PROGRAMME 2 Water Resources Management

1. PROGRAMME 2 Water Resources Management

2. Context • Improved rainfall compared with 2004/05, mainly due to above-average falls during the last four or five months. Most areas (except south-western Cape and northern KZ-N) received average or above-average rainfall • Continued restrictions on water use necessary in many areas • Water stored in all major dams increased from ±67% of total full supply capacity in March 2005 to ±90% in March 2006 • In 13 river systems (about 25% of SA’s total surface area), 1.6% of rivers are in a Natural state, 27% Good, 43% Fair, 29% Poor

3. Water Allocation Reform Programme 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 use Validation completed in Inkomati, Olifants and Upper Vaal WMAS, and in Mhlathuze, Mokolo and Jan Dissels catchments. Verification in progress.

4. Assistance to resource poor farmers – someexamples • 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

5. Assistance to resource poor farmers – someexamples • 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 farmers 10 rainwater tanks completed , 58 in progress in 26 villages in Limpopo, FS, KZN and EC provinces Challenges: closer alignment with local and provincial government

6. Rainwater harvesting Typical 30 cubic metre capacity rainwater tank (roof to be added) Vegetable garden

7. Authorisation of water use 254 licences issued Streamlining licensing process in progress Challenges: shortening licensing time and making application easier; ensuring BBBEE fully integrated into licences procedures • Water supplied in accordance with agreements Target achieved, but drought restrictions necessary in places • Planning Inception Report for Joint LHWP Phase II Feasibility study Scope of Work defined for Joint Feasibility Study of storage in Lower Orange River Feasibility studies completed for Mooi-Mgeni Transfer Scheme Phase II and De Hoop Dam Pre-feasibility studies completed for use of low level storage at van der Kloof Dam, and viability of irrigation schemes for resource-poor farmers in Eastern Cape

8. Water Use Efficiency Situation assessment and business plans prepared in 14 municipalities Pilot WUE and water loss studies in progress in Hermanus and Cape Town Pressure 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

9. Working for Water Targets 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 classified 34 DWAF dams inspected and safety assessed Refurbishment at 20 dams initiated • Drought relief Ongoing support to municipalities’ drought relief activities • Classification system for water resources Draft Position Paper prepared • Reserve Determinations 2 studies completed (Letaba and Inkomati); 2 80% complete (Olifants-Doorn, Kromme-Seekoei. ±180 ad hoc Reserves to facilitate licence applications)

10. Water Resource Quality Management Development of policies, strategies and guidelines on track • Permitting of waste disposal sites Arrangements for transfer of function to DEAT progressed

11. Catchment Management Agencies 3 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 Associations 2 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

12. Transfer of O&M responsibilities to WUAs Transfer process continued for Boegoeberg, Vaalharts, Sand-vet and Lower Olifants River WUAs Water Pricing Revised Water Pricing Strategy published for public comment • Collection of Revenue from Water Use Charges Target of collecting 80% of potential revenue exceeded • Catchment Management Strategies Preparation of guidelines for Catchment Management Strategies progressed but not complete • Consolidated Environmental Implementation & Management Plan Preparation in progress but not completed. Deadline extended by DEAT to 2008

13. Water Resources Monitoring Data collected from all networks. Microbial, Eutrophication and River Health networks expanded • Capacitation of Staff Staff 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 Stakeholders Stakeholders involved in consultation processes Education and awareness programmes in schools for efficient use of water

14. Shared Watercourse Institutions Establishment of Limpopo Basin Commission awaiting ratification by basin States; First Ministerial meeting for Orange-Senqu Basin Commission held. • Co-operation and Relationships Participated in AMCOW ministerial and technical meetings SADC 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 Debates Fourth World Water Forum, UNESCO Regional International Hydrological Programme – SA elected to Council • Overseas Development Assistance Assistance from EU, UK DfID, France, Belgium (Flanders), Switzerland, Norway, Ireland and China

15. 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

16. 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

17. 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

18. 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.

19. 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

20. 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