PPIAF to provide financial and technical support to advance non-revenue water in South Africa through SWPN

South Africa has a population of 51 million people with 60 percent of the population living in urban environments and 40 percent living in rural settlements. South Africa obtains its water supply from surface water (77%); groundwater (9%); and recycled water (14%).1 Currently, South Africa is using water broadly within its natural supply limits (using 98 percent of its predicted total resources) and rising temperatures will undoubtedly make the situation worse. During recent years, water issues in South Africa have moved to the forefront of national concern. The Global Risk Report (2015) of the World Economic Forum recognizes water scarcity as the number one global risk from both a resource and access point of view, highlighting the significance and severity of the prevalent water issues for South Africa and for the entire global community.

The Strategic Water Partners Network (SWPN) is a dynamic and cutting edge partnership between the public sector, primarily the Department of Water and Sanitation (DWS), the private sector and civil society. Together these three partners are working to close a projected 17% gap between water supply and demand by the year 2030 in South Africa. The partnership was established by the 2030 Water Resources Group (now hosted by IFC) in 2011 and strives to contribute to efficient, equitable and sustainable water supply and access to water for all South Africans through the identification and application of innovative and cost effective solutions and programs. The SWPN has become an established forum for collaboration between the public, private and civil society stakeholders on the country’s most pressing water issues.

South Africa is losing approximately 35% of its water supply to Non-Revenue Water (NRW). There is consensus within the sector that Water Conservation and Water Demand Management (WCWDM) is paramount to the sustainability of water supply and overall water security. Persistent problems related to inefficiencies in water management and use will, if unabated, continue to deplete the scarce resource resulting in further costly investment requirements. Given the historic difficulty of providing enough water to meet society’s needs, there is an acknowledgment that governments and the private sector should collaborate to develop effective policies and sustainable solutions.

As a response to incentives to work with the private sector, municipalities have expressed interest to potentially improve and maintain their NRW performance through Performance Based Contracts (PBCs). Meanwhile, many private service companies, particularly domestic and regional firms, would like to participate in and offer value-for-money services to water boards through PBC tenders. These private companies understand the market opportunity and possess the resources and skills necessary to provide quality offers. There are various types of PBCs, each with different risk allocations and different information requirements, that could be implemented depending on the circumstances of each municipality. Examples are the Physical Loss Reduction (DBOM) contract; the 24/7 Self-Optimizing Contract; the Cost-Plus (for use in Competitive Discovery) Contract; and the Incentivized Program Management Contract.

With support from the Public – Private Infrastructure Advisory Facility (PPIAF), assistance will be provided for improving the financial and technical capacity of selected municipalities. Along with South Africa, PPIAF and the World Bank Group are supporting other countries in Africa and around the world manage their NRW, through a partnership with the International Water Association. Specifically, the intervention is expected to help: a) the institutional set-up of NRW units; b) develop a NRW Reduction Plan covering both technical and commercial aspects; c) produce a market scoping assessment that will assist in gaining a better understanding of private sector interests in providing financing in water and wastewater treatment solutions; and d) organize workshops to disseminate the findings of the NRW Plans and designs for NRW Performance Based Contracts.

The funding from PPIAF is a welcome financial and technical contribution to support water conservation and demand management measures with the private sector working closely together with the public sector to close the water gap by 2030.

Click here for more information about PPIAF.


1 unesdoc.unesco.org/images/0014/001454/145405e.pdf#page=519

Recent Peru key steering committee meetings and working group meetings

Key meetings – 2030 Water Resources Group in Peru
November 2016 – March 2017

  • January 26, 2017
    Steering Committee Meeting – participation of 18 members of Board including Ministers of Environment, Minister of Social Inclusion, Vice minister of Sanitation, Director of Peruvian National Water Agency (ANA), President of SUNASS and Presidential Sherpa on the UN High Panel of Water . Agreements to create 6 new working groups on: Promotion of Private sector participation on Water, promotion of underground water regulations and tariffs, recognition of water responsible companies, water governance and social dialogue, public politics and water stress and climate change. Six members of the board were selected to chair working groups.

