1. STRATEGIC PLAN 2005/6 – 2007/8 PRESENTATION TO PORTFOLIO COMMITTEE 03-05 FEBRUARY 2005

2. Organisational Functions & Structure Organisational Functions & Structure Budget – Per Functional Area Budget – Per Functional Area Main Functions Main Functions Legislative MandateLegislative Mandate Key Focus AreasKey Focus Areas PrioritiesPriorities Some key issues raised by the Committee….. Some key issues raised by the Committee….. Including DWAF & SoNA Including DWAF & SoNA CONTENT OUTLINE

3. Main functions Water Resource Management Water Resource Management (water in rivers and dams) Water Services (including sanitation) Water Services (including sanitation) (water in pipes, pure and waste) Forestry Forestry (plantation and indigenous)

4. ORGANISATIONAL SRTUCTURE Ministry of Water Affairs & Forestry Minister Ministry of Water Affairs & Forestry Minister Department of Water Affairs and Forestry Director-General Department of Water Affairs and Forestry Director-General Branch: Policy & Regulation Deputy Director General Branch: Policy & Regulation Deputy Director General Branch: Regions Deputy Director General Branch: Regions Deputy Director General Branch: National Water Resource Infrastructure Deputy Director General Branch: National Water Resource Infrastructure Deputy Director General Branch: Corporate Services Deputy Director General Branch: Corporate Services Deputy Director General Branch: Financial Management Chief Financial Officer Branch: Financial Management Chief Financial Officer

5. 2005/6 Budget NB: These figures exclude trading accounts. FUNCTIONAL AREA BUDGET (‘000) AdministrationR 272 050 W.R. M.R1 506 849 Water ServicesR1 405 138 ForestryR 373 375 Total Exchequer Account R3 557 412

6. WATER RESOURCE MANAGEMENT BUDGET(2005): R1 506 849 000 Legislative Mandate NATIONAL WATER ACT (1998) DWAF must ensure that S. A.’s water resources are protected, used, developed, conserved, managed and controlled in a sustainable and equitable manner, for the benefit of all persons DWAF must ensure that S. A.’s water resources are protected, used, developed, conserved, managed and controlled in a sustainable and equitable manner, for the benefit of all persons DWAF is “public trustee” of the Nation’s water resources, with power to regulate the use, flow and control of all water in the Republic DWAF is “public trustee” of the Nation’s water resources, with power to regulate the use, flow and control of all water in the Republic ENVIRONMENTAL CONSERVATION ACT (1989 S. 20) DWAF issues permits for waste disposal sites until transferred to DEAT DWAF issues permits for waste disposal sites until transferred to DEAT

7. Water Resource Management (cont…) Key Focus Areas Promote a common vision for integrated water resource management (IWRM), and empower users to apply best practices Promote a common vision for integrated water resource management (IWRM), and empower users to apply best practices Ensure the protection of water resources Ensure the protection of water resources Ensure reliable and equitable supply of water for sustainable socio-economic development, including poverty eradication Ensure reliable and equitable supply of water for sustainable socio-economic development, including poverty eradication Develop effective water management institutions Develop effective water management institutions Promote IWRM in Africa in support of NEPAD Promote IWRM in Africa in support of NEPAD

8. WRM Priorities Licensing of water use Licensing of water use Establishment of Catchment Management Agencies Establishment of Catchment Management Agencies Establishment of the National Water Resource Infrastructure Branch Establishment of the National Water Resource Infrastructure Branch Developing a business case for the NWRI AgencyDeveloping a business case for the NWRI Agency Cooperative governance – intervention and support by Regions Cooperative governance – intervention and support by Regions Expansion of information systems Expansion of information systems

9. Water Services BUDGET (2005): R1 405 138 000 Legislative Mandate Constitution: Constitution: Right to sufficient water and an environment not harmful to healthRight to sufficient water and an environment not harmful to health Local governments are service providersLocal governments are service providers National Government must support local government and monitor its performanceNational Government must support local government and monitor its performance Water Services Act No. 108 of 1997 Water Services Act No. 108 of 1997 “Developmental regulation” approach“Developmental regulation” approach Framework for service planning and provisionFramework for service planning and provision DWAF to ensure effective municipal performanceDWAF to ensure effective municipal performance

10. Water Services (cont…) Key Focus Areas Ensure sustainable basic water supply and sanitation services for improved quality of life and poverty alleviation Ensure sustainable basic water supply and sanitation services for improved quality of life and poverty alleviation Ensure effective & sustainable delivery of water services to underpin economic & social development Ensure effective & sustainable delivery of water services to underpin economic & social development Ensure effective Water Services Institutions Ensure effective Water Services Institutions Ensure effective management of DWAF schemes Ensure effective management of DWAF schemes (until handover to local government) Promote actions to achieve Millennium Development Goals in water and sanitation in Africa Promote actions to achieve Millennium Development Goals in water and sanitation in Africa

