BRIEFING STANDING COMMITTEE ON PRESENTATION TITLE APPROPRIATIONS ON
BRIEFING STANDING COMMITTEE ON PRESENTATION TITLE APPROPRIATIONS ON OVERVIEW OF VOTE 36 Presented by: (INCLUDING THE TRADING ENTITY) PERFORMANCE Name Surname PLANDirectorate AND BUDGET (2015 APPROPRIATION BILL) Date Presented by: Ms M Diedricks Director-General 22 May 2015 1
OUTLINE Part A: Overview of performance information Part B: Overview of Vote 36 Part C: Overview of Water Trading Entity budget
Planning legislative & regulatory environment Constitution S 55 (2): NA oversight Public Finance Management Act S 56: NA powers Department - S 27: Budget S 92 (2) & (3): Cabinet accountability S 195: Transparency tabling - S 40 (1) & 3 (3): Annual report tabling Entities - S 52: Corporate plans - S 55 (1) & (3): Annual report tabling Additional legislation, policies & regulations Public Audit Act S 20: Report on performance information Money Bills Procedure & Related Matters Act S 5: Performance annual assessment Public Service Act S 7 A (40): Oversight on performance, planning, budget and service delivery Policies & Regs - GWM & E - Evaluation policy - Treasury - Public Service S 215 & 216: Budget transparency 3
Planning, budgeting & monitoring 1. Pre-plan position 2. Strategy formulation Annual report: review of previous annual performance plan Internal analysis External analysis Develop vision, mission, values Strategic planning level Develop goals and objectives Develop a strategy map: Identify short term priorities and strategies 3. Strategy implementation Develop performance indicators and targets Develop costed annual performance plan and supplementary programme business plans Costed annual performance planning level Approve and implement all the plans 4. Strategy evaluation Monitor and evaluate performance 4
What informed planning process Mandate International agreements Constitutional Millennium Development Goals Framework for Climate Change Legislative Sustainable Development Goals (post 2015 agenda) Government priorities National Development Plan Interdepartmental programmes DAFF The dti Medium Term Strategic Framework (14 outcomes) DRD & LR Co. GTA DHS New Growth Path (NGP) Implementation sphere DEA PGDS IDPs Oversight National Assembly NCOP EDD Enabling departments Department of Performance Monitoring & Evaluation Department of Public Service Administration National Treasury 5
Alignment to NDP & MTSF National Development Plan (NDP): Vision 2030 Medium Term Strategic Framework (MTSF): 5 years Outcome 4: Jobs Outcome 6: Economic infrastructure Outcome 10: Environment Outcome 7: Rural development Chapter 13: Outcome 9: Building a capable state Local government 6
Strategy map Sustainable water & dignified sanitation for all Finance Operations Customer 1. An efficient, effective and development oriented sector leader People Scorecard perspectives Goals Ensuring dignity, equity, socio-economic development and ecological sustainability by effectively and efficiently managing the nation’s water resources and sanitation services SO 1. 3 Job opportunities 2. Equitable and sustainable water and sanitation services SO 2. 1 Water provision 3. Protection of water across the value chain SO 2. 3 Water allocation SO 2. 2 Sanitation provision SO 1. 2: Internal controls (governance) SO 2. 4: Water use efficiency SO 3. 1: Water & sanitation strategies SO 3. 2 Regulatory compliance SO 3. 3 Ecosystem health SO 3. 4 Information management SO 1. 2: Internal controls (finance) SO 1. 1: Skills & competencies SO 1. 2: Internal controls (people) 7
