Presentation to the Select Committee: Land & Environmental Affairs Progress on establishment of Catchment Management Agencies (CMAs) in South Africa 6 March 2012

3/8/12 CONTENT Context Policy and legislative mandate Progress to date Challenges Future Thinking Conclusion 22

3/8/12 Context The National Government is the custodian of the nation’s water resources, as an indivisible national asset. The Minister (Public Trustee) must therefore ensure that water is protected, used, developed, conserved, managed and controlled in sustainable and equitable manner. The Minister may establish suitable institutions to perform water resource management functions. 33

3/8/12 Context :Policy Principles The implementation of catchment management should be in accordance with principles of Integrated water resource management: – Equity in access to water resources, benefits and services – Sustainability in terms of water resources and the ecology – Optimal beneficial use from water utilization both social and economic – Local participation by stakeholders – Subsidiarity and clear accountability – Viability – Service delivery 44

3/8/12 CONTEXT WATER, LAND & EQUITY NEXUS Water management must support critical national development objectives that: – meet basic human rights w.r.t water and sanitation, – reduce inequality, create jobs and eliminate poverty Access to reliable water supplies and sanitation is critical for: – Human health, dignity and well-being – Creating and supporting economic growth and job creation – Rural livelihoods

3/8/12 CONTEXT THE DEMOCRATIC DEVELOPMENTAL STATE More inclusive and with greater citizen and society participation in decision-making Ordinary citizens should be involved in decisions that affect them South Africa is a representative and participatory democracy We have a democratic developmental state

3/8/12 CONTEXT SUMMARISED ROLE OF GOVERNMENT IN WATER SECTOR All in line with national developmental objectives of poverty eradication, creation of jobs, equitable economic growth, sustainable development Develop equitable and sustainable water policy and strategies Plan for future and balance supply and demand Ensure infrastructure is developed and managed Allocate water and ensure redress and equitable access Ensure provision of basic water supply and sanitation services to all Regulate water use and impacts on water Ensure water sector institutions perform effectively

Click to edit Master subtitle style 3/8/12 LEGISLATIVE MANDATE  Catchment management agencies are statutory bodies established in terms of Chapter 7 of the National Water Act (Act 36 of 1998)  “Water management area” is an area established as a management unit in the national water resource strategy within which a catchment management agency will conduct the protection, use, development, conservation,management and control of water resources.  “water management institution” means a catchment management agency,a water user association,a body responsible for international water management or any person who fulfils the functions of a water management institution in terms of this Act  CMAs are subject to the Public Finance Management Act(Act 1 of 1999) (PFMA) and related Treasury regulations– categorized as a Schedule 3A entity: “service delivery public entity”

Click to edit Master subtitle style 3/8/12 REASONS FOR ESTABLISHING CMAs 1. To achieve equitable access to water 2. To achieve sustainable use of water 3. To achieve efficient use of water Delegate water resource management to the regional or catchment level and to involve local communities within the framework of the National Water Resources Strategy

Click to edit Master subtitle style 3/8/12 THE ROLE OF CMAs Manage water resources in a defined Water Management Area (WMA) A (WMA) is an area established as a management unit in the national water resource strategy within which a catchment management agency will conduct the protection, use development conservation, management and control of water resources Co-ordinate the functions of other institutions involved in water related matters Involve local communities in water resource management Protect use, develop, conserve, manage and control in a sustainable and equitable manner

Click to edit Master subtitle style 3/8/12 THE ROLE OF CMAs Initial Functions  Investigate, and advise interested persons on the protection, use, development, conservation, management and control of the water resources in its water management area  Develop a catchment management strategy  Co-ordinate the related activities of water users, and of water management institutions within its WMA  Promote the co-ordination of the implementation of its catchment management strategy with the implementation of any applicable development plan in terms of the Water Services Act (108 of 1997)  Promote community participation in its functions

CMA Functions End of year two the CMA should be performing the following key functions: Development and maintenance of stakeholder structures and engagement with stakeholders Developing the institutional mechanisms to support the coordination of water related activities by water users and institutions Certain water use functions including the maintenance of WARMS and the registration and verification of water use Development of the Catchment Management Strategy By the end of year three, the CMA should be performing the following functions: Accepting and processing water use license applications Control of water use and compliance monitoring Enforcement of water use authorisation conditions (together with DWA where appropriate) Establishment and regulation of and provision of support to WUAs Determining tariffs, billing and revenue collection of water resources management charge;

