The sustainability of South Africa municipal water services provision is being challenged by the desire of government to extend high quality services from a relatively small portion of the population to the whole. Evidence of failures in delivery are mounting and many reasons for this have been identified, including a lack of political will at local government levels, low budget priority, insufficient capital, lack of capacity and skill and flawed tariff and accounting structures. This study generates new perspectives by surveying selected but representative, South African municipalities in their capacities as water service authorities (WSAs) on a range of financial sustainability issues – including cost burden on users, cross sub-subsidisation and cost calculations to set tariffs. The study is part of a wider investigation into the setting of tariffs that cover costs and satisfy demand, funded and advised by the Water Research Commission (WRC). The conclusions and recommendations of WRC Project K3/2087 (Hosking, 2011b) are to address: 1. The choice of water service provider, including the private utility option; 2. Market vulnerabilities in water service provision under alternate models of supply; 3. The determination and realisation of full cost recovery; 4. Demand responsiveness/sensitivity of local government supply; 5. The increasing block tariff (IBT) tariff structure; and 6. Abuse of dominance in the market process. Given the limited perspective (i.e. a focus on WSAs), some important national water sustainability issues are given less prominence, e.g. raw water availability and national government capacity to subsidise water service delivery. The key water service sustainability elements on which attention was focused in this study are: • Backlogs in the water service coverage and infrastructure rehabilitation and maintenance. • Standard of water service indicators. • Relative importance of the provision of water services in water service authorities’ strategy and implementation (including budget and risk). • Adequacy of skills to provide a sustainable water service. • Budgeting and planning for the sustainability of the water service. • Adequacy of the costing and tariff setting nexus, with particular attention paid to method and principle. A survey was used to elicit information from selected municipalities (Chapter Four). The municipalities which formed part of the sample and were surveyed were: 1. Nelson Mandela Bay Metropolitan Municipality; 2. Ekurhuleni Metropolitan Municipality; 3. eThekwini Metropolitan Municipality; 4. Cape Town Metropolitan Municipality; 5. Buffalo City Metropolitan Municipality; 6. George Municipality; 7. uMhlathuze (Richards Bay) Municipality; 8. Steve Tshwete (Middleburg) Municipality; 9. Kouga Municipality; 10. Sol Plaatjie (Kimberley) Municipality; 11. Polokwane Municipality; 12. Stellenbosch Municipality; 13. Overstrand Municipality; 14. Midvaal Municipality; and 15. Amathole District Municipality.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:9011 |
| Date | January 2012 |
| Creators | Jacoby, Kevin Terence |
| Publisher | Nelson Mandela Metropolitan University, Faculty of Business and Economic Sciences |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, MA |
| Format | xxiv, 139 leaves, pdf |
| Rights | Nelson Mandela Metropolitan University |
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