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2. UPDATE ON THE CMA REGIONAL STEERING COMMETTEE MEETINGS Presentation 28 November 2012

3. PROGRESS TO DATE ON THE ROLL OUT The WMA gazette has closed on the 19 October 2012 (gazette No: 35517) Two business cases are finalised ( Inkomati- Usuthu and Breede-gouritz) Business case for KZN and Limpopo are on advance stage Draft viability study developed Regional Steering Committe meetings are ongoing

4. Dates for Regions and RSC WATER MANAGEMENT AREA REGIONAL CONSULTATION DATE STATUS CONSULTATION MEETING WITH STAKEHLDERS STATUS 1. LIMPOPO18 July 2012Done 4 & 5 September 2012 7 November (Croc) 19 November 2012 Done 2. OLIFANTS/LETABA 28 August 2012 27 September 2012 Done5 October 2012Postponed 3. INKOMATI-USUTHU22 August 2012 Done 21 September 2012 16 November 2012 Done 4. PONGOLA- MZIMKHULU 3 August 2012Done 28 August, 20 Sept & 9-11 October 2012 9 November 2012 Done 5. VAAL15 August 2012 Done10 September 2012Done 6. ORANGE 15 August 2012Done10 September 2012Done 7. MZIMVUBU- TSITSIKAMA 30 August 2012 DoneNone 8. BREEDE-GOURITZ 21 November 2012Done None 9. BERG- OLIFANTSDOORN 21 November 2012Done None 4

5. Proposed dates for RSC further engagements WATER MANAGEMENT AREA REGIONAL STEERING COMMITTEE MEETINGS STATUS 1. LIMPOPO 15 November 2012 (Proposed but not confirmed) To be done 2. OLIFANTS Postponed on the 5 Sept & not yet Identified 3. INKOMATI-USUTHU16 November 2012 To be done 4. PONGOLA- MZIMKHULU8 November 2012To be done 5. VAAL Postponed on the 19 Oct & not yet identified 6. ORANGE Postponed on the 19 Oct & not yet identified 7. MZIMVUBU-TSITSIKAMA None 8. BREEDE-GOURITZ None 9. BERG-OLIFANTSDOORNNone 5

6. CONCERNS AROUND HR ISSUES AND CHANGE MANAGEMENT There should be shifting of functional responsibilities i.e who does what? There is a big concern around staff transfer Proto-CMA staff numbers are not accurate from all regions Not enough consultation have been done around CMA process and implications on transfer It is important to engage with unions upfront on the staff transfer It is noted that some regions do not have staff to be transferred Concerns around location of CMAs offices either head office or satellite offices There is need for awareness process around CMA establishment There is a need to fast track change management to expedite the process

7. CONCERNS AROUND FINANCIAL ISSUES Concerns of budget to fund the CMA in different regions The projected establishment costs Operational support costs for the new CMA Under recovery support i.e efficiencies of collection and high cost on the tariffs There is no budget for establishment of CMA from the regions (there is budget for stakeholder consultation around institutional establishment)

8. CONCERNS AROUND FUNCTIONS The challenge of Regulatory functions Vs Proto-CMA functions should be addressed. Alignment between the two directorate should be done There is an urgent need on the standardisation of functions amongst the regions. There is a concern that regions are filling their structure whereas they anticipate establishment of CMAs There is a need to expedite finalisation of the pricing strategy to cater for nine WMAs tariff setting There is need for an agreed roll out plan for delegating functions to Regions and CMAs

9. CONCERNS AROUND PROCESS OF ESTABLISHING CMAs Proposed times frames of 3-5 years seems to be unrealistic The WMAs are vast and stakeholder participation needs to be structured to enable solid participation of stakeholders especially communities at grassroots level Appointment of governing boards can be political driven due to proposed single Advisory Committee There is a need for support from all regions involved in the CMA establishment Stakeholders has to be involved in the development of business cases There is a need to clarify roles between regions and national Office in establishment processes

10. CONCERNS AROUND STAKEHOLDER PARTICIPATION There is positive and negative influence from different sectors of stakeholders Intensive stakeholder consultation is required around CMAs establishment There is a need for stakeholder meetings to cover all WMAs

11. DOCUMENTS DEVELOPED TODATE FOR THE ESTABLISHMENT OF CMAs 5 Business Cases developed (Inkomati-Usuthu, Breede-Overberg, Limpopo-Croc, Pongola- Mzimkhulu & Letaba-olifants) Document on the Executive Business case for CMAs Document on the framework for establishing CMAs Document on the viability of CMAs Document on the governance framework of CMAs Document on the standardisation Proto-CMAs functions

12. Water Management Areas Proposed WMA CMAs Governing Board Appointed No of Proto CMA staff (includes vacant posts) No. of Vacant Proto-CMA Posts Estimated Full Staff Compliment for new CMA 1. LimpopoLimpopo2013/146215100 2. Crocodile West Marico 9153 3. Levhuvu-LetabaLetaba- Olifants2015/164307100 4. Olifants6536 5. Inkomati CMAInkomati -Usuthu2012/1340100 6. Usuthu3 (this will come from Mhlatuze) 0 6. Mhlatuze Thukela, Mvoti to Umzimkulu 2014/15202145 7. Thukela 44 9 11. Mvoti to Umzimkulu 234 [G1]

13. Water Management Areas Proposed CMAsGoverning Board Appointed No of Proto CMA staff (includes vacant posts) No. of Vacant Proto-CMA Posts Estimated Full Staff Compliment for new CMA 8. Upper VaalVaal2014/1510910 145 9. Middle Vaal90 10. Lower Vaal(Region is not sure)1619 12. Mzimvubu to Keiskamma Mzimvubu to Keiskamma & Fish to Tsitsikamma 2015/1623 (for both WMAs 12 and 15) 100 15. Fish to Tsitsikamma 23 (for both WMAs 12 and 15) 13. Upper OrangeOrange2015/1673 100 14. Lower Orange1817 16. GouritzBreede &Gouritz2012/131310 100 18. Breede- Overberg CMA 00 17. Olifants-Doorn Olifants/Doorn & Berg 2015/161810 100 19. Berg3015 [G1]

14. THANK YOU !!!!