Water Governance in Cape Town, South Africa, OECD
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Presented at the 14th OECD WGI Meeting on November 2-3 2020
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Water Governance in Cape Town, South Africa, OECD
- 1. WATER GOVERNANCE IN CAPE TOWN, SOUTH AFRICA Maria Salvetti, maria.salvetti@oecd.org Webinar to discuss the draft report
- 2. Water Policy Dialogue • What are the critical challenges hindering water security in Cape Town now and in the future; and how to manage them efficiently, effectively and inclusively? • What are the key water governance gaps in Cape Town’s institutional, legal and regulatory framework that affect water security now and in the future? • How to address and bridge those gaps?
- 3. Water Policy Dialogue • Virtual fact-finding missions: interviews in July and August 2020 with 80+ stakeholders, peer-reviewers • Local team: Water Department - City of Cape Town and the Western Cape Economic Development Partnership
- 4. Why does water security matter in Cape Town? POLLUTION In 2016, only two of the 14 water bodies achieved 100% targeted quality adherence DROUGHTS 2015-2018: dam levels (99% of the system), dropped from 100% in 2014 to 38% in the subsequent years FLOODS Annual flooding puts most vulnerable Capetonians at risk UNIVERSAL COVERAGE In 2019, households without access to water services at 26% when considering minimum standards for reliability of water supply The city of Cape Town is home to 78% of the Western Cape GDP and 66% of the provincial population. Population growth rate of 2.5% per year over the past decade: Cape Town is 2nd most populous city in South Africa and the 10th in Africa. The Western Cape was projected as one of the South African provinces most at risk of climate-induced warming and rainfall change. Water risks Megatrends 2001-2016: domestic net migration added over 400 000 people to the province’s population. Migrants from other provinces accounting for 27% of population growth over that time period
- 5. Western Cape Water Supply System CMA National level Catchment level Regional system level (across catchments) Policy Planning Regulation Municipal level Project finance Project implement System operation DWS CMA TCTA DWSDepartment of Water & Sanitation (DWS) City of Cape Town City of Cape Town Berg River Breede-Gouritz Within Cape Town metro City TCTA DWS City WCWSS Reconciliation strategy
- 6. Key Water Governance Challenges Coordination Existing mechanisms & tools Issues wrt effective use Capacity Turnover & vacancies Ageing staff, no replacement plan Insufficient nb of specialised staff Trust & engagement Procurement challenges & budget constraints Irregular & wasteful expenditure From command & control to collaborate & communicate Financing Tariffs below cost- recovery Low charges Funding gap
- 7. Policy recommendations • Resume the instalment of Catchment Management Agencies • Review water allocation regime Complete decentralization process • Independent water regulation • Cost-recovery tariffs • Abstraction & pollution charges Improve financial sustainability • Operationalization of the water sector • Recruitment, appeal, nomination processes Strengthen capacities • Public procurement processes • Culture of consequences • Engagement (fair, equitable, transparent, open) Improve transparency, integrity & accountability
- 8. • Do you have any experience or research lessons in a context similar to the one of Cape Town to share on: – Economic regulation reforms that managed to improve water utilities financial sustainability while ensuring affordability? – Decentralisation reforms overcoming political resistance and avoiding unfunded mandates? – Efficient processes to strengthen transparency and integrity? Discussion
- 9. • Addressing the comments gathered • Finalization of the report by beginning of December 2020 • Share the final report with all stakeholders • Additional webinar in January 2021 • OECD internal clearance of the report • Official launch of the report Next Steps
Notas del editor
- Argentina’s sustainable development is hindered by water risks: Floods: Greatest natural disaster threat in Argentina, causing 60% of all natural disaster events and 95% of economic damages Droughts: in 2018 estimated economic impact of USD 6 to 8 billion (around 1% of GDP) Lack of access to quality services: rural regions and informal urban settlements poses health risks associated to water-borne diseases due to the presence of arsenic (affecting approx. 4 million inhabitants) In 2012, 265 deaths to diarrhoea were attributed directly to lack of adequate access to safe drinking water and sanitation and/or good hygienic practices Disruption of ecosystems Primary source of pollution is the discharge of household and industrial wastewater without adequate treatment (only 12% is treated) Between 30 and 40% of irrigated land is subject to some degree of salinization and/or sodification (particularly in semiarid and arid areas where over 60% of total irrigated land is located) External trends have an impact on water risks: Macroeconomic environment poses difficulties for large investments: After a favourable period of stability in 2016 and 2017, the 2018 abrupt macroeconomic shift resulted in a high cost of borrowing due to the associated country risk. The currency has depreciated sharply (from 20% in January 2018 to 41% in January 2019), and as a result gross public debt rose over 30 percentage points to reach 76% of GDP at the end of 2018, and perceived risks of Argentinian assets have spiked (800 basis point in January 2019) provides the opportunity to decouple water policy from the macroeconomic outlook. Urbanisation and territorial development: Rapid urbanisation in Argentina has acted as a major contributor to continuing gaps in access to quality water services due to uncontrolled land-use. Almost 92% of Argentina’s population lives in urban areas, up from 73% in 1960. The metropolitan area of Buenos aires gathers (40 % of popultation.). 4 million people live in urban dwellers nation-wide. Climate change: A combination of factors, such as higher average temperatures over the past 70 years and the recent La Nina meteorological event have been at the origin of the 2018 drought. An increased incidence of droughts is expected in the future with more intense and frequent extreme rainfall in Argentina (IPCC, 2014). Increase in average annual precipitation in almost the entire country, especially in the northeast and to the west of the traditional humid region, adding to the destructive potential of floods in recent years Digitalisation:ICT systems and other cartographic applications could help better predict water risks and disasters, consequently aiding water authorities in designing and implementing improved safety protocols. The Digital Cartography and Georeferenced Systems project. Nanotechnology, show the potential for cheaper, more effective, efficient and long-lasting alternatives in order to treat Argentina’s water resources and rid it of contaminating substances such as bacteria, virus, arsenic, mercury, pesticides and salt