Dutch Water Innovation for Restoration

2014

Dutch water innovation for

Restoration

Eck, L.C.J. van Blokland, M

For Elements

12/15/2014

FOREWORD

The return of the dragonfly to the Berg River Catchment by 2020. This goal, a symbol for a good healthy river system, is set by the Department of Water Affairs and Sanitation (DWS) with the aim to reduce the pollution rate of the river system and the eradication of alien invasive trees. The Berg river is the most important catchment of the Western Cape province in terms of economic value.

Water is clearly seen as the backbone for the economic prosperity in the Western Cape. Economic in a sense of a net impact on the local GDP as well as the health of the inhabitants and other related factors. During our visit it became clear that all institutions are aware of the situation the Berg River Catchment is in. The Berg River Improvement Plan seems to harness the participatory approach and commitment from all involved partners to restore the Berg River.

Much has to be done before we can see the Dragon fly to return to the river system. Refurbishment of waste water treatment plants, increasing hydraulic capacities of sewers and improving the livelihoods of the inhabitants of informal settlements are some of the key challenges. Innovative solutions and business opportunities are seen as key drivers that push restoration forward. Our intervention aimed to visualize the opportunities for Dutch innovative solutions within this process.

This report gives an overview of the indicated possibilities. One can not state that these are all the opportunities that are available as this report is an overview of a moment in time. We can however state that the South African’s are keen to get acquaintance with Dutch water technology. During our meetings we have had open and honest discussions. Discussions that provided insights about their challenges, wishes and opportunities. Most importantly, they provided us with a feeling of being welcome. I would therefor like to end this short note by thanking every person for their assistance, time and worm welcome that we have felt during our visits.

SUMMARY

The Berg river is the most important catchment in the Western Cape. Heavy pollution due to inappropriate run-off from informal settlements, discharge from waste water treatment plants, run- off from farmlands and natural causes, threaten the agricultural economy and resources for drink water supply. For this reason it is why provincial government in collaboration with governmental and non-governmental partners have teamed up and designed the Berg River Improvement Plan (BRIP).

This improvement plan is the guideline for the restoration process of the Berg river catchment. Most activities have a direct relation with either the agricultural sector or the responsibilities of the municipalities as they are considered to be the biggest contributors to the polluted state of the Berg River. Activities focus therefor on the refurbishment of waste water treatment plants, sewer overflows, informal settlements and the reduction of agricultural run-off. Both Stellenbosch and Drakenstein municipality are about to tender the refurbishment of several wwtp’s.

These activities create opportunities for the Dutch water sector. The reduction of costs and footprint for wwtp’s are key assets of new technologies delivered by Bucon Industries and Royal Haskoning DHV with Nereda technology. Besides, opportunities exists for technologies based on modelling as a welcome addition to the used programmes of municipalities in the field of asset management.

Solutions that create jobs and improve the local economy however are prioritized. The Department of Water Affairs and Sanitation as CSIR and the municipalities clearly stated that these aspects are key priorities for the water sector. Solutions as the Aqua-Soil Approach gain therefor much interest with the various parties that were visited for consult.

The existing backlog in maintenance is another interesting feature. The total value of this backlog is approximately two too four million Rand per municipality. Innovative solutions for trenchless technologies or maintenance of sewers and storm water systems might get access to the South African market. Collaborations with existing enterprises in this field might be a better option to look into, as their market seems to be growing.

Although the opportunities are there, the Western Cape remains a challenging area to conduct business as politics determines the pace at which progression is made. South African engineers whom decide about infrastructural measures on the other hand seem not often very well informed of the existing new technologies. It is worthwhile to investigate the options to visualize Dutch innovative solutions and let the South Africans generate familiarity with our ideas. Ideally a more programmatic approach is chosen as such that it will enhance the Berg River Improvement Plan, while fostering a mutual beneficial bilateral relationship between the Netherlands and South Africa.

CONTENTS

Foreword ...... I

Summary ...... II

1. Introduction ...... 6

1.1. The berg river catchment ...... 6

1.2. The Netherlands and the Berg River ...... 6

1.3. Inventory business opportunities ...... 7

1.4. Approach and method ...... 8

2. Analysis and results ...... 9

2.1. Documents...... 9

2.1.1. Berg River Improvement plan (brip) ...... 9

2.1.2. Municipal plans ...... 10

2.1.3. Sanitation ...... 10

2.1.4. Berg water project ...... 11

2.1.5. Langrug informal settlement ...... 12

2.2. Field trip ...... 13

2.2.1. Informal settlements ...... 13

2.2.2. Local Farmers ...... 13

2.2.3. Private sector ...... 14

2.3. Visits ...... 14

2.3.1. MunIcipalities...... 14

2.3.2. Department of Water Affairs and Sanitation (regional) ...... 16

2.3.3. Industrial Development Cooperation...... 16

2.3.4. Green Cape ...... 17

2.3.5. Council for Scientific and Industrial Research (CSIR) ...... 17

2.3.6. Breede Gouritz Catchment Management Agency (BGCMA) ...... 17

2.3.7. Western Cape Government ...... 18

III

2.3.8. JetVac ...... 18

2.3.9. Zero to landfill organics ...... 18

2.3.10. Wamtechnologies ...... 19

2.3.11. South african society trecnhless techniques...... 19

3. SWOT ...... 20

3.1. Strenght ...... 20

3.2. Threat ...... 20

3.3. Opportunities: ...... 21

3.4. Weakness ...... 21

4. Approaches ...... 22

4.1 Innovative technology ...... 22

4.2 Modelling and consultancy ...... 23

4.3 Business to business ...... 23

4.4 Value chain approaches...... 24

4.5 Relations with jobs...... 24

4.6 Financial hurdles ...... 25

4.7 Continuous action ...... 25

5. Conclusions ...... 26

5.1 General Berg River ...... 26

5.2 General economic opportunities ...... 26

5.3 Municipalities ...... 26

5.4 Farms ...... 27

5.5 Informal Settlements ...... 28

5.6 Business 2 business ...... 28

6. Way forward ...... 29

6.1 General ...... 29

6.1.1 Broker the idea ...... 29

6.1.2 To keep momentum: ...... 30

6.2 Short term interventions ...... 30

6.2.1 No-Regret measures ...... 30

6.3 Way forward per programme ...... 31

6.3.1 steps “Agenda Natuurlijk Kapitaal” ...... 31

6.3.2 Kingfisher ...... 31

6.4 Way forward per target area ...... 32

6.4.1 Informal Settlements ...... 32

6.4.2 Municipalities ...... 32

6.4.3 Farmers ...... 33

6.4.4 Business 2 business ...... 33

Appendixes

I. Overview literature II. Overview contacted and visited organizations III. The Berg River Improvement Plan IV. Green drop standards V. On sustainable solutions for pro-poor sanitation VI. Case study: Brokering the idea

1. INTRODUCTION

1.1. THE BERG RIVER CATCHMENT

The Berg River Catchment covers an area of almost 9,000 km2 in the Western Cape Province and is subdivided into 12 quaternary catchments ranging in size from 125 km2 near the headwaters to 2,000 km2 in the drier western parts of the catchment. The river runs northward for 285 km and drains into St. Helena Bay on the west coast of South Africa.

The Berg River catchment is home to cultivated agricultural land (65% of the total land use), mainly vineyards, fruit trees and wheat fields. About 75% of the crop produced in the catchment is exported to the European Union and the United Kingdom. The total market value for the region that is at risk due to the pollution of the river is estimated to be 1 billion Rand (75 million Euros).

