new aers istt & tra market survey · 2018. 12. 11. · september 2018 water research report...

FLANDERS INVESTMENT & TRADE MARKET SURVEY

WATER RESEARCH

REPORT 2018

SOUTH AFRICA

/ marktstudie

www.flandersinvestmentandtrade.com

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Flanders Investment and Trade - Johannesburg

Publicatiedatum/ September 2018

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WATER RESEARCH REPORT 2018

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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


5.2.2 Challenges 15

5.3 Alternative Water Supply 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

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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.

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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.

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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


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Level 6 Jan 2018 Residential – Fines if use > 10.5kl/ month

Non – residential properties: 45% less than in 2015


Level 6B Feb 2018 Residential – fines if use > 6kl/ month

Nonresidential properties: 45% less than in 2015


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

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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.

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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

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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.

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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

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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.

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• 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.

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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.

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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

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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

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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.

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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.

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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,

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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.

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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.

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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

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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 – [email protected]

• 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.

mailto:[email protected]

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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

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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.

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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: [email protected]

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.

https://www.ipp-projects.co.za/

new aers istt & tra market survey · 2018. 12. 11. · september 2018 water research report...

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