1 presentation to portfolio committees: water and environmental affairs, agriculture, forestry and...

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PRESENTATION TO PORTFOLIO COMMITTEEs: WATER AND ENVIRONMENTAL AFFAIRS,

AGRICULTURE, FORESTRY AND FISHERIES

National Assembly Good Hope Chamber

Presentation by:Ms. Pam Yako

DG: Department of Water Affairs10 June 2009

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Overview of the Presentation• Overview of the Sector

• Overview of the Department

• Overview of the Strategic plan

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Overview of the Sector

Water availability and storage Water allocation and use Access to Basic water Water resources infrastructure Waste water treatment plants Skills in the sector Water Management Institutions Challenges Interventions to date and future interventions

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Water Availability and Storage

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Water resources availability scenarios

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Current water availabilityAt 98% assurance level, SA water

is constituted as follows: • 77% - surface resources• 9% - ground water• 14% - return flows

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Water Allocation and Use

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Proportional water use/sector• Agriculture 62%• Domestic 27%

• Urban 23%• Rural 4%

• Mining 2.5%• Industrial 3.5%• Power generation 2.0%• Afforestation 3.0%

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Access to Basic Water

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Progress and Remaining Needs (Backlogs) – Water

• Progress April 2004 – Sept 2008: – 1,465 million more households gained access to a basic

water supply– Thus increasing access from 80% to 91% (as measured

against the 2004 baseline)• Remaining needs = 3.95mill Households (30% as measured

against the 2008 baseline)– 1,20 million households (historic backlogs mostly in rural

areas)– 0,6 million households effected by dilapidated infrastructure– 2,15 million households (housing related needs)

• Please note: Needs are concentrated in Urban areas and impacted by urbanisation &

demographic trends that result in the “shifting target” dynamic.

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Progress and Remaining Backlogs – Water (continue)

• Towards 2014 Target:– Formal historic backlog - Reticulation:

• Required delivery 200 000 households p.a. (present delivery 300 000+ p.a.)

• Funding required R18 billion (R3 billion p.a.). R3.8 billion available

• Target achievable depending on implementation capacity.

– Housing related needs:• Need to step up delivery to 360 000 households

p.a. (present delivery 250 000 p.a.)– Internal Bulk Infrastructure

• R37 billion (R6.2 billion p.a.). Deficit: Major challenge

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Progress and Remaining Needs (Backlogs) - Sanitation

• Progress April 2004 – Sept 2008: – 4.2million HH did not have access to basic sanitation– 1,16 million more households served (24% of households)– Access increased from 66% to 74% (2004 benchmark)

• Remaining needs (backlogs):– 3,20 million households (includes 2,15 million housing

related needs)

• Please note: Needs are concentrated in Urban areas and impacted by urbanisation & demographic trends that result in the “shifting target” dynamic.

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Progress and Remaining Needs – buckets in formal settlements

• Backlog (buckets in formal settlements) as at February 2005 was 252 254 households

• Remaining needs (buckets within formal areas: 8 315 households - mainly in the Free State

___________________________________• NOTE: There are growing expectations among

informal settlements’ communities that buckets in these areas will also be removed as was done in formal/ established areas

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Formal Historic Basic Water Supply Backlog Perspective 2009

1.1 million households (Mar 2009)1.1 million households (Mar 2009)

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Water Resources Infrastructure

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Age Profile of Assets

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Condition of assets

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Asset Utilisation

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Wastewater Treatment Plants

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Findings: Current status of sewage treatment in South Africa

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Environmentaland health

impact

Authorizationand

compliance

Ideal

Adequate

Intervention required

Urgent interventionrequired

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Problem Areas – Waste Water Treatment Plants: WRC Report

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Asset Management: Performance Reflection

0

10

20

30

40

50

60

70

80

90

100

Asset Knowledge Strategic PlanningProcesses

Current IM Practices Asset ManagementPlanning

Information Systems Organisational Tactics

Mogalakwena Mbombela Umjindi Nkomazi Thabazimbi Bela Bela Modimole George CapricornEmfuleni Ga-Segonyana Thembilihle Lephalale Drakenstein Stellenbosch Average Practice Appropriate Practice

Innocence

Systematic Approach

Competence

Excellence

Best Possible

Awareness

Minimum appropriate practiceMinimum appropriate practice

Municipal performanceMunicipal performance

Source: DPLG/i@Consulting

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Challenges faced by owners and operators of sewage treatment plants

• 30 % of the plants require immediate intervention to avoid crisis situations such as an outbreak of waterborne diseases

• In the short to medium term intervention is required at more than 66 % of the plants.

