Department of Water Affairs and Forestry

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Department of Water Affairs and Forestry Report
to Joint Budget Committee of Parliament Ms PAM
YAKO Director-General 29 OCTOBER 2008
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CONTENT

• 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 ADMINISTRATION
PRIORITIES APEX PRIORITIES KEY OUTPUT PROGRESS
Governance, organization and transformation Project 9Self employment opportunities in the second economy Institutional realignment Organisational reorganization Gender and youth programme EPWP programmes Institutional oversight Launch of Womens Organisation Improved systems for monitoring water drinking quality (Award Won) On institutional realignment, consultative model has been approved and the model is ready to be rolled out nationally DWAF has launched two National Youth Service projects in Letsemeng Municipality In Jacobsdale,75 have been employed as part of the National Youth Service through construction of sanitation infrastructure
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PROGRAMME 1 ADMINISTRATION
PRIORITIES APEX PRIORITIES KEY OUTPUT PROGRESS
Improve financial management processes and systems Project 13 Assistance to SMEs including procurement Risk management Internal controls and procedures Planning and budget Revenue and expenditure management Assets and liability management Accounting and reporting Functional audit committee Functional 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 WATER RESOURCE MANAGEMENT
PRIORITIES APEX PRIORITIES 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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PROGRAMME 2 WATER RESOURCE MANAGEMENT
PRIORITIES APEX PRIORITIES KEY OUTPUT PROGRESS
Water resource management Speed up community infrastructure programme 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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PROGRAMME 2 WATER RESOURCE MANAGEMENT
PRIORITIES APEX PRIORITIES KEY OUTPUT PROGRESS
Water resource management Speed up community infrastructure programme 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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PROGRAMME 2 WATER RESOURCE MANAGEMENT
PRIORITIES APEX PRIORITIES KEY OUTPUT PROGRESS
Water resource management Speed up community infrastructure programme 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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PROGRAMME 2 WATER RESOURCE MANAGEMENT
PRIORITIES APEX PRIORITIES KEY OUTPUT PROGRESS
Water resource management Speed up community infrastructure programme Improve participatory water management by having co-operation agreements and 3 implementing structures in place for all South Africas 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 DWAFs contribution at UNCSD, UNFF and WWF
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PROGRAMME 3 WATER SERVICES
PRIORITIES APEX PRIORITIES 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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PROGRAMME 3 WATER SERVICES
PRIORITIES APEX PRIORITIES KEY OUTPUT PROGRESS
Water Services Project 10 Speed up community infrastructure programme 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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PROGRAMME 3 WATER SERVICES
PRIORITIES APEX PRIORITIES KEY OUTPUT PROGRESS
Water Services Project 10 Speed up community infrastructure programme 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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PROGRAMME 3 WATER SERVICES
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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PROGRAMME 3 WATER SERVICES
PRIORITIES APEX PRIORITIES KEY OUTPUT PROGRESS
Water Services Project 10 Speed up community infrastructure programme 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 FORESTRY
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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PROGRAMME 4 FORESTRY
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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PROGRAMME 4 FORESTRY
PRIORITIES APEX PRIORITIES 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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PROGRAMME 4 FORESTRY
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
GOAL ENSURING ENVIRONMENTAL SUSTAINABILITY
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.

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PROGRESS WITH MEETING THE MILLENIUM DEVELOPMENT
GOALS
GOAL ENSURING ENVIRONMENTAL SUSTAINABILITY
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 NurseryNtendeka Wilderness Area)
Promote gender equality and empower women Forestry Forest Sector BBBEE Charter Commercial forestry sub-sectors gt 80 of emerging plantation growers are black women gt 50 of small charcoal producers are women Target Increase ownership and promote further participation in Forestry sector.
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PROGRESS WITH MEETING THE MILLENIUM DEVELOPMENT
GOALS
GOAL ENSURING ENVIRONMENTAL SUSTAINABILITY
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 NurseryNtendeka 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 gt 80 of emerging plantation growers are black women gt 50 of small charcoal producers are women Target Increase ownership and promote further participation in Forestry sector.
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CHALLENGES

• 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

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CHALLENGES

• 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

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CHALLENGES

• 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

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MEDIUM TERM EXPENDITURE TRENDS
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STRATEGIC REVIEW - MAIN
The current year
DWAF Allocation for 2008/09
Total Exchequer Allocations

R586 million
R3 238 million
R2 427 million
R446 million
Water Resource Management
Water Services
Forestry
Admin
Augmentation to WTE
R1 615 million
R320 million
Current
Capital
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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 R000 2006/07 R000 2007/08 R000
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 programme

2005/06 R000 2006/07 R000 2007/08 R000
Programme 1 Administration 75 97 100
Programme 2 93 86 85
Programme 3 Water Services 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 R000 Additional appropriation 2008/09 R000 Adjusted appropriation 2008/09 R000
Programme 1 Administration 586 696 835 587 531
Programme 2 Water Resoures Management 3 238 399 289 713 3 528 112
Programme 3 Water Services 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)
R000 PROGRAMME 1 ADMINISTRATION
835 Donations received for Women in Water
awards PROGRAMME 2 WATER RESOURCES
MANAGEMENT 289 713 Funds rolled-over De Hoop
Dam 260 million Drought relief 9
million Additional funding Working for Water
9,68 million Working on Fire 7,6
million Funds transferred From Department of
Arts and Culture for Zeragosa Expo 3,433
million PROGRAMME 4 FORESTRY Self
financing Management of forest in the
Lowfeldt area 46 792 Total 337 340
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CURRENT BIDS 2009 MTEF
Activity 2009/10 R000 2010/11 R000 2011/12 R000
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 R000 2009/10 R000 2010/11 R000
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 R000 Approval R000
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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BIDS (CURRENT AND CAPITAL) 2009 MTEF

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

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• THANKS!