Komati Basin Water Authority Strategic Plan 2015/16-2019/20

KOMATI BASIN WATER AUTHORITY STRATEGIC PLAN 2015/16-2019/20

TABLE OF CONTENTS

1. INTRODUCTION

2. PURPOSE AND SCOPE

3. KOBWA CONTEXT FOR STRATEGY

4. ENVIRONMENT SCAN

5. VISION

6. MISSION

7. CULTURE AND VALUES PROCESS OVERVIEW

8. KEY FACTORS FOR SUSTAINABILITY AND OPPORTUNITIES

9. STRATEGIC FOCUS AREAS

10. CORPORATE ACTION PLANS FOR STRATEGY

11. MONITORING AND EVALUATION

12. CONCLUSION

ACRONYMS AND ABREVIATIONS

KOBWA – KOMATI BASIN WATER AUTHORITY NDP – NATIONAL DEVELOPMENT PLAN CMA – CATCHMENT MANAGEMENT AGENCIES RBA – RIVER BASIN AUTHORITIES AU – AFRICAN UNION NEPAD – NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT SADC – SOUTHERN AFRICAN DEVELOPMENT COMMUNITY

AMCOW – AFRICAN MINISTERIAL COUNCIL ON WATER ANBO – AFRICAN NETWORK OF BASIN ORGANIZATIONS WRS – NATIONAL WATER RESOURCE STRATEGY TPTC – TRIPARTITE PERMANENT TECHNICAL COMMITTEE EWR – ENVIRONMENTAL WATER REQUIREMENT FDS – FUTURE DEVELOPMENT STUDY SETA – SECTOR EDUCATION TRAINING AUTHORITY MOU – MEMORANDUM OF UNDERSTANDING CEO – CHIEF EXECUTIVE OFFICER EXCO – EXECUTIVE COMMITTEE MCS – MANAGER CORPORATE SUPPORT O&M – OPERATION AND MAINTENANCE IFRS – INTERNATIONAL FINANCIAL REPORTING STANDARDS PMU – PROJECT MANAGEMENT UNIT FM – FINANCE MANAGER PM – PERFORMANCE MANAGEMENT ISO – INTERNATIONAL STANDARDS ORGANISATION

GWP – GLOBAL WATER PARTNERSHIP ORASECOM – ORANGE-SENQU RIVER BASIN COMMISSION ZAMCOM – ZAMBEZI RIVER BASIN COMMISSION OKACOM – OKAVANGO RIVER BASIN COMMISSION PRIMA – PROGRESSIVE REALISATION OF THE INCOMAPUTO AGREEMENT IIMA – INTERIM INCO-MAPUTO AGREEMENT LHWA – LESOTHO HIGHLANDS WATER AGREEMENT ZRA – ZAMBEZI RIVER AUTHORITY KoS – KINGDOM OFSWAZILAND

RSA – REPUBLIC OF SOUTH AFRICA MWM – MANAGER WATER MANAGEMENT

1. INTRODUCTION The Komati Basin Water Authority (KOBWA) is a bi-national entity formed in 1992 through the Treaty on the Development and Utilization of the Water Resources of the Komati River Basin signed in 1992 between the Kingdom of Swaziland and the Republic of South Africa, herein referred to as the Parties. The purpose of KOBWA at the time was to implement Phase 1 of the Komati River Basin Development Project. Phase 1 comprised the design, construction, operation and maintenance of the Driekoppies Dam in South Africa (Phase 1a) and the Maguga Dam in Swaziland (Phase 1b). Given KOBWA’s success in Phase 1, KOBWA is in a position to provide support and guidance for any future projects of a similar nature given the experience it has acquired, as well as needs in other areas in the basin. It is in this view that KOBWA has looked at reviewing the strategy with a 5 year view with focus areas as outlined in this strategy.

2. PURPOSE AND SCOPE The purpose of this document is to outline KOBWA’s current state of operation and challenges as well as sketching the environmental issues facing the organisation and how these are proposed to be dealt with in the strategy. The structure of the document has largely followed the previous editions as summarised below:  A comprehensive review of KOBWA’s purpose, current activities and possible future contribution was conducted in an inclusive way. A broad based stakeholder consultation process was followed to establish the perceived opportunities for the future and likely limitations  A focused strategic planning process with Board, Executive Team, and Employees was conducted to co-create a shared strategic vision for KOBWA’s future. The focus was on developing key focus areas for KOBWA and to evaluate these against identified opportunities and expressed sentiments by its stakeholders. This has resulted in ambitious key focus areas with identified action plans  A strategic plan with a 5 year view was developed to ensure a realisation of the key focus areas and actions.

3. ENVIRONMENT SCAN AND KOBWA CONTEXT FOR STRATEGY In its 22 year history, KOBWA has been focusing on the design, construction, operation and maintenance of the Driekoppies Dam in South Africa (Phase 1a) and the Maguga Dam in Swaziland (Phase 1b) and associated infrastructure. The design and construction phases ended in about 2003. Since then the focus has been on the operation and maintenance phases. This includes providing information and guidance relating to water allocations, rationing of water as well as monitoring compliance with agreed responsibilities. KOBWA has continued to focus on the changes evolving in its environment, aligning with institutional requirements in water resource management, providing to its stakeholders a cost effective service and contributing to the creation of an enabling environment for future development of both South Africa and Swaziland.

Water resource management looms as one of the greatest global challenges of the 21st century. Around the world, businesses, governments, and policy makers alike must work together to move beyond business as usual not only to increase the supply and improve the productivity of current resources but also to reduce withdrawals by reshaping underlying economic activities.

According to SADC’s Towards a Common Future, the Southern African Development Community (SADC) is an expansive region, with unevenly-distributed water resources compared to population and settlement patterns coupled with a variable and changing climate. Therefore water availability and water quality are critical concerns for many SADC Member States. While Southern Africa experiences significant precipitation, it is highly seasonal in most countries and the distribution varies between tropical areas in the north of the region and arid and semi-arid climates in southern and central regions. Furthermore, competing domestic, agricultural, environmental and industrial demands can mean that a large agricultural industry can receive its required quota, while a small neighbouring landholder receives very little.

