Department of Water Affairs and Forestry Report to Joint Budget Committee of Parliament Ms PAM YAKO...

Department of Water Department of Water Affairs and ForestryAffairs and Forestry

Report to Joint Budget Committee of Report to Joint Budget Committee of ParliamentParliament

Ms PAM YAKOMs PAM YAKO

Director-GeneralDirector-General

29 OCTOBER 200829 OCTOBER 2008

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CONTENTCONTENT 1. Medium term sector and departmental policy priorities 1.1 Programme 1: Administration 1.2 Programme 2: Water Resource Management 1.3 Programme 3: Water Services 1.4 Programme 4: Forestry 2. Medium Term Expenditure Trends within the sector 3. Departmental budget bids not agreed for 2008/09 budget cycle

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PROGRAMME 1: PROGRAMME 1: ADMINISTRATIONADMINISTRATION

PRIORITIES APEX PRIORITIES KEY OUTPUT PROGRESS

Governance, organization and transformation

Project 9:Self employment opportunities in the second economy

Institutional realignmentOrganisational reorganizationGender and youth programmeEPWP programmesInstitutional oversight

Launch of Women’s Launch of Women’s OrganisationOrganisationImproved systems for Improved systems for monitoring water monitoring water drinking quality (Award drinking quality (Award Won) Won) On institutional On institutional realignment, realignment, consultative model has consultative model has been approved and been approved and the model is ready to the model is ready to be rolled out nationallybe rolled out nationallyDWAF has launched DWAF has launched two National Youth two National Youth Service projects in Service projects in Letsemeng Letsemeng MunicipalityMunicipalityIn Jacobsdale,75 In Jacobsdale,75 have been employed have been employed as part of the National as part of the National Youth Service through Youth Service through construction of construction of sanitation sanitation infrastructureinfrastructure

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PROGRAMME 1: PROGRAMME 1: ADMINISTRATIONADMINISTRATION

PRIORITIES APEX PRIORITIES

KEY OUTPUT PROGRESS

Improve financial management processes and systems

Project 13: Assistance to SMEs including procurement

Risk managementInternal controls and procedures Planning and budgetRevenue and expenditure managementAssets and liability managementAccounting and reportingFunctional audit committeeFunctional internal audit

•The risk management policy and the risk implementation plan have been submitted to top management for inputs and/or approval-Programme Managers have been appointed for a management of the various programmes •Expenditure reports and analist are provided to members of Top Management and EXCO for discussion at these meetings.•To improve the quality of the annual financial statements, interim financial statements will be compiled for the period 1 April to 30 September 2008.

Internal Audit new structure has been approved

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PROGRAMME 2: PROGRAMME 2: WATER RESOURCE MANAGEMENTWATER RESOURCE MANAGEMENT


KEY OUTPUT PROGRESS

Water resource management

Speed up community infrastructure programme

Ensure that water resources are allocated to promote social and economic development by completing compulsory license processes in five catchment management areas in 2008/09

Verification process completed in 2 areas, Umhlathuze & Jan Dissels, continuing for Inkomati & Vaal. Process initiated for Crocodile West.

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KEY OUTPUT PROGRESS



Ensure that available water is used efficiently by, amongst others, completing a policy on conservation and demand management in 2008/09

Draft WC/WDM Regulation & Conditions for water use licences in place

Maintain a reliable and equitable supply of water by completing the revision of the national water resource strategy in 2009/10

Revision of the NWRS is underway.

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PRIORITIES

APEX PRIORITIES

KEY OUTPUT PROGRESS



Ensure that water resources are of a quality that meets the needs of all customers by completing the water system classification regulations in 2008/09

Draft regulations for the establishment of a water resource classification system published for comments in Sept 2008.

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KEY OUTPUT PROGRESS



Maximise the devolution of localized water resources management by establishing all proposed catchment management agencies by 2010/11

•2 functional CMAs (Inkomati & Breede- Overberg). •Board appointment process initiated for Olifants Doorn, Umvoti, Gouritz, Crocodile West, uThukela & Usutu Mhlathuze. Berg, Upper Vaal , Olifants & Limpopo proposal process initiated.

