111 HIGH LEVEL OVERVIEW WATER SECTOR FINANCIAL PERFORMANCE APRIL - DECEMBER 2010 Masibambane Coordinating Committee Meeting

222 Contents oOverview of Water Sector Expenditure as at 31 December 2010 oProgress on Donor Funding oDetailed expenditure analysis per quadrant oDonor Budget and Expenditure 31 December 2010

333 WATER SECTOR 2010/11 FINANCIAL SUMMARY: 31 DECEMBER 2010 BudgetActual% Donor ProjectsR0, 217bR0,050b23 Prog 4 & 5R4,463bR2,559b57 Budget* Actual% CapitalR5,638bR1,987b35 RecurrentR10,559bR7,919b Quadrant 4 Non DWA Non WS specific Quadrant 3 DWA WR specific Quadrant 2 Non DWA WS specific Quadrant 1 DWA WS specific BudgetActual% Prog 2R0,494bR0,259b52 Prog 3R2,238bR1,726b77 BudgetActual% RecurrentR0,058bR0,016 b 28 Total Q2 Bud= R16.2b Exp= R9.97b Total Q1 Bud= R4.5b Exp= R2.6b Total Q3 Bud= R2.2b Exp= R2.0b Total Q4 Bud= R0.058b Exp = R0,016b

444 PROGRESS ON DONOR FUNDING CASHFLOW  The department has received R200m for 2010/2011 as an exit strategy on Masibambane III.  The funding from the European Union has been received in full in the first quarter of 2010/2011 of which R134m relating to 2009/2010 deficit was set off.  Still awaiting the tranche from the Irish Aid for 2010/2011 amounting to €1.5m.  The slow spending of donor funds (23%) can be attributed to the delay in the budget approval because the funds were received in quarter 1 which influenced the planning and execution of projects. DWA took a conservative approach to avoid qualifications, i.e. no approval of budget prior to actual funds received. PROGRESS ON DONOR FUNDING CASHFLOW

55 Overview of Expenditure Performance April 2010 to December 2010

666 QUADRANT VIEW OF WATER SECTOR BUDGET & EXPENDITURE TO DECEMBER 2010 Quadrant 1: DWA Water Services Specific Quadrant 2: Non-DWA - Water Services Specific 2010/2011 BudgetExpend. % Expenditure BudgetExpenWS BudgetWS Expend. % WS Expenditure R'000 - Municipal Infrastructure Grant (MIG) (45%) 12,528,889 4,416,150 5,638,000 1,987,268 35% - Donor Funding (EU, Irish Aid)217,00050,00023% > EU (Contract signature - Sep 07) 195,873 43,284 22% > Irish Aid 20,933 6,512 31% - Equitable Share (35%) 30,167,707 22,625,780 10,558,697 7,919,02275% Programme 4 - Regional Management 4,348,819 2,481,07357% Stakeholder Management / Sector Support 580, ,93460% Institutional Establishment 499, ,66228% Regional Programme Coordination % Water Conservation And Demand Management 57,341 28,87150% Accelerate Access To Community Infrastructure 103,556 44,96643% Natural Resource Management Programmes 912, ,89557% Poverty Interventions124,542 51,64441% Regional Bulk 893, ,54146% Transfers Of Water Schemes 875, ,05486% Support Services 302, ,50860% Programme 5 - Water Sector Regulation114,475 78,34868% Economic & Social Regulation 15,131 12,78985% Resource Regulation 43,554 44,120101% Water Use 41, % Enforcement 13,806 5,85242% Grand Total 4,463,297 2,559,42157%Total42,696,59627,041,93016,196,6989,906,29061% Quadrant 3: DWA Water Resources Quadrant 4: Non-DWA - Non-Water Services Specific 2010/ /11 BudgetExpend. % Expenditure BudgetExpenWS BudgetWS Expend. % WS Expenditure R' 000 Programme 2 - Water Management 493, ,53652% Integrated Planning 127,600 68,69254% Policy and Strategy 11,634 10,31489% Institutional Oversight 92,052 44,77549% Water Eco Systems 29,805 17,59459% Water Information Management 59,418 26,87345% Programme 3 - National Water Resource Infrastructure 2,238,232 1,725,96177% Infrastructure Development and Rehabilitation 2,098,211 1,620,944 77% - Local Government Financial Management Grant (10%) 364, ,848 36,45913,788 38% Operation of Water Resources 140, ,021 75% - Municipal Systems Infrastructure Grant (10%) 212,000 23,320 21,200 2,332 11% Grand Total 2,731,744 1,984,49773%Total576, ,16857,659 16,120 28% Expenditure received from National Treasury

