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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
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