1. OVERVIEW OF VOTE 36 (INCLUDING THE TRADING ENTITY) PERFORMANCE PLAN AND BUDGET
Presented by:
Ms M Diedricks
Director-General
19 May 2015
PRESENTATION TITLE
Presented by:
Name Surname
Directorate
Date

2. PRESENTATION TITLE HEADER Sub Header
Part A: Overview of performance information
Part B: Overview of Vote 36
Part C: Overview of Water Trading Entity budget

3. Planning legislative & regulatory environment
Constitution
S 55 (2): NA oversight
S 56: NA powers
S 92 (2) & (3): Cabinet accountability
S 195: Transparency
S 215 & 216: Budget transparency
Public Finance Management Act
Department
- S 27: Budget
tabling
- S 40 (1) & 3 (3):
Annual report tabling
Entities
- S 52: Corporate plans
- S 55 (1) & (3): Annual report tabling
Additional legislation, policies & regulations
Public Audit Act
S 20: Report on performance information
Money Bills Procedure & Related Matters Act
S 5: Performance annual assessment
Public Service Act
S 7A (40): Oversight on performance, planning, budget and service delivery
Policies & Regs
- GWM & E
- Evaluation policy
- Treasury
- Public Service

4. Planning, budgeting & monitoring
1. Pre-plan position
2. Strategy formulation
3. Strategy implementation
4. Strategy evaluation
Annual report: review of previous annual performance plan
Internal analysis
Develop performance indicators and targets
Monitor and evaluate performance
External analysis
Develop vision, mission, values
Develop goals and objectives
Develop a strategy map: Identify short term priorities and strategies
Develop costed annual performance plan and supplementary programme business plans
Approve and implement all the plans
Strategic planning level
Costed annual performance planning level

5. What informed planning process
Constitutional
Mandate
Legislative
Millennium Development Goals
International agreements
Sustainable Development Goals (post 2015 agenda)
Framework for Climate Change
National Development Plan
Government priorities
Medium Term Strategic Framework (14 outcomes)
DAFF
Interdepartmental programmes
The dti
DRD & LR
CoGTA
DHS
DEA
EDD
PGDS
Implementation sphere
IDPs
National Assembly
Oversight
NCOP
New Growth Path (NGP)
Enabling departments
Department of Public Service Administration
Department of Performance Monitoring & Evaluation
National Treasury

6. Alignment to NDP & MTSF Millennium Development Goals
National Development Plan (NDP): Vision 2030
Medium Term Strategic Framework (MTSF): 5 years
MDG 1B:
Productive employment and decent work for all
Chapter 3:
Economy that will create jobs
Outcome 4:
Jobs
MDG 7C:
Halve proportion of population without sustainable access to safe drinking water & basic sanitation
Chapter 4:
Improving infrastructure
Outcome 6:
Economic infrastructure
MDG 7B:
Reduce biodiversity loss
Chapter 5:
Transition to low carbon economy
Outcome 10:
Environment
Chapter 6:
Inclusive & integrated rural economy
Outcome 7:
Rural development
Chapter 13:
Building a capable state
Outcome 9:
Local government

7. Strategy map Goals Scorecard perspectives Customer Operations Finance
Sustainable water &
dignified sanitation for all
Ensuring dignity, equity, socio-economic development and ecological sustainability by effectively and efficiently managing the nation’s water resources and sanitation services
1. An efficient, effective and development oriented sector leader
2. Equitable and sustainable water and sanitation services
3. Protection of water across the value chain
Goals
SO 1.3 Job opportunities
SO 2.1 Water provision
SO 2.3 Water allocation
Customer
SO 2.2 Sanitation provision
SO 2.4: Water use efficiency
SO 3.1: Water & sanitation strategies
SO 3.2 Regulatory compliance
SO 1.2: Internal controls (governance)
Scorecard perspectives
Operations
SO 3.3 Ecosystem health
SO 3.4 Information management
SO 1.2: Internal controls (finance)
Finance
SO 1.1: Skills & competencies
SO 1.2: Internal controls (people)
People