Programmes per budget structure (ENE) Main Account: fiscus funded 1. Administration 2. Water Planning & Information Management 3. Water Infrastructure Development 4. Water and Sanitation Services 5. Water Sector Regulation Ministry Integrated Planning Water Services Infrastructure National Sanitation Services Compliance Monitoring Departmental Management Water Ecosystems Infrastructure Dev & Rehabilitation Water Sector Support Economic & Social Regulation Internal Audit Information Management Operation of Water Resources WSS Management & Support Financial Management WPIM Management & Support Fiscus funded WTE Enforcement Revenue funded WTE Financial Management Incubated Proto-CMAs Institutional Oversight Limpopo Pongola. Mzimkhulu International Water Support Water Use Authorisation & Administration Berg. Olifants Doorn Olifants Programme Management Unit WS Services & Sanitation Regulation Orange Tsitsikamma -Mzimvubu Corporate Services WSR Management & Support Vaal 8
MAIN ACCOUNT INDICATORS 9
Programme 1: Administration Purpose • Provide policy leadership, advice and core support services, including – finance, – human resources, – legal, – ICT and – management services, – communication, and – corporate planning 10
Programme 1: Administration Strategic issues • Skills development: reduce vacancy rate for engineers and scientists as well as develop skills through the graduate trainee programme • Communication: engage in stakeholder management and community participation programmes, media relations, marketing and advertising campaigns • Legislative and policy development: develop the National Water and Sanitation Bill • International cooperation: establishing strategic partnerships with African and global countries • Mine water management: implementing short-term and long-term solution projects as well as development of a proposal for environmental levy for the mining sector 11
Programme 2: Water Planning & Info Mgt Purpose • Ensure that the country’s water resources are protected, used, developed, conserved managed and controlled in a sustainable manner for the benefit of all people and the environment by developing a knowledge base and implementing effective policies, procedures and integrated planning strategies both for water resources and water services. 12
Programme 2: Water Planning & Info Mgt Strategic issues • Water Resources Planning: determine the needs for Water Resources & Infrastructure Development through Reconciliation strategies, Feasibility & All Town studies • Water Information Management: through data capturing, monitoring, information systems and info analyses • Protection of Water Resources: by doing Reserves Determination, Resources Classification & quality objectives • Water Services and Local Water Management: by developing water Services Bulk Master Plans & Water Services Developmental Plans and Water Conservation and Water Demand Management (WCDM) 13
Programme 3: Water Infrastructure Mgt Purpose • To develop, rehabilitate and refurbish raw water resources and water services infrastructure to meet the socio-economic and environmental needs of South Africa 14
Programme 3: Water Infrastructure Mgt Strategic issues • Infrastructure development: implement new augmentation projects and betterment of existing dams • Regional bulk infrastructure: develop bulk infrastructure, community infrastructure and refurbish infrastructure schemes • Operations and maintenance: implement dam safety rehabilitation, rehabilitate conveyance projects and develop asset management plans 15
Programme 4: Water & Sanitation Services Purpose • Ensure the provision of sustainable water and dignified sanitation services including implementation support and advocacy 16
