1. PRESENTATION TITLE Presented by: Name Surname Directorate Date WATER RESEARCH COMMISSION ANNUAL PERFORMANCE PLAN PRESENTATION 2015/16 Presented by: Dhesigen Naidoo Chief Executive Officer Water Research Commission 29 April 2015 1

2. STRATEGIC OUTCOME-ORIENTED GOALS OF THE INSTITUTION WRC Annual Performance Plan 2015/16 Contributing towards achieving Government Outcomes and NDP objectives:  Inform policy and decision-making  Develop new products and services for economic development  Enhance human capital development (HCD) in the water and science sectors  Empower communities  Promote transformation and redress  Drive sustainable development solutions Alignment with Department of Water and Sanitation strategic objectives:  An efficient, effective and development oriented sector leader  Equitable and sustainable water and sanitation services  Protection of water across the value chain STRATEGIC OBJECTIVES 2

3. WRC Annual Performance Plan 2015/16 PERFORMANCE INDICATORS ObjectiveIndicator Target 2014/15 Target 2015/16 To enhance knowledge through new research The number of new research projects initiated in the 2015/16 financial year 9581 To complete and finalise research projects scheduled in the financial year The number of research projects completed in the 2015/16 financial year 7085 To continuously accommodate students as active participants in WRC projects The minimum number of students supported on WRC-funded research projects 400500 To increase emphasis on projects that have a direct impact on the lives and livelihoods of communities through water-related interventions and build sufficient capacity to assist with the post-project sustainability of those interventions The number of community based research projects initiated in the 2015/16 financial year. 20 9 To enhance economic development in communities by supporting small, medium and micro enterprises (SMMEs) in the water research and development sector The number of SMMEs as lead organisations in the research projects initiated in the 2015/16 financial year 2619 To focus on growing the involvement of previously disadvantaged individuals by increasing the number of project leaders from the designated groups The number of project leaders from the designated group in research projects initiated in the 2015/16 financial year 5045 Number of projects initiated in the 2015/16 financial year with Historically Disadvantaged Institutions as participating organisations in WRC projects 6018 3

4. WRC Annual Performance Plan 2015/16 PERFORMANCE INDICATORS ObjectiveIndicator Target 2014/15 Target 2015/16 To increase the number of new innovations/products and services produced from WRC research The number of new innovations/products and services produced from WRC research in the 2015/16 financial year The number of new innovations, products and services that have been implemented/ demonstrated /piloted in the 2015/16 financial year 20 Indicator not measured in 2012/13 19 11 To ensure that the WRC increasingly contributes to sustainable solutions for the water sector by creating knowledge products and events that disseminate knowledge produced from WRC research The number of dialogues held in the 2015/16 financial year Included in the workshop indicator 15 The number of manuals and guidelines published in the 2015/16 financial year 1826 The number of issues of the Water Wheel published in the 2015/16 financial year 66 The number of issues of Water SA published in the 2015/16 financial year 44 The number of conferences/workshops/summits held in partnership with other organisations or exclusively by the WRC in the 2015/16 financial year 2519 To support policy- and decision-makers with research- based knowledge The number of policy briefs produced and distributed to relevant Government departments and other entities in the 2015/16 financial year 1012 The number of ministerial briefs produced by the WRC and received by the Minister's Office in the 2015/16 financial year 1012 The number of WIN-SA publications produced and distributed to relevant institutions and municipalities in the 2015/16 financial year 1830 4

5. WRC Annual Performance Plan 2015/16 BASELINE BUDGET FOR 2014/15 AND BUDGET ALLOCATION 2015/16 BUDGET YEAR DESCRIPTION Baseline 2014/15 (R) 2015/16 (R) Levies184 491 671194 798 304 Interest Received5 610 0005 722 200 Leverage75 409 83792 318 690 Other572 359587 710 Transfer of Unspent Committed Project Funds 14 297 48317 907 147 TOTAL INCOME280,381 350311,334 051 Fixed Costs4 544 5994 741 855 Running Costs9 877 59910 364 127 Human Resource Costs46 496 81953 784 247 Research & Development Funding213 256 167238 270 576 Corporate Expenditure2 630 6992 761 155 Capital Expenditure3 575 4681 412 091 TOTAL EXPENDITURE280 381 350311 334 051 5