Southern Africa’s water resources are unevenly distributed, both seasonally and geographically. At the same time, the socio-economic development of the SADC Member States varies widely. It is little wonder, therefore, that trans-boundary water management presents a unique challenge in the region. Constantly rising demand and increasing levels of water pollution place the shared water resources under tremendous pressure. This is particularly true for trans-boundary river basins, where the management of water resources in some areas is not always well coordinated.

KOBWA established 22 years ago is well placed given its success to play a significant role given existing expertise to assist other water management agencies within and outside of the SADC region.

3.1 SWAZILAND PERSPECTIVE

Swaziland as a land locked country located in the Southern tip of Africa. In a landlocked country access to water inevitably comes through access to ground water. In Swaziland 3000 boreholes have been drilled in the country since 1986. Only about 10% of Swaziland’s ground water has been accessed and most of the countries citizens depend on groundwater. The country relies heavily on surface water for irrigation, industrial and domestic uses.

Swaziland‘s erratic climate also causes the country’s water security status to fluctuate between insecure and tentative. The availability of water varies according to region; the southern and eastern areas are generally much drier than the north. The frequent droughts experienced by the country over a long period of time, have left many areas without ready access to water. Other regions which are generally wetter also suffer occasional rain shortages, leaving them with a critically low supply of water.

The Water Affairs Department in Swaziland identified the following areas as key areas of focus: water supply for rural communities, ground water supply, operationalising the water act and bulk water distribution. The Department has various schemes being run on a yearly basis with various stakeholders as beneficiaries of these projects.

The bulk of water (over 90%) in Swaziland is used for irrigated agriculture. There is still a challenge with regard to access to clean water for domestic purposes. It is estimated that 70% of the population have access to clean potable water within reasonable distance.

3.2 SOUTH AFRICA PERSPECTIVE

South Africa is a water scarce country with extreme climate and rainfall fluctuations. South Africa’s water usage typically comprises of 77% surface water, 9% groundwater, and 14% re-use of return flows. Management of South Africa’s water resources involves catchment management, river systems, water storage, water abstraction and return-flow management. Integrated management techniques are required to ensure that water is both protected and utilized to its full potential. South Africa faces a growing gap between water supply and demand. The most effective solutions will cater to the specific agricultural, industrial, and domestic needs of the country’s different basins.

In South Africa, the challenge is complex: a semiarid country characterized by low rainfall, limited underground aquifers, and a reliance on significant water transfers from neighbouring nations, South Africa will face difficult economic and social choices between the demands of agriculture, key industrial activities such as mining and power generation, and large and growing urban centers. The National Development Plan (NDP 2013) makes mention of provision of safe and sufficient water for all before 2030. This places a challenge to organisations like KOBWA to ensure that where it plays a role, it assists the government to meet its objectives.

In the Mpumalanga Province, the Inkomazi Local Municipality has a water services development plan for its area approved by council in 2007. Due to the predominantly rural character of the area with an ever increasing population and settlement growth, the supply of water in the municipality area has been a major challenge. Since 2001 the supply of piped water to all households has been a top priority and the Municipality has been engaged in various projects to meet this demand. Since 2001, the number of households accessing water from access points outside the yard has reduced significantly though it still remains a challenge. Based in the Mpumalanga Province, KOBWA can play a significant role in assisting with dealing with water access backlog.

3.3 OPPORTUNITIES BOTH IN SOUTH AFRICA AND SWAZILAND

Some opportunities were identified where KOBWA can partner with both countries on the following:  KOBWA can provide the expertise required for volume water management  Support and guidance of the management of existing dams e.g. LUSIP/Lubovane, Mnjoli Dam (Swaziland), Mbambiso and Masibekela Dams (RSA)  Support and guidance for the management of other water infrastructure e.g. weirs in the Komati and Crocodile  Support of catchment management functions within the Komati on delegation by the National Catchment Management Agencies (CMAs and RBAs)  The Secretariat of the River Basin Organisation which includes Mozambique can be hosted by KOBWA for administrative cost efficiency with the advantage that KOBWA could have a closer relationship and greater influential role in the Incomati basin.  KOBWA could be a strategic partner in supporting the countries in providing for the under- served segments of society.

KOBWA needs to position itself as an organisation that is well placed and has the expertise and experience to partner with the two governments to ensure delivery of their water mandate.

There are quite a few River Basin Organisations (RBO) in South Africa. KOBWA is well positioned to provide consulting services/expertise in either the establishment and or operation of some of these RBOs.  Within the South African context, KOBWA can contribute to Skills Development through running water management learner ships and graduate intern programmes.  KOBWA could also assist the Regional Water and Sanitation Offices in implementing some of the mandates

The South African National Water Resource Strategy (NWRS 2; 2013 – 2018) has the following as the water sector priority focus areas: achieving equity including water allocation reform, water conservation and water demand management, institutional establishment and governance, compliance monitoring and enforcement, planning infrastructure development and operation and maintenance of water resources infrastructure. Chapter 11 of the NWRS water covers International Cooperation and Trans-boundary water course management. Section 11.4 covers amongst others capacity building and benchmarking which the Department of Water Affairs needs to implement as part of strategy. KOBWA can play a role on this regard as well. This offering can be extended to the SADC region and not only Mozambique, South Africa and Swaziland i.e. Inkomati and Usuthu /Phongola Basins.

3.4 THE TREATY

The purpose of the current Treaty was to provide in principle for the development and utilisation of the water resources of the Komati River Basin and in particular for the design, construction, operation and maintenance of the Project and the establishment of KOBWA, as well as for all matters related

The Treaty makes provision of the following as functions of KOBWA:  As a first phase towards the implementation of the development plan, the Parties hereby agree jointly to design, construct, operate and maintain the Project.

Article 3 further states that  The implementation of any subsequent phase of the development plan shall be subject to further study and recommendation by the JWC and agreement between the Parties. KOBWA has done some work on behalf of JWC with regards to input for the amendment of the Treaty  The Parties recognise the right of the Republic of Mozambique to a reasonable and equitable share in the use of the waters of the Inkomati River Basin of which the Komati River Basin is an integral part. The Parties agree to enter into negotiations with each other when such share is claimed by the Government of the Republic of Mozambique in order to determine - o the contribution of water to the Inkomati River Basin from the Komati River Basin; o the possible allocation of water from the Project to the Republic of Mozambique; and o the need to implement any subsequent phase of the development plan, and further also agree subsequently to enter into joint negotiations with the Government of the Republic of Mozambique in order to establish and make

available to the Republic of Mozambique its reasonable and equitable share in the use of the waters of the said basin.

