CONSOLIDATED REPORT ON THE PERFORMANCE OF THE INKOMATI AND BREEDE- OVERBERG CATCHMENT MANAGEMENT AGENCIES 2014/15 FINANCIAL YEAR Presented by: Name Surname: Margaret-Ann Diedricks Designation: Director General Date: 15 October 2015 PRESENTATION TITLE Presented by: Name Surname Directorate Date

CONTENTS Mandate Overview of water sector institutions Overview of CMAs CMAs financial performance Executive performance bonuses Key achievements Challenges

MANDATE Legislative Policies and strategies National Water Act, 1998 (Act No 36 of 1998): Provides a legal framework for the progressive realisation of the right to access to sufficient water. Catchment Management Agencies (CMAs) established in terms of Chapter 7 and Water User Associations are established in terms of Chapter 8. TCTA established in terms of Notice No 2631 replaced by Notice No 277 of 2000 under Chapter 10 of the Act. The review will consolidate it with the Water Services Act below. Water Services Act 1997 (Act No. 108 of 1997): Gives Minister the powers to establish and disestablish water boards and outline the procedure for appointing Board members. Under review to improve the provisions of water services to ensure alignment with the provisions of the Municipal Systems Act, 2000 (Act No. 32 of 2000) and the Municipal Finance Management Act, 2003 (Act No. 56 of 2003). Water Research Act, 1971 (Act No 34 of 1971): Establishes Water Research Commission. Under review to improve the governance of the Water Research Commission and to align the act with all other applicable legislation. Public Finance Management Act , Act No.1 of 1999: National Public Entities listed as Schedule 3A and 3B under PFMA. White Paper on a National Water Policy for South Africa adopted in 1997 contextualises the development of a new water law in post democracy South Africa. Recognised that water resource management is best undertaken through an integrated approach and the most appropriate unit for this to be done was on a catchment or systems basis. (Principle 22). In 2013, twelve policy positions were approved by Cabinet. Strategic Framework for Water Services adopted in 2003 set out the national framework for the water services (i.e. water supply and sanitation) sector. It provides the vision for the water services in the country and outlines the framework that will enable this vision to be achieved. National Water Resource Strategy revised in 2013 sets out the framework (i.e. strategies, plans and institutional arrangements) within which the country’s water resources will be managed. Chapter 8 on Water Management Institutions including plan to establish 9 CMAs and Regional Water Utilities Raw Water Pricing Strategy, 2007: Defines Water Resource Management functions to be charged to users and funding framework for CMAs

POLICY AND LEGISLATIVE MANDATES Policy & Legislation Description White Paper on Water & Sanitation, 1997 Recognised a need for CMAs .for decentralised water resource management National Water Act 36 of 1998 Give Minister the powers to establish and disestablish CMAs and outline the procedure for appointing Board members. Public Finance Management Act , Act No.1 of 1999 National Public Entities listed as Schedule 3A under PFMA. National Water Resource Strategy-2 Chapter 8 on Water Management Institutions including plan to establish 9 CMAs and Regional Water Utilities Raw Water Pricing Strategy, 2007 Defines Water Resource Management functions to be charged to users and funding framework for CMAs. National Development Plan, 2012 9 CMAs to be established nationally

OVERVIEW OF WATER SECTOR INSTITUTIONS Financial year : 1 Jul to 30 Jun Trans Caledon Tunnel Authority (Schedule 2 of PFMA) Komati Basin Water Authority (Schedule 3A of PFMA) Water Research Commission Water Boards (Schedule 3B of the PFMA) Amatola Water Lepelle Water Bloem Water Magalies Water Mhlathuze Water Rand Water Overberg Water Sedibeng Water Umgeni Water Minister Catchment Management Agencies (Schedule 3A of the PFMA Breede-Gouritz Limpopo Inkomati-Usutu Pongola-Mzimkhulu Berg-Olifants Doorn Olifants Orange Tsitsikamma-Mzimvubu Vaal The Minister as a Shareholder has distinct responsibilities including Appoint all Board members Conclusion of binding shareholder compacts. Approval of Strategic Plans and Corporate Plans/Annual Performance Plans. Quarterly reporting Instruct the entities by directives Issuing of a strategic intent statement. Approval of significant & material transactions. Recommendations of borrowing limits to National Treasury. Access information to monitor and evaluate performance. Enforce accountability and take remedial action. Financial year : 1 April to 31 March

Using water for promoting socio-economic developmental agenda . The key role of Water Sector Institutions is to support South Africa as a developmental state to deliver on Government Developmental Objectives through : Using water for promoting socio-economic developmental agenda . Reducing inequality through access to water and job creation . Leveraging additional investments for infrastructure development Enabling rural communities to use water for rural livelihoods. Promoting greater citizen participation in decision making Allowing for innovation and knowledge generation. Relevant Advantages of Water Institutions Comments by TM Include the sanitation issues as 5 WBs are implementing this