    Participants: 25 including 2030 WRG staff and facilitators

  • February 16, 2017
    Launching of Working Group No. 3- Promotion and recognition of water responsible companies- committee led by Director of Peruvian National Water Authority – Agreements: update of the Blue Certificate promoted by ANA to recognize water responsible firms- more companies to be invited to joint this initiative and an event to formally award companies with Blue Certificate taking place in April 2017

    Participants: 15

  • March 1, 2017
    Launching of Working Group No 2 for the regulation and monitoring of underground tariffs. Commitee led by Fernando Momiy, President of SUNASS- Presentations included a keynote speaker – Mr. Gonzalo Delacamara and the presentation of a research document on the importance to set up underground tariffs to industrial users.

    Participants: 35

  • March 10, 2017
    Launching of Working Group No. 4 for policy dialogue on Water Governance in Peru led by the Minister of the Environment, Mrs. Elsa Galarza. Presentations on our road map to promote the OECD Water Governance Initiative – Agreements to have presentations from mining and industrial sector on the difficulties and bureaucratic steps that hinder dialogue and promotion on water investments on their surrounding communities.

    Participants: 30

  • March 14, 2017
    Launching of Working Group No. 5 – Public policies on Water led by Ms. Midori de Habich, Researcher from the renowned Peruvian think tank, IEP – Presentations of the role of ANA and how to promote and support current public policies to address the importance of water resources management. Agreements: to discuss a new proposal for a more strategic role of ANA

    Participants: 15

New Program Manager SWPN appointed

Nick Tandi Siwi PhotoThe SWPN has appointed Nick Tandi as the new Program Manager. He assumed his duties as of March 1st, 2017. The SWPN is a multi-stakeholder platform, brokered by the 2030 WRG, chaired by the Department of Water and Sanitation (DWS), and co-chaired by South African Breweries (SAB) on behalf of business.

Before joining the SWPN, Nick was Program Manager at the Stockholm International Water Institute (SIWI) where he co-led its work on mobilizing finance for water infrastructure in Africa. Nick was previously associated with the SWPN from 2013 – 2014 when he helped initiate many of the current working group projects. He also brings experience from the United Nations Development Programme and a SADC program called WaterNet, where he managed partnerships and their associated projects in different parts of the developing world.

Nick has an educational background in natural sciences (BSc with honors in Soil Science), social sciences (MSc Social Ecology) and more recently in development finance (post-graduate course).

Contact details: nick.tandi@thenbf.co.za

2030 WRG organizes the first meetings of the São Paulo Working Groups

On March 20, 2017, the 2030 Water Resources Group (2030 WRG) organized the first meetings of the São Paulo Working Groups, which focused on (1) Water Demand Management, Reuse and Recycling; and (2) Sustainable Financing of Water Infrastructure.

The Metropolitan Region of São Paulo (MRSP) — the seventh most populous urban area in the world – includes the city of São Paulo and 38 other municipalities, where more than 20 million people live and generate between 20 to 30% of the Brazilian GDP. São Paulo was affected by an unprecedented drought during 2014 and 2015, one of the greatest water crisis in Latin America. The government of São Paulo and Sabesp (the publicly traded water and waste management company owned by São Paulo state) have invested heavily in wastewater treatment in recent years, and implemented innovative programs, but the persistent drought during 2014-2015 exposed São Paulo to a critical situation with severe economic and social impacts.

Given this background, the 2030 WRG was invited to support the development of multi-stakeholder platforms in São Paulo that can propose solutions to the local water challenges. In May 2016, 2030 WRG and World Bank staff, accompanied by a senior Brazilian consultant, traveled to São Paulo and met with stakeholders from government, private sector and civil society to determine if there was demand for a 2030WRG engagement. The meetings received positive feedback, helped identify the main challenges and opportunities of the water sector locally, and indicated that the 2030WRG approach (Analyze – Convene – Transform) could be most suitable.

An Introductory Workshop was then organized in November 2016 to discuss the main themes that had emerged from the May interviews. During the Workshop, representatives from the state government of São Paulo, private sector leaders, civil society and academia explored the challenges and opportunities in water resources management in São Paulo. The Government of the State of São Paulo was represented by the State Secretary of Sanitation and Water Resources and President of the World Water Council, Dr. Benedito Braga, and the Deputy Secretary of Sanitation and Water Resources, Dr. Monica Porto.

