Current: DWAF-DANIDA Integrated Water Resource Management (IWRM) Project Phase II | Projects | Vendzulu Development Agency

Client: Department of Water Affairs and Forestry (DWAF)
Project: DWAF-DANIDA Integrated Water Resource Management (IWRM) Project Phase II
Period: March 2007 – March 2010
Vendzulu’s Role: Procurement Agency to support the implementation of IWRM Project Phase II as well as render Financial- and Contracts Management Services.

Background:

The IWRM Programme is a donor-funded Programme supported by the Danish, with the primary objective to empower communities to actively engage in water management and other development issues related to water and thereby, increasing marginalised community and gender based representation. The three core objectives of the Programme were provided as building capacity, institutionalising the Catchment Management Agency, and Service Delivery in IWRM- over a period of 3-4 years.

During Phase I of the Programme, small Grants were supplied to Community Based Organisations (CBOs). However, as these CBOs were not trained to utilise the Grants sensibly, it made little impact on improving their conditions in the long term.

To take the Programme forward during Phase II, the Donor Funds were up scaled to more than R30 million. To provide a sustainable solution, it was decided to make these monies available to the communities in the form of managed Funds, whilst training and capacitating them to take ownership of their projects at the same time.

Project Outline:

IWRM Project Phase II- is a large-scale project that was implemented in 3 Water Management Areas, namely the Crocodile West Marico in North West Cape; the Olifants-Doorn in Western Cape , and the Mvoti UMzimkulu in Kwazulu Natal. 64 community projects were identified for financial and capacitating assistance in these areas.

The Challenge:

IWRM Project Phase II has a multi-dimensional nature with complex procurement and financial management requirements. The needs of the 64 communities were all completely different and the nature of the services and material required for each one of the community projects were extremely diverse. In some cases goods had to be acquired for small amounts varying between R700 – R900, whilst in other cases, the expenditures were in excess of hundreds of thousands. In some instances there was the need for a once-off transaction, and in others the services of specialised consultancies or service providers had to be acquired for lengthy periods of time.

The Solution:

Therefore, to support the effective and timely implementation of these IWRM Phase II projects in South Africa, DWAF appointed Development Agency to render Financial Management Services for the Programme and act as an external Procurement Agency.

A critical component for ensuring that the IWRM Project Phase II objectives were met, was the timely and effective procurement of the goods and services required for the progress of the community projects. Following the conventional Government Procurement Policies and Procedures however, would have required a substantial increase in internal resources, whilst the Government payment procedures would have delayed the project tremendously, possibly even by years.

Deliverables Achieved:

Establishment of a Call Down Facility to ensure responsive and timely procurement _

At the beginning of the programme it was established that there would be a great need for specialists with knowledge in the water and community environment. Vendzulu Development Agency along with DWAF decided to establish a Call Down Facility that would amongst other, comprise the necessary expertise required within the South African arena, who have been selected and approved in accordance with Government Procurement Policies and Procedures.

This database was utilised throughout the duration of the IWRM Project Phase II and ensured responsive and timely assistance for roll out and implementation of the community based projects.

Transparent and Quantifiable Financial Management of the Project Funds

Vendzulu Development Agency furthermore created custom-made and comprehensive information-; project; contract and financial management control systems for managing the IWRM Project Phase II Budget and Funds.

In addition, to ensure complete transparency and accountability, Vendzulu Development Agency facilitated the opening of a bank account, specifically for this Project. DWAF received a monthly bank statement and the donor could see exactly how the funds were utilised.

Punctual payment of goods and services ensured the continued progress of community projects

As the designated Procurement Agency to handle the procurement aspects on DWAF’s behalf, Vendzulu Development Agency processed and paid approved claims from once-off suppliers within 3-5 working days, whilst Service Providers on contract were paid within 30 days. This resulted in the timely supply of goods and services needed to ensure progress whilst taking the community based projects forward.

IWRM right on target

The objectives and targets IWRM Project Phase II were to date not only met but achieved well beyond expectation whilst achieving service delivery excellence at the same time. This was done within the specified budget and timeframes, well underway for on-time for full completion in March 2010.

A sustainable solution to addressing water related needs in communities

Sustainable capacity was built for 64 CBOs. The lives of these community members were thereby positively affected and they were given sustainable solutions not only towards improving their own conditions and livelihoods, but also to positively impact on the economy of our country.