Programme 4: Water & Sanitation Services Strategic issues • Water sector support: financially supporting resource poor farmers and installing rainwater harvesting tanks for household productive use • Sanitation services: replacing bucket sanitation in formal settlements and eradicate sanitation backlog in rural households 17
Programme 5: Water Sector Regulation Purpose • Ensure the development, implementation, monitoring and review of regulations across the water supply chain in accordance with the provisions of the National Water and the Water Services Acts 18
Programme 5: Water Sector Regulation Strategic issues • • • Institutional oversight: establishing institutions namely catchment management agencies, regional water utilities and infrastructure agency to enhance sustainability in water provision Water use authorisation: processing and finalising application for water use Economic and social regulation: developing the raw water pricing strategy and establishing economic regulation Compliance monitoring: conducting dam safety evaluations and monitoring compliance of water users (e. g. Mines, industry, agriculture) Water supply services and sanitation regulation: assessing water supply systems’ compliance with drinking water standards and wastewater treatment collector systems’ compliance with effluent standards Enforcement: investigation reported non compliant cases 19
WATER TRADING ENTITY 20
Financial Management Purpose • Ensure the efficient management of daily financial operations (for the Water Trading Entity), processes and systems for the infrastructure and proto-CMA components 21
Financial Management Strategic issues • Debt recovery: Reducing the number of days for outstanding debt • Infrastructure expenditure: increase expenditure on refurbishment and betterment 22
Proto-CMAs Purpose • Provides for the protection, development, use and management of the resources at water management area level 23
Proto-CMAs Strategic issues • Validation and verification: validate and verify water users within respective catchment areas • River eco-status monitoring: monitor eco-status of rivers to determine where interventions are required 24
OVERVIEW OF VOTE 36 (2015/16 – 2017/18) 25
BUDGET ALLOCATIONS • • Approved Budget Structure Budget allocations per economic classifications Analysis: Budget allocations per programme Analysis: Budget allocations per economic classifications Analysis: Earmarked funds vz. Un-earmarked funds Economic classifications Summary of Earmarked funds Summary of Regional Allocations – Infrastructure Programmes 26
Budget Per Programmes Adjusted Budget 2014/15 R’ 000 Administration Water Planning and Information Management Water Infrastructure Development Water and Sanitation Services Regional Implementation & Support Water Sector Regulations International Water Cooperation TOTAL Original Budget 2015/16 R’ 000 % of Increase/ Decrease % 956 283 1 526 167 60% 503 641 808 655 61% 2 919 422 12 435 787 326% 0 1 444 582 100% 9 070 829 0 -100% 163 098 231 339 42% 34 126 0 -100% 13 647 401 16 446 530 21%
MTEF Baseline Allocations Per Programmes Administration Water Planning and Information Management Water Infrastructure Development Water and Sanitation Services Water Sector Regulations TOTAL 2015/16 2016/17 2017/18 R’ 000 1 526 167 1 686 189 1 743 951 808 655 860 043 885 076 12 435 787 13 063 287 14 731 690 1 444 582 496 755 527 673 231 339 255 275 316 394 16 446 530 16 361 549 18 204 784