The workshop was hosted by Dow Chemical Company at its auditorium in São Paulo and was attended by approximately 40 senior delegates. The conclusions of the scoping mission held in May 2016 were presented during the workshop and 3 potential areas of work were discussed: (1) Water demand management, including water reuse and recycling; (2) Sustainable financing of water infrastructure (3) Economic/insurance support for water security, to manage risks. The first two working groups had strong participation and it was noted that they could quickly be operational as Thematic Groups in São Paulo State.

The Working Groups met recently, on March 20, 2017, focusing on (1) Water Demand Management, Reuse and Recycling; and (2) Sustainable Financing of Water Infrastructure. The day started with welcome remarks from Monica Porto, Deputy Secretary of Sanitation and Water Resources for the State of São Paulo, who reiterated the Secretariat’s strong support to the work proposed by the 2030 WRG and also confirmed the importance of the proposed themes to São Paulo. Each Working Group engaged very quickly in the analysis of the themes, identified opportunities for studies and projects, and was able to develop an action plan for the next few months.

These meetings were held at the Law School of the Fundação Getúlio Vargas (FGV), supported by their Infrastructure and Economic Solutions Working Group. A total of 46 participants from the state government, the private sector, industry associations, academia and civil society joined these discussions.


For more information and to participate, contact Julia Cadaval Martins (jcadavalmartins@ifc.org) or Alastair Morrison (amorrison2@ifc.org).

SWPN: Is South Africa’s water scarcity helping to drive new forms of partnership within the private sector?

Article submitted by the Strategic Water Partners Network (SWPN)*

As President Jacob Zuma launched the United Nations World Water Development Report 2017, stakeholders asked if South Africa’s water scarcity is helping to drive new forms of partnership within the private sector.

Speaking on behalf of the Global High-Level Panel on Water (of heads of state), President Zuma shared his thoughts on the global water situation yesterday, stating “We have the potential to create new and more positive economic and social developmental pathways”, making reference in part to the building of partnerships. The President was addressing a global audience hosted by the South Africa Water Sector for World Water Day on 22 March in Durban.

With more than one billion people in the world currently receiving water and wastewater services from the private sector, it was important for the ensuing discussion to address the question: could the private sector play a role in partnerships for water management in South Africa, differing from current practice? This would, among other things, lead to tapping into wastewater as a resource for various uses which was a key message from the United Nations World Water Development Report which the President launched in 2017.

Speaking in a debate at the same event, Martin Ginster – who heads up water management at Sasol, and co-leads work within the Strategic Water Partners Network (a public -private -civil society partnership) – gave some examples of how the private sector is already involved in a diversity of exploratory projects using non-traditional models of collaborating with government and civil society.

These models of collaboration go beyond the private sector carrying out measures to comply with regulation; delivering on water management contracts; or providing corporate social responsibility funds to government and NGOs. For example, through the Strategic Water Partners Network (SWPN), corporates in South Africa, working with the Department of Water and Sanitation and other stakeholders, are rolling out an innovative irrigation water management system that is so far saving an amount of water (55 million m3) annually that is about half the consumption of Nelson Mandela Bay. Mr Ginster pointed out that the intention goes beyond this water saving result, but that this and other projects bear the philosophy of developing a joint understanding of the precise water problems to be addressed, joint trials of solutions to solve the identified problems and transparency of intent and results by the partners.

Against a backdrop of an estimated 40% of public-private contracts prematurely cancelled in Africa, and similarly in South Africa where such public-private partnerships are not replicated, it was refreshing to see participants at the event addressing an old elephant in the room – trust between the public and private sector.

Nandha Govender, head of water management at Eskom, another co-leader at the SWPN, said that trust is a huge obstacle for public-private partnership. An emergent conclusion from the discussions was that no amount of contract sophistication can replace trust needed to enable public and private organisations working together. Mr Govender said that examples of collaboration, such as a Mine Water Coordinating Body in the Mpumalanga coal mining area, where coal mine companies and the government have carried out joint problem and opportunity analyses and are testing financial and institutional models for reducing pollution impacts from mining in the long term, enable such trust. This collaboration was borne out of the work of the SWPN and the relevant parties.

