National Sanitation Programme; Timber Supply Problems in Tzitzikamma: briefing

Water and Sanitation

15 April 2003
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Meeting report

MINUTES

WATER AFFAIRS AND FORESTRY PORTFOLIO COMMITTEE
16 April 2003
NATIONAL SANITATION PROGRAMME; TIMBER SUPPLY PROBLEMS IN TZITZIKAMMA: BRIEFING

Chairperson: Mr Van Wyk

Documents handed out:
National Sanitation Programme: Powerpoint Presentation by NSTT
National Sanitation Task Team Responses to Committee Questions of 19 March meeting
Eastern Cape Sawmillers Association: Timber Supply Problems in Tzitzikamma (Appendix 1)
Department of Public Enterprises Briefing Note on MTO Forestry (Appendix 2)

Relevant document:
Prioritisation of Water and Sanitation Provision to Schools 30 April 2002 (Appendix 3)

SUMMARY
The National Sanitation Task Team with Departments of Education, Health, and Water Affairs and Forestry representatives - continued their 19 March briefing. The discussion focused on the eradication of the sanitation backlog in schools and the construction of toilets. There was concern at the cost escalation of a toilet from R1 500 to R 2 100 per toilet.

The Department of Public Enterprise briefed the Committee regarding issues raised by the Eastern Cape Sawmillers Association. The Committee was concerned that the sawmillers in the Eastern Cape would receive 1 000 cubic meters less timber per month while 5 000 cubic meters of timber would be exported over a six month period ending in June 2003.

MINUTES
National Sanitation Task Team (NSTT) briefing
Ms T Mpotulo, National Sanitation Manager for the National Sanitation Task Team (NSTT), briefed the Committee. The briefing continued the
19 March meeting with the NSTT Powerpoint presentation to the Committee (see Powerpoint presentation). Ms Mpotulo directed the Committee's attention to Slide 5 which detailed the budget allocation for 2002/03. She noted that about R6 million was overspent on sanitation but that only 62 000 households had been reached, short of the 70 000 targeted.

For the financial year 2003/04, the target is for the sanitation of 300 000 households to be addressed.

Discussion
Mr S Simmons (NNP) asked, with regard to the sanitation backlog in schools, why there was no specific funding to address the backlog.

Ms Mpotulo answered that the money to address the sanitation backlog in schools was designated by the Department of Provincial and Local Government. That is why the figure is not factored in here. The school sanitation programme was receiving R150 million this year.

Mr S Meintjies, Deputy Director of Physical Planning: Department of Education, answered that R129 million was spent for school sanitation backlog, but that does not include the amount spent in Kwazulu-Natal or the Eastern Cape because those funds were not differentiated. 4 500 schools were in the backlog at the beginning of the year. The Department of Education is creating a spreadsheet with the sanitation problems of all schools.

Mr Van Wyk asked for clarity on the matter of school sanitation. The NSTT established that 16 500 schools were without proper toilets. What is the reason for the disparity between the figures.

Mr Meintjies answered that 4 500 schools were without toilets and 16 500 schools were without proper facilities. The Department has set the standard of 1.5 toilets per classroom, or per 20 students.

Mr Van Wyk stated that it was important to the Committee for this matter to be addressed. The DPLG allocation must be made sufficient to address the backlog.

Mr G McIntosh (DA) asked for an explanation as to why Kwazulu-Natal and the Northern Cape had a decrease in allocation from 2002/03 to 2003/04 when these provinces still have significant backlogs in sanitation.

Ms Mpotulo answered that the budget for Kwazulu-Natal was reduced because last year it had had the highest allocation and also the best performance. Since Kwazulu-Natal's backlog has been reduced the fastest, it has been scaled back so as to equitably alleviate the backlog in all the provinces.

Mr Van Wyk referred to the Written Response to Question 21 of the committee's questions to the Task team (see document). When 95% of the budget had been spent only 50% of the sanitation target was reached. He said that he understood the Task Team's response, that the target was unfulfilled because the target was set assuming a cost of R1 500 per toilet while the actual cost was R2 100 per toilet. He wanted clarification, however, on the 300 000 target for the present year. Was that still based on the R1 500 cost per toilet?