The Berg river catchment gained much attention over recent years as the river is highly polluted and infested with alien invasive trees. The level of pollution is considered to be of particular threat to the local economy, industries and drinking water supply to Cape Town metropolitan area and various municipalities of the West Coast and Cape Winelands. In view of the economic importance of the Berg River, much research has been carried out and various initiatives have been developed to protect the river as a vital resource for this region. The Embassy of the Kingdom of the Netherlands (EKN) in Pretoria has been involved in this process since 2009.

1.2. THE NETHERLANDS AND THE BERG RIVER

Agenda Natural Capital The programme “Agenda Natuurlijk Kapitaal” is based on international agreements and designed for the conservation and sustainable usage of biodiversity. The government service for land and water management (DLG) is tasked by the ministry of Economic Affairs to guide the designed pilot “Berg River Ecosystem Restoration” project within the upper catchment of the Berg River catchment area.

DLG and the ministry of Economic Affairs have, in collaboration with Living Lands, formulated the activities that need to be carried out within the programme over a period of two years’ time (2014 – 2015). Key focus areas of the programme are:

 Improve sanitation hotspots in the rural areas;  Restoration of Wetlands;  Clearing of alien vegetation;  Development of tourism and touristic activities

The inventory mission and the outcomes are a direct result of the programme “Agenda Natuurlijk Kapitaal”. The programme enabled the development of this intervention aimed to answer the following questions:

 Visualization of sanitation hotspots  Determine key drivers to improve sanitation in South Africa  Which Dutch innovative examples or activities can be implemented in South Africa

The results, described in this report, will be used for the follow up of the sanitation related activities within the restoration project of DLG and Living Lands.

Private sector Two private initiatives are currently under development. One is a wastewater treatment plant (WWTP) in Stellenbosch, using the Nereda technology, built by Royal Haskoning DHV (RHDHV); and the second is the Aqua Soil Approach, an initiative developed by The Aqua-soil group1 in collaboration with the municipality of Drakenstein for one of the latter’s WWTPs.

The National Water Platform (NWP) is an important facilitator for the Dutch private sector. It hosts and facilitates the platform in which Dutch public and private organisations share and exchange new developments and knowledge on their current and future activities in South Africa. In collaboration with Aqua4All, it has also carried out research to support sustainable pro-poor sanitation in South Africa. One of the important conclusions of the research was the need to involve the private sector in developing a value chain approach to stimulate sustainable pro-poor sanitation.

Governance to Governance Most of the activities between governmental organisations in South Africa takes place in Cape Town. World Waternet supports Cape Town Metropolitan Municipality in the field of sanitation and wastewater treatment. World Waternet also has strong connections with the regional Department of Water Affairs and Sanitation (DWS), given its ongoing support of the Breede Gouritz Catchment Management Agency (BGCMA), which falls under the umbrella of the KingFisher project nowadays. The Kingfisher programme, deployed by the Association of Regional Water Authorities and supported by the VNG-international (international cooperation agency of the Association of Netherlands Municipalities) forms the umbrella under which Dutch water boards capacitate South African catchment management agencies (CMAs) that are currently being established or have been established. The Berg Olifants Catchment Management Agency (BOCMA) is one of these CMA’s that is yet under development. The establishment of the board will take place once the business plan, which is currently under development, is approved by the minster of Water Affairs. BOCMA will then be supported by Hoogheemraadschap van Delfland.

1.3. INVENTORY BUSINESS OPPORTUNITIES

The Dutch government changed its approach from an aid to an economic model. Sustainable and inclusive growth starts with a better business climate. It allows the private sector to create jobs and a climate for sustainable economic growth. South Africa is no longer considered an aid dependent country as it has a relatively good investment climate, favourable economic policies and a well- developed financial sector.

Water management is one of the main pillars of the Dutch export market and was therefore an important issue in previous Berg River interventions. It was in this context that the Embassy of the Kingdom of the Netherlands (EKN) committed to supporting the South African government in restoring the Berg River Catchment in the Western Cape. These goals are incorporated in the Berg river restoration plan, which aims to involve private entities to develop facilities and services to improve sanitation within the upper catchment (activity 8). Activity 8 enabled the development of

1 Aqua-Terra Nova, Verbos Business Development, For Elements and Agri Mega Group

this assignment, that was later approved by the Ministry of Economic Affairs and funded via the Transition Facility, in which For Elements was tasked to carry out an inventory mission to:

1. Identify demand-driven business opportunities for identified ‘sanitation hotspots’; 2. Inform Dutch companies about business opportunities, mutually beneficial partnerships and the local circumstances.

1.4. APPROACH AND METHOD

From the start, business opportunities were based on an initial set of assumptions. These assumptions were founded on current insights into the challenges and opportunities provided by stakeholders from the area as well as knowledge about the innovative solutions created by the Dutch water sector. Additional information was gleaned from the key stakeholders listed below, to support these assumptions.

 Marijn Zwinkels (Living Lands);  Francis Steyn (Landcare – Department of Agriculture Western Cape Province);  Otto-Ferf Jentink (World Waternet);  Shannon Turner (Informal South);  Paul van Koppen (NWP);  Aart van den Bos (Verbos Business Development)  Ronald Hemel (Hemels Advies)

We further inventoried existing literature (see appendix 2). During our one week mission to South Africa, visits were made to private entities, governmental organisations, the financial sector, scientific institutes, sustainable businesses, waste treatment companies and NGOs. These entities are listed in appendix 2. The business opportunities identified were subjected to a SWOT analysis whose conclusions guided the way forward and provided an overview of the next steps.

2. ANALYSIS AND RESULTS

2.1. DOCUMENTS

2.1.1. BERG RIVER IMPROVEMENT PLAN (BRIP) The Berg River Improvement Plan (BRIP) is the overarching document defining the restoration of the Berg River Catchment. The BRIP was developed by various stakeholders, including the Western Cape Government (WCG), DWS, the municipalities and the Department of Agriculture, with the intention of improving the water quality of the Berg River. The objectives of the BRIP are to:

 Reduce the negative impact of municipal urban areas, particularly informal settlements and wastewater treatment works;  Reduce the negative impact of agriculture on the Berg River’s water quality to acceptable levels; and  Ensure the efficient sustainable use of resources and ecological integrity.

Six core tasks were identified to improve the water quality (see appendix 4 for the complete report) are identified. These are as follows.

 Task 1: Establish a Berg River Water Quality Monitoring Programme.  Task 2: Upgrade Wastewater Treatment Works and Train Process Controllers.  Task 3: Upgrade Informal Settlements.  Task 4: Advocate Best Practice in Agricultural, Industrial and Domestic Land-use.  Task 5: Riparian Zone Rehabilitation and Management (Buffer Zone).  Task 6: Review Water Management costs in the Berg catchment.

These six tasks formed the foundation to determine key resources for pollution and related activities. The key resources identified are listed as follows.  Wastewater treatment plants (WWTPs): At present there are 35 WWTPs along the Berg River, of which 20 have a direct negative impact on the river. Upgrading the WWTPs has started in Stellenbosch and Drakenstein.  Thirty-five informal settlements with an estimated population of 34,000 living in 7,400 structures impact the river directly and indirectly. Although bulk sanitation services are provided, black2 and grey water are disposed of in storm water systems which are often directly connected to the surface water of the Berg River.  Agricultural run-off from 7,073 farms is shedding high levels of nutrients into the water. This is exacerbated by irrigated return flows which increase the nutrient load into the Berg River.  Industries are likely sources of pollution in the Berg River as well. However, the levels of pollution have yet not been quantified.

2 Black water is water with faeces and urine.

 The geology of the catchment area and climate change also have negative impacts on the river system.

