KZN Human Settlements and Water & Sanitation Plan; Wastewater Treatment Plan; Water Boards; District Model; with Deputy Ministers

Meeting report

The Chairperson opened the virtual meeting, welcoming the Members

The Committee Members expressed their disappointment about the Minister not attending the meeting and further shared their concerns about the Minister never showing face at any of the Committee meetings. There were different views among Members over this, with some objecting to the continuation of the meeting.

The Chairperson asked Members to vote, and the majority voted to proceed with the meeting.

Deputy Minister’s Remarks

Deputy Minister of Human Settlement, Water and Sanitation, Ms Pam Tshwete, thanked the Committee Members as well as the Chairperson for the platform she had been given and introduced the officials that would be presenting reports on behalf of the KwaZulu-Natal (KZN) Department of Human Settlements, Water and Sanitation. The first report was going to be presented by the Member of the Executive Council (MEC) for the portfolio, Ms Peggy Nkonyeni.

Revised 2020/21 KZN TRP Business Plan

MEC Nkonyeni reported that the total revised budget allocation in 2020/21 business plan is R36.74 million. She said that due to the budget reduction the province had to review its targets. She also reported that other major changes that were taking place were to reduce targets for dispute resolutions. However, national has indicated that KZN province will be receiving additional R10m towards TRPG and the plan is to use these funds to address this challenge (dispute resolution).

MEC Nkonyeni also gave a tabled breakdown and budget summary for overall outputs which include the beneficiary verification, township establishment, dispute resolutions and post-1994 transfers which total to R36 740 000 in expected funding.

She further broke down the summary on the revised district level 2020/21 TRP budget allocation. In this summary, ten districts were mentioned, including: Amajuba, eThekwini, Harry Gwala, Ilembe, King, Ugu, Umgungundlovu, Umzinyathi, Uthukela and Zululand. She discussed the current issues affecting TRP which involve planning and social issues. She said that the incomplete township establishment processes were affected by new legislation as compared to the previous were LEFTEA, DFA, PDA, SPLUMA etc., while the incomplete planning activities included land assembly; encroachments (amending of general plans); planning approvals; beneficiary issues; registration & opening of township registers.

MEC Nkonyeni also noted some municipal issues with regards to issuing of compliance certificates i.e. rates clearances; engineering certificates at times emanating from payment of services, etc. Other issues involved conveyancers being slow on lodgements that are due to complains regarding low rates. She also added that the fragmented approach including the use of different reporting documentation and mechanism is directly affecting the monitoring and evaluation as well as auditing.

She also reported on the remedial actions that were being planned by the Department. She provided the Committee with the remedial actions around planning and social Issues, which the Department has undertaken and stated that the following exercises would be implemented:

• Established the panel of stage one responsible for addressing town planning requirements.
• Established the panel of social facilitators responsible for facilitating & addressing of the identified beneficiary issues.
• Amended the scope of works for stage one planning activities and social facilitators.

MEC Nkonyeni also outlined municipal issues, which she also provided remedial actions for, including:

• Establishing mainly the provincial steering and war room committees within the major contributors (eThekwini & uMsunduzi) thus enabling for addressing the following issues:
  • Rates clearances – low income earners through free basic services (indigent policy)
  • Engineering certificates being finalised for all affected townships inherited from previous government dispensation.

Lastly, as part of the activities to be implemented, MEC Nkonyeni noted how other issues would be resolved. The actions taken include:

• The Department establishing the new database for conveyancers and also pursuing to increase conveyancing rates as was compared with other provinces.
• The Department concluding the revised scope of works for conveyancers in order to include all the necessary conveyancing activities
• The Department concluding a set of standard reporting templates and seven TRP certification for alignment purposes and improve record keeping for auditing.

The Chairperson thanked the MEC for the comprehensive presentation before proceeding to call on Deputy Minister Mahlobo.

