BRIEFING TO THE PORTFOLIO COMMITTEE ON WATER
AND SANITATION
PRESENTATION
TITLE
ON
THE PROCESS OF ALLOCATION OF
WATER USE LICENSES IN DIFFERENT SECTORS TO
ADVANCEDate
THE DEVELOPMENTAL NEEDS OF SOUTH AFRICA
Presented by:
PROGRESS
REPORT
Name
Surname ON
Directorate
MS MA DIEDRICKS
DIRECTOR – GENERAL
05 AUGUST 2015
1
PRESENTATION OUTLINE
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



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
Introduction
Overview of Water Use licensing
Water Use Licenses in different Sectors
Current Interventions
Legislative Developments
Support to Resource Poor Farmers
Conclusion
2
INTRODUCTION
3
THE NATIONAL WATER ACT, 1998…




The National Water Act, 1998 (Act 36 of 1998) was promulgated into law
on 1 October 1998.
The National Water Act,1998 replaced the Water Act of 1956
The significant difference between the two Acts is that the Water Act of
1956 was based on the riparian principle, legislating water as a private
good linked to land ownership, while the National Water Act, 1998
legislating water a public good with the Minister as the custodian of the
Nations water resources.
The purpose of the National Water Act, 1998 is to ensure that the
nation's water resources are protected, used, developed, conserved,
managed and controlled in ways which take into account amongst other
factors (a) meeting the basic human needs of present and future generations;
(b) promoting equitable access to water;
(c) redressing the results of past racial and gender discrimination;
4
…THE NATIONAL WATER ACT, 1998…
(d) promoting the efficient, sustainable and beneficial use of water in the
public interest;
(e) facilitating social and economic development;
(f) providing for growing demand for water use;
(g) protecting aquatic and associated ecosystems and their biological
diversity;
(h) reducing and preventing pollution and degradation of water
resources;
(i) meeting international obligations;
(j) promoting dam safety;
(k) managing floods and droughts,
and for achieving this purpose, to establish suitable institutions and to
ensure that they have appropriate community, racial and gender
representation.
5
…THE NATIONAL WATER ACT, 1998…

Section 21 of the National Water Act, 1998 defines the following activities
as a water use:
(a) taking water from a water resource; (e.g. Irrigation from a dam, river or
borehole)
(b) storing water; (e.g. Off-Channel Dam or a in stream dam)
(c) impeding or diverting the flow of water in a watercourse; (e.g. weir, dam,
bridge)
(d) engaging in a stream flow reduction activity contemplated in section 36;
(e.g. commercial forestry)
(e) engaging in a controlled activity identified as such in section 37(1) or
declared under section 38(1); (e.g. irrigating with water containing
waste)
(f) discharging waste or water containing waste into a water resource
through a pipe, canal, sewer, sea outfall or other conduit;
(g) disposing of waste in a manner which may detrimentally impact on a
water resource;
(h) disposing in any manner of water which contains waste from, or which
has been heated in, any industrial or power generation process;
6
…THE NATIONAL WATER ACT, 1998
(i) altering the bed, banks, course or characteristics of a watercourse;

(j) removing, discharging or disposing of water found underground if it
is necessary for the efficient continuation of an activity or for the
safety of people; and
(k) using water for recreational purposes.
Section 22 of the National Water Act, 1998 provides that a person may
only use water (a) without a licence (i) if that water use is permissible under Schedule 1;
(ii) if that water use is permissible as a continuation of an existing lawful
use; or
(iii) if that water use is permissible in terms of a general authorisation
issued under section 39;
(b) if the water use is authorised by a licence under this Act; or
(c) if the responsible authority has dispensed with a licence requirement
under subsection
7
OVERVIEW OF WATER USE
LICENSING
8
THE WATER USE LICENCE APPLICATION
SCHEME
Assessment
INPUTS
OUTPUT
DWA
Considerations
Application
Application fee
Specialist studies
Other relevant documentation
National Water Act, 1998
Other Legislation
Specialist Studies (Inputs)
Special Conditions
Comments from I&AP
Decision:
Authorisation or Decline
9
Water Use Licenses in different Sectors
The table below provides the total number of water use licences and volumes
of water issued per water use sector
Period
2001 - 2010
Water Use Sector
Agriculture
Number
2010 - to date
Volume / ha
Number
Volume / ha
1327
921019791
654
2220534883
92
860936345
268
273167693
133
170183780
340
442336764
Industry
61
703937825
152
119244046
Development
38
2317223
98
95165806
427
15721
339
15334
2078
2658410685
1851
3150464526
Mining
Local Government
Forestry
TOTAL
10
PROGRESS TO DATE
 The Department has authorised a total volume of 3.14 billion
cubic meters of water to the agricultural sector totaling an
expansion of 314 155 ha, at an average of 10 000 m3 per
hectare, to the irrigation sector.