Baseline Allocations per Economic Classification Item description 2015/16 R’ 000 2016/17 R ‘ 000 2017/18 R ‘ 000 Current Payments 3 116 775 3 316 370 3 484 539 Compensation of employees 1 492 133 1 634 559 1 666 189 1 624 642 Item description 1 681 811 1 818 350 Payments for Transfers and Subsidies 6 094 618 5 796 398 7 089 240 Payments for capital assets 7 235 137 7 248 781 7 631 005 16 446 530 16 361 549 18 204 784 Goods and Services TOTAL 29
Analysis: Budget analysis per programme Medium term allocation Rand thousand Administration 2015/16 allocation 2016/17 2017/18 1 526 167 1 686 189 1 743 951 Water Planning 808 655 860 043 885 076 and Information Management Water 12 435 787 13 063 287 14 731 690 Infrastructure Development Water and 1 444 582 496 755 527 673 Sanitation Services Water Sector 231 339 255 275 316 394 Regulation Total 16 446 530 16 361 549 18 204 784 30
Analysis: Budget per economic classification Medium term allocation 2015/16 2016/17 2017/18 Compensatio n of employees Goods and services 1 492 133 1 634 559 1 666 189 1 624 642 1 681 811 1 818 350 Transfer and subsidies 6 094 618 5 796 398 7 089 240 Payment for capital assets 7 235 137 7 248 781 7 631 005 16 446 530 16 361 549 18 204 784 Rand thousand Total 31
Analysis: Earmarked vs. Unearmarked funds Medium term allocation Rand thousand Unearmarked Earmarked Specifically & exclusively appropriated Regional Bulk Infrastructure Grant Bucket Eradication Programme ( Indirect) Rural Household Infrastructure Grant: Indirect) Municipal Water Infrastructure Grant (indirect) Conditional grants Water Services Operating Subsidy Grant (direct) Municipal Water Infrastructure Grant (direct) Rural Household Infrastructure Grant (direct) TOTAL 2014/15 2015/16 2016/17 4 656 225 2 729 166 6 756 110 4 737 976 3 023 444 6 835 147 4 980 362 3 882 654 6 941 904 4 921 654 5 323 602 4 854 782 791 729 1 511 545 2 087 122 2 305 029 1 764 982 2 399 864 452 915 465 701 502 477 1 803 932 1 185 802 1 773 142 48 182 113 479 124 245 2015/16 allocation 975 399 67 328 16 446 530 16 361 549 18 204 784 32
Earmarked Funds Sub Programmes Regional Bulk: Indirect Grant 2015/16 2016/17 2017/18 R’ 000 4 921 654 5 323 602 4 854 782 Municipal Water Infrastructure Grant: Indirect Grant 791 729 1 511 545 2 087 122 Municipal Water Infrastructure Grant: Direct Grant Rural Household Infrastructure Grant: Indirect Grant Rural Household Infrastructure Grant 1 803 932 1 185 802 1 773 142 67 328 - - 48 182 113 479 124 245 Bucket Eradication Programme 975 399 - - Water Services Operating Subsidy Grant TOTAL 452 915 465 701 502 477 9 061 139 8 600 129 9 341 768 33
Regional Allocations Infrastructure Programmes
Regional Allocations: ACIP Sub Programmes 2015/16 R’ 000 2016/17 R’ 000 2017/18 R’ 000 Eastern Cape 36, 656 38, 489 40, 413 Free State 36, 286 38, 100 40, 005 Kwa. Zulu Natal 16, 890 17, 735 18, 621 Gauteng 10, 000 10, 500 11, 025 Mpumalanga 31, 207 32, 767 34, 406 Limpopo 30, 200 31, 710 33, 296 Northern Cape 30, 189 31, 698 33, 283 North West 34, 428 36, 149 37, 957 Western Cape 20, 847 21, 889 22, 984 National Office R 7, 055 8, 166 8, 575 TOTAL 253, 758 267, 205 280, 565 35
Regional Allocations: RBIG SCH 6 B Sub Programmes 2015/16 2016/17 2017/18 R’ 000 Eastern Cape 954, 000 1, 262, 386 1, 176, 132 Free State 482, 654 488, 000 441, 589 1, 063, 000 897, 153 924, 063 Gauteng 347, 000 432, 000 384, 200 Mpumalanga 284, 000 335, 447 278, 547 Limpopo 953, 667 1, 029, 457 997, 204 Northern Cape 136, 499 215, 532 210, 771 North West 327, 600 483, 403 584, 991 Western Cape 174, 234 226, 000 216, 275 4, 722, 564 5, 369, 378 5, 214, 372 Kwa. Zulu Natal TOTAL 36