It further states that parties are agreed upon for the implementation of further phases of the development plan-

o in the Kingdom of Swaziland on the Komati River at Silingane and on the Lomati River at Ngonini; and o in the Republic of South Africa on the Komati River at Boekenhoutrand and Tonga and on the Lomati River at Vlakbult. o see fig 1 below

KOBWA has built experience in design, construction, operation and maintenance and this provides an opportunity for this experience to be used elsewhere in and around the Inkomati basin and beyond.

The amendment of the current Treaty which article 18 make provision for, should pave a way for KOBWA to be able to extend its current mandate and possibly be involved in ventures and projects which could reduce funding reliance on the governments of both countries.

4. CHANGES IN THE WATER SECTOR

The water sector is undergoing widespread institutional review and more authority is being decentralised to more role-players, e.g. Catchment Management Agencies (CMAs) in South Africa, River Basin Authorities (RBAs) in Swaziland and user associations or bodies. The inter- phase of KOBWA with some of these new structures needs updating. These bodies are national bodies with institutional frameworks allowing them to interface with the water user and hence they are able to charge for water and associated services which, with the current mandate, KOBWA cannot. The global trend of river basin management is finding its way into African basins like the Nile, Zambezi and the Orange Rivers. Basins are most often managed by a two- tier structure, i.e. a management commission (mostly Trans-boundary) and a project implementation body.

Basin commissions will always have to be able to execute their mandate by means of an operational arm able to implement the responsibilities associated with river basin management. Water development and management has been on the agenda of initiatives like the African Union (AU), New Partnership for Africa’s Development (NEPAD) and Southern African Development Community (SADC). Water is essential for Africa’s development agenda. Critical water dilemmas are facing the continent and these, like droughts, flooding, large dam sensitivities, socio-economic development of basin communities and many more, have found their way onto the agenda of bodies tasked with water like African Ministerial Council on Water (AMCOW) and African Network of Basin Organizations (ANBO). What is critical though, is not only the confidence that these bodies can engender as brokers of trans-boundary solutions, but also their access to regional structures who have the reputation and capability to become involved in delivery. KOBWA has a good record of participation in and recognition for contributions to these bodies in matters relating to water resource management. KOBWA as it is well positioned, should take advantage of this and seek a mandate amendment so that it can add value at a different level to the fulfilment of delivery and or management of water resources in SADC and on the African continent.

4.1. PROGRESSIVE REALISATION OF THE INCOMAPUTO AGREEMENT (PRIMA)

The Governments of the Republic of Moçambique, the Republic of South Africa and the Kingdom of Swaziland have been collaborating in the exchange of information, agreements on sharing of water, and in joint studies that are of joint interest and benefit. These initiatives have been done through the Tripartite Permanent Technical Committee (TPTC), which was formally established on 17 February 1983. The TPTC is responsible for providing advice to the shared watercourse States on equitable utilisation and management of the shared water resources.

It was identified in the Interim IncoMaputo Agreement (IIMA, August 2002) that a “Comprehensive Agreement” is required in order for the watercourse states to participate more effectively in the utilisation, development and protection of the shared waters of the Maputo River Basin. For the implementation of the Interim Incomaputo Agreement (IIMA), the TPTC appointed a Task Team to develop an action plan for the implementation of the IIMA: The Implementation Activity and Action Plan (IAAP). The IAAP consisted of 12 projects.

The Progressive Realization of the IncoMaputo Agreement (PRIMA) is a programme where the primary goal is to realize the objectives and purpose of the Interim IncoMaputo Agreement (IIMA) including the IAAPs. Most of these projects have been completed. KOBWA has an interest in the project that focus on the institutional arrangements in the IncoMaputo catchment once the Comprehensive Agreement is in place. KOBWA is well placed to house and implement the trans-boundary water resource management initiatives and systems for the 3 countries.

4.2. INTEGRATED RIVER BASIN MANAGEMENT A closer analysis of the definitions adopted by the Global Water Partnership for “river basin management” and “integrated water resource management” appear to be almost inter- changeable.

“Integrated River Basin Management is the process of coordinating conservation, management and development of water resources in an equitable manner while preserving and, where necessary, restoring vital ecosystems”. In the SADC region and also in the rest of Africa, Trans-boundary River Basin Institutions can be classified into two broad categories: River Basin Commissions and River Basin Authorities. River Basin Commissions are normally a body at Government level dealing with policy and planning matters relating to trans-boundary Rivers and lakes. River Basin Authorities are institutions directly involved in the implementation of water resources activities such as water resources development and management. Trans-boundary River Basin Authorities report to Trans- boundary River Basin Commissions. Examples of River Basin Commissions are: The Orange- Senqu River Basin Commission (ORASECOM), Zambezi River Basin Commission (ZAMCOM), Limpopo River Commission (LIMCOM) and the Okavango River Basin Commission (OKACOM). This gives background of what is happening in other areas regarding River Basin Authorities and Commissions In the whole of Africa there are only three Trans-boundary River Basin Authorities, viz. the Lesotho Highland Water Authority (LHWA), Zambezi River Authority (ZRA) and the Komati Basin Water Authority (KOBWA). As a Trans-boundary River Basin Authority, KOBWA is already involved in Integrated River Basin Management; however the full ambit of this function is not fulfilled. Given a mandate to position itself as a fully-fledged Trans-boundary River Basin Authority its responsibilities could easily be expanded in terms of the scope of activities and geographical area of operation. To expand KOBWA’s Integrated Water Resources Management functions to become more comprehensive and to build capabilities in areas where they may be inexperienced or less effective will lay the foundation for a fully-fledged Basin Authority as per the above definition. Given the ambit of the previously mentioned definition, it may require KOBWA to extend itself into additional activities within the Komati Basin and beyond, for example in: . Monitoring and database management of all water; . Development and management of frameworks for information sharing and systematic public communication on basin activities; . Supply metering/monitoring in addition to efficiencies; . Demand assessments and forecasting impacts on the basin, and promotion of efficient usage, etc. The above will however require that both JWC and the Board agree on KOBWA’s involvement in the applicable areas.

