RMP and PPP Workshop
28 September 2011
Recreational Water Use Policy,
General Strategic Plan for Commercialisation
&
RMP Action Plan
1
Operational Policy for Recreational
Water Use
Purpose:
Defines the Department’s responsibility regarding
recreational water use and establishes the
fundamental principles, policy, objectives and
strategies for regulating this water use
2
Recreational Water Use
It includes all recreational activities and exploits ,
which require water or the water surface of water
resources for successful completion. These
activities may comprise in alia sport, culture or
tourism and can range from de minimus (personal
use) to commercial in extent and intent
Recognised as a formal use of water (nonconsumptive) under Chapter 4 , s21(k) as well as
s113 of the National Water Act, 1998 (Act no 36 of
1998)
3
Safety
Safety
RESOURCES
INDUSTRY
Equitable
Access
Equitable Access
(Empowerment)
COMMUNITY
Institutionalisation
& Linkages
Communication &
Capacity Building
DWA POLICY
Legal Framework
Monitoring,
Evaluation &
Information
Management
4
KPA 1: Integrated Resource Planning,
Management and Classification
• Objective 1:
A planning and zonation
framework for water resource planning and
management is established and included in
provincial and local planning frameworks.
• Objective 2:
Resource management plans
(RMPs) are compiled based on the principles
underlying the recreational water use resource
planning procedure.
• Objective 3:
Based on RMPs water resources
are classified, and RMPs and classification are
utilised as decision support tools.
5
KPA 2: Safety
• Objective 1:
The manner, purpose and extent
to which water resources are used safely are
appropriately regulated, controlled and managed.
• Objective 2:
Compliance with industry norms
and standards is ensured.
• Objective 3:
The safe use of water is
promoted.
6
KPA 3: Authorisation
• Objective 1:
Appropriate authorisation of
recreational water use is ensured and facilitated.
• Objective 2:
Appropriate management of water
use entitlements is ensured.
7
KPA 4: Equitable Access
• Objective 1:
The rights of communities to
physically access resources for recreational
purposes are protected.
• Objective 2:
Equitable access to the waterbased recreation economy for communities is
ensured.
8
KPA 5: Communication and
Capacity Building
• Objective 1:
Understanding of recreational
water use and co-operation with and among
stakeholders are ensured by changing
perceptions and attitudes through the promotion
of the value of recreational water use.
• Objective 2:
Stakeholders and role-players are
empowered by ensuring sufficient capacity
regarding recreational water use.
9
KPA 6: Institutionalisation and Linkages
• Objective 1:
Appropriate institutions are
established to manage recreational water use
effectively.
• Objective 2:
Functional linkages are
established to ensure co-operative governance
and effective sharing of management
responsibilities regarding the sustainable
management of water resources for recreational
purposes
10
KPA 7: Legal Framework
• Objective 1:
Compliance with relevant
legislative requirements is ensured.
• Objective 2:
Recreational water use is
positioned as a strategic issue and DWAF as a
strategic partner in the legal processes related to
recreation, water use, and the use and
management of associated resources, etc.
11
KPA 8: Monitoring, Evaluation and
Information Management
• Objective 1:
Performance and compliance
regarding recreational water use are monitored
and evaluated.
• Objective 2:
Information is managed and
provided in a user friendly and effective manner
to assist in decision-making regarding
recreational water use.
RWUM
Next…
12
General Strategic Plan for Commercialisation for
Tourism PPPs at Government Waterworks
Institutionalisation of the Tourism
Public Private Partnership (PPP) Toolkit
within DWA
13
General Strategic Plan for
Commercialisation
The need to carry out this particular project was identified as
one of the options the Department of Water Affairs should
consider to address issues of under utilisation of State Dams
especially on multipurpose dams to optimise the benefits
thereof
The General Strategic Plan for Commercialisation project
(SPC) started in 2006 within the Branch: Policy and
Regulation, Sub-directorate: Environment and Recreation
It was later handed over to Branch: NWRI, Directorate:
Integrated Environmental Engineering
Some of the benefits of this project would be poverty
alleviation around the dams by attracting investments to our
14
water resources, increase in revenue generation, etc.