8. Programmes per budget structure (ENE)
Limpopo
Pongola-Mzimkhulu
Berg-Olifants Doorn
Olifants
Orange
Tsitsikamma-Mzimvubu
Vaal
1. Administration
2. Water Planning & Information Management
3. Water Infrastructure Development
4. Water and Sanitation Services
5. Water Sector Regulation
Ministry
Departmental Management
Internal Audit
Financial Management
International Water Support
Programme Management Unit
Integrated Planning
Water Ecosystems
Information Management
WPIM Management & Support
National Sanitation Services
Water Sector Support
WSS Management & Support
Compliance Monitoring
Economic & Social Regulation
Enforcement
Water Services Infrastructure
Infrastructure Dev & Rehabilitation
Operation of Water Resources
Institutional Oversight
Water Use Authorisation & Administration
WS Services & Sanitation Regulation
WSR Management & Support
Corporate Services
Fiscus funded WTE
Incubated Proto-CMAs
Revenue funded WTE
Main Account: fiscus funded

9. Main account indicators

10. Programme 1: Administration
Purpose
Provide policy leadership, advice and core support services, including
finance,
human resources,
legal,
ICT and
management services,
communication, and
corporate planning

11. Programme 1: Administration
Strategic issues
Skills development: reduce vacancy rate for engineers and scientists as well as develop skills through the graduate trainee programme
Communication: engage in stakeholder management and community participation programmes, media relations, marketing and advertising campaigns
Legislative and policy development: develop the National Water and Sanitation Bill
International cooperation: establishing strategic partnerships with African and global countries
Mine water management: implementing short-term and long-term solution projects as well as development of a proposal for environmental levy for the mining sector

12. Programme 2: Water Planning & Info Mgt
Purpose
Ensure that the country’s water resources are protected, used, developed, conserved managed and controlled in a sustainable manner for the benefit of all people and the environment by developing a knowledge base and implementing effective policies, procedures and integrated planning strategies both for water resources and water services.

13. Programme 2: Water Planning & Info Mgt
Strategic issues
Water Resources Planning: determine the needs for Water Resources & Infrastructure Development through Reconciliation strategies, Feasibility & All Town studies
Water Information Management: through data capturing, monitoring, information systems and info analyses
Protection of Water Resources: by doing Reserves Determination, Resources Classification & quality objectives
Water Services and Local Water Management: by developing water Services Bulk Master Plans & Water Services Developmental Plans and Water Conservation and Water Demand Management (WCDM)

14. Programme 3: Water Infrastructure Mgt
Purpose
To develop, rehabilitate and refurbish raw water resources and water services infrastructure to meet the socio-economic and environmental needs of South Africa

15. Programme 3: Water Infrastructure Mgt
Strategic issues
Infrastructure development: implement new augmentation projects and betterment of existing dams
Regional bulk infrastructure: develop bulk infrastructure, community infrastructure and refurbish infrastructure schemes
Operations and maintenance: implement dam safety rehabilitation, rehabilitate conveyance projects and develop asset management plans

16. Programme 4: Water & Sanitation Services
Purpose
Ensure the provision of sustainable water and dignified sanitation services including implementation support and advocacy

17. Programme 4: Water & Sanitation Services
Strategic issues
Water sector support: financially supporting resource poor farmers and installing rainwater harvesting tanks for household productive use
Sanitation services: replacing bucket sanitation in formal settlements and eradicate sanitation backlog in rural households

18. Programme 5: Water Sector Regulation
Purpose
Ensure the development, implementation, monitoring and review of regulations across the water supply chain in accordance with the provisions of the National Water and the Water Services Acts

19. Programme 5: Water Sector Regulation
Strategic issues
Institutional oversight: establishing institutions namely catchment management agencies, regional water utilities and infrastructure agency to enhance sustainability in water provision
Water use authorisation: processing and finalising application for water use
Economic and social regulation: developing the raw water pricing strategy and establishing economic regulation
Compliance monitoring: conducting dam safety evaluations and monitoring compliance of water users (e.g. Mines, industry, agriculture)
Water supply services and sanitation regulation: assessing water supply systems’ compliance with drinking water standards and wastewater treatment collector systems’ compliance with effluent standards
Enforcement: investigation reported non compliant cases

20. Water Trading entity

21. Financial Management Purpose
Ensure the efficient management of daily financial operations (for the Water Trading Entity), processes and systems for the infrastructure and proto-CMA components

22. Financial Management Strategic issues
Debt recovery: Reducing the number of days for outstanding debt
Infrastructure expenditure: increase expenditure on refurbishment and betterment

23. Proto-CMAs
Purpose
Provides for the protection, development, use and management of the resources at water management area level

24. Proto-CMAs Strategic issues
Validation and verification: validate and verify water users within respective catchment areas
River eco-status monitoring: monitor eco-status of rivers to determine where interventions are required