• This is compounded by the fact that:– 35 % require capital infrastructure investment– 50 % require additional skilled operational staff to

operate the plant efficiently– 56 % require additional skilled maintenance staff to

adequately maintain the installed mechanical/electrical equipment and instrumentation

– 21 % require supplemental financial resources to support the routine operation and maintenance

– 63 % require more information resources such as laboratory information to properly operate the plants

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Skills in the sector

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Civil Engineering Staff in Local Government in 2005

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Water Management Institutions

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RegionsRegions

Minister

WUAWUA

WSAWSA

WSPWSP

Municipal Municipal EntityEntity

WaterWater BoardsBoards

Regulatory & Support

NWRIANWRIA

WRCWRC

Representation &

CooperationContractual

Accountability

Cooperation & consultation

Cooperation & consultation

+TCTA+TCTA

Contractual

Statutory & Accountability




DWA Head OfficeStatutory & Accountability


Bodies for International Agreements

CMACMA

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Institutions

• Number of institutions to be established may be too many given the challenges with capacity, resources and transformation.

• Need to rationalise institutions to ensure optimal efficiency and economies of scale benefits.

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Challenges

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ChallengesWater Infrastructure and Universal Access:

• Ageing water infrastructure – periodic and systematic failures of water supply and sanitation systems

• Development of water resources infrastructure to ensure universal access

• Bulk infrastructure provision – upgrading and augmentation of municipal infrastructure

• 3.95 million households still do not receive water services

• Innovative ways of speeding up access to water and sanitation services

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Water Demand / Supply Scenarios

Reconciliation Status 2025 High Scenarionon-RSASurplusIn BalanceShortage

Reconciliation Status Year 2000non-RSASurplusIn BalanceShortage

• Nandoni dam that was construction in Livuvhu/Letaba WMA improved situation

• All 4 big Metros need serious consideration

Scenario 2000 Scenario 2025

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Challenges (cont)

Compliance and Enforcement:– Illegal water use is a significant problem in

many areas – the systems yields are exceeded

– Municipalities, industries and mines discharging non-compliant effluent

– Municipalities’ ability to manage waste water treatment plants

– Unacceptable high levels of pollution in rivers– High nutrient loads from pollution

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Challenges (cont)Water Conservation and Water Demand Management

(WC/WDM): • Strategic investment into WC/WDM• Demand scenario shows shortage in 2013 and

WC/WDM only measure available for mitigation until 2019

• Many South Africans still do not behave like South Africa is a water scarce country

• Large scale implementation a new experience• WC/WDM implementation over various metros and

towns• WC/WDM implementation strategy urgently required

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Challenges (cont)

• Need for institutional reform to ensure a system that is accountable, decentralised but effective

• Addressing the capacity and skills challenges faced by sector especially at a municipal level

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Interventions

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Interventions

• Water for Growth and Development Framework– centrality of water in decision making and planning; – introduces a diversified water mix; – introduces water savings targets for users; – anchors public awareness and behaviour as core to

water security

• Accelerated Access programme• Wastewater Treatment works support

programme

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Interventions (cont)

• Reconciliation studies in most systems in order to balance demand and supply – starting with implementation in major metros

• Scaling up the delivery of rainwater harvesting tanks to rural areas

• Scaling up and EPWP• Internal transformation – change journey with

focus on systems and processes improvement as well as changing the organisational culture to be more people centred

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Interventions (cont)Water quality (Raw and drinking water quality

management) • “The River Health programme” - important public

health programme ( pollution and habitat destruction) Country-wide web-based drinking water quality system (overall monitoring and management)

• “Blue Drop” certificate to recognise cities and towns that comply to DWQ standards; and 2) “Green Drop” to recognise cities and towns that comply to WWT standards

• Strengthening the Departments regulation capacity in order to protect the quality of water

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• Municipal Indaba – implementing and championing the outcomes

of the Indaba as a way of providing support to municipalities in order for the municipalities to meet their constitutional obligations

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Interventions (cont)Infrastructure Development: Schemes under construction

Scheme Province Planned completion

Estimated cost

(R million)

1. Berg water project Western Cape 2008 2500

2. VRESSAP pipeline GP and MP 2008 2600

3. Nandoni WTW Limpopo 2008 295

4. De Hoop Dam Limpopo 2012 2600

5. Inyaka WTW Mpumalanga 2012 283

6. Levhubu Bulk Limpopo 2012 530

TOTAL 8808

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Infrastructure Development - Planned SchemesScheme Province Start Date Estimated

cost

(R million)

