PRESENTATION TITLE Presented by: Name Surname Directorate Date WATER RESEARCH COMMISSION ANNUAL PERFORMANCE PLAN PRESENTATION 2015/16 Presented by: Dhesigen Naidoo Chief Executive Officer Water Research Commission 29 April

STRATEGIC OUTCOME-ORIENTED GOALS OF THE INSTITUTION WRC Annual Performance Plan 2015/16 Contributing towards achieving Government Outcomes and NDP objectives:  Inform policy and decision-making  Develop new products and services for economic development  Enhance human capital development (HCD) in the water and science sectors  Empower communities  Promote transformation and redress  Drive sustainable development solutions Alignment with Department of Water and Sanitation strategic objectives:  An efficient, effective and development oriented sector leader  Equitable and sustainable water and sanitation services  Protection of water across the value chain STRATEGIC OBJECTIVES 2

WRC Annual Performance Plan 2015/16 PERFORMANCE INDICATORS ObjectiveIndicator Target 2014/15 Target 2015/16 To enhance knowledge through new research The number of new research projects initiated in the 2015/16 financial year 9581 To complete and finalise research projects scheduled in the financial year The number of research projects completed in the 2015/16 financial year 7085 To continuously accommodate students as active participants in WRC projects The minimum number of students supported on WRC-funded research projects To increase emphasis on projects that have a direct impact on the lives and livelihoods of communities through water-related interventions and build sufficient capacity to assist with the post-project sustainability of those interventions The number of community based research projects initiated in the 2015/16 financial year To enhance economic development in communities by supporting small, medium and micro enterprises (SMMEs) in the water research and development sector The number of SMMEs as lead organisations in the research projects initiated in the 2015/16 financial year 2619 To focus on growing the involvement of previously disadvantaged individuals by increasing the number of project leaders from the designated groups The number of project leaders from the designated group in research projects initiated in the 2015/16 financial year 5045 Number of projects initiated in the 2015/16 financial year with Historically Disadvantaged Institutions as participating organisations in WRC projects

WRC Annual Performance Plan 2015/16 PERFORMANCE INDICATORS ObjectiveIndicator Target 2014/15 Target 2015/16 To increase the number of new innovations/products and services produced from WRC research The number of new innovations/products and services produced from WRC research in the 2015/16 financial year The number of new innovations, products and services that have been implemented/ demonstrated /piloted in the 2015/16 financial year 20 Indicator not measured in 2012/ To ensure that the WRC increasingly contributes to sustainable solutions for the water sector by creating knowledge products and events that disseminate knowledge produced from WRC research The number of dialogues held in the 2015/16 financial year Included in the workshop indicator 15 The number of manuals and guidelines published in the 2015/16 financial year 1826 The number of issues of the Water Wheel published in the 2015/16 financial year 66 The number of issues of Water SA published in the 2015/16 financial year 44 The number of conferences/workshops/summits held in partnership with other organisations or exclusively by the WRC in the 2015/16 financial year 2519 To support policy- and decision-makers with research- based knowledge The number of policy briefs produced and distributed to relevant Government departments and other entities in the 2015/16 financial year 1012 The number of ministerial briefs produced by the WRC and received by the Minister's Office in the 2015/16 financial year 1012 The number of WIN-SA publications produced and distributed to relevant institutions and municipalities in the 2015/16 financial year

WRC Annual Performance Plan 2015/16 BASELINE BUDGET FOR 2014/15 AND BUDGET ALLOCATION 2015/16 BUDGET YEAR DESCRIPTION Baseline 2014/15 (R) 2015/16 (R) Levies Interest Received Leverage Other Transfer of Unspent Committed Project Funds TOTAL INCOME280, , Fixed Costs Running Costs Human Resource Costs Research & Development Funding Corporate Expenditure Capital Expenditure TOTAL EXPENDITURE

WRC Annual Performance Plan 2015/16 EXPENDITURE FOCUS 2015/16 WATER RESOURCE MANAGEMENT KSA1 (R) WATER LINKED ECOSYSTEM KSA2 (R) WATER USE AND WASTE MANAGEMENT KSA3 (R) WATER UTILIZATION IN AGRICULTURE KSA4 (R) KNOWLEDGE DISSEMINATION KSA5 (R) EMPOWERMENT FUND (R) OTHER LEVERAGE FUNDED PROJECTS (R) TOTAL (R) 2014/15 Baseline /

