new aers istt & tra market survey · 2018. 12. 11. · september 2018 water research report...
Post on 10-Oct-2020
1 Views
Preview:
TRANSCRIPT
FLANDERS INVESTMENT & TRADE MARKET SURVEY
WATER RESEARCH
REPORT 2018
SOUTH AFRICA
/ marktstudie
www.flandersinvestmentandtrade.com
///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
Flanders Investment and Trade - Johannesburg
Publicatiedatum/ September 2018
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
WATER RESEARCH REPORT 2018
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
pagina 2 van 25 Water Research Report 2018 September 2018
TABLE OF CONTENTS
1. Background .......................................................................................................................................................................... 3
1.1 Climate change 3
1.2 Argicultural Impact 4
2. Water Restrictions ........................................................................................................................................................... 5
3. Water Augmentation Program ............................................................................................................................... 9
3.1 City of Cape Town’s Water Augmentation Program 9
4. Funding of Water Projects ........................................................................................................................................ 11
4.1 Funding of Water Projects in the Western Cape 11
4.2 First Solar Desalination Plant in the Western Cape 11
4.3 Private Companies who invested in Desalination and Water Filtration Plants: 11
5. Opportunities & Challenges...................................................................................................................................... 13
5.1 Water Reuse 13
5.1.1 Opportunities 13
5.1.2 Challenges 14
5.2 Water Metering 14
5.2.1 Opportunities 14
5.2.2 Challenges 15
5.3 Alternative Water Supply 15
5.3.1 Opportunities 15
5.3.2 Challenges 16
6. Wastewater Treatment Works ...............................................................................................................................17
6.1 Vaal Dam example 18
6.2 Wastewater Treatment Challenges 18
7. WISA Conference & Exhibition ............................................................................................................................... 19
7.1 Water Institute of South Africa (WISA) Conference & Exhibition 19
7.2 Meetings after the WISA Conference & Exhibition 21
7.2.1 Green Cape 21
7.2.2 GrahamTek 22
7.2.3 Proxa SA 23
8. Reference List ................................................................................................................................................................... 25
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
September 2018 Water Research Report 2018 pagina 3 van 25
1. BACKGROUND
South Africa is a semi-arid to arid country with a variable climate and constrained freshwater resources.
The drought, which is currently devastating parts of the country, is due to the country’s variable climate.
The annual rainfall in South Africa has been projected as approximately 450 mm which makes the country
prone to recurrent droughts. South African climate can be characterized by wet spells called La Nina
(above normal rainfall) and dry spells called El Nino (below normal rainfall). Based on scientific analysis, it
can be said that South Africa has experienced wet and dry years. However, these spells do not affect all
regions of the country in the exact same way. For example, the Southern Cape region experienced a
drought between 2009 – 2011 while the rest of the country received normal rainfall. The country has not
experienced a drought of the same magnitude since the 1991 – 1992 drought.
South Africa’s water usage consists of 77% surface water, 9% ground water and 14% reuse of return flows.
The management of water resources involve catchment management, river systems, water storage, water
abstraction and return flow management. South Africa has 12 Water Boards who supply potable water
to 28 million people (just over half of the country’s population). However, they have a supply footprint
which could reach 39 million people. Water Boards distribute raw and potable water across distances to
multiple users (regional water supply schemes). This is fully controlled by the Department of Water &
Sanitation.
1.1 CLIMATE CHANGE
The intense pressure of El Nino together with the growing pattern towards dryness in the area has placed
Cape Town in crisis mode with the dam levels at 28%. South Africa, like many other areas, is at the mercy
of the El Nino Southern Oscillation (ENSO) cycle which has been particularly virulent in the Cape this time
around. El Nino is caused by the lowering of an atmospheric pressure system over the Southern Pacific,
which causes the westerly winds to drop and the ocean temperatures to rise. This has an effect on
weather patterns around the globe, and not always in the same places. The last bad El Nino was in
1997/1998 and did not greatly affect South Africa. Eight out of the last ten worst droughts in the past 100
years have taken place during ENSO. Secondly, the country’s overall weather patterns have been impacted
by global climate changes which has led to high temperatures in South Africa. According to the South
African Weather Service, South Africa received the lowest rainfall between January and December 2015
since recording rainfall patterns in 1904.
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
pagina 4 van 25 Water Research Report 2018 September 2018
1.2 ARGICULTURAL IMPACT
The drought has taken a toll on the agricultural sector, widening the trade deficit due to losses in maize
exports. The Western Cape plays an important role in the agricultural-economy of South Africa and is an
important province with regard to the export of agricultural products. The deciduous fruit, table grapes,
citrus and wine industry are examples of agricultural exports in the Western Cape which contributes
significantly to the economy. Apart from the water, shortage, the heat and strong winds are likely to
impact the product’s cosmetic appearance which will in turn impact the marketability and the price. The
Western Cape contributes 24% to the total GDP in South Africa whereby agriculture contributes
approximately 4%. The combination of the drought and the weaker exchange rate has severely impacted
on agricultural commodity prices.