The Berg River Improvement Plan highlights the current status of pollution and the various interventions that have been or are currently being undertaken by municipalities and provincial in the Western Cape. It identifies short (≤ 5 years) and long (5 – 30 years) term interventions, as well as their financial implications. In order to achieve its objectives listed above, the BRIP will: establish a Water Stewardship for the Berg River Catchment; and provide input to the Business Plan that is currently being drafted by the Cape Agency for Sustainable Integrated Development in Rural Areas (CASIDRA3) on behalf of the Department of Water Affairs (DWAF4). We have not been able to obtain CASIDRA’s business plan as it is currently under development5.

2.1.2. MUNICIPAL PLANS The integrated development plan is the overall umbrella for all activities that municipalities are intending to carry out. Besides the Local Economic Development plans, water related documents such as the water service development plan, the reconciliation plans, sewer management plans and others are part of the municipal engineering plans. These plans can be found at www6.dwa.gov.za/docportal or via de websites of the municipalities.

What are clearly missing are integrated water management plans. The municipal documents relating to water solely focus on the municipalities’ mandate of sewerage and water supply. There is no connection being made between storm water and the river systems throughout the municipality, and little substantial collaboration between municipalities.

2.1.3. SANITATION Sanitation is a hot item in South Africa as approximately 20 million inhabitants lack proper sanitation facilities. Over recent years there were various incidents in which members of the public demonstrated against the poor sanitary conditions in informal settlements. Sanitation is considered a basic human right, as are drinking water and electricity. Municipalities are equally obliged to provide basic services to the inhabitants of informal settlements as they are to the inhabitants of other areas within their jurisdiction. The fear among the inhabitants of informal settlements is more to do with the number of rats during the summer than the lack of sanitation facilities. They believe that rats carry diseases and attract dangerous snakes. Although this seems to weaken the argument to provide proper sanitary facilities, it may act as a trigger to boost behavioural change in regard to sanitation.

An overview of the sanitation needs in the Western Cape are given in figure 1 (source: Sanitation Services – Quality of sanitation in South Africa, DWA-2012). Compared to the rest of South Africa, the Western Cape only has a few spots where no services are provided. Unfortunately the Western Cape is not representative for South Africa. Limpopo, Eastern Cape and various other provinces are far worse compared to the Western Cape.

3 Implementing Agency for the Western Cape Department of Agriculture 4 DWA became DWS (Department of Water Affairs and Sanitation) in 2014 5 The project is facilitated by Kobus Oosthuizen (

Figure 1: overview of sanitation hotspots Western Cape province (source: sanitation service - quality of sanitation services in South Africa

2.1.4. BERG WATER PROJECT The Berg Water Project (BWP) was part of a multi-track drive to improve water security for over three million people served by the integrated Western Cape Water Supply System. It is expected that the combined demand from urban and agricultural usage will exceed the water yield available from the area’s conventional water resources by 2020. In this scenario, the BWP aims at augmenting the water supply to Cape Town. This multi-million dollar project is operated by the Trans-Caledon Tunnel Authority (TCTA) which acts as a special purpose vehicle to fund off-budget projects for DWS. In its role in facilitating the tendering of the BWP, in 2002 TCTA estimated that project costs would amount to USD 173 million. The current status of the project is unknown. The figure below shows the steps needed to meet the required water demand (source: https://www.dwaf.gov.za/Projects/RS_WC_WSS/).

Figure 2: overview of planned schematic activities to meet water demand of Cape Town Metropolis

2.1.5. LANGRUG INFORMAL SETTLEMENT Genius of Place (GOP), supported by Informal South, is running a project in the Langrug informal settlement. The project focusses on establishing a waste water treatment facility based on bio- mimicry technology – using plants, trees, organisms and other materials to filter the water. The waste water treatment facility will clear run-off from informal settlements while providing the local inhabitants with jobs and knowledge skills. The Western Cape Government and the Municipality of Stellenbosch are supporting the project.

2.2. FIELD TRIP

2.2.1. INFORMAL SETTLEMENTS The impact of waste water run-off into the surface water is clearly visible. During a field trip to Eerste River, the colour difference between two merging rivers, one linked to informal settlements the other to formal housing, at Stellenbosch was clear, as was the odour of the water. This was only one of many clear examples during our trip. Several newspapers ran front page coverage of the worsening water quality rates in various river systems within the direct vicinity of the project area. Informal settlements are a big contributor to the Water quality issues in the Berg River. Although solutions may seem quite straightforward, politically this is far from the case as providing infrastructure for water and sanitation might be seen as formalising informal settlements, which are still considered to be illegal.

Paradoxically, water, sanitation and energy are considered basic human rights and therefore minimal services must be provided by the municipalities, even to informal settlements. Furthermore, municipalities receive funds from the national government for every inhabitant that they have provided with these basic services.

Ishack, all local entity is aiming to upgrade the Enkanini community in Stellenbosch via a sustainable business approach. The sales of solar PV combined with a television is a success. The sustainable sanitation approach is less popular. Although connected to a fermenter to produce biogas for cooking only one fermenter is sold at this moment. Funding remains the biggest obstacle as the implemented fermenters cost approximately 10.000 euro’s. The implementation of sustainable sanitation moves at a slower pace compared to electricity.

2.2.2. LOCAL FARMERS Agriculture covers 65% of the total area of the Berg River Catchment and is divided among about 7,073 farms. Assuming that each farm has approximately 10 workers, this would mean about 280.0006 farm dwellers in the Berg River Catchment. Most of the farms do not have proper sanitary facilities for their workers even though farmers, under land reform policies, are obliged to provide adequate sanitation, water and energy facilities to their farmworkers. The land reform policies create an incentive to farmers to provide these facilities on the assumption that the lack of the facilities will have a negative effect on the value of the properties in the long run.

However, farmers are reluctant to provide these facilities. Previous experience in South Africa has shown that farmworkers’ toilet facilities are either connected to a sceptic tank or to a system that drains to either a small stream or to groundwater. During the intervention we were unable to carry out a detailed survey to further investigate the sanitation facilities and the connections to the water bodies. The farm we visited had built a highly sophisticated treatment facility for the grey and black water from the farm and farm workers. Surprisingly, the main goal of this facility was to avoid dependence on the insecure water supply which serviced by the municipality. As stated above, most of the farms do not have these facilities, but further investigation is needed.

6 We assumed that each farmworker lives in a family of 4.

2.2.3. PRIVATE SECTOR Two major wine producers, with the support of Living Lands, started a participatory process. The water quality of the Eerste River at Stellenbosch is of such a poor quality as to put the wine production and sales at risk. All wine production is subject to high quality standards laid down by the sector and export organisation of South African vineyards. The wine producers’ participatory approach is unique as its most important stakeholders – DWS, municipalities, Department of Environmental Affairs and private entities – share their thoughts and ideas at the table. Previously they had only seen one another in court.

There is a greater need for these types of projects. Not only do the participatory processes meet the main thought of the South African Water Act, participatory processes with key stakeholders might reduce regulatory offences. This could be a welcome asset in a country in which strict law enforcement is not at its best.

2.3. VISITS Discussions with various parties during the trip provided plenty of information. Visits were made to governmental organisations such as municipalities and the provincial governmental bodies; to private entities; and to local NGOs operating in the area. Below is an overview of the outcomes per group or organisation.

2.3.1. MUNICIPALITIES Backlog Both Stellenbosch and Drakenstein municipalities have large infrastructural maintenance backlogs amounting to approximately 2 to 4 billion Rand (approx. 146 – 292 million Euro), while their yearly shortfall is approximately 250 million Rand a year. It is therefore that there asset-management strategies determine their yearly activities. This includes the refurbishment, optimization and renewal of at least six waste water treatment plants over the next five to 10 years.