25. OVERVIEW OF vote 36 (2015/16 – 2017/18)

26. BUDGET ALLOCATIONS Approved Budget Structure
Budget allocations per economic classifications
Analysis: Budget allocations per programme
Analysis: Budget allocations per economic classifications
Analysis: Earmarked funds vz. Un-earmarked funds
Economic classifications
Summary of Earmarked funds
Summary of Regional Allocations – Infrastructure Programmes

27. Budget Per Programme Programmes R’ 000 Adjusted Budget 2014/15
Original
Budget
2015/16 %
of Increase/ Decrease
R’ 000
Administration
60%
Water Planning and Information Management
61%
Water Infrastructure Development
326%
Water and Sanitation Services
Regional Implementation & Support
100%
-100%
Water Sector Regulations
42%
International Water Cooperation
34 126
TOTAL
21%

28. MTEF Baseline Allocations Per Programme
Programmes
2015/16
2016/17
2017/18
R’ 000
Administration
Water Planning and Information Management
Water Infrastructure Development
Water and Sanitation Services
Water Sector Regulations
TOTAL

29. Baseline Allocations per Economic Classification
Item description
2015/16
2016/17
2017/18
R’000
R ‘000
Current Payments
Compensation of employees
Goods and Services
Payments for Transfers and Subsidies
Payments for capital assets
TOTAL
Item description

30. Analysis: Budget analysis per programme
Medium term allocation
2015/16 allocation
Rand thousand
2015/16
2016/17
2017/18
Administration
Water Planning and Information Management
Water Infrastructure Development
Water and Sanitation Services
Water Sector Regulation
Total

31. Analysis: Budget per economic classification
Medium term allocation
2015/16 allocation
Rand thousand
2015/16
2016/17
2017/18
Compensation of employees
Goods and services
Transfer and subsidies
Payment for capital assets
Total

32. Analysis: Earmarked vs. Unearmarked funds
Medium term allocation
2015/16 allocation
Rand thousand
2014/15
2015/16
2016/17
Unearmarked
Earmarked
Specifically & exclusively appropriated
Regional Bulk Infrastructure Grant
Bucket Eradication Programme ( Indirect)
Rural Household Infrastructure Grant: Indirect)
67 328
Municipal Water Infrastructure Grant (indirect)
Conditional grants
Water Services Operating Subsidy Grant (direct)
Municipal Water Infrastructure Grant (direct)
Rural Household Infrastructure Grant (direct)
48 182
TOTAL

33. Earmarked Funds Sub Programmes 2015/16 2016/17 2017/18 R’ 000
Regional Bulk: Indirect Grant
Municipal Water Infrastructure Grant: Indirect Grant
Municipal Water Infrastructure Grant: Direct Grant
Rural Household Infrastructure Grant: Indirect Grant
67 328 -
Rural Household Infrastructure Grant:
48 182
Bucket Eradication Programme
Water Services Operating Subsidy Grant

34. Infrastructure Programmes
Regional Allocations
Infrastructure Programmes

35. Regional Allocations: ACIP
Sub Programmes
2015/16
2016/17
2017/18
R’ 000
Eastern Cape
36,656
38,489
40,413
Free State
36,286
38,100
40,005
KwaZulu Natal
16,890
17,735
18,621
Gauteng
10,000
10,500
11,025
Mpumalanga
31,207
32,767
34,406
Limpopo
30,200
31,710
33,296
Northern Cape
30,189
31,698
33,283
North West
34,428
36,149
37,957
Western Cape
20,847
21,889
22,984
National Office
R 7,055
8,166
8,575
TOTAL
253,758
267,205
280,565

36. Regional Allocations: RBIG SCH 6B
Sub Programmes
2015/16
2016/17
2017/18
R’ 000
Eastern Cape
954,000
1,262,386
1,176,132
Free State
482,654
488,000
441,589
KwaZulu Natal
1,063,000
897,153
924,063
Gauteng
347,000
432,000
384,200
Mpumalanga
284,000
335,447
278,547
Limpopo
953,667
1,029,457
997,204
Northern Cape
136,499
215,532
210,771
North West
327,600
483,403
584,991
Western Cape
174,234
226,000
216,275
TOTAL
4,722,564
5,369,378
5,214,372