Need for Strategic
Commercialisation Plan
Two critical building blocks of the PPP process is:
Strategic Fit: PPPs must always be grounded in the
statutory mandate, mission and strategic objectives of the
institution, such as its conservation, empowerment and
development priorities. The institutions PPP projects must
complement these objectives and be reflected in its
Resource Management Plans
Capacity: Often institutions start PPPs before they have
either the internal capacity to manage them or the ability to
manage consultants or transaction advisors leading to poor
communication, slow and inconsistent decision making and
limited commercial insight.
15
What does the General Strategic Plan
for Commercialisation address?
1. The Institution’s mandate, vision, objectives and activities
2. It identifies possible sites and opportunities for PPPs
3. It assesses the institution’s legal capacity to carry out a
PPP
4. It articulates the institutions commercialisation policy,
objectives and strategy
5. Assesses the institution’s personnel and systems capacity
for PPPs
6. Establishes budgetary parameters
7. Identifies internal and external stakeholders
8. Identifies what additional support the institution needs
9. Compiles an initial checklists for each of the commercial
opportunities identified.
16
Government initiatives
• Government’s Accelerated and Shared
Growth Initiative for South Africa (ASGISA)
indicates that tourism is one of three
sectors within which strategies are being
developed to promote private sector
involvement in rural areas.
• Some of DWA’s assets do have a clear value
as potential tourist destinations, which
could serve a beneficial purpose to poverty
alleviation by job creation in mostly rural
areas, and benefit the Department if cooperative use reduces maintenance costs
incurred by the Department.
17
Government initiatives…
Hence the strategy to allow recreational or tourism
use, which is commercial in nature, to conditionally
take place. (This is not commercialisation of DWAF
dam basins, but rather the controlled facilitation of
those commercial uses which meet Governments
objectives.)
The objectives of Governments process of Public
Private Partnerships are to:
put private capital at risk;
transfer operational costs from public to private
sector; and
retain ownership of the asset;
while some financial benefit accrues to the State
18
Opportunities
• Of the 334 dams where DWAF has a mandate,
109 (33%) are currently used for some
recreational purposes with the remaining 225
(67%) not being utilised (SPC, 2009). This clearly
shows that there may be scope for the increase
in recreational use of DWAF dams. Recreational
use in terms of the tourism products defined in
the PPP Toolkit for Tourism can entail one or more
of the following categories:
– Accommodation (e.g. floating chalets; house boats;
caravan parks);
– Food, beverage and retail (e.g. restaurant boats; picnic
sites);
– Activity-based tourism (e.g. canoe safaris; game
viewing; hiking trails); and
– Heritage and culture (e.g. cultural villages).
19
DWA’s policy for commercialisation:
1. The equitable and sustainable use of dams for
commercial recreation and tourism, based on RMPs
developed in association with all stakeholders. This
does, however, not preclude DWA from concluding adhoc PPPs based on market, community or other
demand.
2. Optimising revenue and return on investment relating to
State assets (dams), in keeping with the NWRI Branch
intention of operating based on sound business
principles, through the risk transfer mechanism of PPPs.
3. Fulfilling social and economic objectives of government,
in terms of ASGISA and DWA’s mandate, by redressing
past social injustices through promoting LED, SMME 20
development and BBBEE.
DWA’s policy for commercialisation:
4. Effective expenditure and financial
management - an area identified in
ASGISA as an area for macroeconomic
improvement.
5. Implementation of PPPs in co-operation
with relevant government institutions to
ensure that State dams are developed in
order to unlock their socio-economic
potential.
21
DWA’s policy for commercialisation:
6. Entering into co-management agreements with private, communal
and other parties who hold land areas surrounding or adjacent to
dams. Co-management agreements will look at the dam context
and seek to realise environmentally sustainable LED opportunities.
These agreements will be determined where benefits of the
combined land utilisation will generate increased value for money,
revenue, and local economic and job creation benefits for all the
parties. Because of the neighbour relationship these items cannot
be achieved by competitive procurement and will take the form of a
negotiated agreement. Co-management agreement will make
express provisions for developing economic opportunities on the
land adjacent to the State land and division of revenue from PPPs.
Revenue sharing will be agreed on a case by case basis based on
the economic benefits to be realised
22
Objectives:
•Revenue Generation
•Loss minimisation/savings in existing
operations
•Optimal Utilisation of Underperforming Assets
•Socio-economic Benefits
•Infrastructure Upgrades
•Tourism Promotion
•Resource Protection
23
Commercialisation Strategy
Annual Market Test
DWA’s commercialisation strategy is to via an annual market
test (i.e. by issuing an Expression of Interest, both internal
and external) determine demand and identify possible PPP
opportunities. The possible opportunities will be evaluated
and a decision made as to whether a detailed planning (i.e.
