1. WSSCC – 22 FEBRUARY 2007 NATIONAL WATER SECTOR PROGRAMME vs. FINANCIAL DELEGATION & WORK PLAN 2007/08 Dirk van der Boon Water Sector Programme Management Support

2. Quadrant View of National Water Sector 1 2 3 4 DWAF: Water Sector Specific Water Sector Support -DWAF -Donor Funds Programme 3: Water Services Non-DWAF: Water Sector Specific MIG Education Health Housing Cities Network Equitable Share DWAF: Water Resource Specific Programme 2: Water Resources - WR Interfaces - Water Quality - Water Demand Mngmt - Water Conservation Non-DWAF: Non-Water Sector Specific Capacity Building Grants - LG FM Grant (NT) - LG Restructuring (NT) - MSIG (LG)

3. NATIONAL WATER SECTOR PROGRAMME Why do we need a NWSP? –The Sector Wide Approach implemented in the Water Services sector through Masibambane illustrated the benefits of ONE Strategy, ONE Work Plan and ONE Reporting System –Initially the NWSP was prepared to apply for additional funds from National Treasury for the Water Services sector –It consists of National Water Sector Implementation Strategy Detailed Financial Analysis Work Plan –The purpose of preparing the NWSP Extend SWAP approach to include Water Resources Sector Define an integrated strategy for all water sector stakeholders Plan & prioritize activities over multi year periods Align activities and budget to strategy ID areas where planned strategic objectives can not be met and initiate interventions Serve as benchmark to monitor & evaluate progress

4. FINANCIAL DELEGATION & WORK PLAN 2007/08 What is it? –Consist of a Financial Delegation delegating the responsibilities for DWAF funds included in Quadrant 1 to lower levels of management –A Work Plan focusing on the first financial year of the 5-year NWSP aligned to Medium Term Strategic Objectives (MTSO) Water Services – SFWS Water Resources – NWRS DWAF Strategic Plan – KFA Sector Budget 2007/08-2009/10 per Province How does it differ from the NWSP & PWSP’s? –NWSP provide the strategic direction for the entire Water Sector for the next 5 years and is a consolidation of the 9 PWSP’s and Strategic Plans of National Sector Stakeholders –FD/ Work Plan only focus on the first year included in the NWSIP

5. TIMELINE OF THE NWSP 2007/08 to 2011/12 08/200503/2006 Obtain approval from Sector SH to negotiate for MSB III Start negotiate with donors to secure MSB III Define principles for MSB III (SH approval) Prepare NWSP submission to NT (SH approval) Water Services Water Services & Water Resources 09/200612/2006 Prepare PWSP with input from SH Prepare NWSP with input from meeting WSSCC 02/2007 Prepare TAT to draft MSB III agreement 08/2007 Approve & Sign MSB III agreement

6. FRAMEWORK FOR NWSP and FD & WP

7. PROCESS LINKAGE BETWEEN NWSP AND FD & WP 5 year National Water Sector Programme 2007/20082008/20092009/20102010/20112011/2012 Financial Delegation & Work Plan 2007/08 Quadrant1 DWAF: WS Specific – Programme 3 Quadrant 2 Non-DWAF WS Specific Quadrant3 DWAF: WR Specific Programme 2 Quadrant 4 Non-DWAF Non WS Specific Funds are Regulated by Financial Delegation approved by DDG: Regions in accordance with PFMA Q2 and Q4 are not covered by the Financial Delegation. These funds are regulated by the DoRA, PFMA and MFMA

8. ALIGNMENT OF OBJECTIVES IN THE WATER SECTOR Cabinet MTSO’s (6) SFWS (19) Water Sector Stakeholders Water Resources NWRS (9) Water Services DWAF – 9 Regions SALGA DWAF - National - Regulations - Regulations - Communications - Communications - Sanitation - Sanitation - IGR (Sector Support Strategy) - IGR (Sector Support Strategy) - Institutional Reform Strategy - Institutional Reform Strategy - Integrated Planning - Integrated Planning - Africa Participation Plan - Africa Participation Plan dplg (MIG incl.) - LG Strategic Agenda - LG Strategic Agenda - LG Support Plan - LG Support Plan DOE DOH Civil Society WIN Cross Cutting - Gender - Gender - Environmental - Environmental - Appropriate Technology - Appropriate Technology - HIV Aids - HIV Aids Water Resources - Water Conservation - Water Conservation - Demand Management - Demand Management - Water Allocation Reform - Water Allocation Reform Water for Growth & Development – Main Theme Private Sector Involvement ESETA SAAWU National Treasury

9. Jan Feb March April May June July Aug Sept Oct Nov Dec 08/10 08/11 ` National Prov Local Macro Planning Framework PoA 07 and broad MTSF 08/11 ideas Preparation of PoA 08 Yearly Reports to Presidency 07 and 08 Local Govt planning 08/11 Medium Term BPS 08/11 MTEC Hearings for 08/11 SoNA/ Prov Address 2007 Budget Speech 07/08 Local Govt finalise budget 07/08 Local Govt commences with IDP 08/11 Draft MTSF 08/11 Local Govt PoA & budget 07/08 MTSF 08/11 adopted