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
September 2018 Water Research Report 2018 pagina 5 van 25
2. WATER RESTRICTIONS
Apart from climate change, other factors that exacerbated the water crisis are population growth, water
pollution, the state of water infrastructure and its management. These factors have resulted in the lowest
dam levels recorded in the Western Cape. In May 2017, the Western Cape Province was declared as disaster
area. The City of Cape Town stated that the supply of municipal water will run out by March 2018.
However, ‘Day Zero’ has since been pushed back to 2019. Several steps have been put into place to reduce
water consumption as well as the implementation of alternative water resources. The City of Cape Town
implemented water restrictions on general consumers which is currently at level 6B. This means that
Capetonians are not allowed to use more than 50 liters of water per day. Therefore, gardens will go dry
and showers are restricted to 2 minutes.
TABLE 1: Summary of the City of Cape Town Water Restrictions
LEVEL DATE RESTRICTION TARGET
Level 1 2005 No irrigation 10:00 – 16:00
Spray Nozzles for hosepipes
10% saving
Level 2 Jan 2016 Irrigation for 1 hour – Tuesday, Wednesday & Thursday
20% saving
Level 3 Nov 2016 Car washing with buckets only
Pool covers must be installed
30% saving
Level 4 June 2017 No irrigation with municipal water
No topping of private pools with municipal water
100 liters/person/day
Level 4B July 2017 No topping up of public pools 87 liters/person/day
Level 5 Sept 2017 Residential – Fines if use > 20kl/ month
Commercial – 20% less than same month previous year
87 liters/person/day
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
pagina 6 van 25 Water Research Report 2018 September 2018
Level 6 Jan 2018 Residential – Fines if use > 10.5kl/ month
Non – residential properties: 45% less than in 2015
87 liters/person/day
Level 6B Feb 2018 Residential – fines if use > 6kl/ month
Nonresidential properties: 45% less than in 2015
50 liters/person/day
Source: Green Cape
Families and Commercial users queue at 200 water collection points across the city to collect a daily allocation of 25
liters until water reserves are boosted (February 2018).
Since Day Zero has been pushed back, water usage has increased in the City of Cape Town. Residents have
been warned that if they not adhere to the restrictions, ‘Day Zero’ could become a definite day again. One
way to keep usage in check is a proposed tariff increase of 27% for water usage with pricing also tiered
according to average water usage. For drinking water, the price could double from R26 per kiloliter to
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
September 2018 Water Research Report 2018 pagina 7 van 25
R40. Even though Cape Town has received winter rains which pushed up the dam levels, residents are
still urged to save water and adhere to level 6b water restrictions.
Whilst eight out of nine South African provinces are able to survive from the water that gets caught by
Lesotho’s mountains, the Western Cape’s population of 3.2 million people rely on six major dams. The
Theewaterskloof Dam is situated 90 km from Cape Town and caters for 50% of the city’s water needs. In
March 2018, dam levels decreased to 10% because of a severe drought in South Africa., which caused panic
across the Western Cape. Three months later, in June 2018, dam levels recovered by 29% due to good
rains. Since then, dam levels have risen to 70% as of September 2018.
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
pagina 8 van 25 Water Research Report 2018 September 2018
Theewaterskloof Dam: March 2018
TABLE 2: Cape Town’s Six Major Dams & Current Dam Levels
CURRENT DAM WATER LEVELS
Major Dams Storage
MI %
Capacity when full 18/09/2018
Berg River 130.010 98.5
Steenbras Lower 3.3517 87.8
Steenbras Upper 3.1767 95.1
Theewaterskloof 480.188 53.0
Voelvlei 164.095 83.8
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
September 2018 Water Research Report 2018 pagina 9 van 25
Wemmershoek 58.644 90.8
Total Stored MI 898.221 633 227
% Storage 70.5
Source: City of Cape Town – Dam Levels
3. WATER AUGMENTATION PROGRAM
The City of Cape Town developed an augmentation plan in 2005 which indicated that the city will have
water security until 2022. However, provincial and national levels did not consider the advanced
technology and solutions that may be required in the execution of the plan. Another factor is that the
city relied on surface water with limited investments in groundwater and desalination. Furthermore,
there was a lack of enthusiasm to embrace new solutions and technologies. The City of Cape Town has
since implemented a new augmentation plan which discloses current and future projects. Cape Town’s
New Water Augmentation Programme has been published on 20 May 2018.