RBIG 2015/16 quarterly cash flows Region Eastern Cape Free state Allocation Quarter 1 Quarter 2 Quarter 3 Quarter 4 1 125 000 247 005 310 679 292 782 274 534 484 404 94 927 164 779 145 243 79 455 348 800 40 390 91 340 100 138 116 932 1 463 990 185 074 327 044 324 399 627 473 955 467 129 200 308 200 303 600 214 467 Mpumalang a Northern Cape North West 285 850 70 49 096 143 900 92 784 341 099 26 734 58 248 47 733 208 383 757 350 240 156 361 292 120 338 35 563 Western Cape 176 134 51 942 48 436 35 655 40 101 Gauteng Kwa. Zulu. Natal Limpopo 37
Regional Allocations: MWIG SCH 5 B Sub Programmes Eastern Cape 2015/16 2016/17 2017/18 R’ 000 441, 843 280, 980 445, 184 15, 000 5, 265 8, 500 Kwa. Zulu Natal 803, 068 418, 744 740, 455 Mpumalanga 263, 740 178, 012 218, 578 Limpopo 130, 540 138, 438 172, 432 Northern Cape 87, 713 102, 363 107, 993 North West 62, 028 62, 000 80, 000 1, 803, 932 1, 185, 802 1, 733, 142 Free State TOTAL Gauteng allocations under Schedule 6 B 38
MWIG SCH 5 B quarterly cash flows Region Allocation Quarter 1 Quarter 2 Quarter 3 Quarter 4 R 000 R 000 130 540 0 32 635 65 270 32 635 Mpumalanga 263 740 0 89 796 76 622 97 322 North West 62 028 0 18 100 24 400 19 528 Free State 15 000 0 3 750 7 500 3 750 Kwa. Zulu. Natal 803 068 0 180 023 `229 559 393 486 Eastern Cape 441 843 0 107 040 153 071 181 732 Northern Cape 87 713 0 26 314 43 856 17 543 Total 1 803 932 0 457 658 600 278 745 996 Limpopo 39
Regional Allocations: MWIG SCH 6 B Sub Programmes 2015/16 2016/17 2017/18 R’ 000 Free State 62, 875 120, 903 240, 518 Kwa. Zulu Natal 33, 175 181, 371 248, 596 Gauteng 27, 000 38, 000 76, 000 Mpumalanga 182, 963 294, 515 466, 138 Limpopo 398, 034 708, 289 788, 321 87, 082 168, 467 267, 549 North West TOTAL 791, 729 1, 511, 545 2, 087, 122 Eastern Cape, Northern Cape allocations under Schedule 5 B 40
MWIG SCH 6 B quarterly cash flows Region Allocation Quarter 1 Quarter 2 Quarter 3 Quarter 4 R 000 R 000 Limpopo 398 034 6 000 136 000 161 000 95 034 Mpumalanga 182 963 11 600 75 000 67 000 29 363 North West 87 082 3 650 25 700 32 300 25 432 Free State 62 875 8 300 22 470 16 020 16 085 Gauteng 27 000 3 800 8 200 9 000 6 000 Kwa. Zulu. Natal 33 775 0 0 13 510 20 265 791 729 33 350 267 370 298 830 192 179 Total 41
Regional Allocations: WSOS SCH 5 B Sub Programmes Eastern Cape 2015/16 2016/17 2017/18 R’ 000 40, 500 47, 500 62, 000 6, 000 10, 000 13, 000 Kwa. Zulu Natal 50, 500 40, 500 79, 665 Mpumalanga 90, 000 88, 000 94, 825 142, 000 160, 000 147, 162 Northern Cape 65, 000 45, 701 42, 825 North West 54, 415 70, 000 52, 000 4, 500 4, 000 11, 000 452, 915 465, 701 502, 477 Free State Limpopo Western Cape TOTAL 42
MWIG SCH 5 B quarterly cash flows Region Allocation Quarter 1 Quarter 2 Quarter 3 Quarter 4 R 000 Limpopo R 000 142 000 0 0 85 200 56 800 Mpumalanga 90 000 0 11 800 38 500 39 700 North West 54 415 0 0 19 500 34 915 Free State 6 000 0 2 375 2 125 1 500 Kwa. Zulu. Natal 50 500 0 12 625 25 250 12 625 Eastern Cape 40 500 0 10 750 13 250 16 500 Northern Cape 65 000 0 23 500 21 800 19 700 Western Cape 4 500 0 1 000 2 200 1 300 452 915 0 62 050 207 825 183 040 Total 43
Regional Allocations: RHIG 5 B Sub Programmes 2015/16 2016/17 2017/18 R’ 000 Eastern Cape 4, 000 27, 000 28, 245 Free State 4, 500 5, 000 5, 500 21, 682 44, 479 48, 500 Mpumalanga 4, 500 5, 000 Limpopo 9, 000 20, 000 23, 500 0 4, 000 4, 500 8, 500 9, 000 48, 182 113, 479 124, 245 Kwa. Zulu-Natal Northern Cape North West TOTAL 44
Regional Allocations: RHIG SCH 6 B Sub Programmes 2015/16 R’ 000 Eastern Cape 20, 000 Kwa. Zulu-Natal 25, 328 Limpopo 12, 000 Northern Cape 5, 000 North West 5, 000 TOTAL 67, 328 45
Sanitation quarterly cash flows Grant Allocation Quarter 1 R 000 Quarter 2 Quarter 3 Quarter 4 R 000 RHIG direct 48, 182 - 24, 091 - RHIG indirect 67, 328 - 25, 248 16, 832 25, 248 975, 399 292, 617 1, 042, 727 292, 617 341, 956 333, 540 317, 865 BEP Total 46
