vote 30: environmental affairs portfolio committee briefing 2013 mtef

VOTE 30: ENVIRONMENTAL AFFAIRS

Portfolio Committee Briefing2013 MTEF

1

Nosipho NgcabaDirector-GeneralDepartment of Environmental Affairs16-17 October 2012

Presentation Outline

• MTEF 2013 Baseline Allocations• MTEF 2013 Additional Funding proposals and motivations• MTEF 2013 Allocations according to new Programme

Structure

2

Baseline Allocations

3

Programme Audited outcome Current Indicative baseline MTEF

R'000 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

1. Administration 285 074 360 749 379 640 777 990 725 524 610 482 638 5742. Environmental Quality and Protection 285 820 295 833 298 016 325 959 345 676 366 204 383 049

3. Oceans and Coasts 353 947 644 256 876 337 411 635 239 873 254 415 266 117

4. Climate Change 0 11 760 137 163 31 419 33 016 34 956 36 565

5. Biodiversity and Conservation 386 852 421 974 456 577 579 324 511 361 541 597 566 510

6. Environmental Sector Programmes and Projects 812 648 655 451 1 960 816 3 048 994 3 319 789 3 315 424 3 467 924

Total 2 124 341 2 390 023 4 108 549 5 175 321 5 175 239 5 123 078 5 358 739

Economic classification

Compensation of employees 253 966 327 030 471 649 614 757 640 256 680 124 718 828

Goods and Services 431 313 494 755 960 521 833 682 892 592 1 133 272 1 177 989

Transfers 1 297 279 1 162 369 2 002 082 3 256 159 3 442 540 3 247 595 3 396 915

Payments for capital assets 141 684 405 475 674 186 470 723 199 851 62 087 65 007

Payments for financial assets 99 394 111 0 0 0 0

Total 2 124 341 2 390 023 4 108 549 5 175 321 5 175 239 5 123 078 5 358 739

Baseline Allocation Trends over the MTEF Period per Programme

Programme Reasons for increases/decreases 1 Administration • Increase in the 2012/13 and 2013/14 financial years is

due to Government Contribution of R220m and R146m respectively with regard to the PPP for the new departmental building.

• The unitary payment allocation of R60m per year was allocated from 2012/13 over the MTEF period.

2. Environmental Quality and Protection

• The allocations over the MTEF increase gradually to cover yearly increases.

4


Programme Reasons for increases/decreases 3. Oceans and Coasts • VAT to the amount of R187 million paid in April 2012

allocations for the 2012/13 financial year included

• Allocations for 2013/14 -2015/16 to cover normal cost for the research, integrated coastal management, oceans conservation and voyages to Marion, Gough and Antarctica.

4. Climate Change • Allocations for climate change strategy activities included in the remainder of MTEF period

5


Programme Reasons for increases/decreases 5. Biodiversity and Conservation

• Increase in 2012/13 allocation due to an additional allocation to SANPARKS for the rhino rangers of R80m.

6. Environmental Sector Programmes and Projects

Refer detailed table below

6

Environmental Sector Programme

Expanded Public Sector Programmes

2012/13 2013/14 2014/15 2015/16

Environmental Protection & Infrastructure Programme (EPIP)Additional funding

754 900

375 000

885 897 939 235 982 440

TOTAL (EPIP) 1 129 900 885 897 939 235 982 440

Natural Resource Management 1 496 744 1 624 689 2 007 434 2 099 776

Infrastructure Investmento/w SANParks

122 350 309 203216 000*

368 755270 000*

385 708

TOTAL (NRM) 1 619 094 1 933 892 2 376 189 2 485 484

Green Fund 300 000 500 000 - -

TOTAL 3 048 994 3 319 789 3 315 424 3 467 924

7

Note: Included in EPIP is the budget for Buyisa e Bag as transferred back to the Department under Sub-programme- Waste

2012/13 (+-24.5 million), 2013/14 (+-26.9 million), 2014/15 (28.6 million)