3.1 CITY OF CAPE TOWN’S WATER AUGMENTATION PROGRAM
TABLE 3: Active Projects
AUGMENTATION PROJECTS MLD TIMEFRAMES
TEMPORARY DESALINATION
Strandfontein 7 Full Production by May 2018
Monwabisi 7 Full Production by May 2018
V & A Waterfront 2 Full Production by March 2018
GROUND WATER
Cape Flats Aquifer 83 Drilling began in January 2018. It is expected to add 83 MLD into the system by June 2018.
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
pagina 10 van 25 Water Research Report 2018 September 2018
Atlantis Aquifer 25 5 MLD has already been brought into the system with a further 20 MLD from May – October 2018 to service the Atlantis & Silwerstroom areas.
Table Mountain Group Aquifer 75 Pilot drilling commenced in November 2017. Average demand is at 64 MLD, peaking at 75 MLD.
POTABLE WATER REUSE
Zandvliet 10 10 MLD temporary yield by June 2018, increasing to 50 MLD permanent yield by December 2021.
Cape Flats 10 By June 2018
Macassar 20 By June 2019
Potsdam 10 By June 2019
Athlone 75 By December 2019
OTHER ALTERNATIVES
Newlands – Albion Spring 3 Operational
Oranjezicht Spring 1 Operational
PERMANENT DESALINATION
Site to be confirmed 120- 150 Optimum site is being explored. Pilot (20 MLD) is being constructed at Koeberg.
Source: City of Cape Town
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
September 2018 Water Research Report 2018 pagina 11 van 25
4. FUNDING OF WATER PROJECTS
4.1 FUNDING OF WATER PROJECTS IN THE WESTERN CAPE
The City of Cape Town has redirected R2 billion from its budget to fund several water projects. The first
phase of those projects were earmarked for desalination plants – Monwabisi, Strandfontein, V&A
Waterfront and Cape Town Harbor. The Atlantis & Cape Flats Aquifer projects and the Zandvliet water
recycling projects are the first seven emergency water projects in this phase. France and Germany have
both offered assistance in Cape Town concerning the drought. In November 2017, Patricia De Lille – mayor
of the City of Cape Town confirmed that the city is looking to the French Development Agency, the German
Development Bank and local banks for funding of water augmentation projects after having used R2.6
billion from its own coffers.
4.2 FIRST SOLAR DESALINATION PLANT IN THE WESTERN CAPE
In July 2018, the Western Cape Government and France launched the first solar powered desalination
plant in the Hessequa Municipality. This is said to be the world’s first solar powered desalination plant
which will initially supply 10.000 liters of water per day to residents in the municipality. The plant is said
to supply 300.000 liters of water per day once fully operational. France has co-funded the solar powered
desalination unit in South Africa which totaled to R8.6 million. The technology for this project is
manufactured by the French renewable water company – Mascara and uses reverse osmosis desalination
run by photovoltaic solar energy, allowing the plant to run off grid.
4.3 PRIVATE COMPANIES WHO INVESTED IN DESALINATION AND WATER
FILTRATION PLANTS:
• Tsogo Sun – their desalination plant has been operational since March 2018 to all their properties
including the Westin. Cape Town is Africa’s biggest tourist destination and these measures have
been implemented to ensure that tourism levels are maintained despite the water crisis.
• Sea Harvest – this R20 million investment includes desalination and reverse osmosis. The plant
was launched in March 2018. The plant will have the capacity to supply the company’s operations
at their Saldanha Bay plant.
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
pagina 12 van 25 Water Research Report 2018 September 2018
• Oceana Group – the company has invested R30 million in two desalination plants. The desalination
facilities can produce up to 1.4 million liters of potable water per day, complemented by two 1
million liter and one 500.000 liter storage tanks. The investment will also contribute to the water
security for the communities of St Helena Bay and Laaiplek.
• Eskom – Koeberg’s nuclear power station launched a mobile groundwater desalination plant
which will take care of the stations water needs. The temporary plant has a 920 kl per day
capacity.
• Life Hospital Group - Life Vincent Pallotti Hospital opened their own water filtration plant, which
meets the City of Cape Town and Department of Water and Sanitation's strict water crisis
regulations. In March 2018, the municipal water supply has been switched off and the hospital is
operating off grid. In addition, the hospital has an 48 hour emergency storage supply in case any
technical issues would occur at the filtration plant.
• Old Mutual – In August 2018 Old Mutual has moved off the municipal water grid, unveiling its
wastewater to drinking water filtration system at the Mutual Park premise in Pinelands. The
process is likely to harvest 650 cubic liters of clean water a day through the purification of waste
water. Old Mutual is the first large corporation to go off the municipal grid and will save the city
up to 15.000 kiloliters of water.