1. ORWRD – Distribution

Limpopo 2008/09 5275

2. Raising Hazelmere Dam

KZN 2008/09 60

3. Spring Grove Dam KZN 2008/09 409

4. Mzimkhulu off-channel Eastern Cape 2009/10 230

5. Raise Clanwilliams Dam

Western Cape 2009/10 580

6. Nwamitwa Dam Limpopo 2009/10 1100

7. Lusikisiki RWS Eastern Cape 2009/10 530

TOTAL 8184

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Institutional realignment:

• Regional Water Management Institutions

• Fewer CMAs

• Integrate WUAs and Irrigation boards

• Explore an institution for a national water resources development

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Interventions (cont)Skills Development:• Learning Academy an intervention to develop

skills in technical areas such as:– Civil, mechanical and electrical engineering– Hydrology and Environment– Water Resource Management

• Accelerated development program in technical areas– Skills gap analysis– Customised individual development plans– Affirmative action plan

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Overview of the Department

VisionOrganisational StructureLegal MandateInstitutions reporting to the Minister

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Vision

A dynamic, people-centred

Department,

leading the effective management of the nation’s water resources,

to meet the needs of current and future generations.

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Organisational StructureMINISTER

DEPUTY MINISTER

DIRECTOR GENERAL

COO

BRANCH REGIONSBRANCH

NWRI

BRANCH POLICY AND REGULATION

BRANCH: FINANCIALMANAGEMENT

BRANCH:CORPORATE

SERVICES

BRANCH FORESTRY

INTERNAL AUDIT

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Legal Mandate

• Water Services Act, 1998 (Act No. 108 of 1997)

• National Water Act, 1998 (Act No. 36 of 1998)

• Water Research Act, 1971 (Act No. 34 of 1971)

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Institutions reporting to Minister• Trans-Caledon Tunnel Authority

(TCTA)

• Water Research Commission

• Catchment Management Areas (CMAs):

– Inkomati– Breede Overberg

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Institutions reporting to Minister (cont)

• Water Boards:– Albany Coast Water– Amatola Water– Bloem Water– Botshelo Water– Bushbuckridge Water– Ikangala Water (in the process of dis-establishment)– Lepelle Northern Water– Magalies Water– Mhlathuze Water– Namakwa Water– Overberg Water– Pelladrift Water– Rand Water– Sedibeng Water– Umgeni Water

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Overview of the Strategic Plan

Strategic goals (linked to MTSF) Strategic ObjectivesKey outputsOverview of Finances

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Alignment of the Depart to the MTSF Priorities

MTSF Priorities Department’s Strategic Goal

Sustainable Resource Management and use

Ensuring sustainable and equitable water resources management

Massive programme to build economic and social infrastructure

Ensure universal access to safe and affordable basic water

Build, operate and maintain infrastructure

Building a developmental state including improvement of public services and strengthening democratic institutions

Aligned and effective institutions

Pursuing African advancement and enhanced international cooperation

Pursuing African advancement and enhanced international cooperation and development

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Alignment of the Depart to the MTSF Priorities

MTSF Priorities Department’s Strategic Goal

Building a developmental state including improvement of public services and strengthening democratic institutions

Create a value driven, effective and responsive

department

Speeding up growth and transforming the economy to create decent work and sustainable livelihoods

Transformation

Massive programme to build economic and social infrastructure.

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09/10 Outputs

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Strategic Goal 1: Ensure sustainable and equitable water resources

management

Strategic Objective Outputs

1. Forecasting and balancing of water demand and supply

Plans on the four-river systems to reconcile water requirements and available resources (Vaal, Umngeni, Algoa/Nelson Mandela

Metro & Cape Town)

2. Adequate information and knowledge to sustainably manage water resources

Operationalise departmental 1300 monitoring stations countrywide

3. Improve water use efficiency

Volume of water saved

4. Improve water allocation Implement an integrated water and land reform programme

Allocation of water to historically disadvantaged individuals (HDIs)

Eradicate license application backlog

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Strategic Goal 1Ensuring Sustainable and Equitable water Resource

ManagementStrategic Objective (s) Output (s)

Ensure protection of water resource quality and quantity

•Compliance Monitoring Programmes countrywide

•60% improvement in finalization of non -compliance cases

•River health programmes implemented in all regions (Crocodile, olifants, Vaal and Umsunduzi)