KOBWA’S CHALLENGES

Below are areas seen as challenges for KOBWA which is further emphasis of reasons why KOBWA should evolve. . The Treaty that led to the establishment of KOBWA has not been reviewed in more than 20 years and limits KOBWA’s existence and mandate to designing, construction, operation and maintenance of the Driekoppies Dam in South Africa (Phase 1a) and the Maguga Dam in Swaziland (Phase 1b) and associated infrastructure.

. KOBWA has been sensitised to the question of its perceived value for money and financial burden on its principals given its current shape and scope of activities. Part of the problem is the perception of the loans as being part operational expenses whereas they are a separate costs independent of the existence of KOBWA.

. KOBWA has been supported by the Parties since inception. However, some concerns have been expressed at the level of the JWC that the complete and perpetual financial dependence of KOBWA as a Trans-boundary organisation may not be sustainable. The costs of operation and maintenance are set to increase in the foreseeable future due to aging infrastructure and technology advancement measures

. While mechanistic cost cutting will limit the exposure, better economies of scale may create the opportunity to rethink the budget in the context of KOBWA becoming a viable long-term concern.

. KOBWA’s current operational and maintenance capacity is constrained to 2 dams but can be extended to other dams with marginal additional costs.

. While KOBWA is a bi-national body, it is essentially managing a project of tri-national impact. It was felt that it is important to consider how this will be accounted for in future developments and planning and how KOBWA could possibly participate in or make a contribution to a tri-partite entity.

. KOBWA is also facing other dilemmas. At a practical level, an eye must be kept on the risk of the Komati River becoming over allocated. A proactive review of water resource management practices up and downstream of the Dams and the management of infrastructure have become imperative.

. It is of concern that unless a proactive repositioning of KOBWA can take place, KOBWA’s hard won reputation and capabilities will steadily be depleted as the project is left to scale down to O & M of the existing water infrastructure.

. KOBWA has invested in the development of core competencies and in particular water management systems.

KOBWA is therefore left with some options, i.e. further rationalise the organisation by limiting its responsibilities to the strict confines of O&M practices of the two dams under its jurisdiction, or to reinvent itself in a way that will expand its responsibilities and/or funding options by increasing the value and cost effectiveness of its services.

KOBWA’s aspirations, opportunities and strategic response are very dependent on its representation. The continued representation of KOBWA by JWC to its key principals is seen as key to its institutional repositioning. The existing strategic partnership between JWC and KOBWA Board will assist in keeping KOBWA relevant, focused and proactive. Discussions about these matters are seen as critical to ensure that KOBWA is represented in a way that clearly accounts for its current accountabilities and priorities, emerging regional opportunities and the organisation’s readiness to contribute.

5. VISION

KOBWA’s vision is “To be recognised as a leading entity in sustainable integrated trans-boundary water resource development and management”

6. MISSION We will achieve the vision through ensuring efficient water harvesting and bulk distribution, management of the environment, monitoring water quality, regulation compliance, socio-economic development, engagements with key stakeholders, optimising our resources and empowering our employees.

The mission is broken down into the following elements as indicated below: • Efficient water harvesting and bulk distribution – operating and managing the infrastructure in compliance with the Treaty and best practices • Effective management of the environment – management of the environment in and around the basin ensuring it’s in line with best practices • Quality water – Monitoring that the quality of water within KOBWA’s area of responsibility is of an acceptable quality through regular testing • Regulation compliance – compliance with all legislation and regulation governing KOBWA • Socio economic development – socio economic development initiatives in and around the basin for the benefit of communities • Key Stakeholder engagements – regular engagement with all key stakeholders who impact on KOBWA • Optimising our resources – ensuring proper, efficient and effective use of resources in KOBWA responsibility • Empowered employees – ensuring the right employees with the right competencies in the right positions delivering value to KOBWA

7. CULTURE AND VALUES In building an organisation, leadership has to bear in mind the type of culture they would like to build and the legacy leadership wants to leave behind. The definition of culture includes the ways the organization conducts its business, treats its employees, customers, and the wider community. This includes the values of the organisation which become part of the core philosophy. Values are the foundation of the organisation and underpin processes, systems, procedures, culture and all aspects of the entity.

Culture Below is the type of culture KOBWA wants to build:  Customer oriented  Life time learning  Participative culture  People driven  Excellence & quality driven  Creative & proactive  Results driven  Company values are lived

Values The following are the core values identified for KOBWA:  Teamwork and diversity,  Community and customer focused,  Quality and safety,  Performance delivery,  Communication and transparency The supporting behaviours will be included with input from employees.

8. PROCESS OVERVIEW KOBWA embarked on a process of developing a strategic plan so as to reflect the desired future of the organisation. This process involved relevant stakeholders. The 2015/16 - 2019/20 Strategic Plan recognizes KOBWA’s challenge of being a 23 year old trans-boundary organisation and the current economic environment. In terms of monitoring and evaluating, the strategy will be on every Executive Team’s Agenda. Biannual feedback on strategy implementation will be given to all employees. The strategy will be formally reviewed every 24 months to ensure alignment and tweaking given the environment and conditions as time progresses. Business plans will be developed and aligned to the Corporate Strategy to make certain that there is alignment for all departments. These will also be reflected at job level.

9. KEY FACTORS FOR SUSTAINABILITY AND OPPORTUNITIES The external environment was reviewed by the organisation with reference to – Authority Strengths and Weaknesses, Opportunities and Threats (economic, political, technical etc.) and Broader Societal Expectations, Market and Macro-economic Forces in order to reflect on the KOBWA’s sustainability and identify possible opportunities and development requirements.

