal water loss reduction

• Target: reduce water losses from the current 32% to 18% by 2025, saving over 600 billion litres annually with a financial value of over R2.5 billion

2. Performance contract

• Developed a model contract compliant with the MFMA to assist municipalities better contract or partner with private sector to reduce water and revenue loss

Project example: Vaalharts irrigation scheme upgrading

• SA’s oldest and largest irrigation scheme covering over 35,000 ha

• Infrastructure built between 1938 and 1966; some at risk of imminent collapse

• Business as usual risks lowering agricultural output, local jobs and water supply to 400,000 residents of 7 municipalities

Infrastructure refurbishment will:

• Save 40 million m3/annum

• Contribute to equity targets through access to saved water

• Improve the schemes productivity

• Create an additional 2,000 jobs to the existing 7,500

• An investment of R4 billion over 20 years is required to rehabilitate and upgrade the infrastructure

• The SWPN is convening stakeholders to develop a joint business case for the upgrading

The challenge

Potential solution

SWPN role in solution

Project example: Roll out of the Water Administration System (WAS)

• To Reduce water losses from the selected irrigation schemes

• Contribute to closing the local water gap within the catchments where the schemes are located

• Projected direct savings = 17.8 million m3 = 0.7% of the national 2030 water gap

• Implementation of the Water Release module of the Water Administration System (WAS)

• To unlock private sector funding for roll out of WAS or its water release module

• Facilitate installation and implementation of Water Release module at selected irrigation schemes

• Including all technical support required to get the module running at the schemes

The Opportunity

Potential solution

SWPN role in solution

Industrial challenges

Southern Cape region 2009 – 2010 Wolvedans Dam < 20%

Industrial challenges

Babelegi Factory (Hammanskraal) Recent investment: R250 million Permanent Jobs: 350 Water and electricity reliability of supply. Water quality

Harrismith Factory Recent investment: R80 million Permanent Jobs: 310 Water and electricity reliability of supply.

Estcourt Factory Recent investment: R500 million Permanent Jobs: 550 Water and electricity reliability of supply.

Industrial challenges: Response

0

5000

10000

15000

20000

25000

30000

Jan-0

9

Feb-0

9

Mar-0

9

Apr-0

9

May-0

9

Jun-0

9

Jul-0

9

Aug-0

9

Sep-0

9

Oct-0

9

Nov-0

9

Dec-0

9

Jan-1

0

Feb-1

0

Mar-1

0

Apr-1

0

May-1

0

Jun-1

0

Jul-1

0

Aug-1

0

Kilo

Lit

ers

Actual Water Usage per Month

COOLING TOWERS

PROCESSING

15939 KL

FIRE RESERVOIR

18000 KL

EVAPORATORS

23149 KL

Admin & offices

13725 KL

IRRIGATION SYSTEM

1525 KL

BOILER HOUSE

EVAP 2

Dissolving Area

REFRIGERATION

COOLING TOWERS

CIP STATION

4637 KL

CIP STATION

1472 KL

WASH BAY

LIQUID PLANT

ADMIN

SOFTNER

DEAERATOR

MOSSEL BAY-FACTORYWATER MASS BALANCE

01 June 2010

18250 KL

EVAPORATION

87600 kL

EVAPORATION

29000 kL

EJECTORS- LOSS

1943 kL

EJECTORS-LOSS

192 kL

51432

tONNES

43885

TONNES

20608

KL

79886

KL

2900 KL

1200

KL

20500

KL

20900

KL

17450 KL

100494

KL

CONDENSATE RETURN LINE

BOILER BLOW-DOWN

5177 KL

PRODUCT -IN

135372 Kl @ 12.5% TS

PRODUCT-OUT

36003 Kl @ 47% TS SPRAY DRYING

EFFLUENT

4890

KL

EVAPORATION

3120 KL

1200 KL

120000

KL

12300

KL

52019

KL

COW’S WATER TANK

222484

KL

4890

KL

0

KL

BLOW DOWN

BLOW DOWN

CIP -CONDENSATE

NON-USABLE CONDENSATE

CIP -CONDENSATE

NON-USABLE CONDENSATE

BLOW DOWN

BOILER FLOOR WASH

1431 KL

BOILER ASH TROUGH

14730KL

CONDENSATE RETURN STORM WATER

14727

KL

STEAM AND CONDENSATE

WATER SUPPLY

COW’S WATER

SEWERAGE

14525

KL

Admin & offices

800 KL

3360 KL

800

KL

RETORTS

33562 KL

METERED per annum

CALCULATED

16161

KL

7312

KL

17139

KL

15874

KL

27457

KL22425

KL

2944

KL

13725

KL

1525

KL

1431

KL

14730

KL

9458

KL

5177

KL

29131

KL

12456

KL

1000

KL

72159

KL

47317

KL

0

KL

43028 KL

1265 KL

5032 KL

30225 KL

800

KL

13725

KL

1525

KL

149943

KL

Evaporation

losses

Total Quantity

401678 KL

99369

KL

Total Quantity

230 000 KL -

municipality water

INPUT

OUTPUT

79886

KL

7988kl

Fire

Hydrant

POWDER PLANTPP METER

Egron safety

Cooling towers

EVAP 3

EGRON1

EGRON 2

MILK OFFLOADING16425

KL

2850

KL

MAIN LAB

108000

KL

FutureMUNICIPAL SUPPLY

50% Reduction!!

Industrial challenges: Response

Industrial challenges: Response

Multi-stakeholder partnerships • SWPN

Thank you

A partnership between the Department of Water and Sanitation, the private sector and civil society working collectively to close the national water gap