MEDIA STATEMENT: DELAYS IN FINALISING WATER AND SANITATION INFRASTRUCTURE PROJECTS A WORRYING WEAKNESS IN DWS PERFORMANCE

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The Portfolio Committee on Water and Sanitation is concerned by weaknesses in finalising bulk infrastructure projects within the water and sanitation portfolio. These weaknesses have a direct negative impact on the socio-economic development drive and require urgent action, including strengthening project management and monitoring.

The committee yesterday received progress reports on the implementation of the Department of Water and Sanitation (DWS) and its entities’ annual performance targets. ‘The committee considers it unacceptable that 71% of total projects funded through the Regional Bulk Infrastructure Grant programme have been delayed. The direct impact of the delays is the non-delivery of quality water to the people, as well as undermining the economic potential that could be unlocked by provision of water,’ said Mr Robert Mashego, the Chairperson of the committee.

Water provision has been identified as a critical enabler of economic development and a key pillar of the government’s Economic Reco
nstruction and Recovery plan. The committee is also concerned that the delays have a substantial impact on projected budgets, which continue to increase, putting further stress on the already constrained fiscus.

The Office of the Auditor-General projects the increase in revised budgets due to delayed projects to amount to R9.4 billion. To remedy this weakness, the committee has called for improved project management, monitoring and procurement processes. Furthermore, the committee called on the department to capacitate its project management unit to enhance oversight and monitoring.

The Water Trading Entity’s (WTE) maintenance of water infrastructure was also an area of concern for the committee. The committee is concerned that 42% of the WTE bulk infrastructure assets are reported to be in poor condition, which leads to high water losses, loss of revenue and the inability to deliver water to clients. The committee has urged stakeholders to increase investment in maintenance from the current 2.1% to 8%, as
prescribed by the National Treasury. The improvement in investment in repair and maintenance will improve the lifespan of infrastructure, prevent water losses and improve revenue collection.

Despite these concerns, the committee welcomes the commendable progress in reducing irregular expenditure within the portfolio from the reported R979 million in the 2019/20 financial year to R31 million in the 2022/23 financial year. The committee remains of the view that the significant reduction in irregular expenditure will improve the value derived from investments. The committee also commends the improvement in the quality of the department’s financial statements. ‘The proper management of resources is a critical pillar in ensuring quality services to the people. The committee has urged the department to continue its upward trajectory in the management of finances,’ Mr Mashego emphasised.

The committee also welcomed the progress in developing a water services improvement plan to assist with improving service delive
ry in municipalities. The plan includes important initiatives for the sector, including coordination with National Treasury, the Department of Cooperative Government and Traditional Affairs, Municipal Infrastructure Support Agent and the South African Local Government Association to develop appropriate action plans to address the root causes of water infrastructure and quality challenges and water losses. The committee welcomes the review of legislation to strengthen the department’s oversight role/enforcement rights.

Meanwhile, the committee has welcomed the improvement in the turnaround time for the adjudication of water-use licence applications. While the target of 90 days, as announced by the President in the 2020 and 2021 State of the Nation Address, has not been achieved, the committee welcome the improvement from 300 days to the current 110 days to conclude the process. The committee urge the department to continue implementing interventions to achieve this target, including improving the capacity of
the unit performing the water use authorisation function. ‘The committee remains of the view that the improvement in turn-around times for approving water use licences has economic consequences for applicants and can affect the food security in the country,’ Mr Mashego emphasised.

However, the committee is also concerned about the non-performance in the Bucket Eradication Programme. The committee’s concerns are based on promises the department made to the committee. The committee called for new timelines to eradicate this system and for adherence to those timelines.

Source: Parliament of South Africa