The Role of Local Government in implementing Biogas Projects Barry Coetzee, Head: Integrated Waste M

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The Role of Local Government in implementing
Biogas ProjectsBarry Coetzee, Head Integrated
Waste Management, Strategy PolicySolid Waste
Management Dept, City of Cape Town
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Legal Context Roles Responsibilities of a
municipality

• Constitution of SA, Schedule 4 5
• Municipal services include the provision of
  water, sanitation, waste and electricity
  reticulation services.
• Municipal Systems Act (Act 32 of 2000)
• S.4 Rights duties of municipal councils
• strive to ensure that municipal services are
  provided to the local community in a financially
  and environmentally sustainable manner.
• S.11 Executive legislative authority
• Develop adopt policies, plans, strategies,
  targets.
• Provide municipal services to local community or
  appoint service providers per S.78.
• Promote a safe and health environment.
• Do anything within its legislative and executive
  competence.

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Role of local government in implementing biogas
projects (1)

• Ensure sustainability/ sustainable development
• Land use
• Environment prevent impact damage, conserve
• Create socio-economic benefits
• Financial sustainability
• Plan, set targets for spatial efficiency,
  effectiveness, sustainability in terms of growth
• Provision of accessible, viable, sustainable,
  affordable municipal services
• Water, sanitation, waste, electrical reticulation
  (infrastructure services)
• Set affordable tariffs ( rates)
• Assess alternative service delivery mechanisms
• Technology alternatives, viability,
• Funding
• Internal/external operation, repairs, maintenance
  (skills, etc)
• Impact on jobs/ job creation
• Public and labour consultation

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Role of local government in implementing biogas
projects (2)

• Once Council has resolved that alternative is
  viable, feasible, sustainable
• Engineering Concept design, Final design,
  Infrastructure Equipment bid specifications,
  tender (Supply Chain Regs procure goods
  professional services transparently)
• Plans approval
• EIA of proposed infrastructure development
  (Supply Chain Regs procure professional services
  transparently EIA Regs Public consultation)
• Land Council approval if Council-owned,
  rezoning application
• Hazard Assessment (OHS Act MHI Regs)
• DME application Independent Power Producer
  application/ authorisation
• Permit/ licence/authorisation to operate (Water
  Act, NEMA, Waste Act)
• Funding
• Budget tariff setting,
• Possible loans grants,
• Private funding, e.g. PPP Council approval/
  National Treasury authorisation
• CDM cream on the cake, but not without risk or
  complexity
• Transaction advisor

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Legal Context Roles Responsibilities of a
municipality

• Municipal Systems Act (Act 32 of 2000)
• S.73 General Duty Municipal Services must
• (a) be equitable and accessible
• (b) be provided in a manner that is conducive to
  -
• (i) the prudent, economic, efficient and
  effective use of available resources and
• (ii) the improvement of standards of quality over
  time
• (c) be financially sustainable read
  affordable
• (d) be environmentally sustainable and
• (e) be regularly reviewed with a view to
  upgrading, extension and improvement.
• should be read in conjunction with the
  provisions of the Municipal Finance Management
  Act (MFMA)

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The Context of Roles Responsibilities

• Municipal Systems Act (Act 32 of 2000)
• financially sustainable, in relation to the
  provision of a municipal service, means the
  provision of a municipal service in a manner
  aimed at ensuring that the financing of that
  service from internal and external sources,
  including budgeted income, grants and subsidies
  for the service, is sufficient to cover the costs
  of
• (a) the initial capital expenditure required for
  the service
• (b) operating the service and
• (c) maintaining, repairing and replacing the
  physical assets used in the provision of the
  service.

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The Context of Roles Responsibilities

• Municipal Systems Act (Act 32 of 2000)
• environmentally sustainable, in relation to the
  provision of a municipal service, means the
  provision of a municipal service in a manner
  aimed at ensuring that
• (a) the risk of harm to the environment and to
  human health and safety is
• minimised to the extent reasonably possible under
  the circumstances
• (b) the potential benefits to the environment and
  to human health and safety are maximised to the
  extent reasonably possible under the
  circumstances and
• (c) legislation intended to protect the
  environment and human health and safety is
  complied with.