Ms Mpotulo stated that the estimated cost of R1 500 per toilet was still the figure used to estimate the target of 300 000.

Mr McIntosh stated that the R2 100 seemed like a lot of money for one toilet. He was aware of an arch toilet built in Kwazulu-Natal for R800.

Mr E L Potlane, the DDG of Operations for DWAF explained that the cost of building toilets and other sanitation facilities depended on the terrain. The price ranges from R1 400 to R2 500. There are roughly seventeen technical choices that are made that determine the amount of money spent for the construction of a toilet.

Mr Masala stated that provinces have money to spend. He wanted to know why some provinces under-spend.

Mr Potlane answered that the provinces are responsible for their own spending. In most cases a local council is consulted to approve the business plan. Due to the lack of capacity, more time must be spent to proceed with sanitation. A project like Umvhula Trust has yielded 67 toilets in three years.

Ms M L Nkompe-Ngwenya (ANC) asked if the Umvhula Trust was not functioning properly.

Mr Potlane answered that the performance of Umvhula is not uniform. On the whole, the Umvhula Trust is doing a very good job. He stated that the Department has tried to engage civil society and noted that while the capacity of civil society organisations is not always good, their advocacy is good.

Ms Nkompe-Ngwenya noted that 0 toilets were targeted for Gauteng and the Western Cape and asked if NSTT had a plan for the squatter camps. She also asked how NSTT prioritised funding for the provinces.

Ms Mpotulo answered that NSTT was recommending a strategy to implement sanitation in informal settlements. She explained that funding was prioritised according to the sanitation backlog of each province.

Mr Simmons asked why money was designated for Gauteng and the Western Cape even though no toilets were to be built.

Ms Mpotulo explained that the money went towards sanitation programmes such as one for farmers in the Western Cape.

Ms Nkompe-Ngwenya asked about the R60 million allocated to Umgeni.

Mr Potlane explained that Umgeni has been responsible for its own programs.

Inkosi B P Biyela (IFP) asked what plans were in place to assist farm workers.

Mr Potlane answered that farm workers were not ignored. For instance, all of the money for sanitation in the Western Cape goes to farmers.

Mr McIntosh noted that the Umgeni issue was interesting, but stated that it did not have a connection to sanitation.

Mr P H K Ditshetelo (UCDP) stated that he was concerned with the cost escalation from R1 500 to R 2 100 per toilet. He was not satisfied with NSTT's answers. He asked if it was possible to have a uniform cost figure in each province so that a more accurate target could be set.

This question was not answered in the joint response to the member's questions.

Department of Public Enterprises
Mr L Montana, Chief Director of Parliamentary Services and Mr J Patterson Director of Forestry Restructuring from the Department of Public Enterprises responded to the issues raised by the Eastern Cape Sawmillers Association.

Mr Montana remarked that the situation with the sawmillers in the Eastern Cape was unfortunate. He did not believe the media involvement helped the situation. Government should not create the appearance that it was not protecting jobs and building capacity. The appearance of the Department of Public Enterprises in the Committee is meant to clarify this.

Mr Patterson reviewed the document (see attached: "Briefing Note") to the Committee, focusing on the role of BEE in SAFCOL and the Department of Public Enterprises and the timber situation in Tsitsikamma area and the Longmore plantation.

Discussion
Mr McIntosh stated that the Eastern Cape Sawmillers Association represented the type of small businesses who employ local people that one would want to be employed. With that in mind, he asked why the amount of timber was being reduced from 4 000 cubic meters per month to 3 000 cubic meters per month for those businesses while SAFCOL accepted a contract to export 5 000 cubic meters per month for six months.

Mr Patterson explained that the 5 000 cubic meters per month for exportation and the 4 000 cubic meters that had historically been used by the sawmillers were totally unrelated figures. The 5 000 cubic meters per month earmarked for exportation was overmatured wood that was being harvested for exportation and would be used for pulp. The local sawmillers did not have the capacity to use this wood. The 4 000 cubic meters per month that had gone to the sawmillers would be reduced to 3 000 because the capacity to harvest would be reduced while the 5 000 cubic meters per month was harvested for exportation. He explained that if someone could come in and harvest the additional 1 000 cubic meters per month, then the sawmillers could have it.