• Sun International Group: Grand West Casino & Entertainment World – has invested in a new water
treatment plant which costs R18 million and allows the casino complex to go completely off the
municipal water grid. The plant will produce 10 million liters of drinkable water every month by
filtering water from four boreholes.
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
September 2018 Water Research Report 2018 pagina 13 van 25
5. OPPORTUNITIES & CHALLENGES
5.1 WATER REUSE
5.1.1 Opportunities
• Industrial Effluent Treatment Systems – Industrial companies have shown an interest in the reuse
of their effluent streams. A zero liquid discharge has been adopted internationally and there are
several South African companies in the mining and sugar industries who reuse significant amounts
of wastewater. The effluent needs to be treated before it is reused, and therefore, there are
opportunities for wastewater treatment companies to design and supply these systems.
• Upgrading Treated Effluent – Treated wastewater from municipal wastewater treatment plants
has become popular as a source of reused water for industrial companies. Treated effluent needs
to be upgraded to process quality standards before it is used in the industrial sector. This is
another opportunity for wastewater treatment companies to work in the industrial market.
• Reuse Systems – Greywater from commercial and residential properties can be reused on site,
either outdoors (garden irrigation) or indoors (toilet flushing). There has been a growing demand
of greywater reuse systems, particularly new developments and commercial businesses where
there is an opportunity to design, manufacture, install and maintain cost effective greywater
systems. The residential sector is less attractive as households are said to collect greywater for
toilet flushing rather than installing irrigation systems.
• Water Efficient Devices – There are opportunities for designers, manufacturers, retailers and
installers as there is an increase in the uptake of products on the market which include efficient
showerheads, tap aerators and waterless urinal systems. Other innovative products are entering
the market as well. The drought has allowed for businesses and residents in the Western Cape to
become aware of water efficient technologies and devices.
• Potable Water Reuse – As per the proposed augmentation plans from the City of Cape Town, they
are looking to augment its supply with approximately 75 MLD of wastewater treated to potable
standards. These projects will require a high level of technical expertise which is not necessarily
available in the public sector. This will lead to a significant increase of opportunities for private
sector involvement, from design, building, operation and maintenance of projects. Furthermore,
there are also opportunities for inland water reuse systems as desalination seawater is not an
available source of water inland.
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
pagina 14 van 25 Water Research Report 2018 September 2018
5.1.2 Challenges
• High Capital Costs – This is one of the main challenges with adopting wastewater treatment
technologies in the industrial sector as financial incentives are limited.
• Brine Disposal – Dependent on the type of treatment, a saline brine waste stream may remain
after the recovery of water. This proves to be a challenge for companies as municipalities do not
permit the discharge of brine into the sewage lines. This means that companies will incur more
costs to further concentrate the waste stream. Brine disposal at inland sites are more complicated
and costly.
• Land Availability – Industrial companies may not have the space to accommodate the water reuse
infrastructure.
• Public Perceptions – Even though water reuse is being accepted, companies may not want to face
a negative public perception to the reuse of effluent. This can also prevent market growth in the
case of greywater reuse and waterless sanitation technologies.
• Skills Shortages – There is currently a shortage of qualified plumbers experienced in installing
greywater systems.
• Property Leasing – Tenants expect landlords to implement water efficiency measures, however, it
is difficult for the landlord to recoup the full long term returns on the investments in these
technologies.
• Regulations – Reuse projects are subject to regulatory authorizations and controls in different acts
whereby regulatory approaches may differ between these acts. Due to this, reuse projects are
difficult to implement quickly and cost effectively.
5.2 WATER METERING
5.2.1 Opportunities
• Smart Water Meters – There are opportunities for smart meters in the private sector. Smart
capabilities have been added to water meters over the years. This means that these meters are
able to communicate with the municipality or user, monitor consumption, dispense prepaid water,
provide leakage alerts, etc. The current market is based on sub metering (billing) for large
residential estates, sectional title buildings and the commercial sector. There has been a demand
for smart metering in the private sector as a tool to improve water management due to the
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
September 2018 Water Research Report 2018 pagina 15 van 25
drought. Local metering companies have noted higher sales since mid-2017 which coincides with
lower dam levels, higher tariffs and more water restrictions.
• Water Quality Monitoring - There are opportunities for businesses to offer fast and efficient water
quality testing services. With the increasing adoption of decentralized alternative water systems
(such as groundwater and rainwater harvesting), the demand for water quality monitoring has
grown significantly. In Cape Town, analytical laboratories are struggling to meet demand and there
are reports of samples being turned away. In addition, water quality tests are expensive. Many
laboratories offer water quality assessment for between R1.500 and R2.000, with a complete
SANS241 drinking water quality analysis costing up to R10.000.