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KEY OUTPUT PROGRESS



Improve participatory water management by having co-operation agreements and 3 implementing structures in place for all South Africa’s internationally shared rivers by 2010/11

LIMCOM ratified with Zimbabwe still to ratify. Facilitation for post-conflict restructuring programme in DRC & Rwanda. Funding provided for DRC. Facilitation of DWAF’s contribution at UNCSD, UNFF and WWF

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PROGRAMME 3: PROGRAMME 3: WATER SERVICESWATER SERVICES


KEY OUTPUT PROGRESS

Water Services Project 10: Speed up community infrastructure programme

Ensure that all people in South Africa have access to a functioning basic water supply facility and a functioning basic sanitation facility by 2014 by developing policy and regulation and implementing it at local government level as guided by the strategic framework for water services

-Over 5.5 million people served with water between Apr 2004 and Sept 2008

-Over 4.8 million people served with sanitation between Apr 2004 and Sep 2008

- 240 953 buckets from original 252 254 removed between Feb 2005 and Sep 2008 (only 11, 301 remain)

-84% of population with infrastructure receive Free Basic Water (and 72% of poor population receive same)

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KEY OUTPUT PROGRESS


Provide all schools that currently have no services with a safe water supply and sanitation service by December 2010

•162 schools served with water (171 under construction)

•141 served with sanitation (148 under construction)

•2268 schools reached though Health and Hygiene Programme

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KEY OUTPUT PROGRESS


Provide all clinics that currently have no services as well as those with inadequate services with a safe water supply and sanitation service by 2007/08

All clinics served in 2007/2008

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PRIORITIES

APEX PRIORITIES

KEY OUTPUT PROGRESS

Water Services

Project 10: Speed up community infrastructure programme

Facilitate the provision of regional bulk infrastructure by 2011 by developing the national implementation framework

•Draft National Implementation Framework completed part of strategy document to be finalised by November 2008•List of projects submitted to National Treasury•DoRA gazetted•Implementation commenced (26 projects ongoing) •For the past 2 years the budget allocation has been fully committed.

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KEY OUTPUT PROGRESS


Ensure the provision of safe drinking water by all water services authorities by 2009 by effective monitoring, regulation and support as guided by the strategic framework for water services and specified by South African National Standard 241

Electronic drinking water quality management system functional

(100% of WSAs reporting on drinking water quality – 94% of tests comply with SANS 241 health parameters)

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PROGRAMME 4: PROGRAMME 4: FORESTRYFORESTRY

PRIORITIES KEY OUTPUT PROGRESS

Forestry Ensure the sustainable management of all forests, woodlands and plantations by enforcing the National Forests Act (1998) and associated regulations

•Criteria, Indicators and Standards developed for the sustainable management of indigenous forests and commercial forestry to ensure environmental and social responsibility while promoting economic viability. •Protected trees list published in the government gazette. Awareness raising ongoing and enforcement actions taken in case of non-compliance.

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PRIORITIES KEY OUTPUT PROGRESS

Forestry Reduce incidents of veld, forest and mountain fires in line with the National Veld and Forest Fire Act (1998) by implementing fire management and warning information systems and publishing monthly reports.

•National Fire Danger Rating System not finalised, but existing system (McArthur) used to ensure compliance with the NVFFA. •Fire Protection Associations registered across South Africa with the main focus on areas with high fire danger rating.• Ongoing awareness raising with specific focus during the fire season to assist in preventing fires

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KEY OUTPUT PROGRESS

Forestry Project 9: self employment opportunities in the second economy

Contribute to economic development and poverty eradication by implementing the National Forests Act and the Million Trees programme and establishing mechanisms to promote enterprise development in the sector.

•Million trees programme implemented and since the launch in September 2007, a total of 1 741 062 trees were planted. •Progress has been made in terms of making information accessible to entrepreneurs in the forestry sector through workshops and the distribution of information.

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PRIORITIES APEX PRIORITIES KEY OUTPUT PROGRESS

Forestry Project 1: Industrial Policy Action Plan

Project 9: self employment opportunities in the second economy

Key Action Plans for forest, pulp and paper and furniture sector developed and implemented

Accelerate transformation of the forestry sector in line with the targets in the Forest Sector BEE Charter by implementing the forest enterprise development programme and other initiatives

• Action plan developed and includes the development of afforestation suitability maps for Eastern Cape; MoA with DEAT to align afforestation license process; assessment of skills needs and gaps; forestry industry skills development strategy; funding policy for small growers; sawlog strategy to address sawlog shortage.