Baseline Analysis

8

Baseline Allocations 2012/2013R’000

2013/2014R’000

2014/2015R’000

2015/2016R’000

Current Expenditure 1 448 439 1 532 848 1 813 396 1 896 817

Compensation of Employees 614 757 640 256 680 124 718 828

Goods and Services 833 682 892 592 1 133 272 1 177 989

Office AccommodationPPP Unitary PaymentManning and Operation Polar Research VesselAntarctica and Islands: Fuel, Food Supplies, etcOther Operational CostNatural Resource Management Projects

76 61060 00064 00017 451

381 101234 520

76 42060 00067 11519 867

416 481252 709

81 00560 00070 54221 059

446 436454 230

84 73160 00074 37322 028

467 432469 425

Transfer Payments 3 256 159 3 442 540 3 247 595 3 396 915

Departmental Agencies and AccountsSouth African Weather ServiceiSimangaliso Wetland park AuthoritySouth African National ParksSouth African National Biodiversity InstituteNational Regulator for Compulsory SpecificationsGreen FundForeign Governments and International OrgNon-Profit InstitutionsEnvironmental Projects and Households (EPWP)

150 58171 090

319 216209 698

10 000300 000

12 8906 888

2 175 796

162 943105 200392 425215 394

10 500500 000

12 8905 400

2 037 788

172 489111 496454 161230 176

11 0250

12 8905 640

2 249 718

180 423116 625475 671240 659

11 5320

13 4855 837

2 352 683

Payments for Capital AssetsMachinery and EquipmentSA Agulhas VAT Payment Accommodation: Government Contribution: PPP

470 72362 000

188 000220 000

199 85153 851

146 000

62 08762 087

0

65 00765 007

0

Indicative Allocation 5 175 321 5 175 239 5 123 078 5 358 739

Baseline Allocation Trends over the MTEF Period per Economical Classification

Economical Classification

Reasons for increases/decreases

Compensation of Employees

• Additional support for Natural Resource Management (NRM) function transferred from DWA

• Financial Management, Communications, Information Management, Human Resource Management, Facilities Management

Goods and Services • The unitary payment allocation of R60m per year was allocated from 2012/13 over the MTEF period

• Allocation for NRM small contractors Working on Water, Working for fire etc. These cannot be treated as transfer payments, but based on short-term orders

9

Baseline Allocation Trends over the MTEF Period per Economical Classification

Economical Classification

Reasons for increases/decreases

Transfers • The Green Fund allocation for payment to DBSA. R300m in 2012/13 and R500m in 2013/14.

• Increases in Expanded Public Works Programmes, Working for Water and Working on Fire Programme.

Payments for capital assets

• Government Contribution of R220m and R146m respectively with regard to the PPP for the new departmental building.

• VAT to the amount of R187 million paid in April 2012 allocations for the 2012/13 financial year included

Payment in financial assets

• Only actual expenditure are revealed in the schedule as this expenditure relates to thefts and losses.

• Funds are reprioritised from goods and services if approval is granted.

10

MTEF Motivations for Additional Funding Proposals

11

Possible Implementation of baseline reductions by National Treasury as indicated in the MTEF Guidelines:

•1% for (2013/14); 2% for (2014/15) and 3% for (2015/16)

•Treasury also indicated that there may be no additional resource allocations in the first two years of MTEF

•Priority will be given to infrastructure development

Additional Funding Requests

PRIORITY AREAS 2013/14 2014/15 2015/16

1. Infrastructure Investment

R’000

303 889

R’000

272 582

R’000

477 640

2. Science Based Priorities 284 818 360 200 387 600

3. Job Creation 775 020 1 184 571 1 298 210

TOTAL 1 363 727 1 817 353 2 163 450

12

1. Infrastructure DevelopmentADDITIONAL FUNDING PROPOSALS 2013/14 2014/15 2015/16

1. SIP Support (Presidential Projects)

R’000

37 000

R’000

28 500

R’000

28 500

2. New Departmental Building 70 000 22 000 32 000

3. South African National Biodiversity Institute 0 0 69 330

4. South African National Parks 16 589 17 832 18 902

5. iSimangaliso Wetland Park Authority 44 000 30 000 30 000

6. Expansion of the Conservation Estate 50 000 75 000 100 000

7. South African Weather Service 36 300 24 250 48 908

8. Waste Services Infrastructure 50 000 75 000 150 000

TOTAL 303 889 272 582 477 640

13

Notes to Strategic Infrastructure Development Projects

Authorisation Processes for Strategic Projects

• To address the identified challenges related to infrastructural build program and lengthy authorisation processes