Mr J Arendse (ANC) asked Mr Montana to explain why he stated that it was inappropriate for the sawmillers to raise their concerns with the Committee. He asked Mr Patterson if anything was being done to assist the sawmillers in dealing with the decline of 1 000 cubic meters of timber per month. He also asked what the timber marked for exportation would be used for.

Mr Montana stated that the Department respects the sawmillers concerns and needs to respond to their issues and that he did not intend to convey otherwise. The problem arose in the method in which the sawmillers lobbied for their cause. They gave the impression that there was no willingness on behalf of the Department to engage their concerns. It was unfair for the Department to learn about their concerns through the media.

Mr Patterson answered that the exported timber would be used for pulp.

Mr Arendse asked who will harvest the 5 000 cubic meters per month for exportation.

Mr Patterson stated that outside contractors would be used by SAFCOL and MTO because of capacity issues. Large equipment is needed to harvest the timber used for pulp.

The Chair explained that DWAF is responsible for the promotion of sustainable development of commercial and indigenous forests even though the Department of Public Enterprise is responsible for the restructuring of forests. In this regard, Committee oversight is important in this matter. The Eastern Cape is one of the poorest provinces. As such, it is imperative to stress job creation.

Mr Montana explained that the Department respected the oversight role of the Committee.

Mr Mabuza (ANC) explained that he had heard reports about the reduced quality of logs that the smaller sawmillers were receiving.

Mr Patterson answered that he was not aware of this allegation, but stated that he would find out and return to the Committee with an answer.

Mr Simmons stated that increasing exports was a favourable goal as money would enter the economy. The negative aspect, however, is that local businesses will not get the benefit of the work. He was concerned with the potential job loss from exportation.

Mr Van Wyk acknowledged that there was only a small market for pulp, but asked if the wood could have been used in South Africa for production.

Mr Patterson stated that manufacturing of pulp occurs in South Africa, but only in areas far away from the Eastern Cape by established companies. Those factories have their own supply of timber.

Mr Montana thanked the Committee for the opportunity to address the Committee. He suggested that he and Mr Patterson return to report the progress made upon completion of discussions with the Eastern Cape Sawmillers Association.

Appendix 1:
Eastern Cape Sawmillers Association
TIMBER SUPPLY PROBLEMS IN THE TZITZIKAMMA - PORT ELIZABETH REGIONS

Background

Over the past number of years, small independent sawmills have obtained the bulk of their timber in log form from the SAFCOL forests in the Tzitzikamma region encompassing the forests of Longmore, outside Port Elizabeth, and Witelsbos, Bluelilliesbush and Lottering in Tzitzikamma.

In November last year, these mills started to experience supply problems and in December this became worse. This appeared to stem from changes being made within SAFCOL's management in the region, after the transfer earlier of this region into a separate but SAFCOL controlled entity known as MTO. MTO itself seems to have been established primarily as the means by which privatisation of these forests would be effected. The only information given to the sawmillers was during December where the new management structure was detailed and it was maade known that a certain amount of timber would be made available, which would depend on an export contract which was presently being negotiated. This would be on a tender or offer to purchase basis from Witelsbos as well as a fixed amount from Longmore to certain mills in the vicinity of Longmore