•Increase compliance level by municipalities, industries and other water users with effluent discharge standards

•Reduction in invasive plants (Working-for-Water)

Improve water use efficiency

•Reduction of water losses especially in the agricultural and domestic sectors•Implementation of Water Conservation Water Demand management in 30% of municipalities

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Strategic Goal 2 Ensure universal access to safe and affordable basic water

Strategic Objective (s) Output (s)

Reform water allocation

•WAR implementation plans in all Provinces in support of rural development and poverty alleviation programmes

•Water allocated to the Pilot Rural Development project in Giyani (Limpopo)

•Eradicate licence application backlog

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Strategic Goal 2 Ensure universal access to safe and affordable basic water


Ensure water Services Delivery through policy and regulation

•Effective Support Provided to Municipalities•Implementation of municipal Indaba Action Plan

Regulate Water Services Authorities

•Comprehensive Monitoring and Evaluation Systems in Place

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Strategic Goal 3Build , operate and maintain infrastructure


Ensure the provision of regional bulk water

•Regional Bulk schemes implemented in all 9 regions to support access to water and sanitation programmes

Rehabilitate and refurbish water resources Infrastructure

•Fully functional and sustainable schemes (dams, canals, pump stations, etc)

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Strategic Goal 4 Aligned and effective institutions

Strategic Objectives Outputs

Effective oversight of institutions Compliance with governance framework

Establish appropriate institutionsImplementation of the Institutional Realignment project

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Strategic Goal 5 Pursuing African advancement and enhanced international

cooperation and development


Ensure implementation of cooperation agreements

Implement six cooperation agreements

Shape the global agenda on water

• Implement Bilateral engagements • Participate in multi-lateral forums

Strengthen regional institutions (water)

• Host 2nd Africa Water Week• Chairing AMCOW

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Strategic Goal 6 Create a value driven, effective and responsive Department


Organisation growth and development

• Implementation of the information technology interventions• Implementation of the Business Process

Reengineering project• Aligned organizational structures,

governance structures and processes• Implement an organisational culture

improvement programme• Increased retention of critical skills• Improve Organisational Performance

Management (M&E System)

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Improve financial management

• Improved revenue management

• Effective asset management

• Full compliance with SCM framework

• Developed business processes and procedure manuals and systems processes

• Implementation of financial improvement plan

• Implement the 3 year Internal Audit Strategic Plan

• in line with IIA standards

• Implement Risk Management Strategy

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To raise stakeholder awareness and understanding of the value of water and participation

• Positive media profiling of water issues• Implement programmes to improve stakeholder awareness and understanding of the value of water• Enhanced water sector leadership

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Strategic Goal 7Transformation


Contribute towards empowerment, poverty alleviation and job creation

Implement EPWP programmes

Youth Development Strategy finalised

BBBEE Plan implemented

Implement gender equality support programmes

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The Forestry Branch• Activities of the branch contribute to the

following Strategic priorities of Government:– Speeding up growth and transforming the

economy to create decent work and sustainable livelihoods.

– Comprehensive development strategy linked to land and agrarian reform and food security.

– Strengthen skills and human resource base.– Pursuing Africa advancement and enhanced

international cooperation.– Sustainable resource management and use

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The Forestry BranchStrategic Goal Strategic objectives

Sustainably managed plantations, indigenous forests and woodlands that provides optimal social, environmental and economic benefits

To ensure the sustainable management of all natural forests, woodlands and plantations through the implementation of the National Forests Act, 1998

To reduce incidents of veld, forest and mountain fires through the implementation of the National Veld and Forest Fire Act, 1998

To improve the contribution of the Forest sector to skills development in order to address development and growth of the sector

To enhance awareness raising and information sharing to raise the profile of the forestry sector

To accelerate the transformation and growth of the forestry sector in line with the targets of the Forestry sector BBBEE Charter

To increase the contribution of greening, participatory forest management and community forestry in improving livelihoods and addressing poverty eradication

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Budget and Finance Overview• Expenditure trends in the last five years• Budget comparisons: 2009-10 vs 2008-09• Changes to 2009 MTEF baseline• Explanatory notes to 2009 MTEF• Donor funding• WTE Revenue Vs Expenditure

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Expenditure trendsYear Actual

R‘000

Budget

R‘000

2004/05 3,776,946

3,823,112

2005/06 3,717,088

3,935,636

2006/07 4,305,650

4,660,303

2007/08 5,385,461

5,862,513

2008/09 6,511,300

7,036,616

% Expend

99

94

92

92

93

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Programme 2009/10 Budget

R’000

2008/09 Budget

R’000

Change

Administration 795 353 591 686 203 667

Water resource management

3 895 794 3 528 112 367 682

Water Services 2 717 039 2 423 844 293 195

Forestry 485 641 492 974 (7 333)