One can state that their data about their infrastructure is superior to the available data that Dutch municipalities have in the Netherlands. This might be an explanation why their systems with the existing maintenance backlog are still running. Modelling activities of storm water events and sewerage flows on the other hand, are only being carried out in the Netherlands and are not executed in South Africa. While the outcomes of these models provide the main information for sewerage management plans of Dutch municipalities. It was stated however that the modelling techniques in the Netherlands could be a welcome asset to determine storm water flows in flat laying areas like the cape flats, as flooding occurs during heavy rain events.

Expansion Both Municipalities are keen to implement innovative technologies to enhance their civil management in sewage and storm water-systems. Their cities continue to expand, while the connections to waste water treatment plants and the supply of water to these cities becomes more complex and expensive by the day. Drakenstein and Stellenbosch need to build new waste water treatment plants and or connect the new city suburbs to the existing infrastructure.

Storm water Household waste water and storm water are strictly separated in rural areas. That said, many households roofing is connected to the sewerage, reducing the hydraulic capacity of the sewers. This

causes an increased amount of controlled sewer overflows (not measured). In order to reduce the effects, both municipalities usually increase their hydraulic capacity. Neither municipality at this point of time has an overview of the plots that discharge their storm water into the sewerage system. Contrary to what one may expect, storm water pipes are often dirtier than sewer pipes (pers. comment JetVac). This might be the reason that the Municipality of Stellenbosch appears to be searching for methods to treat storm water.

Knowledge and Innovation Capacity building is an ongoing challenge. The knowledge level of South African municipal engineers is equal to that of Dutch municipal engineers. Capacity in relation to human resources, however, is short. Innovative solutions are equally rare and not stimulated by South African consultancy firms (pers. Comm. Stellenbosch). Both Drakenstein and Stellenbosch are keen to learn from Dutch innovative solutions, and are keen to learn from other governmental institutions in the Netherlands. One of the recurring questions heard was “I want to know what is out there, and google doesn’t give me the answers.” This reflects the search for innovative solutions.

On the other hand, civil engineering companies in South Africa seem to have ideas and innovations which are not always familiar to municipal organisations, which are often criticised as being too unwieldy in terms of rules and legislation which slows down the development of innovative methods. These civil engineering companies collaborate with several companies from the European Union. They are pushing municipalities to broaden their tenders in order to create space for more effective solutions.

In order to generate more innovative ideas, Stellenbosch Municipality has collaborated with Stellenbosch University to create an infrastructure innovation committee. The main goal of this collaboration is to bring in academic expertise to seek innovative solutions for the day to day challenges of the Municipality, while stimulating business opportunities.

Other interesting comments received.  Work should be tendered. Municipalities acknowledged that they could use assistance with the development of tender requirements, making it compatible to outsiders as well;  BBBEEE certification is required to win a tender;  Drakenstein Municipality is keen to host Dutch students;  South Africa has not yet developed integrated water management plans at city level.  More staffing and expertise is required;  There is a culture of non-payment as the legal institutions are occupied in handling more serious crime, thus there is no priority to bring offenders that refuse to pay taxes to court;  Stellenbosch would be keen to work under the umbrella of an MoU with Dutch businesses; The MoU should contain rules of engagement to avoid enquiries that do not fit the demands of the municipality;  We would like to investigate the opportunities of selling our waste water treatment plants;  Stellenbosch and Drakenstein work with IMQS (asset management) programmes and EOH (automation and control for WWTPs);

2.3.2. DEPARTMENT OF WATER AFFAIRS AND SANITATION (REGIONAL) The Department of Water Affairs and Sanitation (DWS) is primarily a strategic governmental entity. As a regulatory entity it enforces regulations regarding the discharge of waste water from the municipal waste water treatment plants through the green drop standards. The green drop standard’s requirements are given in appendix 4. DWS’ current activities are:

 mapping sources of spillage and pollution;  monitoring river health via the river health programme;  classifying the ecological importance of river systems;  maintaining the bulk water supply system;  creating a database of best farming practices to reduce run-off;  running the Berg Water Plan (water security for Cape Town and surroundings).

Besides its regulatory role, DWS also acts as a coach to municipalities. Special attention is given to the improvement of waste water treatment plants. DWS is mandated to unlock financial resources, allowing municipalities to obtain access to the municipal infrastructure grant (MIG) and bulk infrastructure grant (BIG), the latter specifically for bulk water projects. Other remarks during the meeting.

 Keen to see private entities take over water supply systems.  Total backlog in water infrastructure in South Africa is 163 billion Rand (about 12 billion Euro).  The creation of jobs is a key priority of DWS.  DWS has a pollution incident management service.  State of Rivers Report: Health of the Berg River, due 2015.  Possibility to adopt the river.

One of DWS’ ultimate goals in relation to the Berg River is the return of the dragonfly by 2020.

2.3.3. INDUSTRIAL DEVELOPMENT COOPERATION. Financial incentives are key to business opportunities. The Industrial Development Cooperation (IDC) is a development finance institution that boosts sustainable economic development. IDC tends to finance solid business plans that generate an economic, social and ecological impact, but which would not be financed by regular banks. IDC does not provide grants and/or subsidies. IDC will only finance water projects that generate spin-offs. Foreign entities looking for financing are advised to collaborate with South African counterparts, as these are most likely to have a BBB-EEE certification, an important advantage.

Besides de IDC various other institutions extend loans, grants and other financial incentives. These can be found on http://www.investmentincentives.co.za/. The job fund and green fund are some of the incentives provided by the national government which subsidises each job created. Procedures can however take time (15 – 18 months).

2.3.4. GREEN CAPE Cape Town and the Western Cape Government established Green Cape in 2009 which aims to green the Western Cape. Green Cape’s original focus was on renewable energy, but its scope widened to enable support to a variety of green initiatives. Its core business is to facilitate the process of implementing new innovative green solutions within the Western Cape. Its services include:

 Mapping of resources;  Brokering  Research and studies.

Green Cape is currently mapping financial opportunities for green investments.

2.3.5. COUNCIL FOR SCIENTIFIC AND INDUSTRIAL RESEARCH (CSIR) The Berg River Catchment is one of the main areas of the Council for Scientific and Industrial Research’s (CSIR) research. Of its two major research programmes, one is funded by the national government and focusses on the water quality of the Berg River, and the second is funded by the European Union and specifically focuses on the upper catchment of the Berg River. Both programmes assess and quantify the pollutants that enter the Berg River. CSIR has indicated four main sources of pollutants.

1. Informal settlements. 2. Municipal waste water treatment plants. 3. Run-off from farm land. 4. Natural geological causes

The research has already resulted in interesting findings. CSIR has discovered that the algae blooms in the dams cause substantial economic damage, particularly to the local wine industry. As margins are limited, algal blooms reduce the net profit of wine and grape farms by up to 10% (1,000 Rand per hectare). More information cannot yet be shared as the research programme is still underway. Besides research, CSIR is involved in the establishment of the CMA Berg-Olifants. Keith Kennedy, one of the the institute’s researchers, has a seat on the advisory committee. Much information about the progress of this process could not be shared due to political reasons.

2.3.6. BREEDE GOURITZ CATCHMENT MANAGEMENT AGENCY (BGCMA) The Breede Gouritz Catchment Management Agency (BGCMA) has been in operation for seven years. Although not situated within the priority area of the Berg River Catchment, BGCMA and its activities are an example to the future water management agency that will be established in the Berg River Catchment. The BGCMA collaborates with municipalities and its main duty is to improve catchment water quality. As a water agency, it supports municipalities with the paperwork required to obtain funding from the Treasury to upgrade waste water treatment facilities. BGCMA obtains the mandate for the water licencing process. This is one of the National Water Act’s key priorities as it will boost equality in relation to the accessibility to water for emerging black farmers.