On return from the year-end shutdown, no timber was initially available as the allocations were still being made. An Association called the East Cape Independent Sawmillers Association was formed to attempt to protect the interests of sawmillers. At a meeting with MTO management in January, the Association was informed that an export contract had been entered into by MTO, that the privatisation of MTO was in an advanced stage with a consortium known as Cape Sawmills and that no safeguards for the continued supply of timber was being built into the Sale conditions, that a limited amount of timber was being made available to successful tenderers at Witelsbos and an allocation of timber from Longmore had been made. On enquiry, it was stated that the export programme was considered strategic because certain sections of Longmore were considered "not viable" with the type of timber planted there and needed to be replanted as soon as possible and exporting was the only quick way to achieve this. Please bear in mind that this decision was made just before privatisation but while the process was in an advanced stage! We have also been told by a former employee of the former Boskor sawmill which has supply contracts with MTO and has been bought by Swarland Timbers that Swartland is in fact financing Cape Sawmills' purchase of MTO. This in spite of an application by the Association to the Competition Commission to place certain safeguards in any such sale document as we felt a total monopoly was possible should such a tie-in be factual. The Commission was informed by Swarland that no tie-in existed and our application was rejected on the basis that the Boskor contract alowed for no more timber of a small sawmill class than a small sawmill itself would take. We were further informed that the export of timber was essential to Swartland through Cape Sawmills as Swartland owners had poured 'millions of Rands into the project' already. We appreciate that this may only be rumour, but there has been no transparency in the whole matter and it therefore bears investigating.

Due to this situation some of the sawmills have been unable to obtain timber, whilst a few have been able to continue operations but with a limited supply of lesser quality logs. The result is that all of them, numbering about 15, face either total closure in the very near future or in a few cases cutting back of their operations. We are now in a situation where it is likely that many small businesses will be going out of business, with job losses running into over 1500 direct jobs and thousands more having no further source of income. Indirectly, the impact on unemployment becomes even greater with the motor component (especially the catalytic converter and component sectors) and citrus industries being heavily dependent on these sawmills for timber pallets and crates for export of their products. This will affect the whole Government upliftment and economic growth initiatives for the whole region from Storms River to Addo and the Nelson Mandela Metropolitan area leading to an increase in crime and the impact of that on tourism is too terrible to contemplate

Very briefly, the situation as we understand it, is as follows:

Originally, forestry was made National in the belief that being a renewable resource, it could not be left to private enterprise. This has now been reversed in the interests of job creation and empowerment and we fully understand and support that reasoning. However, the unintended consequences are already taking a dangerous turn which was not anticipated. SAFCOL was entrusted with the privatisation of the State forests and they in turn created MTO which is specifically charged with handing over of the Tzitzikamma forests to private enterprisewhilst still holding an interest of, we believe, 25%

The make up and some of the detail emerging from the transaction mean that the end result will be catastophic for local industries including smaller sawmills, low-cost housing suppliers, local motor component manufacturers, agriculture, low cost furniture suppliers and a host of others, all of whom are mass employers of labour

A survey done amongst our members shows that some are on the brink of closure and others are working short time, all due to shortages of raw material in log form caused by the recent changes in SAFCOL/MTO amongst which the following are the greatest danger:

1. Timber being in short supply due to the export order embarked on by MTO

2. A change in SAFCOL/MTO's method of selling timber to small mills from a normal sale at fixed price to a tendering or offer system

3. A shift from a 'benign' monopoly with its various State controls giving a certain amount of protection to small sawmills to an 'agressive' monopoly by an exclusive private entity with no built in protection, which will lead to job losses and a negative impact on the economy of the region, contrary to Governments intentions of promoting job creation, reduction of crime and increasing tourism

4. The removal of raw material from the Eastern Cape to the Western Cape which will benefit from its' processing to the exclusion of the Eastern Cape's people and economy. Worse still, the removal of raw material to overseas for processing there.

We believe that the following steps must be taken immediately:

1. Save job losses by placing an immediate hold on the export of raw timber

2. Reversal of SAFCOL/MTO's contoversial policy of selling timber by tender or price offer and re-instatement of normal sales at fixed prices and the same for everyone

3. A delay in the Sale process of MTO forests in the region to Cape Sawmills to enable entry of an alternative bid from an East Cape Consortium

4. A thorough examination of the terms of any sale of Tzitzikamma's forests to any party to ensure that the necessary safeguards are built in to allow independent sawmills to continue in business and thus safeguarding the employment and economy of the region

5. A thorough investigation of the make up Cape Sawmills, and the involvement of Swartland in it


Appendix 2:
Department of Public Enterprises
BRIEFING NOTE FOR PORTFOLIO COMMITTEE ON APRIL 16, 2003

MTO Forestry (Pty) Limited ("MTO")

Introduction:

It is important to recognise that the issues raised here do not relate to the restructuring process. These are operational issues between SAFCOL and its customers.