• Forest Sector BBBEE Charter signed by the Minister & industry on 22 May 2008. Charter submitted to the Minister of Trade and Industry for publication in the government gazette in terms of the BBBEE Act, 2003 and will be published within the next month. Chief Executive Officer for Charter appointed. Various Task Teams investigating priority issues, i.e. inclusion of the furniture industry and obtaining baseline info on existing industries.

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PROGRESS WITH MEETING THE MILLENIUM DEVELOPMENT GOALS

MDG TARGET PRIORITY AREA

PROGRESS TO DATE

COMMENT

MDG Target 10: Halve, by 2015, the proportion of people without sustainable access to an improved water source and improved sanitation

Access to water 3 684 204 people served with water as of March 2008

Water target already met and exceeded as figure does not include delivery from April 2008 to date

Access to sanitation

2 741 437 people served with sanitation

Sanitation MDG has already been met. DWAF is striving to meet our own internal targets of 2010 & 2014.

GOAL: ENSURING ENVIRONMENTAL SUSTAINABILITY

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MDG TARGET PRIORITY AREA PROGRESS TO DATE COMMENT

Poverty alleviation project Working for Water Over 30,000 previously unemployed people employed each year in over 300 projects across the country, clearing over 800,000 hectares of invasive alien plants

The programme offers high returns on investment in terms of employment opportunities

Rain water harvesting

Financial assistance provided to RPF

75 tanks constructed

Regulations for financial assistance approved Subsidies granted

Forestry –

Enterprise Development

6 Forest Enterprise projects supported (Salique, Injaka; Amandlemvelo; Khulanathi Greening Co-operative; Galeshewe CNB Nursery;Ntendeka Wilderness Area)

Promote gender equality and empower women

Forestry – Forest Sector BBBEE Charter

Commercial forestry sub-sectors: > 80% of emerging plantation growers are black women & > 50% of small charcoal producers are women

Target: Increase ownership and promote further participation in Forestry sector.


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MDG TARGET PRIORITY AREA PROGRESS TO DATE COMMENT

Working on Fire About1,900 previously unemployed people trained and deployed as wildfire fighters in eight Provinces.

Excellent returns on investment in terms of high quality work opportunities with strong exiting possibilities

Forestry –

Enterprise Development

6 Forest Enterprise projects supported (Salique, Injaka; Amandlemvelo; Khulanathi Greening Co-operative; Galeshewe CNB Nursery;Ntendeka Wilderness Area)

Additional funds will allow the Department to increase the numbers of projects supported

Promote gender equality and empower women

Forestry – Forest Sector BBBEE Charter

Commercial forestry sub-sectors: > 80% of emerging plantation growers are black women & > 50% of small charcoal producers are women

Target: Increase ownership and promote further participation in Forestry sector.


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•Water quality issues •Water losses in the municipalities•Impact of land reform on commercial forestry•Financing mechanisms on forestry enterprise development•Capacity of local government to deliver (skills, finances)•Sustainability (e.g. ageing) of infrastructure – asset management•Project implementation of new national infrastructure•Impact of fires on timber supply

CHALLENGES

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Legislative: •Water Services Act: Section 78; Reimbursement of Water Boards •Forestry Act, •National Water Act: Regulatory Framework not integrated;

Institutions•Oversight•Establishment•Sustainability

Finance•SAP – Large system that requires proper implementation and post implementation refinements– long term, user requirements•Inadequate capacity (lack of skilled resources)•Segregation between Exchequer and Trading Entity – functions, staff issues•Extensive infrastructure assets – magnitude, spatial distribution/location: Auditable asset plans needed

Rehabilitation and refurbishment of ageing national infrastructure

CHALLENGES

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Impact of land claims on commercial forestry

Governance (transfer of indigenous forests to other state institutions)

Negative impact of fires on timber supply

Implication of timber shortage – Trees harvested earlier (over-exploitation); closure of saw mills (job losses)

Financing mechanisms for forestry enterprise development

Post settlement support

CHALLENGES

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MEDIUM TERM EXPENDITURE TRENDS

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STRATEGIC REVIEW - MAINSTRATEGIC REVIEW - MAIN

DWAF Allocation for 2008/09DWAF Allocation for 2008/09

The current yearThe current year

Total Exchequer Allocations

R586 million

R3 238million

R2 427million

R446million

AdminWater Resource

ManagementWater Services Forestry

R1 615million

R320million

Current Capital

Augmentation to WTE

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EXPENDITURE TRENDS

• Current Year Expenditure – 30.09.2008

The Department had spent 42.84 % of its revised appropriation budget of R6 968 276 million which Includes an amount of R 269 million for rollovers approved by National Treasury. Based on the straight line approach analysis, the department should have spent at least 50% of its allocated budget which represent 7% under expenditure.