Deputy Minister of Human Settlements, Water and Sanitation, Mr David Mahlobo, thanked both the Chairperson and Ms Nkonyeni for the presentation on the revised business plan, while also recognising the work that has been done by Deputy Minister Tshwete. He said that the next presentation would be led by Mr Trevor Balzer, who is the Acting Director-General (ADG), and also mentioned that he would be joined by the Provincial Head, Mr A Starkey, and the CEOs of two water entities, Mr M Duze of Umhlathuze Water and Mr T Hlongwa of Umgeni Water. He also indicated that Mr Balzer would lead presentation on the work being conducted by the Department. He reminded the Committee of the Department integration of the work conducted in KZN and highlighted that progress had been made on the ground.

Department of Water and Sanitation’s KZN District Implementation Plan

Mr Trevor Balzer, Acting Director-General, DWS, said that he was going to brief the Portfolio Committee on the Department of Water and Sanitation’s KZN District Implementation Plan for 2020/21. Mr Balzer gave a provincial overview and broke down the institutional landscape where he mentioned that there were 11.4 million people in 2.876 million households according to Stats SA, one Catchment Management Area, one Proto Catchment Management Agency, 43 LMs, 10 DMs, one Metro, 14 Water Service Authorities, two Water Boards, 1 Bulk Water Utility, 14 WSAs also retail WSPs and one concessionaire (reticulation WSP).

Mr Balzer also explained the provincial access breakdown by the total number of wards which has seen WSAS 2019 at 870; total number of households were 2 894 635; total % of households with water access was 76.9%; total percentage of households without water access were 23.1%, and the total number of wards with a 100 % access rate were at 154.

Provincial Water Master Plan Province of KwaZulu-Natal (PWMP-KZN)

Mr Balzer explained what the water masterplan is and its goal. He said the goal is to produce a water masterplan for KZN, which takes cognisance of current and future demand for water, and which identifies short-, medium- and long-term interventions in order to ensure long-term water security in KZN for domestic consumption, agriculture and other economic activity. He said that the WMP attempts to balance the focus between long term resource, bulk and secondary bulk planning (macro), with short-term interventions at ward level (micro) to address lack of water within communities.

Mr Balzer said that the WMP rests on three pillars which constitute the themes for the matters dealt with in each section of the plan. The first pillar deals with the security of raw water sources (surface and groundwater) as well as the abstraction, treatment and bulk distribution of potable water. Projections of growth in demand dictate the planning and identification of interventions aimed at the development and management of infrastructure, as and when required, to meet demand on a continuous basis.

The second pillar deals with the distribution of portable water from the bulk and secondary bulk systems to the household consumer. The level of service (LoS) per ward is considered under this pillar. Lastly, pillar three deals with the ongoing viability of water service delivery, in particular the condition of existing infrastructure, remedial action and expedient management of the operation and maintenance to preclude financial and/or physical collapse of water services infrastructure.

He also shared the Water Services Development Plans and the Municipal Strategic Self-Assessment (MuSSA). He also touched on the longer-term interventions. He said that they need to implement strategies that have been developed to meet the medium- and long-term demands on time critical projects in larger KZN systems including:

• Mkomazi Water Project – directive issued to TCTA & Umgeni Water for implementation on 22/02/2019
• Construction of Steven Dlamini Dam – directive issued to Umgeni water on 09/06/2020.
• Cwabeni Dam / WSS – directive issued to Umgeni water on 13/7/2020.
• Harding – Weza intervention with Umgeni water underway.
• He also added that the augmentation of Mhlathuze WSS was considered under Richards Bay reconciliation strategy and there was a completion of hydrology and detailed feasibility for the Mfolozi River underway.

Mr Balzer handed over to Mr L Mabuda from the Department of Water and Sanitation, who took the Committee through the report on the Umgeni Water Supply System and gave an overview of the work done, which includes:

• The Umgeni is the largest in system in KwaZulu-Natal
• Major demand centres are Durban Metropolitan Area and Pietermaritzburg
• Umgeni is made up of three sub-systems (North Coast, South Coast and Umgeni Supply area)
• The system is comprised of a network of dams on the Umgeni River (Midmar, Albert Falls, Nagle and Inanda) and Spring Groove on the Mooi River, a tributary of the Tugela.
• Currently the long-term outlook is that the water requirements are outstripping the water resources available.
• Several interventions are lagging behind, i.e. the completion of the raising of Hazelmere Dam, construction of uMkomazi (Smithfiled Dam).