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Legal Context Roles Responsibilities of a
municipality

• S.74 Tariff policy
• (1) A municipal council must adopt and implement
  a tariff policy on the levying of fees for
  municipal services provided by the municipality
  itself or by way of service delivery agreements,
  and which complies with the provisions of this
  Act and with any other applicable legislation.
• (2) A tariff policy must reflect at least the
  following principles, namely that
• (d) tariffs must reflect the costs reasonably
  associated with rendering the service, including
  capital, operating, maintenance, administration
  and replacement costs, and interest charges
• (e) tariffs must be set at levels that facilitate
  the financial sustainability of the service,
  taking into account subsidisation from sources
  other than the service concerned
• (f) provision may be made in appropriate
  circumstances for a surcharge on the tariff for a
  service
• (h) the economical, efficient and effective use
  of resources, the recycling of waste, and other
  appropriate environmental objectives must be
  encouraged

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Legal Context Roles Responsibilities of a
municipality

• S.77. Occasions when municipalities must review
  and decide on mechanisms to provide municipal
  services
• A municipality must review and decide on the
  appropriate mechanism to provide
• a municipal service when
• (a) preparing or reviewing its integrated
  development plan
• (b) a new municipal service is to be provided
• (c) an existing municipal service is to be
  significantly upgraded, extended or improved

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Legal Context Roles Responsibilities of a
municipality

• Municipal Systems Act (Act 32 of 2000)
• S. 78 Criteria and process for deciding on
  mechanisms to provide municipal services
• (1) When a municipality has in terms of section
  77 to decide on a mechanism to provide a
  municipal service in the municipality or a part
  of the municipality, or to review any existing
  mechanism
• (a) it must first assess
• (i) the direct and indirect costs and benefits
  associated with the project if the service is
  provided by the municipality through an internal
  mechanism, including the expected effect on the
  environment and on human health, well-being and
  safety
• (ii) the municipalitys capacity and potential
  future capacity to furnish the skills, expertise
  and resources necessary for the provision of the
  service through an internal mechanism mentioned
  in section 76(a)
• (b) it may take into account any developing
  trends in the sustainable provision of municipal
  services generally.

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Legal Context Roles Responsibilities of a
municipality

• Municipal Systems Act (Act 32 of 2000)
• S. 78 Criteria and process for deciding on
  mechanisms to provide municipal services
• (2) After having applied subsection (1), a
  municipality may
• (a) decide on an appropriate internal mechanism
  to provide the service or
• (b) before it takes a decision on an appropriate
  mechanism, explore the possibility of providing
  the service through an external mechanism
  mentioned in section 76(b).

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Legal Context Roles Responsibilities of a
municipality

• Municipal Systems Act (Act 32 of 2000)
• S. 78 Criteria and process for deciding on
  mechanisms to provide municipal services
• (3) If a municipality decides in terms of
  subsection (2)(b) to explore the possibility of
  providing the service through an external
  mechanism it must
• (b) assess the different service delivery options
  in terms of section 76(b), taking into account
• (i) the direct and indirect costs and benefits
  associated with the project, including the
  expected effect of any service delivery mechanism
  on the environment and on human health,
  well-being and safety
• (ii) the capacity and potential future capacity
  of prospective service providers to furnish the
  skills, expertise and resources necessary for the
  provision of the service
• (iii) the views of the local community
• (iv) the likely impact on development and
  employment patterns in the municipality and
• (v) the views of organised labour.

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Conclusions

• Consideration of changing mechanisms MSA S.78
  assessment (all aspects of funding, staffing,
  financial impacts and risk, economic
  implications, etc)
• Financial risk will be considered in terms of
  affordability to Council and its rate payers
• Land use authorisation MFMA requires Council
  approval
• Land use for biogas applications will probably
  require zoning approval due to nature of
  processes
• Environmental Impact Assessment will be required
• Public and labour consultation necessary
• Funding decisions that involve a Public Private
  Partnership (PPP) Council approval and careful
  legal consideration i.r.o..
• Carbon credits, CDM process
• IMPLEMENTATION IS VERY COMPLEX NEEDS GOOD
  UNDERSTANDING OF LEGISLATION, GOOD PLANNING
  PROJECT MANAGEMENT ONCE A COUNCIL HAS APPROVED
  THAT IT WILL UNDERTAKE MAJOR CHANGE BASED ON GOOD
  ASSESSMENT OF RISK AND VIABILITY

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THANK YOU, DANKIE, ENKOSI