Readiness to Implement Infrastructure projects • All Implementing Agencies for the implementation of RBIG projects have been appointed • Allocations letters sent to all Implementing agencies • Budget loaded on the systems for payments to be authorized • Checklist developed to verify supporting documentation to authorize invoice payments • Business plans for ACIP and MWIG approved and implementation plan in place • Monthly cash flows submitted and department working closely with IA’s to monitor 47 implementation
Challenges experienced • Implementing agents: – Late submission of invoices – Submitting invoices without proper supporting documents – Slow implementation of infrastructure programmes • The political instability within the municipalities affected the appointments of services providers and also payments of service providers already appointed. • Construction work stopped due to community unrest during the course of the financial year and had an impact on the performance of the projects. • Late appointment of contractors by municipalities 48
Measures developed to implement more cost effectiveness • The department to pay invoices on work done • Advances to be paid for ordered material • Effective systems of verifying work done developed • Improve on the project management • Strengthen contract management unit • Develop electronic document management systems (e. g. contract management, invoice tracking) • Improve communication with the implementing 49 agencies and contractors
Opportunities • Supporting implementing agents in ensuring invoice accuracy before submitting for payments • Development of infrastructure master plan in all provinces 50
OVERVIEW OF THE TRADING ENTITY MTEF BUDGET (2015/16 – 2017/18) 51
52 DEVELOPMENT OF NEW INFRASTRUCTURE PROJECTS NAME Total Cost To Projects Cost date R'000 ORWRDP (Ph 2 A) - De Hoop Dam ORWRDP-2 B/G ORWRDP-2 C GLe. WAP Phase (Nwamitwa Dam) Water Resources Project: Raising of Clanwilliam Dam Mokolo and Crocodile River (West) Water Augmentation Project (Phase 1) GLe. WAP Phase (Tzaneen Dam Raising) Development of Raising of Hazelmere Dam GLe. WAP Distribution (Mopani DM) Mzimvubu Water Project Nandoni Nsani (Mopani) Mzimkulu – Ncwabeni Off Storage Nooitgedacht Water Scheme Sub total Dam Safety Rehabilitation Programme Financial Management NWRI Support/ Project Management TOTAL R'000 Total Over MTEF 2015/16 R'000 2016/17 R'000 2017/18 R'000 2015 - 2018 3 424113 3 595 690 24 000 18 900 - 42 900 3 777 000 1 994 000 2 182 684 10 000 269 906 254 862 308 000 711 000 144 000 1 028 862 821 906 1 476 580 1 000 20 000 158 405 320 515 498 920 2 301 100 125 251 528 599 553 532 787 377 1 869 508 2 139 000 478 50 000 70 000 21 000 141 000 172 784 - 49 970 86 800 74 830 211 600 262 000 46 331 250 274 61 236 38 617 350 127 237 865 290 691 160 000 33 000 22 000 215 000 20 000 - 264 000 430 000 438 000 1 132 000 100 000 - 650 000 - 281 000 36 815 442 6 242 125 128 000 1 854 749 2 800 000 2 425 000 - - 100 000 314 036 140 000 2 114 735 13 000 2 884 375 281 000 7 006 859 315 789 371 930 1 003 508 - 199 988 211 987 224 707 636 682 - - 216 077 229 042 242 784 687 903 39 615 442 8 667 125 2 586 603 2 871 553 3 723 796 9 334 952
REVENUE PROJECTS REFURBISHMENT & REHABILITATION Operational area 2015/16 2016/17 2017/18 MTEF TOTAL R'000 Central Ops 540 320 695 680 480 190 1 716 190 Eastern Ops 134 912 100 900 102 950 338 762 Northern Ops 309 026 165 466 145 795 620 287 Southern Ops 233 996 274 500 380 000 888 496 1 218 254 1 236 546 1 108 935 3 563 735 TOTAL 53
THANK YOU
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