Unfortunately, the issues were raised directly with the Portfolio Committee rather than through direct discussion with the Department of Public Enterprises, which is responsible for both restructuring and SAFCOL, as a state owned enterprise.

In terms of the mandate from Government to the Department of Public Enterprises, and with specific relevance to the forestry sector, policies have been in place since 1998 and have formed part of the forestry restructuring process. The most important policies defined are:

  • A moratorium of three (3) years from the date of the sale of the assets for all full-time forestry employees. This policy has been carried out in all of the transactions currently concluded and will continue with the MTO transaction and the Komatiland transaction.
  • Black Economic Empowerment (BEE):- a minimum of 10% of the total shareholding in each transaction must be held through a BEE group. This has been consistently followed in all the transactions concluded. In addition, the 25% of the total equity maintained by Government will be transferred on the following basis:
    - 10% to local communities
    - 9% by way of an employee share option plan
    - 6% to remain with SAFCOL for a five (5) year period.
  • The development of downstream wood and pulp processing capability with specific emphasis on local communities and / or historically disadvantaged individuals. The commitment by the purchasers in the transactions concluded is evident through training, employment and capital investment.
  • Growth in job opportunities to promote sustainable rural development. This is well documented in the transactions currently concluded and will continue in both the MTO and Komatiland transactions.

Concerns and Issues Dealt with by SAFCOL / MTO:

SAFCOL is the operational entity involved in the forest industry in Southern and Western Cape. As a matter of course SAFCOL, through it wholly owned subsidiary MTO, engages with all relevant parties in relation to forestry issues. This process has continued in relation to the current issue of limited sawlog supplies. Discussions have been held with Peter Kennedy, the chairperson and two of the members of the Eastern Cape Sawmillers Association and there is ongoing discussions and engagement between local MTO management and local small sawmillers.

There have been suggestions that potential staff losses are likely in MTO due to the export of pulp wood in the round from the Longmore plantation in the Southern Cape.

SAFCOL has confirmed categorically that no staff of their wholly owned subsidiary, MTO, will lose their jobs or be retrenched, due to this action. The three year retrenchment moratorium policy of Government is in place in MTO and will not change. With the decision to convert the unproductive areas of Longmore to sawlog and pole production the result is likely to be increased employment in the long term.

Concerns Raised by Small Sawmill Millers:

The current situation has arisen due to a number of reasons.

Historically, due to a number of fires in the Tsitsikamma area, additional small diameter sawlogs had become available and these volumes were supplied on a short term or ad hoc basis to small sawmillers. The fire damaged areas have now been cleared and no additional volumes are available. Supply is also no longer available from other sustainable sources due to long term contract obligations. This has resulted in a number of small sawmillers looking for alternative supplies which they believe should be supplied from the Longmore plantation.

MTO has historically supplied small sawmillers product on a short term contract or ad hoc basis with 4,000 cubic metres per month from the Longmore plantation. Due the harvesting capacity limitations in the area the 4,000 cubic metres per month will reduce to 3,000 cubic metres per month.

A large area of the Longmore plantation was planted a number of years ago with the purpose of providing raw material to a particle board facility in Port Elizabeth. The particle board operation has since been closed down. The plantation itself has been managed since that time on a so called pulp wood rotation and has now become over-matured, due to the delay in the clear felling programme.

With no pulp wood market available in the area various options were considered by SAFCOL to economically harvest the over-matured timber and replace it with appropriate products for the local sawmilling industry.

An opportunity arose for SAFCOL to market internationally this supply of over-matured logs to international clients requiring pulp wood in the round. A contract to supply a volume of 5,000 cubic metres per month for the six months ending in June, 2003 has been signed.

The advantage to MTO of this contract is that the unproductive areas of Longmore can now be converted into sawlog and pole production, as soon as possible. This is in the best interests of the local sawmilling industry and MTO by improving long term benefits of the plantations for both groups. There is also the potential that this export initiative may be expanded in the future to include value added products, sourced from small sawmills in the area.