• Proactive approach for pre-assessment of projects

• Reduction in the number of authorisations required

• Proactive undertaking of Strategic Environmental Assessments, Environmental Management Frameworks, Standard Operating Procedures, Environmental Management Plans per Minister identified geographical areas Department also identified amendments which could be made to the current EIA regulations which will improve the efficiency the this assessment and authorisation tool

MTEF: R25 000 R25 000 R25 000

14

Notes to Strategic Infrastructure Development ProjectsContinued

Integrated Permitting System (IPS)

• Mapping all authorisation processes

• Develop an electronic on-line system

• IPS will be designed to accommodate any current and future permitting/licensing/authorisation requirements of the department and its provincial/local government partners; (possibly DMR and DWA)

• IPS will reduce the delivery time of new or enhanced permitting modules

MTEF: R12 000 R3 500 R3 500

15

TOTAL MTEF: R37 000 R28 500 R28 500

New Departmental Head Office

• PPP contract for the new building was signed on 26 June 2012 and construction commenced in July 2012

• ICT infrastructure over 3 years (e.g. networks and Geographic Information Systems): required (R70 million)

• For the reduction of debt Government contributed additional (R366 million) in 2012/13

• Unitary payment for the building is R60 million per annum. • Required is R88 million per annum

MTEF: R70 000 R22 000 R32 000

16


Occupation mid-year for 2013/14 discounted by 10 million

South African Biodiversity Institute (Sanbi)

•Security Infrastructure enhancement across SANBI Campuses (R14.5 million)

• Longterm Ecological Research Facility (R5.5 million)

• Vehicle Replacement across SANBI (R20.35 million)

• Refurbishment of existing infrastructure (R5.49 million)

• New Administration Building for SANBI located in Kirstenbosch (R10 million)

• Community Outreach Infrastructure (R10.490)

• Information Technology: Infrastructure Development Programme (R3 million)

MTEF R69 330 (2015/16)

17



South African National Parks

• Indigenous Forest Management in Garden Route

MTEF: R16 589 R17 832 R18 902

18

iSimangaliso Wetlands Parks Authority

• Infrastructure Development: Charters, Bhangazi, CFR and Sodwana

MTEF: R44 000 R30 000 R30 000

Expansion of the conservation estate

• Expansion of ecological sustainability and increased resilience to climate change.

• Setting of targets for protected area expansion

• Provision of maps and mechanisms protected area expansion

MTEF: R50 000 R75 000 R100 000

19


South African Weather Services

• High Performance Computer System

• Global Atmospheric Watch and Airborne Monitor

• Infrastructure Development

• Preventative Maintenance Plan

• World Meteorological Organisation (WMO) Information System -assist in ensuring that meteorological data from Africa are assimilated in global numeral weather prediction model

• Infrastructure Security - security of state assets, critical weather information and aviation industry e.g weather stations and air quality monitoring stations across the country

MTEF: R36 300 R24 250 R48 908

20


Waste Services Infrastructure

• To address historical backlog of waste services for urban informal, tribal and rural formal areas

• To improve kerbside domestic waste collection services to underserviced communities

• To implement Cabinet approved policy (October 2010) for the provision of Basic Refuse Services for Indigent households

• Funding to cover infrastructure upgrades (landfills and transfer stations), purchase of collection vehicles, increase in personnel for refuse collection (involvement of SMME’s).