Total 7 893 827 7 036 616 1 363 256

Current Budget (2009/10) vs. Previous Year Budget (2008/09)

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2009/10: Earmarked Vs Unearmarked

Goods and services Programme COE Interest on land

Transfers Capital payments

Total

R’000

R’000

R’000 R’000 R’000 R’000

Total allocation

1 327 863 2 074 825 782 3 337 704 1 152 653 7 893 827

Minus: Funds earmarked

86 077 667 586 - 1 455 000 961 500 3 170 163

Funds not earmarked

1 241 786 1 407 239 782 1 882 704 191 153 4 723 664

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Exchequer funding earmarked in 2009/10

• Thus the total amount earmarked for the 2009/10 financial year for the Department amounts to R3 170 163 000 for the following purposes:

• Rent of buildings 138 331 000• Working for Water 455 724 000• Working on Fire 123 608 000• Refurbishment of water scheme 30 000 000• De Hoop Dam (Phases 2B to 2G) 600 000 000• Additional capacity: Internal Audit and Finance 6 000 000• Sanitation at school and clinics 350 000 000• Regional Bulk infrastructure 611 500 000• Operating subsidy (Water Services) 855 000 000• Total earmarked funding 3 170 163 000

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Changes on 2009 MTEF Baseline

2009/10 R’000

2010/11 R’000

2011/12 R’000

Building of Capacity of the State 25 000 30 000 Growing the Forestry Sector: Support projects 30 000 Jobs for growth: Working on fire 50 000 100 000 Jobs for Growth: Working for water 100 000 300 000 Regional bulk Infrastructure programme - 200 000 800 000

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Economic Classification

2008/9 Adjusted AppropriationR’000

MTEF Estimate

2009/10R’000

2010/11R’000

2011/12R’000

CoE 1 326 483 1 327 863 1 314 086 1 399 588

Goods and Services 1 906 884 2 113 255 2 902 964 3 318 860

Capital assets 464 609 1 114 223 972 685 1 623 420Total 6 466 716 7 893 827 8 292 925 9 463 127

MAIN ACCOUNT: 2009 MTEF ALLOCATIONS

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• Departmental expenditure is expected to increase from R7 billion in 2008/09 to R9.5 billion in 2011/12 at an average annual rate of 10.4 per cent due to additional allocations for:– Working for Water (2010/11:R100m and 2011/12:R300m)– Working on Fire programmes ( 2010/11:R50m and 2011/12:

R100m)– Continued development of bulk infrastructure (R200 million in

2010/11 and R800 million in 2011/12)– Inflation related adjustments (R139.6 million in 2009/10, R234.7

million in 2010/11, R291.7 million in 2011/12)– Capacity building (R25 million in 2010/11 and R30 million in

2011/12)– Support to forestry sector projects and enterprise(R30 million in

2011/12).– Funding for previous unfunded administrative services

Explanatory note to 2009 MTEF changes

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Donor funding (R’000’Project 2009/10 2010/11 2011/12 Water and sanitation services 108 229 429 440 - Water and sanitation programme 52 460 52 460 52 460 Upgrading of hydrometric equipment in Lesotho 1 470 - - Community water supply and sanitation 12 7 - Twinning arrangements with Dutch water boards 2 080 - - TOTAL 164 251 481 907 52 460

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WTE: Revenue Vs Expenditure

R'000'Revenue 2,122,091.00 2,302,762.00 2,720,568.00Bulk water sales 1,748,524.00 1,956,195.00 2,240,922.00Transfers received 337,567.00 310,567.00 443,646.00Other WTE revenue 36,000.00 36,000.00 36,000.00Expenditure: 2,122,091.00 2,303,762.00 2,720,568.00Current expenditureCompensation of employees 627,457.00 658,202.00 688,276.00Goods and services, excluding depreciation 1,019,576.00 1,109,608.00 1,170,392.00Capital paymentsRefurbishment and betterment programme 475,058.00 535,952.00 861,900.00

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THANK YOU

QUESTIONS AND COMMENTS

1 presentation to portfolio committees: water and environmental affairs, agriculture, forestry and...

Documents

sa water

sector water availability

basic water supplythus

households historic

storage water allocation

department of water

remaining needs buckets

formal areas