RMP) or an ad-hoc process should be initiated (refer Figure
1).
24
Prepare EOI
Publish / Communicate EOI
EOI period and submission
Yes, but significant
impacts
Evaluate
EOIs
Receive EOI from
internal and external
proponents
Yes, in line with adhoc criteria
No
RMP
Process
Communicate to
proponents
Continue with regulated PPP process
Ad-hoc
Process
25
Ad-hoc process
trigger
Prepare Draft LCP
Public Review Process
Notices for Public Review
Public input
Review LCP
No, but other procurement
options
Decisions for
PPPs
Yes
No
Undertake
procurement
Disregard opportunities
and report to
stakeholders
Report to AO and
Register PPPs
Follow PPP process as
per Toolkit
26
Planned Approach
Trigger
No
Is an RMP in
place?
Prepare a RMP*
Opportunities do not
accord
Yes
Review and update
RMP*
Opportunities accord
Review PPP
opportunities ito SPC
and RMP
Disregard opportunities and
report to stakeholders
Report to AO and register
PPPs with National Treasury
Follow PPP process as per
Toolkit
* Refer DWAF Guidelines for the Compilation of Resource Management Plans
27
ACTIVITY
RESPONSIBILITY DELIVERABLE
Initiate and undertake RMPs
D:IEE, Operations
Directorates
RMPs (including local strategic
plans for commercialisation)
Review Draft RMPs
BEC Sub-committee for
PPPs
Recommendations for approval
Approve RMPs
Chief Director: Operations
Approved RMPs
Review PPP opportunities
D:IEE
BEC Sub-committee for
PPPs
Recommendations for
registration
Prepare registration application
to PPP Unit of National
Treasury and submit to
Departmental Bid Adjudication
Committee (DBAC)
DIEEBEC Sub-committee
for PPPs
Registration submission
Evaluation and approval by
DBAC
DBAC
Recommendations for
registration
Submit registration notice to
PPP Unit
DIEE DDG:NWRIB and DG
to approve
Application to PPP Unit
Continue with regulated PPP
process (pre-feasibility
onwards)
28
The criteria for initial evaluation of possible
opportunities include:
Is it a PPP opportunity in terms of the Toolkit
definition?
Does it fall within DWA’s mandate?
Is it in line with government priorities and DWA’s
commercialisation objectives?
Is there sufficient budget and capacity to undertake a
PPP (albeit a RMP or ad hoc process)?
Does the proposal have BBBEE and social
development opportunities?
Does the proposal demonstrate market potential?
Are there any fatal environmental flaws (specifically
water use related)?
29
Medium Term Strategy
• Staffing of D: IEE and Infrastructure Operations
Directorates
• The organisational structure should make
provision for a manager, supported by a legal
advisor and three professionals that reflects
capacity required for RMPs and PPPs
• Professionals from different backgrounds will be
appointed with a view on employing a variety of
skills within the RMP/PPP function
• PPP capacity will be appointed within the
Infrastructure Operations units within the
divisions Environmental Engineering
30
Management Structure
Act DG: DWA
Chief Operations Officer
CD: Internal Audit
DDG: NWRIB
DDG: Finance
DDG: P&R
DDG: Regions
DDG: CS
D: SCM
See fig 2
Procurement
Administration
WRM and Water Use
Land and legal
issues;
31
communication
support
PPP Responsibilities
Finance Branch
(SCM)
-Procurement
(Administrative)
-Compliance
Monitoring
(Administrative)
D:IEE
Operations Units
(RMP and PPP Unit)
-Project Management
-Contract Management
-Project Inception
-Pre- and Feasibility
Studies
-Procurement
(technical)
-Compliance
Monitoring (Technical)
Participation and Inputs
Responsibility
32
Recreational Water Use Manual Overview
• An electronic manual
(www.dwaf.gov.za/Documents/Other/RMP/rwum.asp)
consisting of:
–
–
–
–
–
Policies
Regulations
Guidelines
Delegations of Authority
Information associated with Policy Key Performance Areas
• Collectively dealing with the regulation, management and
control of recreational water use (RWU) and access and use
of government waterworks
33
Action Plan
See Information Pack
34