Authority strengths and weaknesses

STRENGTHS RISKS OPPORTUNITIES

1. Manageable staff 1. Loss of competent skilled 1. Conduct skills audit to compliment who are staff identify core skills and dedicated staff and 2. Possible establishment of close gaps where risks specialised and experienced other entities for the exist 2. Consistent unqualified Basin 2. Develop and implement financial audits – financial 3. None diversified sources retention strategy systems above board (good of funding 3. Opportunity to collaborate financial management) and provide expertise to 3. Stakeholder accountability new and existing Water exists Organisations in and 4. Reliable source of funding around the Basin 5. Good project management 4. Introduce graduate in and experience training programs 6. Corporate Social Investment 7. Focus on service delivery and mandate 8. Diversity of KOBWA by virtue of its formation – bilateral nature of the organisation 9. Policies reviewed and approved WEAKNESSES RISKS OPPORTUNITIES 1. Treaty limitations – 1. Unintegrated information 1. Introduce an integrated currently under review management system information system 2. Application of labour laws 2. KOBWA positioning and 2. Rebranding and from both countries being unknown outside repositioning of KOBWA 3. Communication its core area of operation 3. Explore other revenue 4. Lack of succession and 3. Lack of other income generating sources retention plans generating activities

5. Reliant on the two governments for revenue 6. Staff turnover on critical position 7. Lack of SHEQ accreditation

THREATS RISKS OPPORTUNITIES

1. Increasing O&M costs 1. O&M costs increasing 1. Planned maintenance due to aging 2. None integration of implementation infrastructure Mozambique 2. Lobby Mozambique to 2. Weakening currencies 3. Technological changes consider KOBWA for some 3. None integration of 4. Climate change Impact of the projects Mozambique into 3. Anticipate technology KOBWA changes and plan 4. Subsequent tripartite accordingly, treaties

5. Emergency of Other entities with similar mandates to KOBWA 6. Fiscal challenges in KoS & RSA 7. Not keeping up with technological changes 8. Political climate within and between both countries 9. Competing for scarce skills with other entities 10. TPTC secretariat impact on funding and KOBWA existence 11. Climate change – drought or floods

INDUSTRY FORCES RISKS OPPORTUNITIES

1. Value chain management 1. Other River Basin 1. Position KOBWA as a 2. Supply chain management – Organisations preferred organisation on substitute products and 2. Labour relations the Basin services (what KOBWA 3. Government priorities 2. Standardise through uses) policies and procedures 3. River Basin Organisations – labour relations within catchment management KOBWA agencies 3. Position KOBWA as a value 4. Shifting Government add organisation doing priorities more with less and 5. Competing demands for delivering what is key to

water the governments 6. Labour relations 7. Interested and affected parties 8. Environmental impact assessment 9. Water demand management 10. Water productivity KEY TRENDS RISKS OPPORTUNITIES 1. CSI 1. Lack of support to take 1. New dam sites 2. Integrated flood advantage of identified 2. KOBWA hosting tripartite management system opportunities outside of secretariat 3. Talent Management current mandate 3. Offer KOBWA services 4. Advanced information 2. KOBWA being viewed as outside of the basin management systems a non-value entity 4. Recreational 5. Women as key role opportunities/projects players around the dams 6. Basin wide planning and 5. Other income generation development and sources integrated water 6. Conduit for government resource management projects where they lack 7. Decentralisation capacity/presence 8. Water as a social and 7. Co-operative partnerships economic good with international 9. Alignment to World organisations e.g. UNDP, Commission on Dams ANBO, AMCOW etc Principles (doubling 8. Being an implementing principles) agent for international, 10. Professional Association regional and national Membership water projects 11. Automated 9. Preference by management systems international co-operation 12. Minimum ecological partners for non- flows government entities 13. International 10. Climate change – more standardisation/best rainfall practices 11. Repositioning KOBWA 14. Good governance amongst all as an entity of 15. Sustainability value 16. Globalisation

BROADER SOCIETAL RISKS OPPORTUNITIES EXPECTATIONS 1. Poverty eradication 1. Unmet expectations and 1. Plan for valued adding and 2. Job creation through consistency in meeting sustainable CSI projects KOBWA programs expected high standards 2. Create job opportunities 3. Service delivery (water, and values with other Agencies sanitation) 3. Application of latest 4. Assurance of water supply efficient service delivery 5. Flood management services techniques in water 6. Good quality Water management and flood 7. Environment management management systems 8. Corporate Social Investment

Market and Macro Economic Forces Below are market forces as well as macro-economic forces seen to be impacting on the water sector and KOBWA.

Market Forces Macro-Economic Forces 1. Quality and safety resources and services – value 1. Demand management for money 2. Cost and benefit sharing 2. Disclosure and transparency 3. Changing priorities 3. Alignment to best practice/international standards 4. Women as key role players 4. Water demand management 5. Funding 5. Entity accountability 6. Sustainability 6. Cost effective products and services 7. Corporate Social Investment 7. Competitiveness 8. Poverty alleviation 8. Equity 9. Socio economic development 10. International cooperation 11. Compensation and beneficiation 12. Multi-purpose water infrastructure development

Priority Risks Identified Given the risks listed, the following were highlighted as priority risks.  Total reliance on the two governments for revenue should the government’s priorities change  Lack of visible poverty alleviation programmes  Loss of and failure to attract and retain competent skilled staff  Lack of integrated flood management systems in the catchment  Bulk water quality due to settlement close to water resources  Delay in extending or amending the current Treaty  Lack of other income generating initiatives

Celebrating over Twenty Years in Trans-boundary Water Management”

For over twenty years, KOBWA has consistently honoured water orders for farmers that are downstream and implemented sustainable development projects in the communities that are within KOBWA’s area of operation.

Therefore, in “Celebrating Twenty-One Years in Trans-boundary Water Management”, KOBWA has a reason to applaud the following achievements;

Dam Construction

 Completing the Driekoppies Dam and Maguga Dam which also benefitted the community by providing employment opportunities and empowering them with artisan skills.

Access Roads

 Constructing the R570 West access road to the Driekoppies Dam;  Two access roads were built for the Maguga Dam, on the North and South of the Dam site. The access roads connect Mnyokane and Plantations via Ekuvinjelweni;  the Komati MR-1 Bridge was constructed over the Komati River before constructing the Maguga Dam.

Housing

 Houses were constructed to accommodate professionals and technicians working on Dam sites during the construction era. -In South Africa houses were constructed at Fish Eagle Bend in Malelane and these consisted of thirty-two (32) permanent houses and twenty-five (25) prefabricated houses.