 The Department has also seen major improvement in the
authorization of mine improving from 92 authorizations prior to
2010 to 268 beyond 2010 bringing the total number of mines
authorised to 360.
 Similar improvements is seen in the Industrial, Local Government
and Developments sectors. The industrial sector authorisations
have improved from 61 to 152 for the period prior to 2010 to the
period after 2010, the Local Government sector from 133 to 340
and developments from 38 to 98 for the same period.
 In terms of forestry the Department has authorised the
establishment of an additional 766ha of forest from 2001 to
date.
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CURRENT INTERVENTIONS
12
ELECTRONIC WATER USE LICENCE
APPLICATION AND APPROVAL SYSTEM (EWULAAS)
o The e-WULAAS system will radically transform water use
licensing and is to be fully implemented by September 2015;
o Flexible and adaptable to any configuration of the business
process;
o Having all the document suite to support the business decision
and therefore obviating the process delays and improving
efficiencies;
o Providing platform for direct application by the public which
reduces the engagement timelines during the initial
application stage;
o The authorisation process will be transparent and therefore
the need to dedicated resources to ensure the smooth
implementation of the business process.
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ERADICATION OF OUTSTANDING LICENCES
o There are currently 1514 un-finalised licence
applications which are planned to be completed
within 2015/16 financial year;
o An action plan is being put in place to pool together
the available resources in the Department with the
view of finalising outstanding licences within 7
months;
14
NEW WATER LICENSING REGIME
National Water Amendment Act, 2014
Regulations regarding the Procedural
Requirements for Water Use Licences
Water Use Licensing Business Process
Electronic Water Use Licence
Application & Assessment System
15
Water Use Licensing Business Process
16
LEGISLATIVE DEVELOPMENTS
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LEGISLATIVE DEVELOPMENTS…
•
•
•
•
•
•
The National Development Plan requires regulatory impediments to growth to be
urgently addressed;
This called for the regulatory regime for mining authorisations to be streamlined
and aligned;
Joint meetings were held during 2013 with the Department of Environmental
Affairs (DEA) and the Department of Mineral Resources (DMR) and it was agreed
that legislative amendments to the current legislation, which is administered by
the three Department’s should be effected, in order to integrate and align all the
time frames and all procedures within the different pieces of legislation;
The joint primary purpose of the above mentioned being for environmental law in
mining areas to be applied in a well co-ordinated, structured and synchronised
manner, which gives effect to the “one environmental system”;
DWS has as its primary objectives two key aspects: 1. Decreasing the timeframes
for processing license applications; and 2. Alignment of the appeal process – to
include an internal appeal authority, as both DEA and DMR currently have internal
appeal panels;
The agreed time frame for the processing of the respective authorisations is the
cumulative period of 300 days and a further 90 days for the internal appeal
process.
18
…LEGISLATIVE DEVELOPMENT
•
•
•
•
•
On 2 June 2014 the President assented to the National Environmental Laws
Management Act, 2014 (Act 25 of 2014) as well as the National Water
Amendment Act, 2014 (Act 27 of 2014) (NWAA);
The two Acts came into operation simultaneously on 2 September 2014;
The NWAA will be given effect to by its corresponding regulations which has
been published for public comments and the Department is now considering
comments and finalising the Regulations for final gazetting;
Both the NWAA and its Regulations reflect the formal agreement between DWS,
DEA and DMR i.e to give effect to “the one environmental system”; and further
gives rise to the integrated water use licensing process, with a shortened
timeframe and an aligned internal appeals process, which provides for the
Minister to serve as the internal appeal authority, who may appoint an appeal
panel (as an advisory panel), to assist the Minister with regard to decisions she
may take on disputes relating to water use licence applications arising from the
new integrated water use licensing process;
The above legislative developments can be construed as a means to a smoother
and expeditious licensing process, as well a measure which eradicates some of
the problems currently faced with the ineffective and costly nature of the
existing independent Water Tribunal, which is currently still in the process of
being reconstituted;
19
NATIONAL WATER AMENDMENT ACT AND
REGULATIONS…
NWAA
Section 1 – Definitions;
Regulations
Chapter 1 – Interpretation and Purpose of
the Regulations;
Section
26
–
Regulations Chapter 2 - Responsible Authority -;
amending the agreement b/n
DWS, DEA & DMR must be done
by Minister in concurrence with
the affected Ministers;
Section 41 – ensures compliance
with environmental legislation
and standards; provides for
Minister to align and integrate the
water use licensing process;
creates the internal appeal
mechanism;
Chapter 3 – Application for Water Use
Licence – Part 1 – Pre Application process;
Part2 – Application compilation and
submission
Section 148 – Amends the appeal
process by subjecting disputes
against the responsible authority
in respect of licence applications
and conditions set, to the internal
appeal process;
Chapter 4 – Transfer of the water use licence
– Part 1 – Procedure for temporary transfer
of a water entitlement; Part 2 – Transfer by
holders of water use authorisation
20
…NATIONAL WATER AMENDMENT ACT AND
REGULATIONS
NWAA
Regulations
Section 163 A – subjects any Chapter 5 – Compulsory licensing
amendments to the amendment Act
that has the effect of amending the
agreement between DWS, DEA &
DMR to the concurrence of all 3
relevant Ministers
Chapter 6 – Review and Amendment to
a water use licence
Chapter 7 – Renewal of a water use
licence
Chapter 8 – Public Participation Process
Chapter 9 - Appeals
Chapter 10 – General Matter
Chapter 11 – Transitional Arrangements
and Commencement
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SUPPORT TO THE RESOURCES
POOR FARMERS
(IMPACT OF WATER ALLOCATION REFORM)
22
LEGISLATIVE MANDATE
• Section 61 and 62 of NWA, 1998 permits the Minister
to provide financial assistance to Resource Poor
Farmers
• Policy on financial assistance to resource poor
irrigation farmers (2004)
• Regulations on Financial Assistance to Resource Poor
Farmers (2007)
23
RPF : OBJECTIVES
•
•
•
•
To ensure reliable and equitable supply of water
for sustainable economic and social development
including eradication of poverty.
