SECTION Q
FIRST EDITION: JANUARY 1999
SECTION Q
OPERATIONS AND MAINTENANCE
1 DEPARTMENTAL POLICY................................................................................2
2 OPERATIONAL AND MAINTENANCE COSTS..............................................2
3 OPERATION AND MAINTENANCE ARRANGEMENTS...............................2
4 SUSTAINABILITY AND COST RECOVERY....................................................4
5 HIGHER LEVEL OF SERVICE...........................................................................4
6 TRANSFER OF OWNERSHIP.............................................................................5
7 MENTOR PERIOD................................................................................................5
8 FUNCTIONS OF THE WATER SERVICE AUTHORITY DURING THE
MENTORSHIP PERIOD...............................................................................................5
9 FUNCTIONS OF THE IMPLEMENTING AGENT DURING THE
MENTORSHIP PERIOD...............................................................................................6
10 BUDGET................................................................................................................7
11 KEY PERFORMANCE INDICATORS................................................................7
11.1 KPI’s for attainment of Cost Recovery objectives.........................................7
11.2 KPI’s for attainment of Assurance and Reliability of Supply objectives......7
11.3 KPI’s for attainment of Water Quality objectives..........................................8
11.4 KPI’s for attainment of Training objectives...................................................8
11.5 KPI’s for the attainment of Cost Effectiveness objectives.............................8
11.6 KPI’s for attainment of Water Loss/Accountability management objectives 8
11.7 KPI’s for the attainment of Hand Over objectives.........................................8
11.8 KPI’s for the attainment of Continuous Maintenance objectives..................9
DEPARTMENT OF WATER AFFAIRS AND FORESTRY
GUIDELINES FOR THE DEVELOPMENT AND OPERATION OF COMMUNITY WATER SUPPLY SCHEMES
[Link] - 11-Jul-25 Q-1
SECTION Q
FIRST EDITION: JANUARY 1999
SECTION Q
OPERATIONS AND MAINTENANCE
1 DEPARTMENTAL POLICY
In accordance with Departmental policy as specified in the “Water Supply and
Sanitation Policy” White Paper, and in line with the requirements of the RDP, the
minimum charge for water supplied will be that for operations and maintenance costs.
The White Paper states that for consumption in excess of 25 litres per capita per day
the cost will include the marginal capital redemption. The community are informed of
the estimated cost of operation and maintenance and must accept the payment policy
before the scheme can go ahead. This is a key requirement of the RDP. The
Masekhane campaign plays an important role in getting the communities to accept the
principle of payment.
An Operations and Maintenance Plan, a Development Plan, and a Financial Plan
should also be developed before implementing a project.
2 OPERATIONAL AND MAINTENANCE COSTS
Experience to date is that in most communities, the large majority of members are
able to afford the “social” tariff applied to cover operations and maintenance costs.
Many water-short communities are currently paying water vendors exorbitant rates.
With large projects, where management is not carried out directly by the community,
operational arrangements will be such that the Water Boards or other operators will
carry the risk of non-payment for water.
3 OPERATION AND MAINTENANCE ARRANGEMENTS
In those cases where the local government institutions, such as Water Services
Authority, are not yet able to accept responsibility for the operations and maintenance
of the water supply services, an interim arrangement, possibly involving the
contracting of a private sector organisation, or some other facilitating agency such as
a Water Board as a water service provider should be agreed with local government.
The water service provider must be identified as soon as possible.
New schemes can only be implemented when there is confidence that practical and
affordable cost recovery and operations and maintenance plans are in place, and that
capable and equipped institutions or organisations have accepted the responsibility to
operate and maintain the schemes.
The business plan should include an evaluation of the capacity of the potential water
service provider to set and collect tariffs, and to operate and maintain the schemes
within its area of jurisdiction.