MTO is always endeavouring to treat small sawmillers as fairly as possible within the constraints of capacity. The small sawmills which have been historically supplied with wood product, obtained this on either an ad hoc or short term contract basis. MTO will split the available 3,000 cubic metres to clients on the basis of their length of relationship with the Longmore plantation, volume consumption and payment history. It is recognized that this reduction could have an effect on the employment in certain of these small sawmills. However, the decision taken will ensure long term benefits for the plantation, as well as the local sawmilling industry.


Appendix 3
Document presented to the Portfolio Committee on Education last year
30 April 2002

Prioritisation of Water and Sanitation Provision to Schools

Estimated Backlogs in Sanitation Provision

- Based on a learner toilet ratio of 30:1 a toilet shortage per school was calculated. Only toilets in a working condition were factored into the calculation. It is estimated that 187 182 toilets are needed countrywide, with the highest shortages in KwaZulu-Natal (42 723), followed by the Eastern Cape (38 146) and the Northern Province (36 281).

Backlogs in Water Provision

- Out of a total of 27 148 schools in the country, 7 817 schools did not have potable water on the school premises in 2000.

- 2571 schools in the Eastern Cape (41%),
1822 schools in KwaZulu-Natal (31,8%) and
1571 schools in the Northern Province
(36,9%) did not have potable water on the
school premises in 2000.

What has the Department of Education done to improve the provision of water and sanitation to schools?

- DoE participated in the development of the White Paper on Sanitation.
- During the reconstruction of flood-damaged schools in the Northern Province and Mpumalanga the DoE insisted that the upgrading and provision of adequate water and sanitation be included in the reconstruction of all schools funded by donors.
- With the implementation of the Japanese Grant Aid funding, the DoE insisted that all schools be provided with adequate water and sanitation facilities.
- The European Union funded Eastern Cape School Building Programme includes adequate water and sanitation provision to all schools which form part of the programme.
- The DoE and DWAF has developed a joint strategy for improved co-operation between the two departments for the provision of water and sanitation to schools. The strategy included the provision of points of supply for these services to all schools within areas where DWAF are implementing community water and sanitation programmes. The extent of inclusion is currently revisited to investigate the possibility of also proving water and sanitation infrastructure within the school sites.
- The DoE is a member of the management team for the cholera epidemic. During 2001 DoE assisted the DoH and GCIS to prepare and distribute information pamphlets and posters to all schools in the country on health and hygiene education to counteract the spread of cholera.
- In view of the cholera epidemic, the huge backlogs in water and sanitation provision, the particular problems experienced by farm schools regarding these services provinces have been urged continuously to prioritise water and sanitation projects in their business plans.

WATER AND SANITATION PROJECTS: 2001/2002

EC No Feedback was received

FS
An amount of R500 000,00 was set aside for the 2001/2002 financial year for the provision of water at 20 farm schools and an amount of R1OOO 000,00 to provide 102 toilets at farm schools as well as 5 toilet blocks at public schools.

GT Gauteng Department of Education is spending R 8307217,51 during the 2001/2002 financial year on the provision of new water and sanitation services as well as the upgrading of existing services. The sanitation facilities of 60 schools have been upgraded, and 19 schools have been provided with running water.

KZN
616 seats (195 blocks) and 128 rain water tanks had been completed in the Ugu District Municipality at a total cost of R 4,9 million by August 2001. In Zululand District Municipality 18 school ablution blocks are being built.
In uThungulu and Umkhanyakude District Municipalities, 29 school ablution blocks are being built.
In King Shaka district Municipality, 20 school ablution blocks had been completed by August 2001.
In summary: Between 1 April 2001 and 31 March 2002 it is anticipated that 1596 new toilet units will be completed (many are presently under construction). During the rest of the year (2002) at least a further 3000 toilet units will be completed.

