PROGRAMME 2Water Resources ManagementWater Resources Management

ContextContext• Improved rainfall compared with 2004/05, mainly due Improved rainfall compared with 2004/05, mainly due

to above-average falls during the last four or five to above-average falls during the last four or five months. Most areas (except south-western Cape and months. Most areas (except south-western Cape and northern KZ-N) received average or above-average northern KZ-N) received average or above-average rainfallrainfall

• Continued restrictions on water use necessary in Continued restrictions on water use necessary in many areasmany areas

• Water stored in all major dams increased from Water stored in all major dams increased from ±±67% 67% of total full supply capacity in March 2005 to of total full supply capacity in March 2005 to ±±90% in 90% in March 2006March 2006

• In 13 river systems (about 25% of SA’s total surface In 13 river systems (about 25% of SA’s total surface area), 1.6% of rivers are in a Natural state, 27% area), 1.6% of rivers are in a Natural state, 27% Good, 43% Fair, 29% PoorGood, 43% Fair, 29% Poor

• Water Allocation ReformProgramme launched; public consultation on

approach completed; draft regional implementation plans completed and aligned with DoA and DLA programmes

Challenge: speed up programme• Validation and verification of existing lawful useValidation completed in Inkomati, Olifants and Upper Vaal WMAS, and in Mhlathuze, Mokolo and Jan Dissels catchments. Verification in progress.

Assistance to resource poor farmers – some examples

• Eastern Cape– Rehabilitation of irrigation schemes

• Zanyokwe R100 000 (586ha)• Keiskammahoek R20 000 (819ha)• Shiloh R13 million (420 ha)• Qamata R1.2 million (1959ha)• Tyefu R1 million (694ha)

• Northern Cape– Recommendations made for use of

4000ha of water in Lower Orange WMA– R6.9 million subsidies for O&M for 440

resource poor farmers

Assistance to resource poor farmers – some examples

• KZN– 47 resource poor farmers in Impala received subsidies

for pumping costs, canal costs, capital subsidies• W Cape

– Lutouw equity project– Subsidies provided (Ceres Koekedouw, Lutoux)– HDIs to benefit from new infrastructure eg raising of

Clanwilliam Dam, Osplaas Dam in Hex Valley– 20ha purchased by LORWUA for use by resource poor

farmers10 rainwater tanks completed , 58 in progress in 26

villages in Limpopo, FS, KZN and EC provinces

Challenges: closer alignment with local and provincial government

Rainwater harvestingRainwater harvesting

Typical 30 cubic metre Typical 30 cubic metre capacity rainwater tank (roof capacity rainwater tank (roof to be added)to be added)

Vegetable gardenVegetable garden

• Authorisation of water useAuthorisation of water use254 licences issued254 licences issuedStreamlining licensing process in progressStreamlining licensing process in progress

Challenges: shortening licensing time and making application Challenges: shortening licensing time and making application easier; ensuring BBBEE fully integrated into licences procedureseasier; ensuring BBBEE fully integrated into licences procedures

• Water supplied in accordance with agreementsWater supplied in accordance with agreementsTarget achieved, but drought restrictions necessary in places Target achieved, but drought restrictions necessary in places

• PlanningPlanningInception Report for Joint LHWP Phase II Feasibility studyInception Report for Joint LHWP Phase II Feasibility studyScope of Work defined for Joint Feasibility Study of storage in Scope of Work defined for Joint Feasibility Study of storage in Lower Orange RiverLower Orange RiverFeasibility studies completed for Mooi-Mgeni Transfer Scheme Feasibility studies completed for Mooi-Mgeni Transfer Scheme Phase II and De Hoop DamPhase II and De Hoop DamPre-feasibility studies completed for use of low level storage at Pre-feasibility studies completed for use of low level storage at van der Kloof Dam, and viability of irrigation schemes for van der Kloof Dam, and viability of irrigation schemes for resource-poor farmers in Eastern Caperesource-poor farmers in Eastern Cape

• Water Use EfficiencySituation assessment and business plans prepared in 14 municipalitiesPilot WUE and water loss studies in progress in Hermanus and Cape TownPressure reduction projects in Emfuleni and Moqhaka WSAs WUE conditions included in licence conditions (eg SASOL)COWEP implemented in Northern Cape Province: Kamiesberg Municipality (Hondeklipbaai & Kamieskroon) and Kai Garip Municipality (Augrabies); Mpumalanga Province: Matsulu Municipality; North West Province: Madibeng Municipality; and Limpopo Province: Greater Tzaneen Municipality (Nkowankowa)Mechanisms to ensure funding for WUE interventions investigated

• Working for WaterTargets exceeded (881 000 ha), 2 million person days of employment and 11 150 employment opportunities created (103% of planned: 54% women, 18% youth, 1% disabled)• Dam Safety

92.6% of dams with a safety risk classified34 DWAF dams inspected and safety assessedRefurbishment at 20 dams initiated

• Drought reliefOngoing support to municipalities’ drought relief activities

• Classification system for water resourcesDraft Position Paper prepared

• Reserve Determinations2 studies completed (Letaba and Inkomati); 2 80% complete (Olifants-Doorn, Kromme-Seekoei.±180 ad hoc Reserves to facilitate licence applications)

• Water Resource Quality ManagementDevelopment of policies, strategies and guidelines on track

• Permitting of waste disposal sitesArrangements for transfer of function to DEAT progressed

• Catchment Management Agencies3 CMAs established (Breede, Crocodile-West/Marico, Mvoti-Mzimkulu), 4 proposals gazetted for comment (Usutu-Mhlathuze, Thukela, Gouritz, Olifants/Doorn)Inkomati CMA Governing Board, CEO appointed; Business Plan submitted

