Presentation to the PortfolioPresentation to the PortfolioCommitteeCommittee

11 August 200411 August 2004

Department of Water Affairs and Forestry

VOTE34

Department of Water Affairs and Forestry Department of Water Affairs and Forestry 2004/05 Total Expenditure2004/05 Total Expenditure

49%

51%

Exchequer Account R1 926 Million 49%Trading Account R3 418 Million 51%Dwaf Total Expenditure R 5 344 Million 100%

DWAF Allocation for 2004/05DWAF Allocation for 2004/05

R 253 million

R1 366 million

R1 333 million

R 350 million

R 861 million

Augmentation tAugmentation to o

Trading AccountTrading Account

Augmentation tAugmentation to o

Trading AccountTrading Account

AdminAdminAdminAdmin

R 515 million

WRMWRMWRMWRMWater ServicesWater ServicesWater ServicesWater Services

ForestryForestryForestryForestry

WRMWRMWRMWRMWater ServicesWater ServicesWater ServicesWater Services

Total Exchequer AllocationR3 302million

Department of Water Affairs and Forestry Department of Water Affairs and Forestry 2004/05 Exchequer Account per Economic 2004/05 Exchequer Account per Economic

classificationclassificationR'000

CURRENT PAYMENTS 1,345,106 Compensation of employees 606,705 Goods and services 736,896 Interest and Rent on land 1,505 Financial transaction in assets & liabilities - Unathorised expenditure -

TRANFERS AND SUBSIDIES TO: 1,571,760 Province and Municipalities 1,020,979 Departmental agencies and accounts 550,781 Universities and Technikons - Foreign Govt. & International Organasations - Public Corporations & Private enterprises - Non - Profit Institutions - Households -

PAYMENTS FOR CAPITAL ASSETS 385,278 Building & Other fixed structures 320,316 Machinery & Equipment 52,270 Cultivated assets - Software & other intangible assets 11,401 Land and subsoil assets 1,291

Total Budget Allocation 3,302,144

Standard Items/Economic Classification 2004/05 Financial Year

Department of Water Affairs and Forestry Department of Water Affairs and Forestry 2004/05 Exchequer Account per Programme2004/05 Exchequer Account per Programme

8%

41%40%

11%

Water Resource mannagementR1 366 million41%Water Services

R1 333 million40%

ForestryR350 million11%

AdmnistrationR253 million8%

Total Allocation R3 302 million

Department of Water Affairs and Forestry Department of Water Affairs and Forestry Expenditure Trend for the period 2000/01 – Expenditure Trend for the period 2000/01 –

2006/072006/07

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

00/01 01/02 02/03 03/04 04/05 05/06 06/07

R'0

00

Administration Water Resource M anagement Water Services Forestry Water Trading Account

Trading AccountTrading Account

Is different to the Exchequer accountIs different to the Exchequer account Consists of 4 Trading Entities (Accounts)Consists of 4 Trading Entities (Accounts) Trading Accounts intended to generate Trading Accounts intended to generate

REVENUEREVENUE Poor revenue generation requires Poor revenue generation requires

AUGMENTATION from the National WRM and AUGMENTATION from the National WRM and WS allocationsWS allocations

Revenue + Augmentation = Total Trading Revenue + Augmentation = Total Trading BudgetBudget

Department of Water Affairs and Forestry Department of Water Affairs and Forestry 2004/05 Trading Account:R3 418 Million2004/05 Trading Account:R3 418 Million

Bulk Water Supply R330 Million 10%

Intergrated Systems R1716 Million 50%

Intergrated Water Resource Management R174 Million 5% and Working for water R340 Million 10%

Water Services R858 Million 25%

Trading Account Allocation Trading Account Allocation

R3 418million

R514million

R1 716million

R330million

R858million

Integrated

Catchment

Management

Integrated

Catchment

ManagementIntegrated

Systems

Integrated

Systems Bulk Water

Supply

Bulk Water

SupplyWater

Services

Water

Services

0

400

800

1,200

1,600

2,000

2,400

TA 1 TA 2 TA 3 TA 4

Million Expenditure

Revenue Estimate

Expenditure

AugmentationAugmentation

R1 300millionR1 300million

AugmentationAugmentation

R1 300millionR1 300million

Revenue EstimateRevenue Estimate

R2 148millionR2 148million

Revenue EstimateRevenue Estimate

R2 148millionR2 148million

Trading Account DetailTrading Account DetailREGION TA 1 TA 2 TA 3 TA 4 TOTAL

North West 9,007 9,093 17,752 75,372 111,224Limpopo 12,792 14,448 15,651 454,730 497,621Mpumalanga 17,932 0 169,072 134,872 321,876KwaZulu-Natal 18,225 6,920 16,870 29,620 71,635Free State 51,518 10,403 23,728 22,013 107,662Eastern Cape 11,838 11,251 33,459 81,883 138,431Western Cape 14,994 33,571 1,056 5,230 54,851Northern Cape 10,315 0 15,927 25,117 51,359Gauteng 27,279 300,093 5,824 19,581 352,777Head Office 0 0 30,485 10,000 40,485

TOTAL 173,900 385,779 329,824 858,418 1,747,921 WFW 340,000 340,000 TCTA 1,329,881 1,329,881 Water Weeds 020/20 vision 0

513,900 1,715,660 329,824 858,418 3,417,802

Revenue 54412 1,965,009 119,194 8,903 2,147,518 Augmentation 489,488 (249,349) 210,630 849,515 1,300,284

Department of Water Affairs and Forestry Department of Water Affairs and Forestry 2004/05 Expenditure Trend2004/05 Expenditure Trend

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

00/01 01/02 02/03 03/04 04/05 05/06 06/07

R'0

00 Exchequer Account

Water Trading Account

Department of Water Affairs and Forestry Department of Water Affairs and Forestry 2004/05 Main Function2004/05 Main Function

• AdministrationAdministration provides for the management of the department, including :

•Policy formulation by the minister and senior management

•Legal and office support services

•Departmental personnel management

•Financial administration & IT.