10. DWAF defines 5-year Strategic Plan – 2007/08 to 2011/1230 June 2006 Request WSFMC members to submit allocation for next 5 years linked to Strategic Objective15 July 2006 Request project and budget allocation needs from Regions and Stakeholders for 2007/08 (1 st Request)31 July 2006 Determine funds available from donors and MTEF Allocations for 2007/0831 August 2006 Ascertain need for additional funding and make application to Donors and National Treasury30 September 2006 Develop proposed allocation (vertical and horizontal) of funds to projects taking into account funding and donor constraints and ongoing contractual commitments30 September 2006 Stakeholder consultation meetings6 October 2006 Adjust available budget with the additional allocation received11 October 2006 Allocation according to Strategic Objectives considering current contractual commitments20 October 2006 Distribution of BAF to Regions, Clusters and Sector Stakeholders27 October 2006 Regions and Sector Stakeholders provide project list supporting strategic objectives10 November 2006 2007/08 FD PROCESS 1

11. Determine the status of TAC Contracts in all 9 Regions (In progress)16 Jan 2007 RPM Meeting16 Jan 2007 Provide Feedback to DDG on Progress of TAC Contracts23 Jan 2007 Final Budget requests from stakeholders per project23 Jan 2007 Finalize Risk Document submission to DG23 Jan 2007 Approval from DG on Bridging Finance26 Jan 2007 Revise Vertical and Horizontal splits with recommendations31 Jan 2007 Present and prepare Financial Delegation as per WSBE Recommendations9 Feb 2007 Present to WSSCC for recommendation and approval22 Feb 2007 One-on-One Sector Stakeholder Consultation meetings22-28 Feb 2007 Circulate to BSC members for recommendation and approval22-28 Feb 2007 Finalize 2007/08 Financial Delegation1 March 2007 Approval of FD by DDG: Regions8 March 2007 Distribute Financial Delegation to all 9 Regions8 March 2007 Financial Delegation RevisionJul & Oct 2007 2007/08 FD PROCESS 1

12. FD & Work Plan 2007/08 Quadrant 1 - Financial Analysis per MTSO Medium Term Strategic Objectives 2007/08 FD Building a better Africa and a better world 10,003,000 Building the economy and creating jobs 71,855,000 Human Resource Development 163,175,200 Speeding up delivery to meet basic needs 1,456,916,000 Transforming The State 377,363,000 Total2,079,312,200 1

13. FD & Work Plan 2007/08 Quadrant 1 - Financial Analysis per KFA Key Focus Area 2007/08 FD KFA 10 - Water and Sanitation Services 291,929,000 KFA 11 - Water sector support 279,873,000 KFA 12 - Institutional support 152,360,200 KFA 13 - Transfers 18,755,000 KFA 14 - African participation 3,503,000 KFA 18 - Water services support 123,710,000 KFA 21 - Operations of Water Services 1,188,782,000 KFA 6 - Water Resource Integration 20,400,000 Total2,079,312,200 1

14. FD & Work Plan 2007/08 Quadrant 1 - Financial Analysis per Province Province2007/08 FD EC 50,364,000 FS 23,178,000 GP 17,004,000 HO 601,476,000 KN 19,118,000 LP 88,652,000 MP 21,419,000 NW 21,095,000 NC 24,099,000 WC 24,125,200 WS Ops Sub 1,188,782,000 Total2,079,312,200 The following Sector Partner support budgets are included in HO budget –SALGA – R7m –Dplg – R15m Retired Engineers – R10m Strategic Support – R5m –Civil Society – R3.5m –Dept of Health – R2m 1

15. QUADRANT 1 DWAF WATER SERVICES SPECIFIC 1 2006/2007 Expenditure Dec 06 MTEF Budget of Prog 3 Donor Budget Total Budget Exp vs. Total Budget R' 000 % KFA 10 – Water & Sanitation Services70,635 21,13178,14799,27871% KFA 11 – Water Sector Support142,279 119,91199,806219,71765% KFA 12 – Institutional Support70,968 57,10991,617148,72648% KFA 13 - Transfers1,11015,4805,50020,9805% KFA 14 – African Participation04002,5002,9000% KFA 18 – Water Services Admin81,466116,0960 70% KFA 21 – Operation of Water Services753,3311,132,1240 67% KFA 6 – Water Resource Interface3,99409,250 43% 1,123,7831,462,251286,8201,749,07164% The Water Sector Support expenditure vs. budget as at 31 December 2006 was 47% 1

16. CONTACT DETAILS The FD & WP will be distributed electronically on 23 February 2007 to all WSSCC attendees for input and comments Due to final document to be approved early March 2007 comments should be received by 28 February 2007. Any queries and comments can be directed to –Dirk van der Boon E-mail – vanderboond@dwaf.gov.zavanderboond@dwaf.gov.za Tel # - 012-336 8357 –Asanda Ntshanga E-mail – ntshangaa@dwaf.gov.zantshangaa@dwaf.gov.za Tel # - 012-336 7939