Click to edit Master subtitle style 3/8/12 WATER MANAGEMENT AREAS After a countrywide process of consultation 19 WMAs were established in October The following considerations were taken into account in determining the boundaries: Natural hydrological boundaries Financial viability –size, demographics, volume of water use Institutional capacity- WRM, operations and management of infrastructure interrelationships

Click to edit Master subtitle style 3/8/12

Click to edit Master subtitle style 3/8/12 PROGRESS TO DATE Six CMAs gazetted (administratively), namely: – Crocodile (West)-Marico, – Mvoti, – Thukela, – Usutu to Mhlatuze, – Gouritz – Olifants-Doorn Two operational CMAs – Inkomati (ICMA) – Breede-Overberg (BOCMA)

Click to edit Master subtitle style 3/8/12 CHAIRPERSONS AND CHIEF EXECUTIVES CMACHAIRPERSONCHIEF EXECUTIVE InkomatiMs TP Nyakane-Maluka Mr B Jackson (Acting) Breede-OverbergMR NH HammanMr J van Staden (Acting) 16 CMA ESTABLISHMENT DATES CMAESTABLISHEDAGE Inkomati years Breede-Overberg20056 years

Click to edit Master subtitle style 3/8/12 DWA’s OVERSIGHT ROLE OVER CMAs Compliance monitoring List of Documents submitted to the MinisterLegislation Annual Report & Audited Financial StatementsPFMA: Sec 55 (d) Business Plans TR and Schedule 4 of the National Water Act, 1998 Budget of estimated revenue & expenditure for the year PFMA: Sec 53(1) Quarterly Reports on actual revenue & expenditure for the quarter & projection of expected expenditure & revenue for remainder of financial year TR 26.1 TR Financial misconduct procedures reportTR

Click to edit Master subtitle style 3/8/12 ACHIEVEMENTS The Department has ring fenced proto-CMAs in regional offices which are performing water resource management functions until CMAs are established The completion of Catchment Management Strategies Engagements with Irrigation Boards for transformation into Water User Associations. Alignment of DWA Regional Office strategic plan with the CMAs. Building institutional relationships with key institutional partners and aligning plans, e.g. IDPs and WSDPs

Click to edit Master subtitle style 3/8/12 ACHIEVEMENTS CONTINUED... Engagement and promotion of community participation in water resource management. Twinning with the Dutch catchment management agencies. The ICMA and BOCMA have started to perform functions as delegated by DWA in December 2010 The implementation of the delegated functions will provide the CMAs with the opportunity to start generating revenue

Click to edit Master subtitle style 3/8/12 Reasons for the delay of establishment of CMAs Institutional Realignment project initiated in 2007 resulted in delay of establishment of institutions until project is finalised Learning curve: – Stakeholder empowerment and involvement in the establishment of CMAs is more complex in terms of resources required it is an intensive public participation process Capacity: – Lack of internal capacity to establish 19 CMAs. – Financial viability: – The start-up costs covered in DWA’s budget, from the parliamentary appropriation underestimated – Delegation and transfer of functions not in place therefore seed funding utilised for operational matters – DWA must accept responsibility for financially supporting certain strategic and developmental functions of CMAs from the fiscus, with water user charges primarily paying for WRM functions that directly benefit water users – Registration and verification processes must be completed to quantify water use charges for viability 20

Click to edit Master subtitle style 3/8/12 Drivers for change  In 2007, the previous Minister initiated a process of reviewing the institutional arrangements in the water sector.  This was prompted by: – Poor service delivery at local level due to lack of capacity – Clear acknowledgement of the fragmented institutional arrangements in the sector – Apparent limited capacity of water sector institutions to perform in accordance with legislation – Poor implementation of legislation and policy that impacts on institutional accountability, governance, performance and oversight (including regulation)

Click to edit Master subtitle style 3/8/12 WAY FORWARD  The Institutional Realignment and Reform Project has progressed to such a stage that we are awaiting approval from the Minister after which we will proceed with the following: Gazette the approved water management areas Ring-Fence water resource management charges in WMA Develop a business case for each CMA

Click to edit Master subtitle style 3/8/12 THANK YOU 23