• Municipal Market – Water conservation and demand management projects present opportunities
for designers, consultants and planners of water loss reduction systems as well as companies who
manufacture, assemble and install components that help utilities who understand and manage
water losses. These opportunities range from metering and billing systems, bulk metering and
assessment, pressure management, leak detection and monitoring.
5.2.2 Challenges
• Awareness – There is a lack of customer knowledge about smart meters and their benefits in
general. This may be due to underpriced water and low sanitation costs. However, this is likely to
change due to water tariff increases.
• Capital Costs – This can be a challenge for smart meters and associated metering infrastructure
especially in the residential sector as it represents an opportunity for innovative private sector
financing.
• Access to Funding – Municipal projects are usually capital intensive and access to funding can be
a constraint. This can lead to shortfalls in funding available for the water services infrastructure.
• Municipal Procurement Processes – This can be lengthy and are based on tenders. Public Private
Partnerships are not common in South Africa and can be complex and difficult to arrange.
5.3 ALTERNATIVE WATER SUPPLY
5.3.1 Opportunities
• Groundwater – there is potential for groundwater development in South Africa. Groundwater is
quick to access and is cost effective compared to alternative water sources. The demand for
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
pagina 16 van 25 Water Research Report 2018 September 2018
groundwater services in the private sector has increased. Groundwater systems include –
boreholes or well points, distribution and treatment systems. Groundwater development
companies and technologies coupled with advanced water treatment solutions are expected to
be of interest to private equity investors.
• Rainwater Harvesting – The Western Cape receives rainfall predominately in the winter. If there is
no storage capacity, rainwater systems are unable to supply water during the dry months. There
are opportunities for businesses to design, build, manufacture, install and maintain cost effective
rainwater harvesting systems for indoor use (toilet flushing and laundries).
• Desalination – there are desalination opportunities for large residential, commercial and industrial
developments who are located along the coast. The City of Cape Town is moving away from small
scale desalination towards one large scale desalination plant.
5.3.2 Challenges
• Complexity – Groundwater is difficult to predict unlike surface water. Experienced specialists can
only confirm once drilling and yield testing has been completed. This often results in groundwater
characteristics to be misinterpreted by non-professionals.
• Brine Disposal – Saline groundwater requires treatment with reverse osmosis prior to use. The
brine is usually difficult to dispose of as it often exceeds municipal wastewater discharge limits
for electrical conductivity.
• Finance – Growth in alternative water supply has been a challenge due to a number of facts such
as funding, municipal implementation capacity, creditworthiness and procurement process.
• Desalination – It has been noted from international case studies that implementing permanent
seawater desalination as an emergency mechanism can lead to debt consequences, unless the plant
is able to address water shortages over the long term. Even though there is growth for reuse and
desalination, reverse osmosis membrane manufacturing opportunities are limited due to high
manufacturing sophistication and capital requirements. Desalinated seawater is more expensive
than bulk water tariffs which means that these costs will be passed onto the water user.
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
September 2018 Water Research Report 2018 pagina 17 van 25
6. WASTEWATER TREATMENT WORKS
Pollution from failing wastewater treatment works in Gauteng: Hennops River (August 2018).
Wastewater treatment is a critical performance area as it impacts directly on human health and the
environment whilst the indirect impact will be on downstream water purification systems. There are
currently 826 municipal owned wastewater treatment works in South Africa. In 2016, the department
assessed 824 wastewater treatment plants and 152 municipalities throughout the country. The majority
of those plants, 259, are high risk, 218 plants are medium risk, 212 plants are at critical risks and 135 plants
are low risk.
Because of a lack of maintenance and investment, wastewater treatment works and infrastructure have
deteriorated. According to the 2014 Green drop report, 212 wastewater treatment plants fall into the
“Critical Risk” category.
These plants pose serious risks of completely untreated sewage entering rivers, streams and dams. This
has dire impacts on water quality and human health including enhancing the spread of diseases such as
e-coli, hepatitis A and diarrhea.
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
pagina 18 van 25 Water Research Report 2018 September 2018
The Green Drop regulation program seeks to identify and develop the core competencies required for the
sector. This will gradually and sustainably improve the level of wastewater management in South Africa.
The strategy revolves around the identification of average performing municipalities who consequently
correct identified shortcomings, as well as the introduction of competitiveness amongst the municipalities
by benchmarking and public acknowledgement by the Minister of Water & Sanitation.
The situation is that communities are growing whilst infrastructure is not, which resulted in overloading
and lead to spillages. Therefore it can be said that most plants are operating above their design capacity.