WRC Annual Performance Plan 2015/16 EMPLOYMENT CREATED 2014/15 AND 2015/ /15:  11 Existing Positions – 11 Vacant, 9 Filled.  5 New Positions created. 2015/16:  14 New Positions created – 1 Filled 7

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PRESENTATION TITLE Presented by: Name Surname Directorate Date TCTA PRESENTED BY: JAMES NDLOVU CEO DATE: 29 APRIL

Sub Header Project Predetermined Objectives for the Financial Year Projected Progress as of 31 March 2015 Medium Term Targets Planned milestones for 2015/16 Planned milestones for 2016/17 Planned milestones for 2076/18 and Beyond Lesotho Highlands Water Project: To fulfil all the Republic’s financial obligations in terms of or resulting from the Treaty Manage the funding and debt on the infrastructure projects, in the Vaal River System, in a manner that achieves cost-effective funding, taking into account current and projected market conditions as well as managing risks Outstanding debt of R million A debt increase of R1 270 million resulting in a projected outstanding debt of R million Projected outstanding debt as of 31 March 2017 R million Projected outstanding debt as of 31 March 2018 R million Debt repayment 2040 Advisory Services to Water Management Institutions, Water Boards and DWA Participation in the Key Water Sector initiatives, which are focused on the sustainability of the water sector Strategic stakeholder engagements with:  DWS  Sedibeng Water  Harry Gwala Municipality  Umgeni Water Strategic stakeholder engagements with 5 water sector institutions Berg Water Project Manage the funding and debt on the infrastructure projects in a manner that achieves cost-effective funding, taking into account current and projected market conditions as well as managing risks Outstanding debt of R949 million A debt reduction of R52 million resulting in an outstanding gross debt of R949 million Projected outstanding debt as of 31 March 2017 R890 million Projected outstanding debt as of 31 March 2018 R829 million Debt repayment 31 March

Sub Header Project Predetermined Objectives for the Financial Year Projected Progress as of 31 March 2015 Medium Term Targets Planned milestones for 2015/16 Planned milestones for 2016/17 Planned milestones for 2076/18 and Beyond Lesotho Highlands Water Project: To fulfil all the Republic’s financial obligations in terms of or resulting from the Treaty Manage the funding and debt on the infrastructure projects, in the Vaal River System, in a manner that achieves cost-effective funding, taking into account current and projected market conditions as well as managing risks Outstanding debt of R million A debt increase of R1 270 million resulting in a projected outstanding debt of R million Projected outstanding debt as of 31 March 2017 R million Projected outstanding debt as of 31 March 2018 R million Debt repayment 2040 Advisory Services to Water Management Institutions, Water Boards and DWA Participation in the Key Water Sector initiatives, which are focused on the sustainability of the water sector Strategic stakeholder engagements with:  DWS  Sedibeng Water  Harry Gwala Municipality  Umgeni Water Strategic stakeholder engagements with 5 water sector institutions Berg Water Project Manage the funding and debt on the infrastructure projects in a manner that achieves cost-effective funding, taking into account current and projected market conditions as well as managing risks Outstanding debt of R949 million A debt reduction of R52 million resulting in an outstanding gross debt of R949 million Projected outstanding debt as of 31 March 2017 R890 million Projected outstanding debt as of 31 March 2018 R829 million Debt repayment 31 March

Sub Header Project Predetermined Objectives for the Financial Year Projected Progress as of 31 March 2015 Medium Term Targets Planned milestones for 2015/16 Planned milestones for 2016/17 Planned milestones for 2076/18 and Beyond Olifants River Water Resources Development Project (Phase 2C) Construct infrastructure on time, within budget, to the appropriate standards and in a sustainable socio/environmental manner 39 km out of 40 km pipeline laid Water delivery for full Phase 2C: Nov 2015 Completion of defects liability period in Nov 2016 Komati Water Scheme Augmentation Project: Pump station and Pipeline Manage the funding and debt on the infrastructure projects in a manner that achieves cost- effective funding, taking into account current and projected market conditions as well as managing risks Outstanding debt of R1 183 million A debt reduction of R58 million resulting in an outstanding gross debt of R1 125 million Projected outstanding debt as of 31 March 2017 R million Projected outstanding debt as of 31 March 2018 R981 million Debt repayment