2.3.7. WESTERN CAPE GOVERNMENT The Western Cape government (WCG) is one of the developers of the Berg River Improvement Plan (BRIP), and as such is one of the custodians of the Langrug community project to improve the run-off from the informal settlement at Fransschoek. In collaboration with Informal South and Corc a solid project team has been established that aims to develop a natural waste water treatment plant that can be owned and maintained by the local community, and provides a source of income at that same time. The WGC supports the development of this treatment facility and facilitates the process. Besides WCG’s will fund 50% of the project costs although Stellenbosch municipality is financially responsible since waste water treatment falls under their mandate. WCG stated that this is the only sanitation project in the Berg River Catchment in which it is involved.

2.3.8. JETVAC Jet Vac is the equal of Van der Valk+ de Groot in the Netherlands. Jet Vac is the biggest company in South Africa that inspects, renovates and cleans the sewerage and storm water infrastructure. They use innovative techniques such as relining. Jet Vac maps all the inspected sewerage and storm water pipes according to the WRC standards (UK standers for sewage and storm water inspections). Besides they are capable to design renovation plans.

There is a strong drive for innovation. They design new technology to reduce costs, while increasing the pace at which pipes can be inspected and cleaned. Besides, operational costs are being reduced by the development of a treatment facility to remove all the toxins from the collected sludge. Jet Vac underpins the statement of the municipalities in regard to the maintenance backlog. Pipes are in general, cleaned once per 50 years7. The populations is growing and cities are expanding and so is their market. A collaboration or joint venture between Jet Vac and van der Valk + de Groot, Insituform / MTC (relining), Reijm (piping) and/or Koks Alkmaar (piping) is therefor might deliver an interesting business case for the Dutch water sector. Especially since Jet Vac is already familiar with these Dutch entities.

2.3.9. ZERO TO LANDFILL ORGANICS Zero to Landfill Organics provides training, educational material and separation systems for food waste separation programmes in businesses located in the City of Cape Town. They often partner with other companies within the sector to increase their impact. However collaborations from outside the sector occur as well. Within the light of the decomposing faeces to compost, this is an interesting feature.

ZTLOrganics does not work directly on the treatment of waste water and sludge, although needed knowledge is available. A pilot project run in the settlement of Kayamandi in which faeces was treated into compost Detailed information could however not be found. The owner of ZTLOrganices made one last interesting remark. The rules and legislation of larger scale collaborations are subject to enforcement by the Environmental Health Metropolitan Police. Small scale entities are thus more flexible in relation to the regulations. The exact pro’s and cons should be further investigated.

7 The Netherlands has a scheme in which the sewerage is cleaned once every 10 years

2.3.10. WAMTECHNOLOGIES Although a meeting with WAMTechnogies could not go on, they could not be left out of this overview. WAMtechnologies conducts risk assessments of municipal systems like sewage and storm water management systems, they evaluate entire organisation by assessing processes and risks. Its methodologies can be outlined briefly as follows.

 Risk and Vulnerability Assessment: with a focus on potable water and health and safety. Included in this phase is a site visit to the community and local government.  On-site detailed Asset Assessment at component level.  Process Flow and Layout Drawings.  Site and Asset Specific Operational Manuals per system.  Scheduling Preventive Maintenance.  Import of historical data.

Both Drakenstein and Stellenbosch municipality make use of their services.

2.3.11. SOUTH AFRICAN SOCIETY TRECNHLESS TECHNIQUES The South African Society of Trenchless Technologies (SASTT) aims to bring in innovating technologies used for the management and maintenance of sewage- and storm water systems. Besides the municipal wet infrastructure, SASTT has a strong linkage with petrochemical enterprises. Trenchless technology (TT) is technology for the servicing, rehabilitation and replacement of existing, and the construction of new, underground public utilities and other services without digging of trenches This includes the development of various underground condition-assessments and mapping techniques, tunnelling devices and the usage of special machinery, materials and equipment. Enterprises and municipalities like the City of Cape Town are closely related to the platform of the SASTT.

3. SWOT The SWOT analysis is carried out as such that is visualizes the possibilities for the Dutch water sector in the Berg River area. The strength, weaknesses, opportunities and Threats are based on the findings during the inventory mission, meaning knowledge gabs, personal comments, current approach and straightforward business opportunities.

3.1. STRENGHT The following strength were indicated during the intervention

 South Africa and the Netherlands, especially in the Western Cape have a strong historic connection. Organisations keep on referring to this connection;  The knowledge level in South Africa is relatively good and comparable with the Dutch knowledge (in the higher management);  The used level of technology is high, decreasing the knowledge gab between their technology and Dutch innovative technology;  Cultural differences are marginal;  South Africans are very open to new innovative solutions;  South Africans understand the challenges that they are facing and do have action plans to tackle these issues;  Actions plans are in place to restore the Berg River are in place;  The infrastructure (roads, internet, etc.) in the area is good;  Daily flights between Amsterdam and Cape Town;  A lot of research on the Berg river catchment has been conducted, thus much knowledge is available;  Tenders in South Africa are visible via the Tender Bulletin that is released to public.

3.2. THREAT

 Capacity (Human resources and/or knowledge) might not be up to standard, slowing the process from desk studies towards implementation, which ultimately might threat the energy and/or believe in a project;  Language barriers and related miscommunication;  Distance for communication;  Difference in yearly time schedules (holidays and financial year);  Lack of capacity in human resources;  Lack of capacity in knowledge about Dutch technology (operation and maintenance);  Competition from South African entities;  Collaboration between municipalities could be enhanced;  There seems to be a gap between rules and legislation related to innovating solutions;  Tenders are not aimed on using new and innovating methods;  Red tape and time consuming bureaucratic procedures.

3.3. OPPORTUNITIES:

 Development of waste water treatment plants with specific technology (Bulsing industries) or process oriented (Nereda);  Modelling instruments like SOBEK and 3DI;  The market is innovating in effective methods, and expanding;  Treatment of Storm water via the “sock” of Grontmij;  Holistic approaches, as South African tend to approach projects by sector. The Aqua-Soil Approach is a good example;  South African entities are open for Business to Business collaborations;  Opportunities for capacity building, online courses;  Integrated water strategies on a local level or a so called “Urban Waterplan” are not available;  Government 2 Government approaches that function as a “lever”. And thus the LGCP and Kingfisher programs;  The availability of facilitation agencies such as Green Cape or Living Lands;  The fact that there is a backlog of 162 billion Rand nationwide and 2 to 4 billion rand in each municipality in regard to infrastructure;  Software to visualize progression on a programme like AKVO;  Innovative solutions at the border of the townships;  Available funding on the South African continent;  Integrated technology (wastewater, water and energy) for farms.

3.4. WEAKNESS

 Visibility of Dutch innovative solutions;  Visibility of available tenders in South Africa via a Dutch website; The market in innovating methods seems to be underestimated or methods are not suitable in common environmental rules and legislation;  Tenders are based on old-fashioned and conventional methods;  Dutch entities are not BBB-EEE certified;  Accessibility to nation South African funding;  Multi stakeholder approach is needed;  Continuous coordination of activities;  Visibility of activities is lacking;  Communication between municipalities hardly takes place.

4. APPROACHES There are good business opportunities in South Africa for the Dutch water sector. Although South Africa does have the skills in most of the well-known technologies in relation to water, water management and sanitation, there are still opportunities for the Dutch water sector. This chapter covers some of the approaches, technologies and strategies that can support the export of Dutch Water technology and expertise in South Africa.

4.1 INNOVATIVE TECHNOLOGY South African solutions are quite straightforward and conservative, especially in the field of waste water treatment plants (wwtp).Municipalities therefor mention that there is a strong need for innovative technology in South Africa. Even though, the innovative technologies are available, these are seldom implemented. Opportunities for the implementation of innovative technology is available, as both municipalities are in need of new wwtp or obliged to refurbish the old wwtp’s.