6.1 VAAL DAM EXAMPLE
Despite the government’s effort to keep the Vaal Dam clean, the pollution refuses to go away which has
become a major challenge. As the dam is facing a greater threat of toxic pollution, the Department of
Water & Sanitation has invested R145.5 million to fix the malfunctioning Refengkhotso Wastewater
Treatment Plant outside Deneysville. So far, the department has invested R300 million to rehabilitate six
wastewater treatment plants along the Vaal system in order to stop the pollution of the dam. The Vaal
Dam is a strategic water resource to the economic development of Gauteng, the hub of South Africa’s
economy. The dam receives water from 14 rivers that are tributaries to the Vaal River. The Vaal Dam is
linked to the multibillion Lesotho Highlands Water Project which pumps water from Katse and Polihali
dams in Lesotho. Polihali Dam is comprised of a 164m high concrete faced rock fill dam on the Senqu River,
a concrete side-channel spillway, a free standing compensation outlet tower and appurtenant works. The
Lesotho Highlands Development Authority has stated that the dam construction is expected to start in
December 2019 or January 2020, and that it is envisaged to be impounded during the wet season of 2023.
Phase II of the Lesotho Highlands Water Project builds on the successful completion of Phase I in 2003. It
delivers water to the Gauteng region and utilizes the water delivery system to generate hydro-electricity
for Lesotho.
6.2 WASTEWATER TREATMENT CHALLENGES
• Imbalance between development of new infrastructure vs existing infrastructure – The trend has
been to extend the provision of wastewater services without a focus on existing infrastructure
and planning of future maintenance. This resulted in situations whereby operation and
maintenance of plant and equipment are not taking place at adequate levels leading to regular
failures in terms of compliance.
• Capacity & Demand Management – Existing plants are often inadequate to meet demand because
of a combination of factors such as increased service provision via housing developments,
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
September 2018 Water Research Report 2018 pagina 19 van 25
unplanned extraneous flows allowed to enter the wastewater system thereby placing an artificial
hydraulic and chemical load onto the infrastructure.
• Financial Constraints – Insufficient funding within municipalities which makes it unable to ensure
effective and adequate preventative maintenance. Many municipalities seem to follow a reactive
maintenance approach, whereby assets are run to failure. The lack of funding can be ascribed to
a host of root causes, including low tariffs which are not cost reflective, lack of ring-fencing of the
functional cost involved in wastewater treatment, inappropriate and unnecessarily expensive
technology choices, billing and revenue collection difficulties
• Knowledge & Expertise – A lack of knowledge and skill has resulted in the inability to plan relevant
wastewater treatment, maintenance and operation of wastewater facilities, etc.
• Inappropriate Technology – Almost half of wastewater treatment plants have less suitable
technologies when considering their resource base, capacity to manage and provide effluent
quality requirements. Alternative technology choices are often not implemented, for reasons such
as:
o lack of local knowledge and experience on the subject matter,
o lack of focus on the environmental and potentially financial benefits of the effective and
safe re-use of wastewater,
o lack of a South African framework and standards to provide guidance on the selection of
treatment options.
7. WISA CONFERENCE & EXHIBITION
7.1 WATER INSTITUTE OF SOUTH AFRICA (WISA) CONFERENCE &
EXHIBITION
Cape Town, 24 – 28 June 2018
Attended by: Vanisha Gounden
WISA is a non-profit organization and currently serves 3000 water sector professionals, companies,
government departments, educational and research institutions, associations, municipalities and water
utilities as members.
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
pagina 20 van 25 Water Research Report 2018 September 2018
The WISA Conference & Exhibition was themed around Breaking Barriers & Connecting Ideas as a way to
address past, existing and future water resource challenges by promoting collaboration, cooperation and
integration within the water sector. The conference and exhibition was supported by the Minister of
Water & Sanitation, the Premier and Mayor of Cape Town.
6 thematic areas were discussed during the conference:
• Sink or Swim – Preparing our cities for the future
• Uncharted Waters – Developing solutions through science and technology
• Waste Not Want Not – Optimizing processes for treatment and reclamation
• Under the Microscope – How do we join the dots
• Bridging the Gap – Sustainable finance for improved delivery
• Pooling Together – Enabling participation through good governance
Amid growing concerns and the impact of climate change, the threat of more extreme weather, the
Southern African region facing more uncertainty and vulnerability of water supply made the WISA
conference and exhibition all the more relevant. The conference is hosted every two years and is relevant
to water in terms of its scarcity. The conference’s theme was about the current state of the water sector
on both local and global level and where the water sector needs to broaden the involvement and
connection to a number of different sectors to ensure safe access to water and sanitation.
The importance of water management is ensuring and contributing to resilience, sustainability and
liveability for cities and continued growth of the economy, requires integration of both disciplines and
sectors, including government, corporate and communities. The conference aims to promote, inspire and
demonstrate the value of working beyond existing mandates and perceived restrictions. It targeted water
professionals and those involved in the water sector to provide a networking platform. During the
conference, a diversity of forums, presentations and workshops took place in order to engage new ideas,
and enable the connection of such ideas to become a reality or drive to positive change.
