12 minute read
Improving lives through water
Green Economy Journal interviews the Chair of LWUA
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At the heart of the Olifants Management Model Programme is the desire to form a collaboration that pulls together to work in a 50:50 partnership for the betterment of industry and community. Chairperson of Lebalelo Water User Association, Prakashim Moodliar, tells us more.
GEJ: Please share the history of Lebalelo Water User Association.
Prakashim Moodliar: The Bushveld Igneous Complex in the northern parts of South Africa contains some of the richest ore deposits on earth. In 2002, several mining companies and the Department of Water and Sanitation (DWS) collaborated to establish the Lebalelo Water User Association (LWUA) and build bulk raw water infrastructure to develop mining activities along the Eastern Limb of the Bushveld Igneous Complex, with funding primarily sourced from the mining industry.
The Lebalelo Scheme, as it is known, is licensed to abstract water out of the Olifants River from the Flag Boshielo Dam and distribute this raw water to the mining houses that are members of the scheme. It consists of approximately 110km of pipeline, five pump stations, seven reservoirs, one desilting plant, administration facilities and appropriate site accommodation.
In 2005, we were granted permission to extend our jurisdiction and admit new members, which led to the completion of the southern extension of the pipeline in 2007.
We run a well-governed, cost-effective ship – our infrastructure and operations have been running successfully for almost two decades; we have a focused asset care plan that reduces losses by ensuring worldclass maintenance practices, we also have an exceptional safety record with us achieving 130 000 fatality-free shifts to date. Underpinning our successful operations are our strong governance structures, evidenced by unqualified audit opinions since the inception of LWUA.
In 2016, a gazette notice of intent to disestablish LWUA prompted the mining industry to review its role in LWUA, together with the role that we play in society and supported the move towards a public-private collaboration model.
The Olifants Management Model (OMM) Programme, which was the subject of an in-depth article in your previous edition of the Green Economy Journal, was borne out of a LWUA commercial member-funded concept study to accelerate the implementation of the DWS’ Olifants River Water Resource Development Project (ORWRDP) and potable water infrastructure to defined areas in Limpopo where we operate.
What is the history of LWUA’s relationship with communities in the areas in which it operates?
To answer this question, we need to take into cognisance the LWUA’s legal mandate, which is to build and operate an area-defined bulk raw water scheme in the Limpopo Province. When the project started, there was an understanding of our legal mandate among community members as we legislatively could not offer potable water services.
Interestingly, during the building of the scheme, provision was made for abstraction points where DWS or any other water services authority (WSA) would be able to abstract raw water for purification and supply to 103 villages, as demarcated by the local government. Over time expectations changed because the communities wanted the LWUA to provide potable water, which we could not do as it is not part of our mandate. It resulted in strained relationships with the community.
In 2016, we recognised the need to play a greater role in the communities in which we operate. As a result, we adapted our policies and started several socio-economic development (SED) projects, which have culminated in the development of the significant SED programme that forms part of OMM, which will have a major impact on communities across Limpopo.
There has been a positive change in the community, because of us reaching out to them, especially in the areas around the Lebalelo Scheme. Yes, there are still challenges as non-delivery of services continues – a while back there was significant damage to our infrastructure – and some communities are still negative towards LWUA, but the overall mood is a lot more positive, and infrastructure damage has reduced to zero.
LWUA is described in our previous edition as transforming and rebranding, please elaborate.
It is time for LWUA to transform and rebrand to fit this new look and purpose, one that sees us expanding beyond raw water supply and extending into the development of potable water infrastructure.
Traditionally, LWUA has been a more private-oriented entity, with most of the membership comprising mining houses. This has changed with the launch of the OMM Programme which sees an equal partnership between the private sector and the different spheres of government that are involved. Institutional members now make up 50% of the partnership, with the other half made up of commercial members, based on water requirements and allocations.
Please tell us why and how the OMM Programme was established and how it relates to LWUA?
Back in 2004, government started engaging with mining houses to partner in the development of the ORWRDP. In fact, LWUA was incorporated into the overall design with the intention of linking the scheme in the future. For various reasons, the collaborative engagement at that time did not develop further.
Circumstances have changed, and we feel the time is right for real public-private collaboration that addresses the infrastructure challenges of the country. In line with this, LWUA approached government with a proposal to not only accelerate the development of the ORWRDP, and the cost-effective provision of potable and bulk raw water infrastructure, but also to be equal partners. This led to the development of the OMM Programme, which was officially launched by the honourable Minister Mchunu in May this year.
The development of the programme is in line with the three stages of LWUA’s strategy – to look internally and strengthen our own governance processes; secondly, to engage and become a strategic water partner to government; and thirdly, to develop business opportunities for our communities via a comprehensive SED programme. To date, the governance aspects have been successfully implemented, and we are busy engaging with regards to the strategic water partnership. In terms of the third aspect of our strategy, the SED programme forms an integral part of the OMM Programme and will be the driver of long-term sustainability and serve as a catalyst for community development within the areas in which the LWUA operates.
Please define the scope of the OMM Programme.
The OMM Programme aims to augment water supply by moving a portion of LWUA Scheme’s current supply from Flag Boshielo Dam, via the abstraction point on the Olifants River at the Havercroft Weir, to the De Hoop Dam to enable water supply to the Mogalakwena area. The programme will re-sequence the construction of the ORWRDP bulk raw water infrastructure and expand it to include potable water provision (for approximately 380 000 people) to meet revised water needs and reduce capital costs. It will also establish a resourcing partnership through the transformed LWUA to construct, operate and maintain infrastructure.