In Swaziland, at Mlambo-Glen Village in Piggs Peak, a hundred and seventy (170) housing units were constructed and the houses were later sold to the general public while some were retained to house KOBWA Staff.

 Homesteads that were originally in areas that were subsequently inundated by the Dams were supported by the provision of houses and fruit-trees in new settlement areas. - A total of two-hundred and twenty seven (227) homesteads were affected by the construction of the Driekoppies Dam and most of them opted to be relocated at Schoemansdal Extension.

-Schoemansdal Community Hall was constructed for local communities in South Africa; -Gobolondlo Community Hall was constructed in Piggs Peak for the community.

Relocation Plans-Projects

Coordinating the Relocation Allocation Plan (RAP) and assisting beneficiaries of this exercise to be assisted in the following;

 Masibambisane Game Farm, a one thousand, six hundred and thirty nine hectare farm project that compensated for the loss of grazing land;  Phindulwandle Nursery, a project that compensated for the loss of medicinal plants, the affected communities were supported in developing a nursery to propagate medicinal and indigenous plants. The nursery is situated next to the Masibambisane Game Farm. This project was officially handed over to the management of the Beneficiaries in 2010;  Currently, a multi-million nursery is under construction at Phindulwandle.

A water tank for the Phindulwandle Nursery

 Establishing and managing sugar-cane fields, vegetable gardens and orchards;

Below left, sugar cane fields at the Host-Area, Nyonyane and right, a harvest of sugar-cane at Edwaleni. These cane-fields are irrigated with Maguga Dam and Driekoppies Dam respectively

The operations and maintenance phase has seen KOBWA achieve the following;

 Monitoring and managing the Dams’ infrastructure to ensure that should there be any seismic activity, appropriate action be taken on time;

 Honouring water-orders of farmers who are downstream which has ensured that the main beneficiaries of the Dams receive the required irrigation water every week;  Conducting risk-assessment activities first to ensure that the conjunctive management of the two Dams retains appropriate water levels at both Dams  Raising awareness to local communities of potential emergency situations such as flooding has resulted in the development of an emergency preparedness plan which involves key figures in neighbouring communities;  Technical information-sharing meetings with stakeholders who are within the Komati Basin are engaged through the Komati Joint Operations Forum (KJOF) on a monthly basis;  With the expertise of KOBWA personnel, three portable water purification plants were installed at Buffelspruit, Block-C and Gomora. These water-plants augment water supply to these areas, thus reducing the high frequency of water outages;  Implementation of the comprehensive relocation plan to ensure the sustainable development of those communities who were affected by the construction of the Driekoppies Dam in Swaziland. Matsamo Markets and business units were constructed for local businesses. Recently, KOBWA has supported the construction of a clinic next to Timphisini;  The Corporate Social Responsibility program has seen schools, non-governmental organizations and community-based organizations benefitting water and sanitation-related amenities such as ablutions facilities and water-tanks which provide water for domestic use;  Several International and national awards for excellence in water resource development and management.

10. STRATEGIC FOCUS AREAS 10.1 OVERVIEW ON STRATEGIC FOCUS AREAS The key strategic focus areas took cognisance of the current mandate of KOBWA as well as the environment it currently operates in. Envisioning the future involved an ambitious view of the entity post mandate amendments as well. If KOBWA continues its current state, its relevance post loans being paid off could be under question. It makes sense then to ensure that a quicker progression of mandate amendment whilst exploring other possible opportunities under the current state. To position itself for the future. The process of repositioning itself for the future includes:  getting certain accreditations for areas such as improving occupational health, and safety standards,  benchmarked risk management processes in place  keeping up with technological changes in areas such as flood warnings  restructuring of the organisation to include a Project Management Unit – to focus on project implementation KOBWA has been recognised as having expertise in its current mandate and this can be extended to further add value to organisations in and around the basin, extending its cope. Looming opportunities include hosting the secretariat of the TPTC and engaging with Mozambique, through KoS and RSA Delegations, to ensure an initial Memorandum of Understanding which will start forging a working relationship.

The benefits of taking advantages of opportunities identified above will expand on KOBWA’s relevance beyond the current treaty.

10.2 KOBWA IMPACT 21 YEARS KOBWA’s impact in the last 21 years has had some impact and achievements in the following areas:  Successful design and construction of Driekoppies and Maguga Dams  Water assurance for 33 500-Ha of existing irrigated agriculture  Additional water for 16 000-Ha of new irrigated agriculture fields  Improved flow duration in the Komati River  Employment created during and after the construction of the dams  Small businesses – e.g. Mamli and Maguga Lodge, Commercial irrigated agriculture for emerging farmers, new contractors companies upskilled through mentoring sub-contracts  Construction of new access roads around Driekoppies and Maguga Dams  New modern housing estates in Swaziland and South Africa  Promotion of tourism – Maguga Lodge, Maguga Viewpoint Information Centre  Primary and High Schools in Swaziland and South Africa  Medical Clinics within Operation Area  Purified water for Pigg’s Peak and surrounds (Swaziland) and Schoemansdal and surrounds (South Africa)  Modern sanitation facilities around dams  Water and environmental education campaigns in operational area  Successful resettlement and beneficiation of affected communities  Hydro-power generation opportunities using managed dams  Integrated water user forums facilitation at trans-boundary level (KJOF)

10.3 EXPECTED FUTURE IMPACT Given the current strategy, KOBWA is expected to have the following impact;  Skills development through learnerships and graduate intern programme  Employment through infrastructure programs and business spinoffs  Socio economic impact through various infrastructure and other water resource related development projects i.e. small businesses and eco-tourism  Expanded role in water service delivery  Reduced dependency on governments given other income generating activities  Effective integrated flood management systems in the catchment  KOBWA recognition as an employer of choice  Increased water supply for irrigation areas, hydro power generation and domestic use as a result of KOBWA activities  Implementing agent on water and sanitation projects

Given this background, the Strategic Plan will be driven through the following areas of focus, identified as: Financial Management & Other Sources of Income; Customer and Stakeholder Focus; People Focus; Technology and Business Processes, Socio Economic Initiatives and Water Resource Development and Management. The house model below is a depiction of what KOBWA aspires to achieve in its 5 year strategy. The model embodies the values as a foundation for the entity the pillars are the key strategic focus areas and the roof is the accomplishment of the KOBWA way and its vision.