KEY STRATEGIC FOCUS AREAS OF DWS ENTITIES Developing, financing and managing national water infrastructure (TCTA, KOBWA, WTE) SIP 1,SIP3,SIP4,SIP6,SIP 9,SIP 18 2. Managing water resources at the catchment level (CMAs) 4. Managing local water resource farmers and the transformation of the water sector with respect to irrigated agriculture (WTE, Water User Associations SIP 18) 3. Managing regional water infrastructure and supporting local government in the delivery of water services (Water Boards) 5. Providing Water Knowledge hub for South African citizens (WRC) All in line with national developmental objectives of poverty eradication, creation of jobs, equitable economic growth, sustainable development 7

OVERVIEW OF CMAS Catchment Management Agencies (CMAs) are established in terms the National Water Act, Act 36 of 108 of 1998 (Chapter 7) Nine CMAs are to be established nationally CMAs are subject to the Public Finance Management Act (PFMA) and related Treasury regulations– categorized as a Schedule 3A entity: “service delivery public entity” The purpose of the CMA is to delegate water resource management to the catchment level and to involve local communities in the decision-making processes. Broadly, the initial role of a CMA is articulated in the Act as: managing water resources in a WMA, co-ordinating the functions of other institutions involved in water related matters and involving local communities in water resource management Five CMAs are gazetted as established i.e Inkomati-Usuthu, Breede-Gouritz, Pongola-Mzimkulu, Limpopo-North West and Olifants

STRATEGIC CMA SCORE CARD Ensure effective, efficient and sustainable management of water resources in the Water Management Area Advice stakeholders on protection & use of water, ensure community participation. Ensure collection of water use charges and Value for money. Water Resource Planning (CMS), Resource Protection & Waste, Compliance Monitoring & Enforcement, Developing Human Resources , Sharing knowledge & creating partnerships . River Systems Operations, Registration of Water Use, Support licensing process. Establishment of Water User Associations Stakeholder Perspective Financial Perspective Developmental & Environmental Learning & Growth Learning and Growth 9

Water Management Areas Olifants Limpopo Inkomati- Usuthu Vaal Pongola-Mzimkulu Orange Mzimvubu-Tsitsikamma Berg-Olifants Breede-Gouritz

OVERVIEW OF CMAS (Continued) The Inkomati-Usuthu CMA (IUCMA) The Inkomati-Usuthu water management area which is situated in the Mpumalanga Province of South Africa and shares boarders with both Mozambique and Swaziland. The water management area has been divided into Sub-catchments: the Komati River, which rises in South Africa, flows through Swaziland and then re-enters South Africa before flowing on into Mozambique; the Crocodile River; the Sabie and Sand River catchment, the undeveloped Nwanedzi and Nwaswitsontso Rivers that are wholly within the Kruger National Park and the Usuthu catchment. The Inkomati-Usuthu water management area is divided by the Drakensberg Mountains into a western plateau and the sub-tropical Lowveld in the east, with altitudes ranging from over 2 000 m in the west to as low as 140 m in the east. The estimated population is about 2.2 million. The urban and semi-urban population makes up 62.3% of the total population and the rural make up the remaining 37.7%.

The Inkomati-Usuthu Catchment Management Area

OVERVIEW OF CMAS (Continued) The Breede-Gouritz CMA (BGCMA) The Breede-Overberg Water Management Area (WMA) is situated in the South-West corner of South Africa. While, it derives its name from the largest river within its boundaries, namely the Breede River, a significant portion of the WMA consists of the Overberg. The Breede WMA falls entirely within the Western Cape Province and is characterised by mountain ranges in the north and west, the wide Breede River Valley, and the rolling hills of the Overberg in the south. The Breede valley is flanked by the Franschhoek and Du Toit’s Mountains in the west as its boundary with the Berg WMA, the Hex River Mountains to the north between the Olifants-Dooren WMA and the Langeberg Mountains as the eastern watershed with the Gouritz WMA. The Overberg meets the Indian Ocean along its southern coast, including the southernmost tip of Africa. The estimated population about half a million people, two thirds of whom live in towns and villages. supporting the agricultural economy, except along the south coast tourism strip

The Breede-Gouritz Catchment Management Area

CMAS FINANCIAL PERFORMANCE REVENUE (R) EXPENDITURE (R) (Deficit)/surplus (after Finance income/costs) IUCMA R 54 116 905 (R 49 458 304) R 5 452 068 BGCMA R 40 787 311 (R 24 384 331) R 16 682 296 Both CMAs received unqualified audits with no matters of emphasis. Deficit for both CMAs was funded from cash surplus generated in prior years Both CMAs are in a cash positive situation.