Even with growing water scarcity in South Africa, it appears that the public and private sectors in our country are pathfinders in developing collective action partnerships (and not just transactions) that enable a trust-building environment for sustainable public-private -civil society partnerships.

*The South Africa program is run by the South Africa Strategic Water Partners Network (SWPN). Its Secretariat is hosted by the NEPAD Business Foundation.

CONAGUA and CCA host in Mexico Kick-off Meeting of the Sustainable Agri-water Public-Private Partnerships Initiative

The Comisión Nacional del Agua (CONAGUA) and the CCA (Consejo Consultivo del Agua) hosted on the 9th of February 2017 the Kick-off Meeting of the Sustainable Agri-water Initiative at CONAGUA’s Headquarters in Mexico. The Initiative has the objective of enabling innovative forms of public-private partnerships to foster a more sustainable use of agri-water. The first stage of the Initiative will consist on carrying out feasibility analysis and business case development of 5 selected pilot projects. The 2030WRG is supporting the implementation of the Initiative by providing high-level technical assistance with the help of PricewaterhouseCoopers (PWC), and in coordination with the IFC and World Bank offices in Mexico.

During the Kick-off Meeting, the Initiative’s Co-Chairs, Mr. Salomon Abedrop (Deputy Director of Planning of CONAGUA) and Mr. Francisco Mayorga (President of the Agri-water Committee of the CCA) highlighted the importance of finding new ways of financing agri-water projects – both greenfield and brownfield – in a context of severe budgetary constraints and the rising needs for the water-food security nexus. The Executive Director of the CCA, Mr. Juan José Huerta, welcomed the commencement of the Initiative’s work, emphasizing the need to foster multi-stakeholder participation throughout its implementation. Mr. Ary Naim, IFC Country Manager underlined the IFCs interests and capabilities to support PPP formation. The World Bank Senior Water Sector Specialist for Mexico highlighted the need to look at the projects from a wider perspective ensuring that local and regional impacts are carefully considered.

At the Meeting, we counted with the participation of the CONAGUAs personnel from the Planning and the Agri-water Deputy Directions, and representatives from the CCA’s Secretariat, members of the IFC Mexico Office, the World Bank, PWC’s Team and the 2030WRG. One important outcome of the Meeting was the setting up of a multi-agency technical committee that will help enable synergies between organisations.

Governing Council meets in Davos & transitioning of 2030 WRG

Davos 2017Davos, Switzerland, 17 January, 2017 –  The 2030 WRG Governing Council met in Davos, Switzerland during the World Economic Forum Annual Meetings. The members discussed 2016 results and prepared for the next strategic plan.

Chairman Peter Brabeck-Letmathe reiterated the world’s joint resolve to implement the SDGs, and to take a stance on tackling climate change with a key emphasis on water and adaptation. He reflected on the development of the 2030 WRG, from the first meeting in Davos with just 10 people in the room, to the broad network that it represents today.

The number of partners connected to the network has increased to 500 partners in over 11 countries/states, 40% of which are private sector companies.

The council members expressed their deep concern about the fact that what has been achieved globally to counter the water crisis has not been very efficient so far. The ten percent water demand-supply deficit back in 2009, has grown to 30 and could be 40 percent in 2030, as earlier predicted. This means that we are indeed on track, but rather to achieve what we did not want to achieve. The World Economic Forum’s Global Risk Report has put water at the top for three consecutive years. Even though there is increased awareness now, we are still far from finding sustainable solutions.

Achievements

2030 WRG Executive Director, Anders Berntell, presented the progress, achievements and results from 2016 specifically showcasing how the work contributes to the SDGs and addresses effects of climate change on water; how we foster partnerships in countries where they did not exist earlier, often with very high level participation from Government, Private Sector and Civil Society and overall results from the country multi-stakeholder platforms.

In 2016 we have joined together 505 partners in 36 working groups in 11 countries/states, and in 2 new countries we have already begun work. Together we have decided on 53 priority areas, which led to the development of 57 concept notes to concretize those areas. 43 proposals have been developed, preparatory arrangements for 35 of these proposals have been set up, and for 14 of these programs we have seen the full implementation on the ground.