Below is a summary of the key focus areas with the measures of success

Key Focus Areas Key Focus Areas

 Water Resource Development and  Customer and Stakeholder Focus Management Objective: To anticipate and proactively Objective: To optimise the development and meet current and future customer and management of water and infrastructure in an stakeholder requirements. To attract new effective and efficient manner to achieve clients and expand our mandate, strengthen KOBWA’s current and future mandate. and position KOBWA as a preferred service provider Measures of success Measures of success  Priority projects implemented on EWR  Stakeholder analysis completed  Priority projects implemented on FDS  No of opportunities identified and  Updated and progress reports on prioritised implementation plan  Twice a year customer surveys  Implemented gauging infrastructure – Komati  No of projects identified and River implemented – expansion scope  Climate adaptation strategy and  No of rebranding and repositioning implementation projects initiatives

Key Focus Areas Key Focus Areas

 People  Financial Management & Other Objective: To attract, develop and retain Sources of Income competent staff who promote the vision and Objective: To proactively source, secure culture of KOBWA and diversify our revenue streams Measures of success Measures of success  Average performance management review  5% saving, in real terms, on admin costs results >= 3 over 5 years on a sliding scale  Supporting behaviours for KOBWA values  Minimum R5m over 5 years from other revenue streams  Structure aligned with strategy  IFRS Compliant Financial statements  Skills Audit conducted  3% saving on loan repayments  Climate audit results (staff satisfaction survey) 10% improvement per year

 Employee wellness program in place

Key Focus Areas Key Focus Areas

 Technology & Business Processes  Socio Economic Initiatives Objective: To facilitate socio economic Objective: To have technology systems and development within the basin through socio business processes that enable business economic initiatives efficiencies

Measure of success Measures of success  Accurate real time information (intranet)  Baseline research/study  Integrated HR, Finance and Other Systems  Basin wide developmental framework  KOBWA competencies offered on a for the Komati Basin and other consultancy basis approved areas  Document management system  Alternative funding sourced  Accreditation (Laboratory, occupational health  Socio economic impact on communities and safety and quality)  Quick wins identified within the 1st year  Strategy review - every 24 months of strategy  An integrated communication system/process  Integrated information management system in place

11. CORPORATE ACTION PLANS FOR STRATEGY 1. Focus Area: Water Resource Development and Management Period: 2015/16 – 2019/20 Objective: To optimise the development and management of water and infrastructure in an effective and efficient manner to achieve KOBWA’s current and future mandate Measures of Success:  Priority projects implemented on EWR  Priority projects implemented on FDS  Updated and progress reports on implementation plan  Implemented gauging infrastructure – Komati River  Climate adaptation strategy and implementation projects Champion/Team: Water Management Manager Implementation Action Plan: No Action Step Acct Time Frame Remarks 1. Restructure the organisation to create a MCS 2016/2017 Project Management Unit (PMU) to handle 3rd party projects on behalf of owners 2. Develop a PMU Plan ExCO 2016/2017 3. PMU plan approval CEO 2016/2017 4. Develop and implement climate MWM 2016/2017 adaptation strategy 5. Develop a drought preparedness plan MWM 2016/2017 6. Review and update dam emergency MWM 2016/2017 preparedness plans 7. Review and update existing O&M plans MWM 2016/2017 based on statutory inspections report 8. Advice on how to implement and MWM 2017/2018 integrate gauging systems in the Komati 9. Provide guidance and support for the MWM 2018/2019 implementation, development and management of river gauging infrastructure in the catchment 10. Implementation of EWR MWM 2019/2020 recommendations 10.1 Prioritise and action recommendations MWM 2015/2016 from EWR study/report 10.2 Conduct a baseline study of current and MWM 2016/2017 predicted water use

10.3 Develop EWR Policy MWM 2017/2018 10.4 Develop a water management strategy MWM 2017/2018 to implement EWR Policy 10.5 Develop flow scenario model MWM 2018/2019 10.6 Develop a monitoring and evaluation MWM 2018/2019 mechanism for EWR compliance 11. Implementation of FDS MWM 2019/2020 Recommendations 11.1 Prioritise and action recommendations MWM 2015/2016 from FDS report 11.2 Identify and implement key MWM 2016/2017 performance indicators relevant to KOBWA 11.3 Monitor compliance against the MWM From benchmarks 2017/2018 annually 11.4 Implementation of HECRAS decision MWM 2015/2016 support models to FDS 11.5 Upgrade Decision Support Models in MWM 2019/20 line with any changes in the operating rules 11.6 Advice on how to develop and MWM 2019/2020 implement rules and joint monitoring of weirs in the Komati system 11.7 Implement integrated flood MWM 2017/2018 management system (pre-emptive releases for both flood management and hydro power generation 11.8 Provide expertise to formalise strategy MWM 2018/2019 for conjunctive management of Komati and Crocodile systems to meet trans- boundary requirements 11.9 Upgrade the hydrological/WM MWM 2019/2020 Information Management System 11.10 Implement water conservation and MWM 2018/2019 demand management programme for the basin 12. Undertake a comprehensive ground MWM 2019/2020 water study to determine status and contribution to the Komati system

2. Focus Area: Financial Management and Other Sources of Income Period: 2015/16 – 2019/20

Objective: To proactively source, secure and diversify our revenue streams.