11. Water Services Priorities Addressing Water Supply Backlog Addressing Water Supply Backlog SanitationSanitation Alleviation of poverty in the communities through water servicesAlleviation of poverty in the communities through water services Maximising Sector Leadership Maximising Sector Leadership Enhancing an Intergovernmental approach to service deliveryEnhancing an Intergovernmental approach to service delivery Capacity building to municipalities in the implementation of water and sanitation servicesCapacity building to municipalities in the implementation of water and sanitation services Keeping correct statistics and information about water services as sector leader.Keeping correct statistics and information about water services as sector leader. Actively supporting drafting of the PGDS in the provinces.Actively supporting drafting of the PGDS in the provinces. Driving the institutional reform process Driving the institutional reform process

12. Forestry BUDGET: R 373 375 000 Mandate NATIONAL FORESTRY ACT (1998) Ensure S.A.’s forests (indigenous and plantation) are protected, used, developed, conserved, managed and controlled in a sustainable and equitable manner, Ensure S.A.’s forests (indigenous and plantation) are protected, used, developed, conserved, managed and controlled in a sustainable and equitable manner, Concurrent competence National/ProvincialConcurrent competence National/Provincial NATIONAL VELD & FORESTRY ACT (1998) Prevent & combat veld, forest and mountain fires Prevent & combat veld, forest and mountain fires Cooperative fire management insts. (FPAs)Cooperative fire management insts. (FPAs) Maintain fire danger rating system with DPLG, Prov Govts, FPA’s etcMaintain fire danger rating system with DPLG, Prov Govts, FPA’s etc

13. Forestry (cont) Key Focus Areas Ensure sustainable development and management of plantation forestry for equitable rural development Ensure sustainable development and management of plantation forestry for equitable rural development Ensure sustainable management of indigenous forests to optimize their social, economic and environmental benefits Ensure sustainable management of indigenous forests to optimize their social, economic and environmental benefits Ensure that communities and disadvantaged groups are empowered to make use of tree and forest resources to support sustainable livelihoods Ensure that communities and disadvantaged groups are empowered to make use of tree and forest resources to support sustainable livelihoods Develop effective oversight and co-operative government to ensure Sustainable Forest Management Develop effective oversight and co-operative government to ensure Sustainable Forest Management Promote sustainable forest management in Africa Promote sustainable forest management in Africa

14. Forestry Priorities Playing the Sector leadership role Playing the Sector leadership role Capacity Building within the sectorCapacity Building within the sector Promoting Broad Based Black Economic Empowerment in the Forestry industry.Promoting Broad Based Black Economic Empowerment in the Forestry industry. Transfer of Forests to appropriate organisations Transfer of Forests to appropriate organisations Negotiation of Forestry BBBEE Charter Negotiation of Forestry BBBEE Charter Afforestation in the Eastern Cape Afforestation in the Eastern Cape

15. Corporate Services Priorities BUDGET: R272 050 000 Support Restructuring of Core Business Support Restructuring of Core Business Create a foundation for skills development Create a foundation for skills development Implementation of HRD strategyImplementation of HRD strategy Achieving quality Employment Equity TargetsAchieving quality Employment Equity Targets CS Restructuring in line with Core Business vision including Transfer Programme CS Restructuring in line with Core Business vision including Transfer Programme Improve IT Infrastructure and Information security and determine future IT Infra layout Improve IT Infrastructure and Information security and determine future IT Infra layout Corporate Performance Monitoring Corporate Performance Monitoring External communication DWAF ’ s new roles External communication DWAF ’ s new roles

16. Finance Priorities Achieve unqualified financial statements Achieve unqualified financial statements Development of proper financial systems for new functions Development of proper financial systems for new functions Risk assessment and compliance with rules and regulations Risk assessment and compliance with rules and regulations Management of accounts receivables and accounts payable Management of accounts receivables and accounts payable Maintaining an appropriate procurement system that is fair, equitable, transparent, competitive and cost effective Maintaining an appropriate procurement system that is fair, equitable, transparent, competitive and cost effective Budget planning and expenditure control Budget planning and expenditure control Asset management Asset management