Figure 3: wwtp designed by Bucon Industries

Both municipalities expand and need new wwtp’s . Besides, the BRIP puts pressure on the municipalities to refurbish various old wwtp’s over the next years. Nereda technology and Bucon Industries (see figure 3) with their Batch treatment plants are innovative and are already running examples in South Africa. The Water Campus at Leeuwarden might also have available technologies that are suitable for the South African market. However, marketing and visualization of Dutch technology is of essence to create awareness amongst decision makers. On the other hand, Dutch entities need to be aware of the available tenders8, allowing them to tender. To conclude: direct innovations can be implemented but both sides (South African and Dutch) need to visualize their needs and available technology.

8 http://www.sa-tenders.co.za/

4.2 MODELLING AND CONSULTANCY Municipalities have no idea how water flows through their sewerage systems. The Netherlands is one of the few countries in the world that has expertise in the field of modelling sewerage systems. Stellenbosch in particular was keen to see examples of the storm water modelling features that can be delivered by SOBEK. Besides sewerage and storm water, surface water can be integrated both quantitatively and qualitatively. As integrated urban water plans are not available, outcomes of such models allow consultancy firms to create water master plans that integrate both the mandate of the municipality (sewer and water supply) as the mandate of DWS (surface water).

Surface run-off is seldom a real issue for the municipalities that we visited and therefore 3Di (see figure 4) is less likely to be of interest. The municipal engineer though, suggested that 3Di might be useful for the flatter areas in the Cape and may therefore be of interest to Cape Town9 as they are challenged with flooded roads after heavy rainfall events.

Figure 4: 3D modelling of surface run-off during a rain event

4.3 BUSINESS TO BUSINESS The most promising approach is the business 2 business approach or the establishment of joint ventures. However, these are only developed once strong (economic) benefits are available for both entities. As stated a collaboration or joint venture between Jet Vac and van der Valk + de Groot, Insituform / MTC (relining), Reijm (piping) and/or Koks Alkmaar (piping) are considered good options. Especially as the market seems to be growing.

Others can be found in the field of data management. IMQS, WAMtechnology are potential partners for Grontmij (DG Dialog), RioDesk (Kikker) and Nelen&Schuurmans (Lizard and Urban). A possible connection to Deltares (SOBEK, 3Di) exists.

9 Cape Town is a Delta city, approaches that are used in Jakarta and Ho-Chi Minh could be usefull for Cape Town as well

4.4 VALUE CHAIN APPROACHES. Connect sanitation and water management to business opportunities. Although this remains a challenge (challenges are experienced in Langrug and Enkanini) there is a great potential for this type of approach (see figure 5) as jobs, electricity, food security, water availability and land reform policies all remain important triggers for the national government in South Africa.

figure 5: overview value chain sanitation and agriculture (source: For Elements)

The Aqua-Soil Approach is a good example of a business oriented approach. This approach connects waste water treatment with job provision in the agricultural sector, while decreasing water pollution and increasing water availability. Besides this, the approach stimulates skills development and composting of organic waste and sludge. Due to the modular set-up, the Aqua Soil Approach can be tailored to local circumstances and market demands in the food chain. These approaches on the other hand enhance cross-over connections between other key sectors. Agro Food, Horticulture and water are strongly interlinked, yet seldom10 connected within project proposals. Proof of concept is established in Bleiswijk the Netherlands (Aqua-reuse).

4.5 RELATIONS WITH JOBS. The main priority is the development of jobs. Visualization of the amount of jobs that are delivered is an essential subject within the development of a business proposal. The average low-cost worker in South Africa earns approximately 150 Rand a day (approximately 11 euro’s). Visualization of the created jobs provides an opportunity to retrieve funding via South Africa’s job fund.

10 ELeaf is one of the projects that connects water management and food security.

4.6 FINANCIAL HURDLES Finances is often one of the major concerns, especially when new approaches are being developed. Although financial incentives are widely available in South Africa, it remains difficult to access these funding opportunities. Accessing them becomes easier with strong collaboration with South African partners, preferably BBB-EEE certified11. Other potential opportunities to attract financial support from the South African side are:

 to gain access to the Municipal Infrastructure Grant via the municipality and possibly in collaboration with DWS regional;  to gain access to the Bulk Infrastructure Grant (BIG) via the municipality and possibly in collaboration with DWS regional;  use additional income from the municipalities for the service provided to informal settlements as co-investment for sustainable sanitation (this requires further examination of the possibilities);  to approach the Green Fund (only accessible by South African entities);  to access the Job Fund in cases where the innovative approach has a strong pro-poor impact on job creation;  to examine other opportunities on http://www.investmentincentives.co.za.

4.7 CONTINUOUS ACTION Keeping the energy flowing. Although essential for ongoing involvement, this is the greatest challenge after an intervention, even when a collaboration is demand driven. So how can we keep the energy between partners flowing? The following personal comments have been during the intervention: 1. Involve students as they do not have a stake and trigger discussions and often curiosity; 2. Visualize current activities and initiative with web-based tool(s). Progression, involved partners and tools for open communication should be an asset of the provided tool. AKVO is one of the organisations that is capable to visualize activities; 3. Facilitate coordination via a liaison. Someone who can pull and push progression, has an ear for new developments and is familiar with the region and the sector. The latter is important as business is generated on a basis of trust.

11 BBB-EEE certification is devided in sub categories, depending on performance.

5. CONCLUSIONS

5.1 GENERAL BERG RIVER 1. Water quality issues are considered to be the biggest constraint in the Berg River Catchment; 2. The return of the Dragonfly is the symbol to the status of good health of the Berg River as stated by DWS. They aim to achieve this by 2020; 3. The Berg River Improvement plan is the most important plan for the improvement of the Berg River and related business opportunities; 4. The Berg Olifants Catchment Management Agency is currently in the process of establishment 5. A business plan for the Berg River is under development. This business plan is part of the process to establish the CMA. 6. Hoogheemraadschap van Delfland will provide support to the establishment of the Berg-Olifants CMA under the umbrella of the Kingfisher program

5.2 GENERAL ECONOMIC OPPORTUNITIES 7. There are good business opportunities for the Dutch Water Sector in the Berg river area. 8. Nereda, Bucon Industries, SOBEK, 3DI and the “sock” from Grontmij might generate direct spin- off; 9. The Aqua-Soil Approach is the only holistic approach that meets the most important requirements from DWS, the municipalities and the department of Agriculture (jobs, food security, water security, water safety) as well as the goals of the Dutch economic sectors (cross- over on water, horticulture and agro/food); 10. Innovations that lead to cost reduction and footprint reduction are preferred; 11. South Africa is well developed and much technology is already available; 12. Collaboration with South African entities provide access to national subsidies; 13. Both CSIR and DWS state that the private sector is the solution to the issues around waste water treatment works. The extend to this opportunity must be further investigated; 14. Green Cape can assist the private sector to smoothen discussions with governmental organizations; 15. DWS is going to invest in the bulk infrastructure for the water supply to the Cape Town metropolis via Trans-Caledon Tunnel Authority (TCTA) which acts as a special purpose vehicle to fund off-budget projects;

5.3 MUNICIPALITIES 16. The skills of the municipal workers in the Berg River area are good; 17. The workload of the municipal workers in the Berg River area is great. Demand driven business cases are essential to get commitment and support; 18. The backlog for infrastructure (maintenance) summons between 2 and 4 billion Rand per Municipality;