Measures of Success:  5% saving, in real terms, on admin costs over 5 years on a sliding scale  Minimum R5m over 5 years of other revenue streams  IFRS compliant audited financial statements  3% saving on loan repayments Champion/Team: Finance Manager Implementation Action Plan: No Action Step Acct Time Remarks Frame 1. Identify cost saving initiatives EXCO 2015/2016 2. Negotiate loan re-financing FM/CEO 2015/2016 3. Education on cost awareness at all levels FM 2015/2016 4. Budget Provision for IMS and other FM 2015/2016 strategy items 5. Implement International Financial FM 2016/2017 Reporting Standards (IFRS) 6. Feasibility study on the viability of a MCS / 2016/2017 Water and Environmental Management MWM Academy based at KOBWA 7. Initiate process to get BBBEE rating MCS 2016/2017 8. Identify and secure other sources of FM/CEO 2016/2017 revenue e.g. implementing agency/consultancy for data collection for other institutions in KOBWA’s operational area, data intelligence for a fee

3. Focus Area: Customer and Stakeholder Focus Period: 2015/16 – 2019/20 Objective: To anticipate and proactively meet current and future customer and stakeholder requirements. To attract new clients and expand our mandate (strengthen and position KOBWA as a preferred service provider. Measures of Success:

 Stakeholder analysis conducted  Number of opportunities identified and prioritised  Twice a year customer/stakeholder surveys  Number of projects identified and implemented – expansion scope  Number of re-branding and re-positioning initiatives  MOUs signed with key partners Champion/Team: CEO Implementation Action Plan: No Action Step Acct Time Remarks Frame 1. Identify strategic Partners/stakeholders ExCo 2015/2016 and create a database 2. Conduct customer/stakeholder survey CEO 2016/2017 3. Identify customer growth opportunities ExCo 2017/2018 4. Rebrand and reposition KOBWA as an MCS 2017/2018 entity of value

4. Focus Area: People Period: 2015/16 – 2019/20 Objective: To attract, develop and retain competent staff who promote the vision and culture of KOBWA. Measures of Success:  Average performance management review results >= 3  Entrenched KOBWA values  Structure aligned with strategy  Skills Audit  Climate audit results (staff satisfaction survey) 10% improvement per year  Employee wellness program in place  Succession plan in place  No of learners on SETA funded interventions Champion/Team: Corporate Service Support Manager Implementation Action Plan: No Action Step Acct Time Frame Remarks 1. Conduct baseline employee satisfaction MCS 2015/2016 survey 2. Alignment of Business Plans to strategy MCS 2015/2016 3. Develop and align job outputs to MCS 2015/2016 Business Plans 4. Link up with Local Government SETA to MCS 2015/2016 make use of Learner ship and Graduate Intern Grant as part of Skills Development 5. Review remuneration and grading MCS 2015/2016 6. Review organisation and department ExCo 2015/2016 structure 7. Roll out values workshops ExCo 2016/2017 8. Introduce and implement wellness MCS 2016/2017 program 9. Conduct Organisation Skills Audit MCS 2017/2018 10. Develop an organisation wide MCS 2017/2018 succession plan and identify pool of potential leaders 11. Implement skills audit MCS 2018/2019 recommendations

12. Drive PM to achieve >= 3 performance MCS 2019/2020 for average number of staff

5. Focus Area: Technology & Business Processes Period: 2015/16 – 2019/20

Objective: To have technology systems and business processes that enable business efficiencies Measures of Success:  Accurate real time information (intranet)  Integrated Human Resource, Finance and Other Systems  KOBWA competencies offered on a consultancy basis  Document management system  Accreditation (Laboratory, accreditation on Occupational Health and Safety, Quality of Service)  Strategy review - every 24 months  An integrated communication system/process  Integrated information management system in place Champion/Team: Corporate Support Implementation Action Plan: No Action Step Acct Time Frame Remarks 1. Introduce and implement a monitoring, ExCo 2015/2016 evaluation and measurement framework for strategy 2. Motivate for and Participate in New 2015/16 to Treaty Process 2016/17 3. Review and update internal and MCS/ 2015/2016 external communication processes CEO 4. Assess and review current document MCS 2016/2017 management system 5. Identify and align all processes to MCS 2016/2017 Integrated Information Management System (IIMS) 6. Initiate safety and health accreditation CEO 2016/2017 process 7. Water Analysis Laboratory Accreditation MWM 2016/2017 8. Environmental Management MWM 2016/2017 Accreditation 9. Kick start process to get Service Quality CEO 2017/2018 Accreditation 10. Occupational Health and Safety CEO 2018/2019 Accreditation 11. Introduce a knowledge management MCS 2019/2020 system

12. Service Quality Accreditation CEO 2019/2020

6. Focus Area: Socio Economic Initiatives Period: 2015/16 – 2019/20

Objective: To facilitate socio economic development within the basin through socio economic initiatives Measures of Success:

 Baseline research/study  Basin wide developmental framework for the Komati Basin and other approved areas  Alternative funding sourced  Socio economic impact on communities report  Quick wins identified within the 1st year of strategy Champion/Team: MED Implementation Action Plan: No Action Step Acct Time Frame Remarks 1. Determine a socio economic baseline MCS 2015/2016 for the basin (study) 2. Identify quick wins given current EXCO 2015/2016 KOBWA status 3. Introduce and implement a monitoring, EXCO 2015/2016 evaluation and measurement framework for strategy 4. Identify and prioritise development MCS 2016/2017 focus areas within the basin 5. Review and update internal and MCS 2016/2017 external communication processes 6. Source funding for implementation – EXCO 2019/2020 through partnership grants etc. 7. Implement, monitor, evaluate and MCS 2019/2020 measure success

12. MONITORING AND EVALUATION Monitoring and evaluation help improve performance and achieve results. More precisely, the overall purpose of monitoring and evaluation is the measurement and assessment of performance in order to more effectively manage and achieve results. Indicators should be objective, verifiable and clearly understood by all stakeholders. There will be a six (6) monthly Corporate Strategy (CS) feedback to employees to ensure that the organisation is on track to achieving its strategic intent. The Executive Management Team will put on its agenda the strategy. Departments will submit quarterly progress reports of their business plans with improvement action areas. KOBWA will formally review the whole strategy every 18 to 24 months.

13. CONCLUSION The strategy process involves conducting the strategic planning process, developing, action plans, rolling out of the strategy to all employees and linking performance management i.e. team and individual outputs and objectives supported by actions. The implementation process is key to the whole process as it results in the achievement of strategic goals. Progress and has to be evaluated and changes implemented to ensure performance results are achieved. KOBWA will be embarking on this journey which has in it a lot of challenges. Creating an enabling environment and upgrading competence amongst Leadership and Staff will contribute to the success of the organisation in achieving the 2015/2019 strategy. The amendment of the treaty will assist in advancing some pf the plans and actions outlined in the strategy. Interdependence between departments, teams and individuals will ensure a smoother road ahead.