Masibambane Water Services Sector Coordinating Committee Meeting 22

Masibambane Water Services Sector Coordinating Committee Meeting 22 February 2007 STRATEGIC OVERVIEW OF WATER SECTOR PROGRESS FOR THE 3 rd QUARTER 2006/2007 AND KEY ISSUES FOR THE 4 th QUARTER Kalinga Pelpola Masibambane Programme Manager

INDEX • Sector Highlights • President’s State of the Nation Address – 9 Feb 07 • National Budget Speech 2007/8 – 21 Feb 07 • Challenges for the Sector • Key findings for the 3 rd Quarter 2006/07 • Financial Summary – 3 rd Quarter and YTD • Key issues for 4 th Quarter 2006/07 • Conclusion

HIGHLIGHTS Another award…The VUNA Award for Local Government Support was awarded to DWAF by the Minister DPLG. This achievement highlights the successful collaboration between DWAF, DPLG and SALGA. 15 December 2006

HIGHLIGHTS • Cabinet Lekgotla – January 2007, and key issues affecting WS; • Sector Collaboration with Business Partners for Development; • SA and Netherlands signed “Partner for Water” Agreement on 5 December 2006; • Swiss/SA annual consultation held on Sunday 18 Feb 07 in Cape town; • Completion of Provincial Water Sector Plans; and • Progress towards finalisation of National WS Programme III 2007/8 - 2012/12 = National WS Strategy + National WS Work plan

PRESIDENT’S STATE OF THE NATION ADDRESS – 9 Feb 07 • Address challenges of poverty, unemployment and marginalisation of communities; • Accelerate economic growth and development (6% pa); • Apply Batho Pele principles to improve effectiveness of social development programmes and institutional operational efficiency; • Support local government sphere as per the Five Year Local Government Strategic Agenda; • Speed up skills development and fill vacancies of senior management and professionals in municipalities; • Align planning instruments across the spheres of government (i. e. National Spatial Development Perspective, Provincial Growth and Development Strategies and Integrated Development Plans);

PRESIDENT’S STATE OF THE NATION ADDRESS – 9 Feb 07 § Expand access to services such as water, electricity and sanitation and ensure the objectives of the MDG’s and government’s service delivery targets are achieved: – – § § Bucket eradication in formal settlements – Dec 2007; Eradication of water supply backlog – 2008; Eradication of sanitation backlog – 2010; Eradication of clinic water and sanitation backlog – 2007; Integrate youth development into the mainstream of government work; Increase the roll-out of the low cost housing programme (and by implication water and sanitation services); Strengthen monitoring and evaluation capacity across all spheres; and Accelerate implementation of NEPAD Programmes.

FINANCE Minister's Budget Speech – 21 Feb 07 § Human life has equal worth… Motho ke motho - ga ana bosehlana (a human being is a human being, there is no lesser human being) § The idea, that human life has equal worth, and that this is the core value that unites us, invites us to ask whether we have done enough to give practical effect in SA today to our shared humanity. Have we acted in a manner that shows that human life has equal worth? § Reconfirmation of service delivery targets & availability of additional funding; § Funding mechanisms; § Sound management of public finance § Structural unemployment (mismatch of skills); § Capacity and skills development

DWAF CHALLENGES FROM PRESIDENT’S ADDRESS • • Challenges: - Lack of skills and public service capacity; - Meeting the water and sanitation targets; - Effective implementation of Local Government Support Programmes; - Monitoring and information management; - Poverty eradication through economic opportunities in the WS; - Supporting delivery of MDGs in Africa/Nepad with special focus on emerging democracies e. g. ; DRC, Liberia Issues to be addressed: - Promote effective sector collaboration; - Improve leadership within DWAF management; - Decentralisation and empowerment of DWAF Regional Offices; - Engage Institutions of Higher Learning to fast track talent building

KEY FINDINGS - QUARTER 3 (See Volume I, pages 12 -18 of 206) • Overall Water Sector Budget 2006/7 = R 12, 87 bn - • Expenditure to date (excl. Equitable Share, LGFM Grants, Drought relief) =40, 2% Good progress DWAF expenditure (Quadrant 1) - DWAF WS expenditure (capital + recurrent) = 64, 3% § • Low expenditure on MIG Funding (Quadrant 2) - MIG Capital expenditure = 36, 9% § - MIG LP (32, 2%); MP (18, 5%); Working with dplg on re-allocation of MIG budget to munics; Equitable Share unconditional grant, no report on expenditure from WSA’s § • Expenditure assessment, budget re-allocation and revision of FD; Will call a high level meeting between DWAF and DDG: PC dplg to discuss strategy and way fwd; Capacity Building Grants (Quadrant 4) - MSIG Grant = 30, 7% LGFM Grant = updated expenditure figures not available from DPLG KFA 12 = 48% § The trend on under expenditure continues – this is a serious issue and was brought to the notice of DDG: PC at dplg and will be dealt with at the high level meeting;

SERVICE DELIVERY PROGRESS - QUARTER 2 * *unverified MIG sanitation data (not yet confirmed by dplg) is provided by DWAF Sanitation unit

SERVICE DELIVERY PROGRESS - QUARTER 2 The total number of job days created by the MIG programme to end September 2006 amounts to 20, 287, 959 job days, of which 34, 52% (7, 004, 387) are woman job days and 35, 52% (7, 206, 943) youth job days. This is however not specific to the water sector.