Mr Mbuda also gave a ‘drivers of water demand list’, where the portion of water supply was broken into indicated priority list and with associated recurrence interval failure and annual assurance supply. He also said that 10 dams in the MWSS system with gross storage of 980 Million m3 and that a firm yield estimated at 500 Million m3/a. He also added that Ecological Water Requirement (EWRs) have no significant impacts in the MWSS. Mr Mabuda also provided the Committee with the WSIG-BP approval list, where he gave the status of WSIG business plans. He concluded the presentation with the WSA MIG Covid-19 BP Reprioritisation approval by DWS list.

Umhlathuze Water

Mr Mthokozisi Duze, CEO: Umhlathuze Water, said that his presentation would cover the COVID-19 Impact, bulk water resource management, Mhlathuze Water owned operations, operational performance 2019, Mhlathuze water as implementing agent, Mhlathuze water bulk infrastructure capital expansion programme and bulk water infrastructure expansion/delivery plans.

On COVID 19 impact, he said that the business sustainability continuity plan involved Mhlathuze Water assessing the COVID-19 pandemic on its operations, suppliers and customers. The operations of Mhlathuze Water’s major customers were still on-going during the lockdown periods and the bulk water supply and effluent disposal was not affected negatively. Its customers have not indicated severe financial difficulties that may provide reasonable doubt that may significantly affect their credit risk. Mhlathuze Water is operating on contracted volumes with associated tariffs. A significant portion of revenue is therefore fixed. None of the key customers have indicated intent to decrease contracted volumes substantially or cease to operate because of COVID-19.

However, Mhlathuze Water’s revenue is mainly based on cost reflective tariffs. A zero tariff increases would place Mhlathuze Water at a financial risk. This mainly as the organisation would have to access its reserves for operational and capital expenditure plans, as revenue growth will decline. Associated with this decline, the increase in core operational expenses (electricity, chemicals, employee cost, repairs and maintenance) will result in losses. Due to the legislated mandate, this would necessitate financial rescue plans to be implemented by National Government and compromise the organisation as a going concern.

Mr Duze also touched on the bulk water resource management. He explained that the primary raw water source is Mhlathuze River via the Mhlathuze Weir Transfer Scheme. Lake Nsezi is utilised as a back-up raw water source. Since 1995, Mhlathuze Water has operated and maintained the Tugela Goedertrouw Transfer Scheme 103000m³/day transfer, including the supply of raw water to the King Cetshwayo District Municipality’s 10ml/day water works. He added that in 2017 Mhlathuze Water completed constructed the 40ml/day Jozini Water Works and regional bulk distribution system. Since the construction of the Jozini bulk system on behalf of the Umkhanyakude District Municipality, Mhlathuze Water has operated and maintained the system, serving 134 000 households. The scheme includes a 40ml/day water works, 19 reservoirs and numerous pump stations over a bulk reticulation network spanning over 120kms.

In terms of the bulk water infrastructure expansion/delivery plans, Mr Duze said that the Mhlathuze Water in 2020 will commission the augmentation of the Nsezi Water Treatment Works. This will increase the production capacity of the existing plant from 74 million m³ per day to 90 million m³ per day. This augmentation is needed to address the demand for clarified and purified water by largely industrial customers within the Richards Bay industrial development zone. The total value of the works is estimated to be R320 000 000. He also shared the plans of the Tugela-Groedertrouw Transfer Scheme and said that  Mhlathuze Water are in discussions with the Department of Water and Sanitation to complete the outstanding mechanical works that will form part of the upgrade to the scheme commenced in 2017/2018. The upgrades will double the scheme’s capacity to transfer 200000m³ of raw water per day from the Tugela River to the Goedertrouw Dam. This is a strategic drought relief/mitigation project for the northern KZN area. The works is set to recommence in October 2020 after an 18-month dispute between the State and the contractor brought the works to a halt.