37. Regional Allocations: MWIG SCH 5B
Sub Programmes
2015/16
2016/17
2017/18
R’ 000
Eastern Cape
441,843
280,980
445,184
Free State
15,000
5,265
8,500
KwaZulu Natal
803,068
418,744
740,455
Mpumalanga
263,740
178,012
218,578
Limpopo
130,540
138,438
172,432
Northern Cape
87,713
102,363
107,993
North West
62,028
62,000
80,000
TOTAL
1,803,932
1,185,802
1,733,142,
Gauteng allocations under Schedule 6 B

38. Regional Allocations: MWIG SCH 6B
Sub Programmes
2015/16
2016/17
2017/18
R’ 000
Free State
62,875
120,903
240,518
KwaZulu Natal
33,175
181,371
248,596
Gauteng
27,000
38,000
76,000
Mpumalanga
182,963
294,515
466,138
Limpopo
398,034
708,289
788,321
North West
87,082
168,467
267,549
TOTAL
791,729
1,511,545
2,087,122
Eastern Cape, Northern Cape allocations under Schedule 5 B

39. Regional Allocations: WSOS SCH 5B
Sub Programmes
2015/16
2016/17
2017/18
R’ 000
Eastern Cape
40,500
47,500
62,000
Free State
6,000
10,000
13,000
KwaZulu Natal
50,500
79,665
Mpumalanga
90,000
88,000
94,825
Limpopo
142,000
160,000
147,162
Northern Cape
65,000
45,701
42,825
North West
54,415
70,000
52,000
Western Cape
4,500
4,000
11,000
TOTAL
452,915
465,701
502,477

40. Regional Allocations: RHIG 5B
Sub Programmes
2015/16
2016/17
2017/18
R’ 000
Eastern Cape
4,000
27,000
28,245
Free State
4,500
5,000
5,500
KwaZulu Natal
21,682
44,479
48,500
Mpumalanga
Limpopo
9,000
20,000
23,500
Northern Cape
North West
8,500
TOTAL
48,182
113,479
124,245

41. Regional Allocations: RHIG SCH 6B
Sub Programmes
2015/16
R’ 000
Eastern Cape
20,000
KwaZulu Natal
25,328
Limpopo
12,000
Northern Cape
5,000
North West
TOTAL
67,328 41

42. (Over) / Under Spending
Overview of Expenditure Trends 2012/13 to 2014/15
Programme name
2014/2015
2013/2014
2012/2013
Final Budget
Actual Spent
(Over) / Under Spending
R’000
Administration
956,283
888,189
68 094
8 833
21 813
Water Sector Management
503,641
468,637
35 004
4 537
1 067
Water Infrastructure Management
2,919,422
6 357 -
Regional Implementation and Support
9,070,830
7,180,389
91 727
Water Sector Regulation
163,099
129,574
33 524
92 023
16 306
87 375
13 705
International Water Cooper
34,126
32,711
1 415
26 953
26 882 71
24 478
22 970
1 508
TOTAL
13,647,401
11,618,922
% Spent
85%
99%
96%

43. OVERVIEW OF the trading entity MTEF BUDGET (2015/16 – 2017/18)

44. DEVELOPMENT OF NEW INFRASTRUCTURE
PROJECTS NAME
Total Projects Cost
Total Cost To date
MTEF
Total Over MTEF
2015/16
2016/17
2017/18
R'000
ORWRDP (Ph 2A) - De Hoop Dam
24 000
18 900 -
42 900
ORWRDP-2B/G
10 000
ORWRDP-2C
GLeWAP Phase (Nwamitwa Dam)
1 000
20 000
Water Resources Project: Raising of Clanwilliam Dam
Mokolo and Crocodile River (West) Water Augmentation Project (Phase 1)
478
50 000
70 000
21 000
GLeWAP Phase (Tzaneen Dam Raising)
49 970
86 800
74 830
Development of Raising of Hazelmere Dam
46 331
61 236
38 617
GLeWAP Distribution (Mopani DM)
33 000
22 000
Mzimvubu Water Project
Nandoni Nsani (Mopani)    
Mzimkulu – Nwabeni Off Storage
Nooitgedacht Water Scheme  
13 000
Sub total
Dam Safety Rehabilitation Programme
Financial Management
NWRI Support/ Project Management
TOTAL

45. REVENUE PROJECTS REFURBISHMENT & REHABILITATION
 Operational area
2015/16
2016/17
2017/18
MTEF TOTAL
R'000
Central Ops
Eastern Ops
Northern Ops
Southern Ops
TOTAL

46. THANK YOU