17. Some key issues raised by the Committee…..

18. How does the strategic plan and the SONA speak to each other, how the commitments from the President are measured, and the means provided (funds) in the strategic plan The State of the Nation Address is crafted in consultation with Departments. The State of the Nation Address is crafted in consultation with Departments. It reflects proposals included in draft Strategic Plans and Budgets It reflects proposals included in draft Strategic Plans and Budgets After the SoNA, these commitments are confirmed in Departmental Budgets and Strategic Plans After the SoNA, these commitments are confirmed in Departmental Budgets and Strategic Plans

19. DWAF & SONA Economic Development – 1 st Econ. National Infra development National Infra development BBBEE BBBEE BEE approach to procurementBEE approach to procurement Sector Charters for ForestrySector Charters for Forestry Development planning Development planning Participate in dev of PGDS and IDPParticipate in dev of PGDS and IDP

20. SONA Cont… Addressing the Capacity Issue In the Department In the Department Intensify analysis at Line Function level to assess and plan to address skills gapIntensify analysis at Line Function level to assess and plan to address skills gap HR Plan - Recruit, retain & developHR Plan - Recruit, retain & develop Align to restructuring Align to restructuring External to Department External to Department Develop sector strategyDevelop sector strategy Cooperate with sector SETAsCooperate with sector SETAs Work with key partner institutions e.g. WRC and NWSSTI (University of Limpopo)Work with key partner institutions e.g. WRC and NWSSTI (University of Limpopo)

21. How does DWAF through its programmes in the WRS, WS and Forestry contribute to the development in the second economy?

22. SONA Cont… Addressing the 2 nd economy Water Services provision Water Services provision Water - livelihoods & quality of lifeWater - livelihoods & quality of life All households safe water and sanitation by 2010All households safe water and sanitation by 2010 Bucket eradication by 2008Bucket eradication by 2008 Water Resources Water Resources Irrigation developmentIrrigation development Forestry Forestry New afforestation in E. CapeNew afforestation in E. Cape Empowerment element in forestry restructuringEmpowerment element in forestry restructuring

23. Clarification is required on the influence of restructuring on the departmental strategic plan. What adjustments will be required in view of restructuring? Strategic plan takes restructuring into account: Strategic plan takes restructuring into account: Certain activities phase out in the outer years (see water services and forestry)Certain activities phase out in the outer years (see water services and forestry) Organisational structure reflects the current situationOrganisational structure reflects the current situation Elements of structure will be abolished as functions are transferredElements of structure will be abolished as functions are transferred

24. The establishment assumes that a fully staffed component is necessary for restructuring to be complete. What is the expected duration of the restructuring process? Will there be an oversupply of staff when restructuring is complete? It is not intended to fully staff components before transfer except for “key” posts It is not intended to fully staff components before transfer except for “key” posts Vacant posts will be filled by the receiving institutions when they consolidate Vacant posts will be filled by the receiving institutions when they consolidate Water services complete by April 2006 Water services complete by April 2006 Final forestry date not yet certain Final forestry date not yet certain There may be oversupply of staff in forestry and water services which have more staff than industry norms There may be oversupply of staff in forestry and water services which have more staff than industry norms Negotiations underway to manage impact. Negotiations underway to manage impact.

25. Significant difference between approved (29 170) vs filled (19 977) posts. Does no. of approved posts reflect department's actual staff needs? Ability to fund this number of posts? Should no. of approved posts be reviewed?

26. The Department has appointed 5 312 additional employees that are not part of the approved post establishment. Why was this necessary? Why was this need not identified by HR planning in the department?

27. Shrinkage of staff to the tune of 60% is anticipated over the next two decades. Why are no clear figures provided in the strategic plan on the anticipated change in staff numbers?

28. Will the principle that the budget should follow the function be applied in the transfer of DWAF Staff? Yes, where functions are transferred within government. Yes, where functions are transferred within government. Where functions are transferred to other entities (e.g. in forestry transfers) budget is not transferred but staffing levels and price is negotiated Where functions are transferred to other entities (e.g. in forestry transfers) budget is not transferred but staffing levels and price is negotiated

29. Although representivity stats are provided in the strategic plan, there is no indication of the progress in meeting the targets. Does DWAF have such targets? DWAF has representativity statistics in the EE Plan and reports on progress in the Annual report, not in the strategic plan document. DWAF has representativity statistics in the EE Plan and reports on progress in the Annual report, not in the strategic plan document. Targets are aligned to national targets. They have not been achieved in higher level technical and professional functions Targets are aligned to national targets. They have not been achieved in higher level technical and professional functions