Mr Duze said that other bulk water infrastructure expansion/delivery plans included:

• Upgrade of the Weir Structure in the Mhlathuze River
• Establishing of diesel generator at the Weir
• Redeveloping the pipeline from the Weir to Nsezi WTW
• Zululand District: Implementation of rudimentary water scheme in Nongoma and Abaqulusi
• iSimangaliso Wetland Park: Review of water infrastructure and drilling and equipping of 15 boreholes
• UMkhanyakude District: Maintenance and refurbishment of critical and prioritised bulk and reticulation infrastructure in Shemula-Skemelele

Mr Duze thanked the Committee as well the Chairperson for the platform to share what had been done at uMhlathuze before handing over to the next presenter.

Umgeni Water

Mr Thamsanqa Hlongwa, Chief Executive, Umgeni Water, shared the water service delivery plans. Before proceeding with the presentation he gave the Committee the structure of Umgeni Water. He said that it had 1 250 Group Employees comprising:

• 974 Umgeni Water permanent
• 117 Msinsi permanent
• 159 Group fixed-term contracts
• Six Umgeni Water Divisions
• Chief Executive Office
• Operations
• Scientific Services
• Infrastructure Development
• Finance
• Corporate Services

Mr Hlongwa said that KwaZulu-Natal has a total geographical area of 94 359 km2 and is home to 11.1 million people and 2.9 million households. He added a total of 54 municipalities of which 14 are Water Services Authorities (WSAs): one Metro; 10 DMs; and 43 LMs, of which three are WSAs. Umgeni Water Distribution Share in KZN has seven customers (inclusive of uThukela DM but excl. King Cetshwayo DM) which cover 44% of KZN geographical area and 72% of households. He explained the Umgeni Water’s infrastructure assets. Umgeni Water’s infrastructure assets in support of its bulk water services business comprise:

• Approximately 1 260 kilometres of pipelines and 67 kilometres of tunnels,
• Fifteen impoundments (Dams and Weirs),
• Twenty water treatment works, and
• Eleven wastewater treatment works.
• Produces 1350 million litres a day of potable water
• Treat 115 million litres a day of wastewater

Mr Hlongwa also gave a summary of the service delivery plan where he explained the uMshwathi Bulk Water Supply Scheme. He said that there was phases one, two and three. The beneficiaries were 324 000. The category fell into development and the budget allocated was R972 million. Whilst in phase four there is an expectation of 1 120 000 beneficiaries, the budget has been set at R677.5 million and the construction is expected to commence from 2021 and be completed by 2026.

Mr Hlongwa said that the expectation of Lower Thukela Bulk Water Supply Phase two, include 550 000 (phases one & two) beneficiaries. He said the budget allocated is R778m and that construction is anticipated to commence from 2022 to 2025. He said that Vulindlela phase one of the project consists of the following:

• Construction of 20ML Reservoir
• Pump Station at the reservoir two site 2.54km of DN600 steel rising main 4.8km of DN250 Klambon steel gravity main.

Phase two of the project consists of the following:

• Construction of 10ML Reservoir
• Pump Station at the Howick Reservoir site.
• 9.42km of DN800 steel pipeline
• Booster Pump Station at Mpophomeni
• Project Reservoir (500mm Dia.)
• Reinforced Concrete Command Reservoir (5 Ml)
• WSA: Harry Gwala DM
• Category: Development
• Budget: R1 200M
• Construction: 2021-2023

Mr Hlongwa gave details about the Stephen Dlamini Dam. He said that it was a 600 metres long and 29.50 metres. High-zoned earth-fill embankment dam:  provided 9.78 million m3; abstraction and raw water supply to WTW (500mm Dia.); WTW (11 Ml/day); pump station; rising main to command.