• To address 80% of 300 unlicensed landfills and improper operating sites

• To increase recycling infrastructure and buyback facilities

MTEF: R50 000 R75 000 R150 000

21


2. Science Based Priorities

ADDITIONAL FUNDING PROPOSALS 2013/14 2014/15 2015/16

1.Oceans and CoastsR’000182 118

R’000164 200

R’000152 500

2. Effective Management and Conservation of Biodiversity

South African National Biodiversity Institute - Strengthening Science based policy advice on biodiversity assets and ecological infrastructure

41 000 145 500 157 50025 000

3. Implementation of National Climate Change Response Strategy 61 700 50 500 52 500

TOTAL 284 818 360 200 387 600

22

Oceans and Coasts• Oceans and Coastal Hazards Risk Management

- Collection of information and impacts of climate change on ocean services, vulnerable coastal communities, coastal biodiversity and intensity of storm surges

- Development of information management systems and operational responses

• Utilisation of SA Agulhas II and the Algoa Research Vessel (180 days at sea)- For research purposes in climate change, oceanography, deep ocean environments, biodiversity and marine top predators

• Use of Helicopters: off-loading for the SA Agulhas II (3 x trips per annum) - Antarctica, Gough and Marion

• Forecasting system for Ocean monitoring and global change tracking

• Upgrading of research laboratories: safety, overcrowding, inadequate chemical and gas storage facilities.

MTEF: R182 118 R164 200 R152 500

23

Notes to Science Based Priorities

Effective Management and Conservation of Biodiversity• Implementation of key legislation to fulfil the sustainable development agenda

• Improvement of human capacity and financial resources for the effective management of Biodiversity and Conservation

• Species and ecosystems management governance frameworks development and negative impact mitigation

• Provision of timely detection and responses to illegal wildlife trade activities and poaching

Integrated permitting system for NEMBA-review and amendment of national and provincial legislation 6 000 7 000 9 500-Capacity development for provincial government 10 000 100 000 100 000-Local communities to participate in biodiversity economy 20 000 30 000 40 000-Assessment and monitoring of management effectiveness 5 000 8 500 8 000

MTEF : R41 000 R145 500 R157 500

24

Notes to Science Based Priorities Continued

Implementation of National Climate Change Response Strategy• Mitigation of climate change potential threats to sustainable development goals

• Coordinate the implementation of the National Climate Change Response Policy (NCCRP) as the Lead Agent

• Integrated adaptation responses: early warning and forecasting systems, research, capacity and technology development for disaster risk reduction

• Determine medium-term (decade-scale) and long-term climate projections that define the range of future climate conditions and associated impacts.

• Research, capacity development, and technology development for disaster risk reduction

• Development of adaptation and response sector plans

• Additional obligations for the department to leverage donor funding

• Monitoring and Evaluation Systems development for Air Quality Information Systems, Green House Gas Emissions, carbon tax offset mechanisms

MTEF: R 61 700 R50 500 R52 500

25

Notes to Science Based Priorities Continued

3. Job Creation

ADDITIONAL FUNDING PROPOSALS 2013/14 2014/15 2015/16

1.Green Fund

R’000

0

R’000

500 000

R’000

500 000

2. Working for Waste 441 621 231 658 254 824

3. Environmental Programmes 240 000 349 811 410 298

4. Pilot Biodiversity Economy Programmes 15 000 20 000 25 000

5. SANPARKS: Rhino Rangers 78 399 83 102 88 088

TOTAL 775 020 1 184 571 1 278 210

26

Note: Green Fund for 2012/13 – R300 million and 2013/14 – R500 million already allocated

Green Fund• Green Fund as a transition mechanism for sustainable job-creation growth path to a low

carbon and resource efficient green economy

• Achievement of the first three ‘windows’ for the Green Fund as agreed to by the Mancom are projects related to:

• Greening Cities and towns, • Environmental and Natural Resource Management• Low Carbon Economy.

R500 000 (2014/15) R500 000 (2015/16)

27

Notes to Job Creation Priorities cont…

Environmental Programmes: Working for Waste• Integrated intervention to increase capacity to municipalities for landfill operations, waste

collection planning and administration, separation at source and refuse collection

• Awareness Campaigns for impact of waste on health

• An estimated 4 777 jobs to be created for young people in municipalities as Landfill Site Assistants, Waste Collection Administrators, and Environmental Awareness Educators, construction activities associated with the building or erection of landfill sites, offices, ablution facilities as well as weigh pad platforms at landfill sites across the country

