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Portfolio Committee: Water & Environmental Affairs. Briefing on the Audited Financial Statements 2011/12. Department: Water Affairs Main Account 10 to 11 October 2012. Contents of presentation. PART A – expenditure analysis for the year ending 31 st march 2012.
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Portfolio Committee: Water & Environmental Affairs Briefing on the Audited Financial Statements 2011/12 Department: Water Affairs Main Account 10 to 11 October 2012
PART A – expenditure analysis for the year ending 31st march 2012
Reasons for under-spending • The Department spent R 8 164 906 000of the total allocation of R 9 028 319 000 which represents 90.4% total spending of the Department. • The remaining 9.6% of the under expenditure is mainly due to the following:
Successes • Approximately 98% of the AMD decant from the Western Basin is currently being partially treated at the upgraded Rand Uranium treatment plant. This resulted in a recent increase of the pH leaving the Hippo pool from 3,5 to 6,2. • The Department completed a total of nine (9) regional bulk schemes comprising of two (2) Waste Water Treatment Works (WWTW), three (3) Water Treatment Works (WTW) and four (4) Bulk Water Supply Schemes (BWSS) • Development of Reconciliation Strategiesfor Bloemfontein & Mzimkhulu Catchment were completed. Good progress was made with the development of the All Towns Strategies as well as the Olifants River which are earmarked for finalization in 2012/13 financial year
Successes • Good progress has been made in ensuring that various systems and stand alone dams have robust operating rules which are annually updated and implemented. As such, annual system operation runswere done for all systems with the Algoa System, the only one with restrictions on both urban (PE area) and irrigation water use. • 5 Catchments were optimally monitored (Berg, Breede, Gouritz, Olifants, Mhlathuze and Levhuvu/Letaba) • The incentive based regulatory approach has succeeded in raising awareness and providing a positive stimulus for gradual and sustainable improvement in both water and waste water treatment works. This is evident in the both 2011 Blue Drop and Green Drop reports. This is shown by the 21% improvement on the Blue Drop scores attained (72.9% in 2011 compared to 51.4% in 2009). The Green Drop scores improved by 8%.
Successes • In preparation for the 2012 reports, 831 wastewater and 931 water supply systems were assessed. • The Councillors Induction Programme gained momentum as 1224 Councillors were inducted far exceeding the 166 that was planned for. • Water infrastructure status and intervention plans for 22 priority District Municipalities were completed
Challenges • Data discrepancies delayed the finalisation of the comprehensive reserves • The high water levels in the Vaal River delayed the completion of the Klipplaatdrift monitoring station • The implementation of OSD is impacting the availability of the technical skills required to ensure service delivery within the Branch as critical posts could not be filled
Reasons for underspending on AMD • Since the Trans Caledon Tunnel Authority (TCTA) has been appointed by the Minister, a decision was made that prior to implementation of any solution, a due diligence review had to be done first. • Collaborative efforts between the Department and the TCTA have resulted in interrogation of existing mine water treatment infrastructure in the Western and Central Basin mining areas, as well as potential arrangements with the mining companies still operational in these Basins. Long consultation processes to compile transfer agreements were fruitful but time consuming
Reasons for under-spending on AMD • Delay in the implementation of the Immediate Intervention for the Western Basin. The upgrade of the Rand Uranium Treatment plant at a cost of R25 million was only completed in June 2012 compared to originally planned completion date of March 2012. The delay was mainly due to longer than anticipated manufacturing times for the electrical & mechanical equipment.
Reasons for under-spending on AMD • Delay in the award of the contract for the construction of the short-term intervention for the three basins. The delay was caused by a longer than expected tender evaluation period. The original planned date of award was February 2012 compared to a date now of August 2012 which date is subject slightly to lower rise of water levels in the Central and Eastern Basins allowed more time. It is extremely important that critical decisions can only be made on good and reliable data. Due to a lack of consistent information, more time was spent in obtaining as much as possible data from various sources subject to sufficient funding being secured to allow TCTA to enter into contractual commitments.
Actions taken or planned to avoid recurrence • To strengthen the project management and contract management capacity within the department including overseeing • Improve on the governance structures that will assist with the monitoring of the expenditure on a continuous basis; the department has established Budget Committee that will quarterly review the expenditure against the performance and the service delivery. • Quarterly review sessions with the National Treasury • The department has also established the CAPEX committee that will oversee and monitor all projects under work in progress..