Giving a background to Umgeni Water’s planning, Mr Hlongwa said that Umgeni Water has partnered with the Cabinet of KZN provincial government to prepare a Universal Access Plan (UAP) for the entire province. The project is fully funded by UW to assist DWS and KZN COGTA in the compilation of the province’s water resources reconnaissance study. With the district service delivery model in implementation, UW has packaged the UAP report per district and each district has its own chapter which culminates to the respective District’s Water Masterplan. He said that workshops have been conducted with all districts (WSAs) to thoroughly interrogate the report against the IDPs and SBDIPs of the respective municipalities.  He added that simultaneously KZN COGTA is conducting conditional assessment of all water infrastructure. The UAP and the conditional assessment reports are being combined to form a provincial water master plan to be launched digitally (as an app) in November 2020. Umgeni Water, DWS KZN Regional Office and KZN COGTA report monthly to KZN provincial cabinet on the progress of the project.

Mr Hlongwa also gave an update on the COVID 19 impact. He said that impact on production – business continuity management. He said that all Umgeni Water plants are fully operational and delivering the essential service (i.e. water-related services) to all citizens within our operational area. Production has not been disrupted thus far with staff performing crucial roles either working at the office on a rotational basis or remotely. The staff members continue to work on a rotational basis and remotely.

Mr Hlongwa said the office processes and systems continue to run, including board and committees, EXCO, crisis management team as per the business continuity management policy of the organisation and other business continuity activities in order to ensure that important crisis management and decisions are taken. He added that to maintain staff productivity executive have implemented responsive remote working methods and staff have been encouraged to work from home, wherever possible. As he concluded on the updates of the meeting, he shared the operating cashflows, revenue and debtors.

The Chairperson thanked the ADG as well as the team for the presentation. She then opened the platform for a discussion on the reports.

Discussion

Mr M Mashego (ANC) raised his concerns about the reporting style and requested that in the next meetings, a chronological order should be applied. He said that if KZN is given different treatment, it may lead to bigger problems. He directed a question to the MEC and seeking clarification on ownership and title deeds on RDP houses prior to 1994. He also mentioned that a plan for water distribution needed to be clear.

Mr L Basson (DA) thanked the Chairperson for the platform to speak. He said that he had two questions to ask. He directed the first question to Mr Balzer, highlighting what was mentioned in the presentation with regards to poor infrastructure. How are we going to address this problem as it is getting worse and worse? The second question was seeking clarification on what was being done to address the issue of pollution in the river.

Ms R Mohlala (EFF) drew the focus to the instability that was taking place in the boards of the two entities and said that they could not remain ignored. The second concern Ms Mohlala shared was based on the disputes within the Department of Human Settlements, Water and Sanitation (DoHSWS). How many disputes have been settled? How much does it cost to address a settlement? She wanted clarity on the work done by the Auditor-General.

Ms N Mvana (ANC) wanted to know what was going to happen to the outstanding numbers of title deeds.

Ms E Powell (DA) asked for the status of the R86 million grant, considering that only 43% has been spent when it was supposed to address flood victims. She also wanted to hear KZN’s position on the eradication of TR use. She also wanted to find what the developments are on bulk usage of water.

Ms S Mokgotho (EFF) shared her concerns about the huge housing backlog in KZN. She said that the province had made a reduction, but it was huge in comparison to what was initially planned. She also wanted to understand why the government had been buying spaces of land when it had adopted a land expropriation without compensation policy. What is the water prognosis of future water needs in the province?

Ms G Tseke (ANC) wanted to know how far the Department was with the approval from Ministerial on projects that need to be implemented. She requested that the Ministerial ensure that people get water as it is one of the government’s Batho Pele priorities.

Ms N Sihlwayi (ANC) asked if the Department thought its development model was working well. She brought attention to Thokoza hostel, which was a women’s hostel during apartheid. She said it used to be well taken care of but it now looked like a dumping site and had been neglected. What is the plan regarding that hostel? She also wanted to know what the intervention plan was for Umgeni.