Fruitful discussions were held around the issue of scaling up, maintaining quality and ensuring inclusivity, continuity and sustainability of the 2030 WRG programs. The partners with local presence in the 2030 WRG countries of engagement, have offered their partnership and assistance on the ground to further develop the programs.

The 2030WRG has now reached the end of the five-year hosting period within IFC and will be transitioning to a more ambitious phase. The council members present agreed with the development of the long term 6-year plan (2017 – 2023) with an evaluation cycle in the 3rd year. The Council members were satisfied with the way that 2030 WRG has been able to build and institutionalize effective and committed partnerships in the countries where it is active. They expressed their organization’s continued commitment and support, and wanted to see the program continue its work.

Results highlights

  1. Bangladesh textile industry where 2030 WRG works on technical and knowledge support, PPPs for wastewater treatment, and institutional strengthening. Potential impacts are 20% reduced water use, industry-wide wastewater reduction, 3 million additional jobs (80% women) and 500 USD million investment by the private sector.
  2. Mongolia mining industry where 2030 WRG influences dialogue, builds awareness on demand-side water management solutions, helps develop incentives for water use efficiency and wastewater treatment and onsite implementation by mining companies of these schemes. Expected impacts include the use of the Voluntary Code of Practice developed with IFC used by 8 mining companies, the prioritization of demand-side management, economic incentives leading to reduced abstraction of water and decreased emissions of wastewater and regulatory improvement.
  3. South Africa water savings in irrigation water delivery where 2030 WRG supports the roll-out of the Water Administration System through the SWPN. Already achieved impacts include reduced water use by 64 million m3 per year with a substantial potential to scale up.
  4. Peru groundwater tariffs where 2030 WRG has supported the national water regulator to develop the world’s first groundwater management and monitoring tariff for industrial users. Potential impacts include reduced water use by industry, increased water security contributing to sustained economic growth. The program is now going to be implemented in two major urban areas, including Lima, and will be replicated in other municipalities later.

Hindon Yatra Workshop in Gautam Budh Nagar

Opportunities for Sustainable Flood Plain Livelihood, Organic Farming, Horticulture and Social Forestry

A Project Development workshop on” Opportunities for Sustainable Flood Plain Livelihood, Organic Farming, Horticulture and Social Forestry” under Multi-stakeholder Action for Hindon River Rejuvenation was jointly organized in the auditorium of the Vikas Bhawan, Surajpur, Gautam Budh Nagar, (Greater NOIDA), Uttar Pradesh by 2030 Water Resources Group, India Water Partnership, Government of Uttar Pradesh and Ganga Jal Biradari on 21st December, 2016.

The workshop was organized under the Chairmanship of Chief Development Officer (CDO) , Mr. Makhan Lal Gupta, with the aim above broad objectives to rejuvenate the Hindon river. Apart from a number of concerned officials of the district; several representatives of NGOs, VOs, CBOs in the State participated in the workshop and expressed their views and suggestions for rejuvenation of Hindon river and also to make it free from pollution. Mr. Rakesh Chauhan, District Information Officer was too present in the workshop.

The representatives of NGOs, VOs, CBOs  expressed their opinions in detail about the organic cultivation, illegal construction, the method of the purification of the water of river and different suggestions were given by all of them. Upon this, the CDO expressed that “all the organisations, which want to give their suggestions with regard to the revival of the Hindon river, are most welcomed to provide their suggestions, so that the joint action can be taken by all of us. To mention few organizations were; Muskan Jyoti, Water Resource Group, Irrigation Department, Indian Water Partnership, FICCI, HNB, Somashram, A TO Z group, The Art of Living, Ganga Jal Biradari, Tarun Bharat Sangh, etc. Outline of some of the innovative works already undertaken/being undertaken by few stakeholders for Hindon river rejuvenation were also discussed in the workshop.

The workshop ended with the conclusion with the remarks by Dr. Vivek Kumar, IIT, Roorkee, Dr. Veena Khanduri, Executive Secretary-cum-Country Coordinator, India Water Partnership and Ms. Annelieke Laninga (Anna), 2030 Water Resources Group (Coordinator, Hindon River Rejuvenation) to prepare tangible proposals for organic farming and waste water treatment for submission to 2030 Water Resources Group or India Water Partnership to take-up this initiative at ground level for collective action from vision to action for rejuvenation of the Hindon River.