EXECUTIVE PERFORMANCE BONUSES CMA IUCMA Acting Chief Executive Officer R 84 695 Board Secretary R 60 117 Manager Marketing and Communications R 21 553 Financial Manager R 30 121 BGCMA Chief Executive Officer R 47 258 Chief Financial Officer R 12 848 Senior Manager Water Resource Management

THE IUCMA KEY ACHIEVEMENTS Sub-Programme Indicator 2014/15 Target Achievements Water use Number of water quality related authorisations processed Process 8 authorisations 8 authorisations processed Percentage of temporary transfers in terms of section25(1) of National Water Act processed Process 100% of applications received 0% as no applications were received Number of water meters installed in priority catchments Install 10 water meters 0 project completed in the previous financial year Water quality Number of samples taken to monitor water quality Take 2268 samples to monitor water quality 2175 samples taken to monitor water quality River health status report for the Komati catchment Complete 1 report on river health status 1 report on river health status completed Percentage of reported/identified pollution incidents attended to 100% of all pollution incidents attended to 100% of the 25 reported pollution incidents attended to Phase completion in integrated water quality framework Development of system understanding of integrated water quality management in the crocodile catchment The model WQSAM Which integrates water quality and quantity installed Pro-active acid mine drainage strategy in place Development of pro-active acid mine drainage strategy Pro-active acid mine drainage strategy finalised Number of water quality status reports disseminated 36 reports disseminated 30 reports disseminated

THE IUCMA KEY ACHIEVEMENTS Sub-Programme Indicator 2014/15 Target Achievements Water resource protection Number of water quality inspection reports 145 water quality inspection reports 200 water quality inspection reports completed Percentage of notices issued to non-compliant users 100% of notices issued to non-compliant users 100% of 29 notices issued to non-compliant users Percentage of directives issued to non-compliant users 100% directives issued to non-compliant users 100% of 31 directives issued to non-compliant users Water allocation reform Percentage of water users validated Validate 100% of water users 100% water users validated Number of decision support system for record of recommendation developed Develop 3 decision support system for record of recommendation 2 decision support system for record of recommendation developed Percentage completion of water allocation plan Commence water allocation plan(30% completion of total project) 0% completed Number of existing water management institutions supported Support 36 existing water management institutions 36 existing water management institutions supported Institutional and stakeholder relations Number of stakeholder empowerment workshops conducted with HDI users Conduct 28 stakeholder empowerment workshops with HDI users 38 stakeholder empowerment workshops conducted with HDI users Number of stakeholder interactions/consultations held and participated with water sector institutions Conduct 8 stakeholder interactions/consultations 36 stakeholder interactions/consultations held

THE BGCMA KEY ACHIEVEMENTS Sub-Programme Indicator 2014/15 Target Achievements Water use Water use registrations finalised Finalise 500 Water use registrations finalised 373 Water use registrations finalised Record of recommendation of water use applications completed Complete 16 Record of recommendations 9 Record of recommendations completed General authorisations confirmed Confirm 26 general authorisations 65 general authorisations confirmed Audit reports completed for water use compliance Complete 40 water compliance audit reports 33 water compliance audit reports completed Letters sent to water use to apply for validation and verification of water use Issue 800 letters for water use applications for verification and validation 1428 letters for water use applications for verification and validation issued Water quality Catchment Management Strategy development Draft Catchment Management Strategy In process of being developed Land use planning and rezoning applications commented on Process 140 applications 320 applications processed Local authorities engaged 7 local authorities engaged 7 local authorities engaged on 50 issues Water quality objective report completed 1 report on water quality objectives Onrus River Plan finalised Salinity management plan developed Develop 1 salinity management plan 1 salinity management plan finalised Infrastructure status quo report Collaboration of monitoring data Finalise Onrus surface report- groundwater interaction study Onrus surface groundwater interaction study report finalised

THE BGCMA KEY ACHIEVEMENTS Sub-Programme Indicator 2014/15 Target Achievements Water resource protection Number of DWS water quality monitoring projects sampled Take 2 samples at water quality monitoring points 2 samples taken water quality monitoring points Number of BGCMA water quality points monitored Monitor 50 points 64 points monitored Imagery and report on alien clearing areas Complete 4 reports on alien clearing areas 4 reports completed on alien clearing areas Riparian/alien clearing projects Undertake 3 projects on Riparian/alien clearing projects 3 projects Riparian/alien clearing projects completed Documentation on pollution incidents Attend to 16 targeted pollution incidents 9 pollution incidents attended to Number of warning letters/directives issued Issue 20 warning letters/directives to non compliant water users 13 warning letters/directives issued to non compliant water users Water allocation reform Number of resource poor farmers/HDIs assisted with water use Assist 5 farmers/HDIs with water use 22 farmers/HDIs assisted with water use Number of resource poor farmers/HDIs assisted with financial applications for government subsidies Assist 5 resource poor farmers/HDIs with financial applications for subsidies 264 resource poor farmers/HDIs with financial applications for subsidies Resource poor farmers/HDIs awareness campaigns Organise 1 awareness campaign 1 awareness campaign held Institutional and stakeholder relations Number of persons reached during water week campaign Reach 1600 persons during water week 6200 persons reached during water week Number of existing water related forums supported Support 14 existing water related forums 25 existing water related forums supported

CHALLENGES IUCMA: Finalisation of long lasting water resource pollution cases with specific reference to municipalities polluting the water resource with raw sewerage or poorly treated sewerage BGCMA: The Head Office is located in Worcester which is a rural setting unattractive to scarce and skilled personnel

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