Ms N Tafeni (EFF) asked why the government was buying land instead of expropriating it without compensation. She further asked whether there was spatial planning framework with associated risks for each of the projects. Ms Tafeni also enquired whether there was a monitoring and evaluation planning.

Responses

Deputy Minister (DM) Tshwete thanked the Members for their questions asked as they assist in holding the Department accountable. She said that KZN had one of the best performing municipalities and that in 2019 the province did well with issuing out title deeds.

She indicated that the questions regarding land would be addressed by the MEC and proceeded to add a comment on the R11.6 million that had been injected. The DM applauded and welcomed the injection as it would create jobs for people. She then handed over to the MEC.

MEC Nkonyeni welcomed the questions posed by the Committee, adding to what the DM had touched on, that the questions assisted in holding the department accountable as well as assisting them to go back to the drawing board. She apologised regarding the reports’ formats and said that the Department could not receive advice on the appropriate format for the Portfolio Committee meeting. She assured the Members that in future the Department would do better.

MEC Nkonyeni proceeded to answer the question regarding title deeds. She said that the process was slow and highlighted that it was stated in the presentation because of various reasons. She added that once the title deeds were ready, the Department incorporated Mayors to issue them out. She said that they encourage the municipalities to issue them when they are ready for completion. She said that the Department does not discriminate against region grouping in terms of the issuing of title deeds.

She responded, regarding the question by Ms Mvana, that deed certification was an ongoing programme. There was a reduction of units because there is budget reduction. Concerning the adoption of the business development model, she explained that it was difficult to assess whether it had been working is because the country had to embark on a national lockdown period. However, the work has commenced.

The province was aware of the conditions at Thokoza hostel, and in 2015 a budget was allocated to analyse the situation and that the Department was in the process of getting a contractor.

Ms Luyanda Kafile, KZN Department of Human Settlements, responded to the issue of the rollover of the emergency grant. She said that the Department had an emergency grant of R86 million approved, and to date over R46 million of that money has been spent. The official said the major delay had been caused by processes. She further explained how these processes hindered the projects in Department. The Department adopted an anti-land invasion policy that dealt with illegal land invasions.

Mr Balzer explained that some of the questions would be addressed by his colleagues from the entities. He said that later in the year the Department would come back with the results on the water backlogs. He said in the presentation he indicated that a new cycle was beginning, and this addressed Mr Mashego’s question. He directed the rest of the questions to his colleagues.

Mr Ashley Starkey, HOD: KZN Department of Water and Sanitation, agreed that there was an issue regarding pollution and has directed it to eThekwini Metro, and that they have confirmed that it was an issue and has been repaired. He said that it the Department would continue to monitor it. He said that in terms of the Wastewater works which the Department continues to monitor and further explained what had been causing this.

Mr Mabuda said that he would address three questions posed by the Portfolio Committee. He said the one that relates to the water in Mzimkhulu, etc., was to be addressed by the Stephen Dlamini Dam presentation. He said there was a joint operation to augment the entire five major schemes within the Harry Gwala District. As far as system being under stress, Mr Mabuda said that the Department was running the systems in the manner that it allows shedding of stress.

Ms D Machothli, Umgeni, said she would respond to the question on reconciliation strategies. She said that the key constructions were in the Richards Bay and surrounding areas will be completed in March 2021. She added that the reconciliation for Umgeni and implementation Mkhwamazi Project is a long-term project. She also mentioned other long-term projects and the Department’s plans.

Ms Mvana (standing in as Chairperson at this point) requested that the DM summarise the meeting due to connectivity issues.

Deputy Minister Mahlobo said that some of the questions would be responded to in writing. The DM said that the Department still has a lot of work to do in areas that have not been well developed. He said that the resources of water become a difficult exercise considering COVID 19 and droughts. There are other challenges that the department has faced and they are trying to address them. He summed up saying the meeting by stating that the Department would submit answers to address questions posed.

The Co-Chairperson thanked the Members for their time and the presenters of the reports and the entities. She wished the Committee and everyone present a pleasant weekend.

The meeting was adjourned.