The conference was an excellent platform to learn about the various projects that are in place as well as
organizations such as the Water Research Commission, Future Water Institute, etc who are involved in
various pilot projects with the City of Cape Town, private companies, universities, etc. My presence at the
conference during this time was insightful on the types of technology that is available, the type of thinking
that has been implemented for the city, the behavioral changes required from members of society and
international organizations that showed interest in the Cape Town drought.
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
September 2018 Water Research Report 2018 pagina 21 van 25
You will find hereunder a synopsis of my meetings after the WISA conference and exhibition. The
knowledge gained during the conference and meetings give me reason to believe that there are
opportunities for our Flemish companies to work in the South African water sector.
Even though dam levels have risen with recent rains, the projects in place will continue. In addition,
certain measures will be implemented to take pressure off the grid. Wastewater is a cause of concern in
South Africa, so there are opportunities here too.
7.2 MEETINGS AFTER THE WISA CONFERENCE & EXHIBITION
7.2.1 Green Cape
Ms. Bridgette & Mr. Raldo Kruger
Green Cape is a nonprofit organization that drives the widespread adoption of economically viable green
economy solutions from the Western Cape. They assist potential investors to understand the local market,
putting them in contact with the right people to eliminate barriers when doing business. Green Cape
works closely with partners in the government, private sector and academic community. Their sector
experts work on understanding the shifting dynamics as the green economy is new and fast moving.
However, business opportunities may be constrained by issues such as legislation and policy.
The Green Cape has issued a Market Intelligent Report (MIR) in May 2018 in which the water situation in
Cape Town is being discussed. The MIR is to attract investors as there are more opportunities in the private
than public sector.
• What types of water sector opportunities exist? Private sector: there are industrial and
commercial opportunities in terms of implementing sustainable water usage and alternative water
supply for new property development. Financed water projects are an opportunity in the City of
Cape Town.
• How are public projects awarded and what are the current projects? The City of Cape Town has
issued a Water Outlook 2018 Report which disclosed the water situation and also includes Cape
Town’s new water augmentation program whereby current and future projects are mentioned.
Public sector projects are those which are tendered.
• What type of services can Green Cape offer to Flanders Investment & Trade? Green Cape offers a
Cross Border Matchmaking Service which is a networking event that receives funding from the
World Bank for. Green Cape would assess each Flemish company and match them to a local
company. There will be an introductory session where each company will give a 2 minute
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
pagina 22 van 25 Water Research Report 2018 September 2018
presentation on what they do. In this way, other local and Flemish companies that have not been
paired can still have an opportunity to speak to one another.
• Should we pair water with another sector when considering the Cross Border Matchmaking? Yes
it would be preferable to pair water and waste. Waste is an ongoing issue and also wastewater
treatment plants are facing many challenges at the moment.
• Which other Embassies have contacted Green Cape about the Cross Border Matchmaking? Most
recently the Embassy of the Netherlands. Also, companies who attended the WISA conference and
exhibition as well as other Dutch companies that were paired with local companies in the water
sector (June 2018).
• Who is the Cross Border Facilitator? Mrs. Georgina Ryan – georgina@green-cape.co.za
• How will this service be beneficial for Flemish companies? This will be beneficial for Flemish
companies that are interested in working with a local company through a joint venture for
example. Especially since well-established local companies have access to a license to manufacture,
BEE partners, etc.
7.2.2 GrahamTek
Mr. Tom Callaghan
GrahamTek is a well-established South African company with expertise in desalination and reverse
osmosis. The GrahamTek portfolio consists of their 33 water treatment patents and of being involved in
130 desalination installations in 16 countries, including Iran, Ghana, Singapore, Uzbekistan, Kazakhstan,
Australasia and the Americas. They have recently been awarded a R5 billion contract in Saudi Arabia.
• Did GrahamTek tender for desalination projects in Cape Town? No, as tenders were for short term
desalination plants in Cape Town however we will tender for a large scale desalination plant of
100MLW which should go on tender later this year.
• Will GrahamTek consider working with Flemish companies? We are open to collaborate with other
technologies and will be interested in talking to Flemish companies. However the technology
displayed by Flemish companies will have to be excellent and unique and at a competitive price
as we are in talks with other European companies as well.
• What opportunities are there in the water sector? As the city will focus on one large permanent
desalination plant, Flemish companies should focus on waste water treatment and water reuse.
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
September 2018 Water Research Report 2018 pagina 23 van 25
An opportunity – of the 800 odd waste water treatment plants in the country, 70 plants are not
in use because of a lack of funds. If Flemish companies are willing to invest in local projects, they
should consider the risks. GrahamTek has access to a BEE partner, co funding, technology and we
will assist with development of projects. Also there is an opportunity for manufacture under
license with GrahamTek, so that pricing can be lower.