• Determination of working methods and procedure, and exercising control through head office and regional offices

Department of Water Affairs and Forestry Department of Water Affairs and Forestry 2004/05 Expenditure Trend: Administration2004/05 Expenditure Trend: Administration

Expenditure Outcome

Administration 2003/04 R'000 2004/05 R'000 2005/06 R'000 2006/07 R'000

Minister 981 791 831 872 Management 30,537 14,560 15,020 15,921 Corporate Services 149,443 172,346 183,516 194,647 Information Services 81,869 65,065 69,483 73,652 Total Expenditure 262,830 252,762 268,850 285,092

Medium-term Expenditure

Expenditure on Administration increases from R262,8 million in 2003/04 to R285 million in 2006/07

Department of Water Affairs and Forestry Department of Water Affairs and Forestry 2004/05 Main Function2004/05 Main Function

• Water Resources Management•The Water Resource Management function ensure that the country’s water resource are protected used, developed, conserved, managed and controlled, in sustainable and equitable manner for the benefit of all people

•Water Resource Management ensures the long-term availability of water in sufficient quantity and of appropriate quality to support South Africa’s social and economic development needs and to meet international water-sharing agreements, by among other things, implementing an equitable water-use authorization systems and measures to protect water resources and establishing effective and representative water management institutions

Department of Water Affairs and Forestry Department of Water Affairs and Forestry 2004/05 Expenditure Trend: Water Resource 2004/05 Expenditure Trend: Water Resource

ManagementManagementExpenditure

OutcomeWater Resources Management 2003/04 R'000 2004/05 R'000 2005/06 R'000 2006/07 R'000

Equitable Supply 236,579 141,309 157,108 168,164 Protection Polices 12,471 34,002 37,803 40,463 Intitutional Regulation 535 7,940 8,828 9,449 Strategic Alignment 69,891 127,273 141,503 151,461 African Co-operations 7,573 7,323 8,142 8,715 Water Resource Admin 6,430 23,107 25,703 27,512 Sustainable Supply 321,193 317,816 349,723 374,333 Protection Measures - 2,028 2,200 2,355 Institutional Development 10,996 7,197 7,809 8,359 Stakeholder Empowerment 112,616 103,928 112,759 120,694 Water Resource Support 64,491 76,717 83,150 91,187 Operation of Water Resources 270,998 514,580 549,985 590,882 Capital Equipment 2,500 2,535 2,750 2,944

Total Expenditure 1,116,273 1,365,755 1,487,463 1,596,518

Medium-term Expenditure

Department of Water Affairs and Forestry Department of Water Affairs and Forestry 2004/05 Main Function2004/05 Main Function

• Water Services•The water Service function ensures that effective, efficient, sustainable , and affordable water and sanitation services are provided to the people of South Africa as well as economic users

•Water Services provide adequate water services to the people of South Africa including additional basic water supply and sanitation

Department of Water Affairs and Forestry Department of Water Affairs and Forestry 2004/05 Expenditure Trend: Water Services2004/05 Expenditure Trend: Water Services

Expenditure Outcome

Water Services 2003/04 R'000 2004/05 R'000 2005/06 R'000 2006/07 R'000

Provisioning Policies 8,610 6,084 6,560 7,022 Water Sector Policies 35,365 40,072 43,211 46,252 Institutional Policies 10,733 6,259 6,749 7,224 Transfers Policies 224 - - - African Initiative 112 178 192 206 Water Service Admin 5,212 7,818 8,430 9,024 Water and Sanitation Services 1,021,893 145,033 91,477 55,907 Water Sector Support 61,896 40,939 47,713 38,731 Institutional Support 47,271 52,606 67,468 35,049 Transfers 10,719 57,028 77,947 26,509 African Participation - 608 656 702 Water Service Support 86,566 115,813 124,887 133,674 Operations of Water Services 1,089,929 861,334 937,434 993,500

Total Expenditure 2,378,530 1,333,772 1,412,724 1,353,800

Medium-term Expenditure

Department of Water Affairs and Forestry Department of Water Affairs and Forestry 2004/05 Main Function2004/05 Main Function

•Forestry• The forestry function promotes the conservation, commercial and community uses of plantation and indigenous forests to achieve optimal social and economic benefit, and promote rural development through policy

Department of Water Affairs and Forestry Department of Water Affairs and Forestry 2004/05 Expenditure Trend: Forestry2004/05 Expenditure Trend: Forestry

Expenditure Outcome

Forestry 2003/04 R'000 2004/05 R'000 2005/06 R'000 2006/07 R'000

Plantation Restructuring 41 776 822 871 Indegenous Forest Restr. 2 209 219 232 Forest Oversight 5,779 13,927 14,750 15,635 Forestry Liason 308 658 697 739 Commnunity Forestry 226 103 109 116 Forestry Mangt Support 5,099 4,534 4,802 5,090 Plantation Management 272,842 227,831 244,143 258,675 Indigenous Forest Mangt 58,741 49,543 52,471 55,619 Forestry Governance 80 1,953 2,068 2,192 Community Empowerment 17,142 23,973 25,389 26,912 Forestry Support Services 51,347 26,348 27,905 29,579

Total Expenditure 411,607 349,855 373,375 395,660

Medium-term Expenditure