FINANCIAL SUMMARY 1 Capital – R 358 m R 479 m Recurrent RR 1, 104 bn 1, 126 bn Recurrent Drought R 793 m Not Relief: WSS specific 3 Quadrant 1 Quadrant DWAF 1 DWAF WSS specific Quadrant 3 DWAF Quadrant Not 3 WSS specific Quadrant 2 Quadrant Non DWAF 2 DWAF WSS specific Quadrant 4 Quadrant Non DWAF 4 Non WSS specific 2 Capital–MIG – R 2, 282 bn Capital R 4, 817 bn Capital DFID – R 14 m Recurrent – R 6, 320 bn Recurrent – R 2, 679 bn Capital – R nil Recurrent – R 39 m 66 m 4 2006/2007 WS Grand total budget = R 12, 869 bn

EXPENDITURE ANALYSIS QUADRANT 1: DWAF WATER SERVICES

QUADRANT 1: DWAF EXPENDITURE PER PROVINCE GP (63, 4%); WC (78, 4%); KZN (28, 3%); NW (34, 3%)

QUADRANT 1: EXPENDITURE PER KFA OVERALL WATER SERVICE PROGRAMME 2006/2007 KFA 10 – Water & Sanitation Services KFA 11 – Water Sector Support KFA 12 – Institutional Support KFA 13 - Transfers KFA 14 – African Participation KFA 18 – Water Services Admin KFA 21 – Operation of Water Services KFA 6 – Water Resource Interface Expenditur e Dec 06 MTEF Budget of Prog 3 Donor Budget Total Budget Exp vs. Total Budget R' 000 % 21, 131 78, 147 99, 278 71% 142, 279 119, 911 99, 806 219, 717 65% 70, 968 57, 109 91, 617 148, 726 48% 1, 110 15, 480 5, 500 20, 980 5% 0 400 2, 500 2, 900 0% 81, 466 116, 096 0 116, 096 70% 753, 331 1, 132, 124 0 1, 132, 124 67% 3, 994 0 9, 250 43% 1, 123, 783 1, 462, 251 286, 820 1, 749, 071 64% 70, 635

EXPENDITURE ANALYSIS QUADRANT 2: NON-DWAF WATER SERVICES

QUADRANT 2: MIG EXPENDITURE PER PROVINCE MIG NW (49, 6%); WC (62, 0%%) MIG MP (18, 5%); LP (32, 2%);

QUADRANT 2: EQUITABLE SHARE Note: Equitable share is an unconditional grant – no reports submitted by WSA’s

QUADRANT 3: DWAF NON-WATER SERVICES (DROUGHT RELIEF FUNDING PER PROVINCE)

EXPENDITURE ANALYSIS QUADRANT 4: NON-DWAF, NON WATER SERVICES (CAPACITY BUILDING GRANTS) Notes: • Q 3 LGFM grant information not available from DPLG at the time of preparing this report. • Local Government Restructuring Grant will not be used for capacity building and support in the water sector

KEY ISSUES FOR THE 4 TH QUARTER 2006/07 • Finalisation of NWSP 2007 -12 and work plan & financial delegation 2007/8 • Towards a communication & change management plan to better understand Wf. GD • High level meeting between DWAF & dplg and SALGA; • Bi-lateral engagement between DWAF & Do. Health; • Extension of the WS M&E reporting into WR + Forestry and impact assessment of WS programmes; • WS/WR interface and alignment; • Support dplg/munics towards meeting target; • Support for acceleration of the sanitation delivery and bucket eradication; • Support municipalities through Project Consolidate; • Finalisation of DWAF LG Water Sector Support Plan; • Towards establishment of Siyense Manje ‘water sector’ unit in collaboration with DBSA/dplg/SALGA & DWAF

KEY ISSUES FOR THE 4 TH QUARTER 2006/07 (cont…) • Implementation of partnership agreement between the Private Sector and knowledge sharing agencies in Netherlands & SA: – Support the water sector in SA through Partnership with Private Sector and sharing & transferring expertise and experience available in the Dutch WS and SA. • Support SADC and NEPAD through DWAF and WSP-AF Strategic Cooperation Alliance : – Assist with poverty reduction programmes throughout Southern Africa and in other NEPAD countries; – Partnerships in the accelerated delivery of WS MDG’s in Africa; – Sharing knowledge and best practice through WIN

CONCLUSION • In view of consultations held with provincial and national stakeholders, progress reports for the 3 rd quarter 2006/2007 were compiled into: – Volume I: Consolidated Water Sector Report – Volume II: Regional Reports – Volume III: Sector Partner Reports • It is recommended that the above reports are formally accepted by the WSSCC, subject to incorporation of the comments made today at the meeting. THE END