19. Dutch entities are allowed to tender. However it is questionable if Dutch entities are aware of the available tenders in a period of time; 20. Drakenstein Municipality will open a tender to renew the SARON waste water treatment plant on a short notice (2014); 21. A complete overview of all the activities that are currently undertaken in the Berg River catchment seems to be lacking; 22. The berg River Municipality, Saldhana Bay Municipality and Swartland are not visited. Especially Saldanha bay might have good business opportunities as the harbour is being expanded; 23. Municipalities are open for new innovations and approaches; 24. Stellenbosch and Drakenstein municipalities are expanding which opens opportunities for the Dutch Water Sector as new waste water treatment plants and drink water distributions need to be developed; 25. Storm water from roofs are connected to the sewer pipes. This causes hydraulic problems at the water purification plants and increased controlled sewer overflows; 26. Municipalities are keen to get assistance with the development of tenders, creating opportunities for the Dutch private sector; 27. Integrated water management plans (sewerage, storm water, drinking water and the connection to the river system(s) or waterbodies) on municipal level are yet not developed within the municipalities; 28. Municipalities are ahead on Dutch municipalities in regard to asset management (IMQS as their key provider of services); 29. DWS (regional) can be an important player when creating business opportunities for waste water treatment plants within municipalities as they have direct links to treasury and are entitled to assist municipalities to get access to MIG and BIG 30. Capacity building is an important issue. Knowledge and human resources are both needed; 31. BGCMA in the context of business development can act a s mediator between DWS and the municipalities in regard to sanitation and financial ability for the upliftment of wwtp’s within the municipalities;

5.4 FARMS 32. The wastewater from approximately 40.000 of approximately 280.000 farm dwellers might end up in the Berg River. The exact quantity and impact must be further studied as 1000 farms are considered to be a potential market for holistic technology12; 33. Fruit farmers loose approximately 100 Rand per hectare due to algal blooms, which is approximately 10% of there net profit; 34. CSIR states that the issue in informal settlements is not solely sanitation. Solving the sanitation issues can only be achieved by increasing the living conditions of the inhabitants;

12 Holistic technology is technology that combines water, waste water and the production of electricity and/or compost;

5.5 INFORMAL SETTLEMENTS 35. Business within the informal settlements remains a challenge. 36. In collaboration with Municipalities and/or NGO’s business opportunities might become feasible. 37. Business at the borders of the informal settlement might be worthwhile to look into as it might ease political discussions; 38. Small-scale business models can be suitable in informal settlement. Pilot projects can collaborate with established enterprises in West Cape;

5.6 BUSINESS 2 BUSINESS 39. Business 2 business collaboration between Dutch and South African partners allow Dutch partners to access South African funding; 40. Business 2 business is the most feasible way to do business in South Africa as organisations are less restricted to political influences; 41. Various possibilities for Dutch-South African collaborations have been indicated.

6. WAY FORWARD

6.1 GENERAL The main goal of the South African government is to create an all-inclusive, labour intensive green economy. Partners of the Berg River Improvement Plan (BRIP) underpin this statement as the development of jobs, green initiatives and the importance of good water quality for the regional economy were part of the day to day conversations. The BRIP itself harnesses this development and triggers solutions to reduce pollution while improving livelihoods. Dutch involvement in the Berg River should meet the requirements for this development.

This intervention showed the available business opportunities. Although, direct implementation of some of the mentioned technologies is very well possible, this will however not lead to sustainable growth of the Dutch Water Sector in South Africa. To boost Dutch involvement in the Berg River a solid collaboration between government, entrepreneurs, knowledge institutes and NGO’s from both South Africa and the Netherlands is key to establish an enabling environment for business opportunities. Co-create SA, the Baviaanskloof (Living Lands and the Ecosystem Return Foundation) and the Centre of Expertise (Durban) provide insights for the follow up needed to overcome some of the following challenges:

 Dealing with government, business and civil society creates often confusion as to their roles and responsibilities;  Action plans are often not being carried out;  Ascertaining how local level benefits could be generated from national reforms;  Challenges for cross sectoral-collaborations;  Unknown to what extend organisations are aware of one-another initiatives, activities and results within the Berg River Catchment;  The general comment that we are there to take, not to bring business opportunities

Overall: Its advised to step away from the one-sided business approach, but create an enabling environment in which South African-South African, Dutch-Dutch and South-African Dutch collaborations are formed and generate projects and business opportunities, while it harnesses sustainable growth for Dutch entrepreneurs. This approach is explained in paragraph 6.1.1. “Broker the idea”.

Besides, this chapter will give an overview of: - no-regret measures and short term interventions - input for existing programs run by the Netherlands - Steps per target area (informal settlements, municipalities , Business to business and the rural area)

6.1.1 BROKER THE IDEA Broker the idea is based on three intentions:

 To build partnering approaches and competencies that strengthen the capacity of each sector to fulfil its primary function more effectively and accountably;

 To promote a more ‘enabling environment’ in which cross sector sustainable development solutions become the norm rather than exception; and,  To position the partnership approach as a culture that challenges the ‘business-as usual’ approach and seeks to formulate alternative and more effective ways of achieving economic, social and environmental sustainability

The outcomes of a two day workshop should be:  Knowledge exchange, business opportunities, projects and news;  Small project start-ups without an underlying business plan;  Via social media visualization of projects, enabling opportunities to join in;  Active involvement of knowledge institutes and students;  An overarching South African-Dutch program to enhance the livelihoods within the Berg Catchment area;  An enabling environment in which the strength of NGO’s, government, businesses, knowledge institutes and financial institutions.

More information about this approach can be found in appendix 7.

6.1.2 TO KEEP MOMENTUM:  Create a secretariat (South African/Dutch);  Visualize action and progress (web based via AKVO);  Develop a process that is comparable to the process run in the Baviaanskloof via Living Lands, Centre of Expertise (Durban) and Co-create SA;  Connect to existing programs where possible (BRIP and “Agenda Natuurlijk Kapitaal”);  Create placements for students at the offices of South African governmental institutions within the Berg River Catchment;  Support the development of one of the business leads that are mentioned within this report.

6.2 SHORT TERM INTERVENTIONS

6.2.1 NO-REGRET MEASURES  Visualize current activities, action and progression web based. On-line tools should ease communication and the involvement of external stakeholders, while boosting the energy level. AKVO provides these services;  Get students involved as they generate curiosity and are not seen as a threat. Municipalities acknowledged this approach and were willing to host students from the Netherlands;  Create a Dutch Water innovation webshop, allowing possible buyers to get an overview of the available technology. This webshop can be connected to www.dutchwatersector.com and linked to actual projects;  Organize an intervention for Municipalities, private entities, provincial and national governmental representatives that allows South Africans to see Dutch innovations at work;

 Support Dutch entrepreneurs, via the Transition Facility to develop the direct business leads within this report.

6.3 WAY FORWARD PER PROGRAMME

6.3.1 STEPS “AGENDA NATUURLIJK KAPITAAL” The next steps are related to activity four of the project plan “Berg River Ecosystem Restoration” that is guided by DLG and Living Lands. Activity four aims to Improvement sanitation facilities and awareness along the Berg river(participation farm accommodations, houses, schools) via the following activities:

1. Identification sanitation hotspots along the Berg river 2. Development sanitation hotspots improvement plan (including commitment relevant stakeholders/farmers, approval budget and co-finance). 3. Implementation and delivery sanitation improvements and awareness activities

The project tackles a niche. Where other programmes and plans aim to improve sanitation facilities within the urban areas and informal settlements, the Berg River Ecosystem restoration plan focusses on the improvement of sanitation facilities in the rural areas, targeting about 270.000 inhabitants (quick estimation) along the Berg River. This intervention has been too short to get a clear overview of the existing issues in the rural areas. Therefor we propose the following steps to be undertaken by the project:

 Map farms, small settlements and schools that are within the direct vicinity of the Berg River and its tributaries;  Inventory existing facilities at the recorded settlements, farms and schools;  Determine the environmental impact of the occurring waste water flow from these settlements, schools and farms;  Inventory and determine best practical solutions.