Lastly, and most importantly, we aim to implement an SED programme, focused on sanitation services, connectivity, education and enterprise development with a view to developing skills, creating jobs and changing behaviour around water saving measures.
What is the timeframe for the implementation of the programme?
As it is time consuming to put together complex collaboration systems, especially one as large as the OMM Programme, one needs to take cognisance of the fact that the schedule provides for the feasibility, detailed design, funding model execution. These activities are expected to take seven to eight years. We aim to complete the OMM Programme by 2030.
However, the starting part is often the most difficult portion of a collaboration, and as such, we are currently approximately six months behind as we establish the ways of working and the funding model to kick off the design work. We wanted to have the first set of service providers appointed by the end of June, but this will now likely take
place during Q4 this year. As is the case with programmes of this size, scope and complexity, stakeholder alignment is key to set up the project for success.
What are the main anticipated benefits of the OMM Programme, and who are the main beneficiaries? Is it mainly mining companies and immediate communities, or is it broader than this?
There are a quite few anticipated benefits: First and most important is the provision of potable water to people that reside in the areas in which the OMM Programme will operate. Secondly, it’s the economic activities that the programme will support with raw water provision to the mining houses and other industries. Lastly, it’s the economic opportunities that will be provided to communities to participate, not only in the programme, but also in the larger SED projects that will be rolled out as part of the OMM Programme. One of the main drivers of this programme is to ensure that over time the secondary economy (ie not mining-linked) will grow and be sustainable to the extent that it will be able to survive independently of the mines once these start to close down.
Does the OMM Programme embrace an ESG approach? If so, how?
In terms of the environmental aspects, the programme will investigate the implementation of renewable energy at all our new pump stations and explore these options for backfit on the existing infrastructure as well, to get to the lowest sustainable operating cost. The design also ensures minimum environmental footprint and impacts maximum water conservation through operating and maintenance practices.
We know that climate change is going to be an issue going forward, therefore we are looking at linking the system in the medium term to a larger resource base taking into consideration that there is the possibility to link the Olifants River to the Komati and Sand River systems. In this way, there is more than one river system linked to the programme, to plan for eventualities that may take place within the climate change environment.
We are also looking at expanding the utilisation of secondary-quality water, such as effluent, for the mining industry and allow the betterquality water to be converted into potable water for communities. The mining industry itself is on a programme to reduce its water demand to ensure that the system can sustain itself over the next 50 years.
The OMM Programme is going to have a large social impact, the anticipated details of which we have discussed at some length in the previous edition of the Green Economy Journal and have also touched on in earlier questions in this interview.
Lastly, the OMM Programme is built on an exceptionally strong governance structure, and we are satisfied that the policies and procedures in place will ensure there is good governance throughout the course of the programme.
What is the economic case for the OMM Programme?
Sustainability is always an issue when you have a programme of this magnitude, and especially if end users are dependent on government for grants. This programme presents a unique opportunity where the mining industry is providing 50% of the capital, not only for bulk raw water infrastructure, but also for potable water infrastructure which enables government to provide water to communities at the lowest cost. This also links in with a strong SED programme that we are driving which aims to enable communities to become more economically active. This supports overall long-term sustainability of the programme.
Mining is contributing to potable water infrastructure for two reasons: firstly, because of current lack of service delivery in this space and the impact on communities surrounding operations, the opportunity to fully utilise the existing assets, enabling private industry to get involved and rebuild our country, which can be done through infrastructure development partnerships with government; secondly, mines are committed to bettering the lives of communities in which they operate, which explains the engagement in terms of potable water infrastructure and SED programmes. When you have a thriving and stable community in the areas in which you operate, it improves the ability for a mine to operate safely and continuously.
Part of the OMM Programme’s scope is the re-sequencing on the ORWRDP Phase 2, please explain the thinking behind moving the off-takers from Flag Boshielo Dam to De Hoop Dam.
To balance the system, it is important to move some of the off-takers from Flag Boshielo Dam, which is currently under stress, to the newlybuilt De Hoop Dam, which is not yet being fully utilised. A dynamic system analysis completed for the whole Olifants River and its tributaries (and specifically the dams in the area) shows that it is imperative for De Hoop Dam to be fully utilised so that the system can suitably provide water for future development.
In addition, Mogalakwena is severely water scarce currently and moving off-takers is the only way to ensure that the local municipality and industry in the area can get water from Flag Boshielo Dam. Polokwane is also experiencing a shortage, and the OMM Programme will make sure they can get a new water resource to draw from, in the form of De Hoop Dam, for the further development of the city.
What factors are considered in determining equitable water allocation among water users from different sectors?
The OMM Programme presents an opportunity to ensure that the social sector (on the potable water side) and the industrial sector (bulk raw water) share water on an agreed basis ie what water is needed where and by when, to ensure the right provision of water to the end user and designs the system to meet present and future needs. Through the execution of the programme, the participants across industrial and institutional users will be finalised and the agreements established.
SYNERGISTIC EXISTENCE
The hive understands the synergy between nature and bees and between bees themselves. The bee logo (above) was chosen as an interim icon to represent the synergistic nature of the OMM Programme. The programme aims to achieve synergy between the public and private sector.
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