DEPARTMENT OF WATER AFFAIRS AND FORESTRY
GUIDELINES FOR THE DEVELOPMENT AND OPERATION OF COMMUNITY WATER SUPPLY SCHEMES
[Link] - 11-Jul-25 Q-2
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FIRST EDITION: JANUARY 1999
The business plan should clearly address the following:
the area of jurisdiction of each of the local government institutions that could take
responsibility for the operations and maintenance of rural water supply and
sanitation services,
The area of jurisdiction of the relevant water board that could take responsibility
for the regional and bulk distribution components of the scheme,
the expertise, capacity, and willingness of these local government and water board
institutions to perform the duties of a water service provider,
the resources of these institutions, and
determine to what extent these institutions will have to be strengthened to carry
out these tasks.
Whatever the arrangement or selection of the water service provider, it is important to
recognize that local government carries the ultimate responsibility for water supply
and sanitation services, and that there must be accountability to local government.
The implementation of projects should be done in accordance with the National Water
Supply Regulations governing the activities of the Local Authority.
The water service provider will require adequate support facilities, management
systems, and procedures, in order to effectively administer, operate and maintain the
administratively grouped water supply schemes.
Budgeting and financial tools,
costing system,
tariff setting procedures,
cost recovery support (billing and collection system),
water loss management system,
water quality facilities and procedures,
procedures for the procurement of spares and repairs,
preventive maintenance system,
operations and maintenance support infrastructure (transport depots and spares),
training and capacity building package or plan,
management and staffing procedures,
communication and computer facilities, and
banking facilities.
It is realised that these systems cannot usually be clearly identified until there is a
detailed design and operating plan.
If these systems do not exist, the business plan should provide a broad framework for
the establishment of these systems.
DEPARTMENT OF WATER AFFAIRS AND FORESTRY
GUIDELINES FOR THE DEVELOPMENT AND OPERATION OF COMMUNITY WATER SUPPLY SCHEMES
[Link] - 11-Jul-25 Q-3
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FIRST EDITION: JANUARY 1999
4 SUSTAINABILITY AND COST RECOVERY
Poor cost recovery is one of the major stumbling blocks to the successful and
sustainable implementation of community water supply projects.
Cost recovery on new projects is unlikely to take place in an environment where water
is being delivered free of charge from existing neighbouring schemes. It may be
necessary to link the implementation of new projects to the success of cost recovery
programmes on existing projects.
The business plan should include the local government’s official, politically debated,
policy on tariffs, and should provide for a comprehensive programme of cost recovery
which should include:
preliminary unit cost and tariff calculations (to be refined as project proceeds),
institutional arrangements for cost recovery as well as roles and responsibilities
(who should sell the coupons and operate the billing system),
provision for the under recovery of costs during the initial operations period.
the establishment of a revenue office if required (the business plan could include
this action as part of site establishment), audit and regulation of unauthorized
connections and procedures for applying for a higher level of service,
water meter survey and water measuring,
cost recovery mechanisms including the installation of metering devices which
require communities (or individuals) to pay for their water at or before the time of
use,
establishment of a costing and billing system,
legal measures and other measures (such as interest charges) to be taken if
payment withheld, and
establishment of a social awareness programme, and targets for cost recovery to
be attained before implementing further schemes in the area.
5 HIGHER LEVEL OF SERVICE
The business plan should clearly set out to what extent provision has been made for
consumers who can afford it to obtain higher that RDP level of service, and explain
the procedure by which the higher level of service can be applied for, as well as the
cost implications.
Local government should also prove that agreement has been obtained on the level of
service proposed in the business plan from the communities that they are representing.
DEPARTMENT OF WATER AFFAIRS AND FORESTRY
GUIDELINES FOR THE DEVELOPMENT AND OPERATION OF COMMUNITY WATER SUPPLY SCHEMES
[Link] - 11-Jul-25 Q-4
SECTION Q
FIRST EDITION: JANUARY 1999
6 TRANSFER OF OWNERSHIP
The objective of transferring schemes is to place water supply and sanitation services
under the effective control of competent and democratically elected local government,
and to place regional bulk water schemes under the control of regional or second tier
institutions such as water boards, where appropriate.