MP
During the current financial year, 787 toilets are being built and 183 schools are being provided with water as part of the refurbishment programme from the provincial infrastructure budget. 134 toilets will be provided as part of new school buildings, whilst 33 toilets will be built as a result of joint ventures with the private sector. The total cost of these projects is R7,5 million.

NC The Northern Cape Department or Education is currently building 4 additional toilet blocks

NP
The province indicated that no water and sanitation projects aimed at addressing backlogs will be embarked upon during the current financial year as a result or lack of sources. Where new classroom blocks are being provided toilets are also built for those classrooms.

NW North West Province is in the process of providing 221 toilets to farm schools and water to 81 schools from the provincial budget. A further 686 toilets will be constructed as a result or the construction of 22 new schools from the provincial Department or Education's
infrastructure budget. The North West Education Development Trust is providing in
addition also 481 ablution blocks as well as water supply to 81 schools. From the capital
grant 278 toilets are being built.

WC
The Western Cape Department or Education is providing 4 new blocks of sanitation
facilities to schools in Khayelitsha, Worcester Avontuur and Ongelegen at a cost or
R 900 000,00.

Action Plan for the MTEF Period

- Following the SRN 2000 launch, Prof Kader Asmal, wrote to all the MECs requesting the submission of their business plans for the 2002/2003 to 2004/2005 MTEF period before 5 February 2002. In his letter, Professor Asmal requested that the business plans must reflect the priority given to water and sanitation provision to schools. Thus far only the business plans for the Free State, KZN, Northern Cape, Mpumalanga and Western Cape have been received. Business plans must still be submitted by: Northern Province, Eastern Cape, Gauteng and North West Province.

2002/2003 Water and Sanitation Projects

- Free State:
The Free State plans to provide 20 existing schools with water borne toilets and 30 farm schools with pit toilets at a cost of R4 million. 20 existing farm schools will be provided with water at a cost of R400000,00. In the 200212003 financial year 16 new schools will be constructed, consisting of
6 schools carried over from the 2001/2002 financial year and 10 new schools of which the construction will commence in 2002/2003. All of these schools will be provided with adequate sanitation facilities as well as drinking water.

- Western Cape:
The Western Cape indicated in their business plan for the 2002/3 - 2004/5 MTEF period that they have the following plans for water and sanitation provision:
The Western Cape has 32 schools without water on site. Of these 25 will be provided with water during the 2002/3 - 2004/5 MTEF period. Seven schools will still be without water at the end of this period. The province also indicated that they have 182 outdated toilet systems.

The province plans to replace 25 of these systems, which will leave the province with 157 outdated toilet systems at the end of the period. The province will spent R8,1 million on providing new or revamping existing toilet systems.

- KwaZulu-Natal:
The business plan of KwaZulu-Natal indicates that they plan to provide 128 existing schools with water and they plan to build 6830 toilets at existing schools over the period 2001/2002 to 2002/2003 These plans are however subject to available funding.

- Mpumalanga:
During the 2003/2004 financial year, Mpumalanga will provide seven schools with water at a cost of R308700,00 and will built 348 toilets at a cost of R1 736 437,00. During the 2004/2005 financial year, 365 toilets will be built at a cost of R1 823 259,00 and 6 schools will be provided with water at a cost of R324135,00.

- Northern Cape:
According to the business plan two schools in the Northern Cape will be provided by ablution facilities at a cost of R412400,00 during the 2002/2003 financial year.

Japanese Grant Aid: Water and Sanitation Projects

- The Japanese Grant Aid is being implemented in four provinces, namely Eastern Cape, KwaZulu-Natal, Mpumalanga and Northern Province.
- Actual construction work will be done in KwaZulu-Natal and Eastern Cape during the 2002/2003 financial year.
- In the Eastern Cape, 287 toilet booths will be built and 119 rainwater tanks will be installed at 20 schools in the districts of Mt Ayliff, Tabankulu, Mt Frere, Maluti, Mt Fletcher, Bizana, Flaggstaff and Lusikisiki during the 2002/2003 financial year.
- In KwaZulu-Natal, in the Ubombo and Ingwavuma districts 116 toilet booths will be built and 154 rainwater tanks will be installed during the 2002/2003 financial year.

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