Promote, support and facilitate the equitable
development of agricultural water use by
providing financial support to resource poor
farmers
To promote food security, improve rural
livelihoods and contribute towards poverty
alleviation through water-based agricultural
activities
Increase profitability of water-based farming
systems
24
CURRENT RPF FINANCIAL ASSISTANCE
PACKAGES
1. Grants on Capital cost on Bulk water distribution Infrastructure
• Canal / weir/ pipeline/ main pump stations/ communal
storage dam/ water metering
2. Subsidy for Operation and Maintenance of Water Works ,WRM
and Depreciation
• Phased out in five years
• Scaling down by 20% annually
3. Grants on Acquisition of water entitlement for irrigation
• Purchasing of water rights for RPF from willing sellers
4. Grants for socio economic viability studies and investigations
• Project planning & proposals / technical feasibility studies/
hydrological studies
5. Grants for training of WUA or ALE Management Water Use
Efficiency and Management/ dispute management/ technical
6. Grants on Rainwater Harvesting tanks for food security through
family food production and other household productive
25
DWS RPF SUPPORT COMPLEMENTS OTHER
GOVERNMENT PROGRAMMES
•
•
•
RPF Programme complement other Government initiatives
targeting the development of resource poor farmers such as:
–
Comprehensive Agricultural Support Programme (CASP)
–
Micro Agricultural Finance Institute of South Africa
(MAFISA)
–
Land Reform
Interaction mechanism with stakeholders through
institutional structures like Coordinating Committee on
Agricultural Water (CCAW) is utilised to align these
programmes.
CCAW technically engages and recommends projects to be
funded by DWS. CCAW is convened and chaired by the
Department of Agriculture in each Province.
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RPF SELECTION CRITERIA
Through CCAW a resource poor farmer is eligible for
financial assistance if the farmer :–
→ is a South African citizen;
→ is a member of Water User Association or DWS
→ approved Legal Entity;
→ is a member of HDI; and
has:- agricultural land or access to agricultural land;
- a water use authorisation, except where application
is for the acquisition of water entitlement; and
- a agricultural water use development needs but is
unable to raise finance for that purpose.
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KEY BULK INFRASTRUCTURE PROJECTS
IMPLEMENTED…
PROVINCE
NAME OF
PROJECT
TYPE OF
ASSISTANCE
IMPACT OF
INTERVENTION
NORTHERN Blucusso Trust
CAPE
DWS contributed
R11 080 275.00
towards the
construction of
the main pipeline
for irrigation
The Project has 466
beneficiaries and are
specializing on Vine
farming.
LIMPOPO
DWS financed the
refurbishment of
the irrigation
pipeline .
The Project has about
5500 beneficiary who
acquired the land
through the Land
Restitution Programme
and are specializing on
Citrus production.
The Moretele
CPA
28
…KEY BULK INFRASTRUCTURE PROJECTS
IMPLEMENTED
PROVINCE
NAME OF
PROJECT
TYPE OF
ASSISTANCE
IMPACT OF
INTERVENTION
MPUMALANGA
Mfumfane
Irrigation
Project
DWS
constructed a R
12 000 000.00
pipeline for
irrigation
Mfumfane
project
comprises of 88
individual
farmers on 88
plots ranging in
size from 5 to 10
hectares and in
total covering
487 hectares
under irrigation.
They specialize
in sugar cane
production 29
CONCLUSION
 The Department has made good progress in Water
Use Licensing.
 The Department has responded to the needs of the
different sectors in terms of growth and
development.
 There is ongoing interventions such as the one stop
shop being implemented by the Department of
Performance Monitoring and Evaluation (DPME) to
further alleviate regulatory obstacles.
 There are ongoing engagements with the different
sectors; NEDLAC and other stakeholders to
continuously improve our water licensing regulatory
regime.
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THANK YOU
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