The business plan should provide a transfer in which the following aspects should be
addressed:
Identification of water supply infrastructure for transfer,
identification of local government structure in whose area of jurisdiction the water
supply infrastructure identified for transfer is situated, and establish the
willingness of local government to accept the transfer,
identification of an appropriate water service provider (where the service provider
is not local government, they must be accountable to local government),
preparation of an application and documentation to the DWAF’s regional office
for the transfer.
Transfers must be done taking into account the Department’s own staff.
7 MENTOR PERIOD
Immediately after commissioning of the scheme, the local authority becomes
responsible for the operation and maintenance of the scheme.
Final transfer will however only be considered when proven systems are in place to
operate and maintain the scheme, and to recover costs.
Where local government or its appointed service provider is unlikely to have
sufficient capacity to operate and maintain the scheme without support, the business
plan should provide a plan for the implementing agent to support government for a
period of one year, or as required, after commissioning.
The extent of the support should be determined in collaboration with local
government and based on a joint evaluation of their readiness to maintain and operate
the schemes within their area of jurisdiction.
8 FUNCTIONS OF THE WATER SERVICE AUTHORITY
DURING THE MENTORSHIP PERIOD.
Apart from the statutory and functions and regulations, the water service authority
must, in consultation with the beneficiary communities, also:
Accept responsibility for the O&M functions of the water supply scheme.
Bill and collect water tariffs. Tariffs should also make provision for operation,
maintenance and replacement costs.
Operate and maintain the facility according to the operating rules provided by the
Implementing Agent.
DEPARTMENT OF WATER AFFAIRS AND FORESTRY
GUIDELINES FOR THE DEVELOPMENT AND OPERATION OF COMMUNITY WATER SUPPLY SCHEMES
[Link] - 11-Jul-25 Q-5
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FIRST EDITION: JANUARY 1999
Provide the Department or its representative with an annual budget, planned
maintenance and betterment programme for the water works under its control.
Keep accurate record and provide the Department or its representative with an
approved monthly report for the water works under its control.
Timeously inform and consult with the Department or its representative if any part
of the facility is to be removed, replaced or sold.
Consult with the Department about the technical aspects prior to any extension
and/or improvement to the facilities or if household connections are to be
provided.
Appoint a Water Service Provider for the physical and organisational
arrangements to provide water services if required.
9 FUNCTIONS OF THE IMPLEMENTING AGENT DURING
THE MENTORSHIP PERIOD.
It is the Implementing Agents responsibility to:
Evaluate the merits of the potential operating authorities and to ensure that the
Local Authority knows the consequences of each choice.
Indicate the appointment of the WSP by the Local Authority on the time plan for
the project.
Assist in the development and establishment of institutional arrangements for
operation and maintenance.
Ensure that the selected WSP acquired thorough training in the skills required to
operate the water supply scheme efficiently. This should include technical,
administrative and financial skills. This should take place concurrently with the
implementation of the project and should be completed by the commissioning
date.
Develop a system for monitoring the WSP performance which should consists of
jointly agreed milestones and criteria.
Monitor, adjust and evaluate the operation of the scheme and assist where
necessary for a period of one year after commissioning (indicate on time plan).
Provide the WSP, Local Authority and DWAF with quarterly reports during the
mentoring period.
Adjust and provide the final Operating Procedures of the water supply scheme
with the first quarterly report.
Prepare all documentation for transferring the scheme.
The Implementing Agent shall act as a mentor to the WSP during the mentorship
period and should be closely involved with the operations and maintenance of the
scheme, especially during the first quarter.
The Implementing Agent shall not only assist the WSP and Local Authority but
should also ensure that the Operating Procedures are correlated with the design
intentions before they are finalised. A detailed first report will therefore be required.
The funds for the mentor period should be part of the project budget, but should be
shown as a separate budget item.
DEPARTMENT OF WATER AFFAIRS AND FORESTRY
GUIDELINES FOR THE DEVELOPMENT AND OPERATION OF COMMUNITY WATER SUPPLY SCHEMES
[Link] - 11-Jul-25 Q-6
SECTION Q
FIRST EDITION: JANUARY 1999
10 BUDGET
The budget should be complete and should at least address the following:
Setting up the cost recovery and maintenance and operation systems, including the
establishment of a revenue office, operation and maintenance of the scheme
through the full period,
the transfer of the scheme including the preparation for transfer, and
the mentorship period.