It is to be advised that these activities are carried out with help of students.

6.3.2 KINGFISHER South Africa’s water governance structure is in the process of being reorganised. This reorganisation involves the decentralisation of tasks from the Department of Water and Sanitation to 9 Catchment Management Agencies (CMAs). Though the operational conditions differ, the CMAs show a lot of similarities with the Dutch Water Authorities. Water boards from the Netherlands therefor support the development of 9 CMAs).

Even though the approach of this watergovernance programme is colleague to colleague based, it offers great opportunities to get the Dutch private sector involved. The CMAs will have the responsibility to support municipalities with the improvement of waste water treatment plants, permits for water rights and water quality aspects within the catchment areas of their jurisdiction. The Dutch waterboards are in the driving seat to create awareness amongst their South African

partners about existing Dutch technologies. The development of small practical projects, in which capacity building and the implementation of Dutch technology are combined might speed up the process for Dutch export.

6.4 WAY FORWARD PER TARGET AREA

6.4.1 INFORMAL SETTLEMENTS The opportunities for holistic approaches for informal settlements are easily sketched. Implementation is however a different story. Opportunities can be created with assistance of local NGO’s like Ishack or Informal South and/or with the strong will of a municipality. Direct business opportunities are not likely to exist, as most of the needed technology seems to be present in South Africa. Options for further investigations are:  Opportunities for organisations as SafiSana with financial contributions via the Municipality (as they are paid by national government to service the inhabitants of informal settlements);  Opportunities and legal consequences of setting up an intervention at the boundary of the informal settlement.

6.4.2 MUNICIPALITIES The business opportunities for municipalities are quite straight forward. Municipalities keep expanding and therefor need to expand the water supply and sanitation services. Low cost and low footprints are important indicators for successful proposals. Municipalities put all public works to tender. While Dutch entities are welcome to tender for published public works, the scope of the work is rarely specific enough, thus favouring South African companies which can undercut Dutch companies on price. Tenders can be altered to provide opportunities for Dutch entities, but assistance is needed in doing so. Solisted bid procedures are another option, though the processes they involve mean that it takes at least three years for the paperwork to be arranged. Direct business opportunities can be delivered by:

 RHDHV Nereda;  Bucon Industries communal wwtp  Deltares SOBEK;  Nelen&Schuurmans 3Di (Cape Town area);

Municipalities have various challenges and goals. Straight forward business opportunities do not connect more prominent socio-economic challenges as the provision of jobs, food security, local economic development strategies and green urban development in terms of parks, bike tracks and the backlog of houses (pers. comm. Stellenbosch. These challenges can be captured in approaches from:

 The Aqua-Soil Group Aqua-Soil Approach;  Consultancy firms integrated water management plans on a urban level.

Besides business opportunities, municipalities are in need to capacitate their employees.

Possible steps derived from this report are:

 Linking the business opportunities to the municipalities;  Visualizing tenders via Dutchwatersector.com or a related Dutch website;  Provide South African municipalities with support to alter tender procedures;  Involve students for further research within the municipalities to extract more knowledge about the municipalities, while improving the Dutch-South African relationship;  Set-up of tailor made courses, possibly webbased;  Organize workshops to stimulate holistic business opportunities like the Aqua-Soil Approach as this will connect food security, water management and jobs at the same time, while combining three key economic sectors of the Netherlands.

6.4.3 FARMERS The 7073 farms provide shelter to approximately 280.000 farm dwellers. South African land reform legislation forces farmers to improve the basic services for their workers. However, law enforcement is weak, thus much change is unlikely to happen. The effect of inappropriate sanitary services on farms are most likely only a threat for the Berg Rivers water quality when situated at the banks of the river. Business opportunities are, even though there is a potential market, expected to be low. Innovative solutions that combine electricity, water and sanitation at once might set foot on the ground. As the argumentation is mostly based on assumptions, further investigation is needed.

6.4.4 BUSINESS 2 BUSINESS Follow-up’s to boost business 2 business opportunities are based on two approaches:  Create an intervention allowing possible business partners to meet;  Visualize existing goods and services in both South Africa and the Netherlands.

APPENDIX 1 OVERVIEW LITERATURE

Name Date institute Goal BRIP 2012 Western Cape Action plan restoration government Berg River Catchment Western Cape IWRM13 2010 Western Cape Action plan integrated action plan government water management Quality of sanitation in 2012 DWA Overview of sanitation South Africa Main status South Africa report Integrated 2013-2018 Drakenstein Financial programme Development plan municipality for the next 5 years Drakenstein Integrated 2012 – 2017 Stellenbosch Financial programme Development plan municipality for the next 5 years. Stellenbosch Reconciliation strategy 2011 Drakenstein Future water supply of each individual town Municipality in Drakenstein Municipality Reconciliation strategy 2011 Stellenbosch Future water supply of each individual town Municipality in Stellenbosch Municipality Stellenbosch water 2011 Stellenbosch service development Municipality plan On sustainable 2012 NWP and Aqua4All solutions for Pro-Poor sanitation in South Africa Socio-Economic 2007 Western Cape province Overview socio- Profile: Treasury economic status Cape Cape Winelands Wineland District District 2007

13 IWRM - Integrated Water Resource Management

APPENDIX 2 OVERVIEW CONTACTED AND VISITED ORGANISATIONS

iii

Name Organisation Role Keith Kennedy CSIR Researcher + member advisory comission Berg Olifants CMA

Paul Ponds CSIR Researcher Enrico Fourie IDC Senior Regional Officer Evan Rice Green Cape CEO Chris Millson Green Cape Resource program manager

Annelie Roux Green Cape Water program manager

Marijn Zwinkels Living Lands Director Thekla Teunis Common Lands/ Ecosystem Business developer for Return Foundation Ecosystem Restoration

Johan Rademeyer Drakenstein Municipality Counselor

Lourens du Toit Drakenstein Municipality Counselor

Ronald Brown Drakenstein Municipality Senior engineer

André van Niekerk Stellenbosch Municipality Director engineering services

E.J. Wentzel Stellenbosch Municipality Manager transport, roads and stormwater

Rashid Khan DWS Western Cape regional Chief Director

Hene Boniswa DWS Regulations Derril Daniels DWS Berg-CMA Hlazo Mchumane DWS Sanitation Jason Mingo Western Cape Government Berg River restoration Fabion Smith BGCMA Water Quality Zama Mbunquka BGCMA Stakeholder engagement Allistair October ARK Industries Director Melanie Jones ZLTOrganics Director Joselyn Begg Cape Town Municipality Engineer Alice Punt WAMtech Director Michiel van Haersma Buma Hoogheemraadschap van Dijkgraaf Delfland Hanneke Gieske Hoogheemraadschap van Strategic policy advisor Delfland Peter Salomons Jet Vac Director Sam Efrat SASST Director Otto Ferf Jentink World Waternet Advisor Paul van Koppen NWP Advisor Ronald Hemel Hemels advies Director Anne de Boer DLG Consultant

Niek Bosmans Embassy of the Royal Assistant agricultural Kingdom of the Netherlands counselor Francis Steyn Landcare – Department of Sustainable resource agriculture Western Cape management Shannon Turner Informal South Urban Planner Aart van de Bos Verbos Business Director Development

APPENDIX 3: BERG RIVER IMPROVEMENT PLAN

APPENDIX 4: GREEN DROP STANDARDS

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APPENDIX 5: ON SUSTAINABLE SOLUTIONS FOR PRO-POOR SANITATION

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APPENDIX 6: CASE STUDY BROKERING THE IDEA