• Water User Associations2 new WUAs established 7 irrigation boards transformed

• State loans– Sabie River - R17 144 in arrears; being addressed

• Land Bank Loans (guaranteed by DWAF)– Exposure reduced over past few years– Verkeerdevlei – DWAF assisting in taking action against defaulters– Blyde River – joint action by RMB and DWFA to be taken

• RMB loan – Impala– Recent verdict allows Impala to take action against defaulters– DWAF contributed to costs of court case

• Transfer of O&M responsibilities to WUAs Transfer process continued for Boegoeberg, Vaalharts, Sand-

vet and Lower Olifants River WUAsWater PricingRevised Water Pricing Strategy published for public comment

• Collection of Revenue from Water Use ChargesTarget of collecting 80% of potential revenue exceeded

• Catchment Management StrategiesPreparation of guidelines for Catchment Management Strategies progressed but not complete

• Consolidated Environmental Implementation & Management PlanPreparation in progress but not completed. Deadline extended by DEAT to 2008

• Water Resources MonitoringData collected from all networks. Microbial, Eutrophication and River Health networks expanded

• Capacitation of StaffStaff training via a range of courses, including internal training of interns, Advanced WQM, RDM training via FETWater programme, and Gender Mainstreaming for senior staff

• Capacitation of StakeholdersStakeholders involved in consultation processesEducation and awareness programmes in schools for efficient use of water

• Shared Watercourse InstitutionsEstablishment of Limpopo Basin Commission awaiting ratification by basin States; First Ministerial meeting for Orange-Senqu Basin Commission held.

• Co-operation and RelationshipsParticipated in AMCOW ministerial and technical meetingsSADC Regional Water Strategy and Acton Plan developed, and SA appointed as Implementing Agent for SADC HYCOS Agreements in place or being developed with China, Cuba, The Netherlands, The Russian Federation, Algeria and Tanzania

• Coordination of SA Water Sector tsunami relief and reconstruction work in The Maldives and Sri Lanka

• Participation in Global DebatesFourth World Water Forum, UNESCO Regional International Hydrological Programme – SA elected to Council

• Overseas Development AssistanceAssistance from EU, UK DfID, France, Belgium (Flanders), Switzerland, Norway, Ireland and China

Annual review and oversight of entities

• Annually Water Boards submit to DWAF:– shareholder’s compacts (business plans) and policy

statements (one month before start of financial year.)– annual report including audited annual financial

statements (at end financial year) • Shareholders compacts, policy statements and

annual reports – analysed – areas of weakness communicated to Board for

rectification• For 2006/07 to 2010/11 period all water boards

submitted shareholders compacts on time DWAF• For 2006/07 to 2010/11 four water boards,

(Mhlathuze, Bushbuckridge, Overberg and Lepelle) requested to amend shareholders compacts

Annual review and oversight of entities

• Evaluation of audited financial statements– Bloem Water (shortfall on pension), – Botshelo (property removed from balance sheet)– Umgeni Water (water services assets reflected in their books)– Sedibeng (no consolidated financial statements)

• Forensic investigations where weakness identified – Bloem Water; Bushbuckridge, Ikangala and Botshelo

• All Boards in place. – Delays in appointment of Sedibeng and Lepelle Boards

• Most WB not fully compliant with PFMA – eg must supply Executing Authority with quarterly reports – only 2 fully compliant 

• Not fully compliant with MFMA – eg problems with tariff process this year – not supplying monthly reports to Treasury

Future performance improvement

• DWAF training initiatives for Board members to ensure compliance and good governance

• 4 training sessions on good Governance for Board members conducted

• Training sessions on tariff guidelines for Boards• Individual sessions with each Water Boards on annual reports • Workshop on Board remuneration and Board practices• Guidelines to be revised to ensure further compliance with new

legislation eg MFMA  • Visited Overberg ensure change in investment to low risk

portfolio• Water Services Act being reviewed – will strengthen Minister’s

Executive Authority w.r.t Water Boards and provide for approval of budgets, business plans, charges and CEO package

• Compliance audit being conducted on 4 Water Boards; technical audit being conducted on 4 others; will assess, refine audit approach and complete for all Water Boards

Relationship between Water Boards and WSAs

• Annual workshops between Water Boards, WSAs and SALGA to discuss areas of mutual interest.

• DWAF introduced – Rand Water to municipalities in Western Highveld – not

successful– Lepelle to Vhembe DM and Mopani – not successful– Sedibeng to municipalities in Vaal Gamagaara – successful

• Challenges in concluding service delivery agreements and bulk water supply agreements with Municipalities – Where concluded, often short term - water boards not able

to make long term infrastructure/capital projections• Challenges in cost recovery

– Challenges re cost recovery for services rendered to municipalities especially in rural areas that were previously un-serviced.

Areas of good performance• Tariff increases within Government inflation targets as set

by the National Treasury.• Most Water Boards are financially viable, have

accumulated surpluses and are able to repay their debts. • Support granted to Municipalities re capacity building,

operations and maintenance of water and reticulation schemes on their behalf , implementation of free basic water policies.

• Provided undisrupted supply of bulk water to municipalities.

• All water boards have preferential procurement policies and are doing well in implementation

• For 2004/05 financial year, all water boards received unqualified audit opinions, except Bloem Water (qualification re fixed assets)– meeting held with Bloem water to discuss corrective

measures. Now being implemented

Oversight of WRC/TCTA

• DWAF developing oversight framework TCTA and WRC to submit corporate plans and budgets in compliance with PFMA

• TCTA– Performing well– Excellent international credit rating – Operates on the basis of directives from Minister

– aligned with strategic objectives of DWAF and government

• WRC– Discussions held with DWAF on closer

collaboration and alignment