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EXPENDITURE TRENDS

• Current Year Expenditure – 30.09.2008

– The under expenditure of the budget is mainly attributable to lower spending on the following projects:

– Backlog in Water and Sanitation at schools and clinics• Regional Bulk Infrastructure• Construction of De Hoop Dam

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EXPENDITURE TRENDS

• Expenditure per programme

Programmes 2005/06

R’000’

2006/07

R’000’

2007/08

R’000’Programme 1: Administration

278 378 526 726 601 181

Programme 2: 1 503 464 1 872 479 2 462 514

Programme 3: Water Services

1 510 998 1 454 758 1 866 926

Programme 4: Forestry 420 919 441 240 451 077

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EXPENDITURE TRENDS

• % Spent per programme2005/06

R’000

2006/07

R’000

2007/08

R’000Programme 1: Administration

75% 97% 100%

Programme 2: 93% 86% 85%


99% 98% 100%

Programme 4: Forestry

99% 99% 96%

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ADJUSTMENT ESTIMATES AS ANNOUNCED IN THE MTBPS

Programmes Main appropriation

2008/09

R’000

Additional appropriation

2008/09

R’000

Adjusted appropriation

2008/09

R’000

Programme 1: Administration

586 696 835 587 531

Programme 2: Water Resoures Management

3 238 399 289 713 3 528 112


2 427 999 - 2 427 999

Programme 4: Forestry

446 182 46 792 492 974

Total 6 699 276 337 340 7 036 616

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ADDITIONAL ALLOCATIONS(ADJUSTMENT ESTIMATES) R’000

PROGRAMME 1: ADMINISTRATION 835Donations received for Women in Water awards

PROGRAMME 2: WATER RESOURCES MANAGEMENT 289 713Funds rolled-over

De Hoop Dam 260 millionDrought relief 9 million

Additional fundingWorking for Water 9,68 millionWorking on Fire 7,6 million

Funds transferredFrom Department of Arts and Culture for Zeragosa Expo 3,433 million

PROGRAMME 4: FORESTRYSelf financing

Management of forest in the Lowfeldt area 46 792

Total 337 340

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CURRENT BIDS 2009 MTEF

Activity 2009/10

R’000’

2010/11

R’000’

2011/12

R’000’

Building of capacity of the state

43 621 110 411 144 702

Adapting and Mitigating the impacts of climate change

20 000 80 000 105 000

Growing the forest sector 80 498 86 973 93 571

Jobs for growth 133 000 248 000 440 000

Rehabilitation of abandoned mines

- 5 000 5 000

TOTAL 277 119 530 383 788 273

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CAPITAL BIDS2009 MTEF

•

•

2008/09

R’000’

2009/10

R’000’

2010/11

R’000’

2010 FIFA WORLD CUP water and sanitation supply at host municipalities

313 664 - -

Regional Bulk Infrastructure Programme

3 706 000 6 450 000 6 800 000

The National Hydrological Monitoring Networks Management

17 000 48 000 50 000

TOTAL 4 039 664 6 498 000 6 850 000

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BIDS NOT APPROVED BY TREASURY2008 MTEF

Description of Budgets Bids

Requests

R‘000’

Approval

R‘000’Working for Water, Working on Fire, Working for Wetlands

110 000 55 000

National Bulk Infrastructure 160 000 -

Million trees programmes 20 000 3 000

Masibambane to Replace donor funding

127 000 -

Forestry Charter 30 000 -

Additional capacity 30 000 5 000

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• The department is now awaiting the final allocation letter indicating the outcome of the bids submitted. In terms of the National Treasury’s guidelines this letter should be sent to the Department by 21 November 2008

BIDS (CURRENT AND CAPITAL)

2009 MTEF

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THANKS!

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