• Has GrahamTek collaborated with other European companies? We are currently in talks with an
Austrian company for Waste to Energy. Waste reduction – incineration of landfill for steam to
process energy. GrahamTek is also partnering with SUEZ – waste water.
• Do you have partners in Africa? We met with a Chinese delegation at WISA to build a power and
water plant in Africa. We are currently working on a water project in Nigeria. Out of the 180
million people only 3 million people have potable water. We are looking for partners to work with
us in Senegal and Ghana.
• Has GrahamTek been approached by other Embassies? We have been previously approached by
Embassies, for example Israel. They sent us 30 presentations which we assessed and in the end we
selected the companies we wanted to work with.
• Will GrahamTek consider working with Flemish companies and should we categorize them? It
would be good to categorize Flemish companies as those who want to export only, investors only,
co funded projects, etc. As technology is available in South Africa, it is still in the early stages so it
would be good to see what innovative ideas Flemish companies can share with GrahamTek.
• When will GrahamTek change their name and what new services will be offered? The new name
is OsmoTech and the change became effective on 7 September 2018. The consolidated company
will provide the following services: finance, technology and projects.
7.2.3 Proxa SA
Mr. Wynand Wessels
Proxa is a South African company who is in a joint venture with WSSA (BEE Partner), an entity of MEA
Aqua Luxembourg. The company has invested in Belgium, Australia, Abu Dhabi and Sharjah.
I had the opportunity to join a site visit to Strandfontein desalination plant. I received an overview of the
desalination plant and the process, for example: The water pump distance is 720 meters, 14MLW comes
through the pump and then goes through the screening process of which 7MLW of brine goes through
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
pagina 24 van 25 Water Research Report 2018 September 2018
the outlet pipe back into the sea at a distance of 300 meters. The sea water is tested every month at the
300 meter mark as brine is discharged back into the sea, etc.
• Which projects have been awarded to Proxa? We have been awarded the tender for Monwabisi
and Strandfontein desalination plant at the City of Cape Town. Both these plants will be
operational for 24 months. The tender value is R260 million.
• Did Proxa invest in the development of the desalination plants and how does the City get access
to the water generated from the desalination plants? We have invested in the development of the
desalination plants. We sell water from the desalination plants to the City in order to recoup our
investment in the desalination plants.
• What is the output of the desalination plants? The desalination plants are supposed to have an
output of 7ML, however, the full output has not yet been reached.
• As the desalination plants are temporary, was the allocated land apart of the tender? The
desalination plant is currently located on municipal land as part of the tender and after 2 years,
the site will be dismantled unless specified by the City.
• Were the relevant technologies used to construct the desalination plants procured locally? The
technology used to assemble the desalination plant were sourced locally as well as from other
Proxa branches in Europe, the Middle East and Australia.
• Does Proxa work in the public and private sectors? Proxa works mainly in the private sector and
has been working on projects abroad. Our office in Belgium is in Liege and we are currently
working on a project for Arcelor Mittal in Belgium.
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
September 2018 Water Research Report 2018 pagina 25 van 25
8. REFERENCE LIST
• Water Research Commission – Drought Factsheet
• Water Research Commission – The Water Wheel Magazine: May/June 2018 Edition
• Water & Sanitation Africa Magazine: May/ June 2018 Edition
• Green Cape – Water: Market Intelligent Report 2018
• The City of Cape Town webpage (table data)
• WWF 2016 – Water Facts and Futures Report
• iol news - #Water Crisis: France offers Western Cape help with drought
• Bizcommunity – Life Vincent Pallotti goes off the water grid
• Sunday Times – Old Mutual’ s new water treatment system, a model for future generations
• Infrastructure News – Cape Town redirects R2bn to fund water projects
• Showme – Water production (augmentation) plans for Cape Town
• Green Drop System – Department of Water & Sanitation
Marc Schiltz - Flanders Investment & Trade Johannesburg Fredman Towers (8th floor) 13 Fredman Drive Sandton 2196 Johannesburg South Africa Phone: +27-11-7834732 Email: johannesburg@fitagency.com
Disclaimer
The information in this publication is provided for background information that should enable you to get a picture of the subject treated in this
document. It is collected with the greatest care based on all data and documentation available at the moment of publication. Thus this publication
was never intended to be the perfect and correct answer to your specific situation. Consequently it can never be considered a legal, financial or
other specialized advice. Flanders Investment & Trade (FIT) accepts no liability for any errors, omissions or incompleteness, and no warranty is given
or responsibility accepted as to the standing of any individual, firm, company or other organization mentioned.
top related