30. What is DWAF’s plan for “phase two” of the NWRS implementation. National Water Resource Strategy has 2025 planning horizon, Strategic Plan (SP) only three years National Water Resource Strategy has 2025 planning horizon, Strategic Plan (SP) only three years All activities in the NWRS are reflected in the SP All activities in the NWRS are reflected in the SP NWRS info on large water resource infrastructure development is only indicative since there are NWRS info on large water resource infrastructure development is only indicative since there are considerable uncertainties involved; detailed timing according to need considerable uncertainties involved; detailed timing according to need Project details (location, size, etc) may change Project details (location, size, etc) may change Schemes for 2005/6-2006/7 include Berg River; raising of Flag Boshielo Dam; Olifants Scheme; Eastern Vaal Subsystem (for Eskom and Sasol) Schemes for 2005/6-2006/7 include Berg River; raising of Flag Boshielo Dam; Olifants Scheme; Eastern Vaal Subsystem (for Eskom and Sasol)

31. How will infrastructure requirements be funded? Infrastructure to support economic activity funded through payments by users (e.g. Berg River Project) Infrastructure to support economic activity funded through payments by users (e.g. Berg River Project) Some government funding may be needed for schemes with long “payback” times and for social or environmental purposes, or to meet international obligations. Some government funding may be needed for schemes with long “payback” times and for social or environmental purposes, or to meet international obligations. Infra development under KFA 6 (Ensure reliable and equitable supply of water for sustainable economic and social development including the eradication of poverty), Strategic Objective 6.4 (Implement solutions for reconciling water supply and demand). Infra development under KFA 6 (Ensure reliable and equitable supply of water for sustainable economic and social development including the eradication of poverty), Strategic Objective 6.4 (Implement solutions for reconciling water supply and demand). Planning is described in SO 6.3. Planning is described in SO 6.3.

32. DPSA talks of a single public service. What are the implications for DWAF, in terms of the transfer of schemes and of Forests? The current focus is a “Unified system of Public Administration and Management” The current focus is a “Unified system of Public Administration and Management” Working with DPSA on WS transfer to Local Government is helping to clarify ideas in this area Working with DPSA on WS transfer to Local Government is helping to clarify ideas in this area Indigenous forest may be transferred to Provincial Departments and/or state controlled conservation agencies (eg. SANparks, MPB and Cape Nature Conservation), Indigenous forest may be transferred to Provincial Departments and/or state controlled conservation agencies (eg. SANparks, MPB and Cape Nature Conservation), Commercial plantations (category B and C plantations) will mainly be “transferred” out of the public service. Commercial plantations (category B and C plantations) will mainly be “transferred” out of the public service.

33. Why are there no KFA’s provided for the Support Services of the Department, instead of just the three (WRM, WS & F)? “Out of these objectives, support function produces business plans to achieve the said objectives” Chapter 2, Para 5.2.1.. “Out of these objectives, support function produces business plans to achieve the said objectives” Chapter 2, Para 5.2.1.. Support functions like HRD and IT are also mainstreamed in the core business function Support functions like HRD and IT are also mainstreamed in the core business function (e.g. KFA 6, SO 6.4.10; KFA 9, S.O. 9.3, 9.4.1 – 9.4.3; KFA 12; S.O. 12.2, 12.3) (e.g. KFA 6, SO 6.4.10; KFA 9, S.O. 9.3, 9.4.1 – 9.4.3; KFA 12; S.O. 12.2, 12.3)

34. The Environmental Conservation Act 1989, Section 20, gives legal mandate to DWAF on the issuing of permits for the establishment and operation of waste disposal sites. Where is the KFA with regard to this strategic objective?

35. How well is DWAF communicating its achievements and WASH/ Conservation / Demand Management/ Free Basic services messages to stakeholders in remote areas, on farms, in the urban nodes? E.G. WASH E.G. WASH Focused on rural areas through Road-shows in cholera vulnerable areasFocused on rural areas through Road-shows in cholera vulnerable areas Support material and soaps handed outSupport material and soaps handed out Partnership with UnileverPartnership with Unilever Coordination with Dept of Health poster and pamphlet, 11 languagesCoordination with Dept of Health poster and pamphlet, 11 languages School comic on washing hands developed and distributedSchool comic on washing hands developed and distributed E.G. Free Basic Water E.G. Free Basic Water Communications focused on 18 municipalities not implementing FBWCommunications focused on 18 municipalities not implementing FBW Most in MpumalangaMost in Mpumalanga Workshops with municipal staffWorkshops with municipal staff FBW communication packs to all municipalities (FBW policy, financial model, implementation guidelines and Q & As)FBW communication packs to all municipalities (FBW policy, financial model, implementation guidelines and Q & As)