.Other pictures of the workshop

   

 

 

Innovative mechanism in Peru facilitates public-private partnerships

December 15, 2016 – Works for Taxes (OxI), is an innovative mechanism created in 2009 in the Peruvian State that allows a company to invest directly in public infrastructure, charged to income tax that can be paid annually. In other words, it is an advance of public investment by the private in a state program. In the case of water, this instrument allows the company to help the State directly to close water efficiency gaps.

The 2030 WRG works together with the Ministry of Agriculture and Irrigation and together with the Ministry of Housing, Construction and Sanitation to encourage the private sector to participate in this mechanism, and at the same time to identify the obstacles and difficulties of the mechanism itself and make it a more agile and efficient process. To this end, it has hired acceleration consultants who work in each of the ministries in that task and who can identify the best investment opportunities.

The OxI mechanism is considered an innovative practice because of the way it links the State and the private sector, and it has also generated the interest of other countries in the region to develop and implement further.

The 2030 WRG negotiations have enabled large private companies such as Backus (beverages) – Ferreyros (construction), Minsur and Antamina (mining companies) to be involved in Tax Works that will generate water infrastructure works with tangible and beneficial results for the communities in the areas in which they operate.

 


[Spanish below] Innovador mecanismo en Perú facilita las alianzas público-privadas

Obras por Impuestos (OxI), es un innovador mecanismo creado en 2009 en el Estado peruano que permite a una empresa invertir directamente en infraestructura pública, con cargo al impuesto a la renta que anualmente paga. En otros términos, es un adelanto de inversión pública por parte del privado en un programa estatal. En el caso del agua, este instrumento permite a la empresa ayudar al Estado directamente al cierre de brechas de eficiencia hídrica.

2030 WRG trabaja junto al Ministerio de Agricultura y Riego, y junto al Ministerio de Vivienda, Construcción y Saneamiento para alentar al sector privado a participar en este mecanismo, y al mismo tiempo para identificar las trabas y dificultades del propio mecanismo y hacer que sea un procedimiento más ágil y eficiente. Para ello ha contratado a consultores de aceleración que trabajan en cada uno de los ministerios en esa tarea e identificando las mejores oportunidades de inversión.

El mecanismo de OxI es considerado como una práctica innovadora por la forma que permite vincular al Estado y el sector privado, incluso ha generado el interés de otros países de la región por desarrollarlo e implementarlo.

Las gestiones de 2030 WRG han posibilitado que grandes empresas privadas como Backus (bebidas) – Ferreyros (construcción), Minsur y Antamina (mineras) ya estén involucradas en procesos de Obras por Impuestos que generarán obras de infraestructura en agua con resultados tangibles y beneficiosos para las comunidades de las zonas en las que operan.

[Spanish only] Certificado Azul para la promoción de la Huella Hídrica empresarial en Perú

Desde el año 2015, la Autoridad Nacional del Agua del Perú (ANA), viene impulsando a las empresas del sector privado a que realicen la medición y reducción de la huella hídrica en sus procesos y operaciones. Esta iniciativa que vincula estrechamente al Estado y al sector privado hacia una gestión sostenible del agua, tiene el apoyo y respaldo de 2030 WRG en Perú.

Las empresas que participan y ejecutan con éxito los pasos para la medición de su Huella Hídrica, su reducción y su plan de Valor Compartido, reciben el reconocimiento del Certificado Azul. Ello beneficia la gestión y ahorro del agua en sus procesos, muestra su compromiso con este escaso recurso y mejora su reputación.

2030 WRG junto a la ANA propició la realización del evento de lanzamiento del Certificado Azul el 9 de agosto al cual asistieron alrededor de 40 empresas del sector privado interesadas. A partir de allí se han generado reuniones bilaterales para explicar en profundidad sus características y beneficios. Hasta el momento ya se ha logrado que las empresas privadas Mexichem y Duke Energy se inscriban y formen parte de este programa.

2030 WRG sigue promoviendo este espacio privilegiado de acciones público–privadas en todas las instancias de encuentro con el sector privado, inclusive al interior de su Consejo Directivo.

Para mayor información sobre el Certificado Azul, ver el brochure ilustrativo aquí.