Government will only fund the capital cost of an RDP level of service. The funding
plan should address the funding of the full project as well as the repayment of loans
and the recovery of operations and maintenance costs.
11 KEY PERFORMANCE INDICATORS
Key performance indicators are an important tool for evaluating the performance of
the participants on the project.
The actual key performance indicators (KPI’s) to be used by the Department (or its
representatives) in evaluating the performance of the operating authority or BOT
contractor during the operations period and mentorship period will include:
11.1 KPI’s for attainment of Cost Recovery objectives
The following KPI’s may:
Percentage of accounts current. Percentage of accounts more than 30 days overdue.
Percentage of accounts more than 60 days overdue. Percentage of accounts more
than 90 days overdue.
Tariff revenue as a percentage of total operations and maintenance costs. Revenue
and costs will be accrued to specific periods (possibly on a quarterly basis) and
adjustments will be made in the case of payments recouped within a 120 day
period.
Cost of operating billing and revenue collection system per account issued.
Cost of operating the billing and revenue collection system per Rand collected.
11.2 KPI’s for attainment of Assurance and Reliability of Supply
objectives
After commissioning, the mentor/operating agent may be allowed a two month testing
period during which time he may at his discretion interrupt the water supply. The
community should be properly informed of this testing period.
On completion of the testing period, the following KPI’s may apply:
Number of supply interruption events per month.
Number of supply interruption events of a duration of longer than 3 hours.
Total duration of interupted supply during the month.
DEPARTMENT OF WATER AFFAIRS AND FORESTRY
GUIDELINES FOR THE DEVELOPMENT AND OPERATION OF COMMUNITY WATER SUPPLY SCHEMES
[Link] - 11-Jul-25 Q-7
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FIRST EDITION: JANUARY 1999
11.3 KPI’s for attainment of Water Quality objectives
Water quality will be monitored by the on site water quality laboratory and confirmed
by testing of random samples undertaken by an independent scientific service
contracted by the Department.
The following KPI’s may apply:
Correlation of recorded results of on site water quality laboratory and random tests.
Achievement of water quality standards.
11.4 KPI’s for attainment of Training objectives
The Implementing Agent is responsible for attaining key training objectives. The
following KPI’s may apply:
Identification of the manpower requirements to be developed from within the local
communities, and acceptance of these requirements by the recipient authority and
Department,.
Selection of suitable candidates for development and training, and acceptance of
these candidates by the recipient authority and Department,.
Attainment of a proven satisfactory level of competence by the candidates.
11.5 KPI’s for the attainment of Cost Effectiveness objectives
The following KPI’s may apply:
Cost per m3 of potable water supplied by the water treatment works.
11.6 KPI’s for attainment of Water Loss/Accountability management
objectives
The following KPI may apply:
Percentage unaccounted for water (billed quantity measured against water
treatment works output).
11.7 KPI’s for the attainment of Hand Over objectives
The following KPI’s may apply:
Acceptance by the recipient authority and the Department of the condition and
operability of the physical scheme.
Acceptance by the recipient authority and the Department of the status and
operability of the supporting administrative and maintenance systems.
Acceptance by the recipient authority and the Department of staffing arrangements.
DEPARTMENT OF WATER AFFAIRS AND FORESTRY
GUIDELINES FOR THE DEVELOPMENT AND OPERATION OF COMMUNITY WATER SUPPLY SCHEMES
[Link] - 11-Jul-25 Q-8
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FIRST EDITION: JANUARY 1999
11.8 KPI’s for the attainment of Continuous Maintenance objectives
The following KPI’s may apply:
Completeness and currency of inspection log books.
Duration between reporting of defect, and repair or replacement of defect.
DEPARTMENT OF WATER AFFAIRS AND FORESTRY
GUIDELINES FOR THE DEVELOPMENT AND OPERATION OF COMMUNITY WATER SUPPLY SCHEMES
[Link] - 11-Jul-25 Q-9