Assumptions:-Piloting of separation of waste at source +-10 000 households-Per capita waste generation stats 1.3 kg per day-Costing of 30 ton trucks between 2 million to 4 million-Average households +- 4 people -Estimated recyclables calculated as 75% of waste is recyclable-Operational costs +-10% of the value of the vehicles

MTEF: R441 621 R231 658 R254 824

28

Notes to Job Creation Priorities cont…

Refer to detail breakdown

Working for Waste 2013/14R’000

2014/2015R’000

2015/2016R’000

Salaries for 4 777 Young people 150 234 165 257 181 783

Security Personnel at landfill sites 36 000 39 600 43 560

Material & Equipment

Weighpads 15 000

Waste Bins 31 500

Protective Clothing 3 577

Site Office at Landfills 15 000

Material Recovery Facility 45 000

Training and Awareness

Training of Young People and Implementers by DEA 1 000

Training of Young People by Implementers 9 000

Transport 32 193

Awareness Campaign 36 000

Transportation of recyclables (Capital) 18 000

Transportation of recyclables (Operational) 1 800 1 980 2 178

Project Management fees at 12% 47 316 24 820 27 302

TOTAL MTEF 441 621 231 658 254 824

Environmental Programmes - Working for the Coast

• Rehabilitation of coastal environment

• Return on Investment: Functioning and benefits from coastal ecosystems. Tourism enhancement. Quality of life benefits for communities

• Main focus: Rehabilitation of degraded sand-dunes, estuaries and coastal environment. Cleaning up of litter on beaches (particularly the risk posed by plastics)

• Upgrading and maintenance of facilities and infrastructure along the coast, including pathways that reduce degradation of coastal environment

MTEF: R140 000 R149 800 R160 300

30

Notes to Job Creation Priorities Continued

Environmental Programmes - People and Parks• Urgent need to create infrastructure in an around the protected areas and parks • Ownership by communities to contribute to the creation of small enterprises• Upgrading of facilities and infrastructure currently in dilapidated state within the protected

areas

• Investment and return on investment for people adjacent to the parks

• Conservation of natural resources and cultural heritage • Development and upgrading of infrastructure in and around protected areas, • development, benefit sharing models for communities, ancillary industries and SMME / BEE

development

• Priority declared by MINMEC: Mpumalanga and Limpopo

MTEF: R100 000 R200 000 R250 000

31


Pilot Biodiversity Economy Programmes Skills development for SMMEs in the following areas:

• Wildlife and Hunting Sector• Nature based enterprises • – bee keeping industry, hoodia, pelargonium, devils claw, aloes etc• Wildflowers• Protected areas – nature based tourism interventions• Rehabilitation of Drylands• Bioprospecting

MTEF: R15 000 R20 000 R25 000

32


South African National Parks• Rhino Rangers for protection of Rhinos

MTEF: R78 399 R83 102 R88 088

Allocations per new proposed programme structure over the MTEF period

•New proposed structure not yet changed in the Financial Management System (BAS)

33

Allocations per Proposed Programme StructureProgramme 2011/2012 2012/13 2013/14 2014/15 2015/16

1. Administration

R’000

293 995

R’000

763 522

R’000

712 806

R’000

597 000

R’000

624 4622. Legal, Authorisations, Compliance and Enforcement

73 968 100 513 106 690 113 237 118 446

3. Oceans and Coasts 876 337 221 815 239 873 254 415 266 1184. Climate Change and Air Quality

325 315 215 358 231 189 244 735 255 992

5. Biodiversity and Conservation

456 577 486 367 511 361 541 597 566 510

6. Environmental Programmes 2 046 461 2 673 994 3 319 789 3 315 424 3 467 934

7. Chemicals and Waste Management

35 896 50 592 53 531 56 670 59 277

Total 4 108 549 4 512 161 5 175 239 5 123 078 5 358 73934

THANK YOU FOR YOUR KIND ATTENTION

THANK YOU

vote 30: environmental affairs portfolio committee briefing 2013 mtef

Documents

environmental quality

additional allocation

environmental affairs16

baseline allocationsmtef

new programme structure

subprogramme waste

protectionthe allocations

oceans conservation