Sub Header Project Predetermined Objectives for the Financial Year Projected Progress as of 31 March 2015 Medium Term Targets Planned milestones for 2015/16 Planned milestones for 2016/17 Planned milestones for 2076/18 and Beyond Mokolo and Crocodile River (West) Water Augmentation Project: Pump Station and Pipeline Manage the funding and debt on the infrastructure projects in a manner that achieves cost-effective funding, taking into account current and projected market conditions as well as managing risks Outstanding debt of R1 040 million A debt increase of R263 million resulting in an outstanding gross debt of R1 303 million Projected outstanding debt as of 31 March 2017 R million Projected outstanding debt as of 31 March 2018 R million Debt repayment 2033  Phase 1 Augmentation of existing Scheme Construct infrastructure on time, within budget, to the appropriate standards and in a sustainable socio/environmental manner Ready for trial operation Ready for Operation: Nov 2015 Completion of defects liability period Refurbishment of existing pipeline Design and specification finalisation: April 2015 Award of construction contract November 2015 Re-commissioning of pipeline November 2016 Completion of defects liability period November

Sub Header Project Predetermined Objectives for the Financial Year Projected Progress as of 31 March 2015 Medium Term Targets Planned milestones for 2015/16 Planned milestones for 2016/17 Planned milestones for 2076/18 and Beyond Acid Mine Drainage: Pump Stations and Treatment Plant  Western Basin Acid mine drainage is treated to the correct standard before discharge to the environment Discharge of effluent in accordance with standards set in directive  Central Basin Acid mine drainage is treated to the correct standard before discharge to the environment Declared operational Dec 2014 Discharge of effluent in accordance with standards set in directive Completion of defects liability period Dec 2015  Eastern Basin Construct infrastructure on time, within budget, to the appropriate standards and in a sustainable socio/environmental manner 15% complete Ready for operation in Jan 2016 Completion of defects liability period Jan

Capital Expenditure:  TCTA strategy recognises the role in transforming our economy, by implementing quality, affordable infrastructure.  Based on the identified infrastructure projects which we have been directed to implement.  Includes MCWAP2.  Excludes potential projects 15

Capital Expenditure:  TCTA strategy recognises the role in transforming our economy, by implementing quality, affordable infrastructure.  Based on the identified infrastructure projects which we have been directed to implement.  Includes MCWAP2.  Excludes potential projects 16

17  Where the major construction and engineering contracts have been awarded the cost projections are based on the most recent financial reviews conducted by the contractor and engineer.  Escalation assumptions, potential variation orders and claims to the completion of the respective contracts also projected in the reviews.

 Capital Expenditure R2 667m Increased activity on the new mandates received viz. LHWP2 and MCWAP2. Whilst BWP and VRESAP are in close out phase, MMTS and KWSAP are entering the final phases of construction. Work on ORWRDP and MCWAP continues. Capex per projectBudget 2015/16 R’mil BWP 3,15 ORWRDP 363,97 VRESAP 0,73 MMTS2 106,81 KWSAP 8,83 MCWAP 346,18 AMD (short term) 775,48 LHWP2 795,29 MCWAP2 277,04 Total 2 677,48 18

 Directly Controllable Expenditure R356m Increased running costs resulting directly from increased project activity.  Indirectly Controllable Expenditure R1 258m Variable royalties increase based on Eskom selling price increase, and O&M costs for LHWP and AMD increase.  Tariff Billing R4 370m Billing for MCWAP commences, increases based on inflation and estimated volumes for most projects with the exception of LHWP which decreases due to a change in the tariff methodology.  Funding Requirement R3 985m To meet expected capital expenditure, running expenditure and finance charges. 19

Budget 2014/15 Budget 2015/16 Capital Expenditure Tariff Billing ( 4 893) ( 4 752) Running Expenditure Funding Requirement

Employment group OriginGender LocalElse-whereFemaleMale Total Dec-14Mar -14 Unskilled Semi-skilled Other (skilled & staff) Total Note TCTA reports on the number of people employed on site at the end of each reporting period 21

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