777 QUADRANT 1: DONOR FUNDS EXPENDITURE PER PROVINCE REGION EXP TO DECEMBER 31/12/2010 BUDGET 2010/11 EXP TO BUDGET Sector Partners (SALGA, DCGTA, CBOs, DoH, Regional Offices, Municipalities, etc) 28,950,57789,175,43332% Eastern Cape 4,623,0208,116,97757% Free State 1,686,258 9,708,92517% Gauteng 6,632,09313,015,09651% KwaZulu Natal 0 11,080,1770% Limpopo 6,511,85031,000,50721% Mpumalanga 0 11,282,9510% Northern Cape 1,051,60614,074,1917% North West 0 13,270,0740% Western Cape 340,429 16,083,0112% Total 49,795,833216,807,37523%

888 QUADRANT 1: PROGRAMME 4: REGIONAL MANAGEMENT BY SUB-PROGRAMME Sub-Programmes Expenditure Year to BudgetVarianceExp Ytd vs Budget Stakeholder Management / Sector Support 348,934580,733231,79960% Institutional Establishment141,662499, ,46528% Regional Programme Coordination0619 0% Water Conservation And Demand Management28,87157,341 28,47050% Accelerate Access To Community Infrastructure44,966103,556 58,59043% Natural Resource Management Programmes522,895912, ,30157% Poverty Interventions51,644124,542 72,89841% Regional Bulk409,541893, ,45946% Transfers Of Water Schemes751,054875, ,50686% Support Services181,508302,146120,63860% Total Sub-Programmes2,481,0734,348,8191,867,74657%

999 QUADRANT 1: PROGRAMME 4: REGIONAL MANAGEMENT BY REGION Regional Expenditure Year to BudgetVarianceExp vs Budget Eastern Cape370,371598, ,651 62% Western Cape266,524432, ,976 62% Kwazulu Natal157,982321, ,056 49% Mpumalanga203,574363, ,726 56% Gauteng107,859200,063 92,203 54% North West91,034191, ,892 47% Free State102,901216, ,324 48% Northern Cape140,598194,551 53,953 72% Limpopo723,6781,020, ,771 71% Regional Coordination18,37034,573 74,874 53% Manager National Transfer10,54916,883 6,334 62% Regional Bulk Unit (HO) & WS Projects7,909262, ,424 3% Working For Water & Fire241,585437, ,342 55% Other (CME, DWMIG & WARMS)37,780 58,671 20,891 64% Total2,481,0734,348,8191,867,74657%

10 QUADRANT 1: PROGRAMME 5: WATER SECTOR REGULATION Sub-Programmes Expenditure Year to BudgetVarianceExp Ytd vs Budget Economic & Social Regulation 12,789,000 15,131,0002,342,00085% Resource Regulation 44,120,000 43,554,000566,000101% Water Use 15,587,000 41,984,00026,397,00037% Enforcement 5,852,000 13,806,0007,954,00042% Total Sub-Programmes 78,348, ,475,000 36,127,00068%

11 QUADRANT 3: PROGRAMME 2: WATER MANAGEMENT Sub-Programmes Expenditure Year to BudgetVarianceExp Ytd vs Budget Integrated Planning 68,692, ,600,00058,908,00054% Policy and Strategy 10,314,000 11,634,0001,320,00089% Institutional Oversight 44,775,00092,052,00047,277,00049% Water Eco Systems 17,594,000 29,805,00012,211,00059% Water Services 26,873,00059,418,00032,545,00045% Water Information Management 90,288, ,993,00082,70552% Total Sub-Programmes 258,536, ,502, ,966,00052%

12 QUADRANT 3: PROGRAMME 3: NATIONAL WATER RESOURCES INFRASTRUCTURE Sub-Programmes Expenditure Year to (R'000) Budget (R'000) VarianceExp Ytd vs Budget Infrastructure Development and Rehabilitation 1,620,9442,098,211477,26777% Operation of Water Resources105,017140,021 35,004 75% Total Sub-Programmes1,725,9612,238,232512,27177%

13 QUADRANT 4: EXPENDITURE ANALYSIS NON-DWAF, “NON WATER SECTOR” (CAPACITY BUILDING GRANTS) Quadrant 4: Non-DWA - Non-Water Services Specific 2010/2011 BudgetExpenWS BudgetWS Expend. % WS Expenditure R' Local Government Financial Management Grant (10%) 364,589137,848 36,45913,788 38% - Municipal Systems Infrastructure Grant (10%) 212,00023,320 21,200 2,332 11% Total576,589161,168 57,65916,120 28%

14 Thank you 14