6. WRC Annual Performance Plan 2015/16 EXPENDITURE FOCUS 2015/16 WATER RESOURCE MANAGEMENT KSA1 (R) WATER LINKED ECOSYSTEM KSA2 (R) WATER USE AND WASTE MANAGEMENT KSA3 (R) WATER UTILIZATION IN AGRICULTURE KSA4 (R) KNOWLEDGE DISSEMINATION KSA5 (R) EMPOWERMENT FUND (R) OTHER LEVERAGE FUNDED PROJECTS (R) TOTAL (R) 2014/15 Baseline 45 055 33624 692 19247 826 62135 235 3269 320 8282 300 00048 825 863213 256 166 2015/1648 785 32026 880 33850 216 35037 446 1977 796 2212 700 00064 446 151238 270 577 6

7. WRC Annual Performance Plan 2015/16 EMPLOYMENT CREATED 2014/15 AND 2015/16 2014/15:  11 Existing Positions – 11 Vacant, 9 Filled.  5 New Positions created. 2015/16:  14 New Positions created – 1 Filled 7

8. THANK-YOU 8

9. PRESENTATION TITLE Presented by: Name Surname Directorate Date TCTA PRESENTED BY: JAMES NDLOVU CEO DATE: 29 APRIL 2015 9

10. Sub Header Project Predetermined Objectives for the Financial Year Projected Progress as of 31 March 2015 Medium Term Targets Planned milestones for 2015/16 Planned milestones for 2016/17 Planned milestones for 2076/18 and Beyond Lesotho Highlands Water Project: To fulfil all the Republic’s financial obligations in terms of or resulting from the Treaty Manage the funding and debt on the infrastructure projects, in the Vaal River System, in a manner that achieves cost-effective funding, taking into account current and projected market conditions as well as managing risks Outstanding debt of R19 560 million A debt increase of R1 270 million resulting in a projected outstanding debt of R20 830 million Projected outstanding debt as of 31 March 2017 R23 678 million Projected outstanding debt as of 31 March 2018 R27 118 million Debt repayment 2040 Advisory Services to Water Management Institutions, Water Boards and DWA Participation in the Key Water Sector initiatives, which are focused on the sustainability of the water sector Strategic stakeholder engagements with:  DWS  Sedibeng Water  Harry Gwala Municipality  Umgeni Water Strategic stakeholder engagements with 5 water sector institutions Berg Water Project Manage the funding and debt on the infrastructure projects in a manner that achieves cost-effective funding, taking into account current and projected market conditions as well as managing risks Outstanding debt of R949 million A debt reduction of R52 million resulting in an outstanding gross debt of R949 million Projected outstanding debt as of 31 March 2017 R890 million Projected outstanding debt as of 31 March 2018 R829 million Debt repayment 31 March 2029 10

11. Sub Header Project Predetermined Objectives for the Financial Year Projected Progress as of 31 March 2015 Medium Term Targets Planned milestones for 2015/16 Planned milestones for 2016/17 Planned milestones for 2076/18 and Beyond Lesotho Highlands Water Project: To fulfil all the Republic’s financial obligations in terms of or resulting from the Treaty Manage the funding and debt on the infrastructure projects, in the Vaal River System, in a manner that achieves cost-effective funding, taking into account current and projected market conditions as well as managing risks Outstanding debt of R19 560 million A debt increase of R1 270 million resulting in a projected outstanding debt of R20 830 million Projected outstanding debt as of 31 March 2017 R23 678 million Projected outstanding debt as of 31 March 2018 R27 118 million Debt repayment 2040 Advisory Services to Water Management Institutions, Water Boards and DWA Participation in the Key Water Sector initiatives, which are focused on the sustainability of the water sector Strategic stakeholder engagements with:  DWS  Sedibeng Water  Harry Gwala Municipality  Umgeni Water Strategic stakeholder engagements with 5 water sector institutions Berg Water Project Manage the funding and debt on the infrastructure projects in a manner that achieves cost-effective funding, taking into account current and projected market conditions as well as managing risks Outstanding debt of R949 million A debt reduction of R52 million resulting in an outstanding gross debt of R949 million Projected outstanding debt as of 31 March 2017 R890 million Projected outstanding debt as of 31 March 2018 R829 million Debt repayment 31 March 2029 11

12. Sub Header Project Predetermined Objectives for the Financial Year Projected Progress as of 31 March 2015 Medium Term Targets Planned milestones for 2015/16 Planned milestones for 2016/17 Planned milestones for 2076/18 and Beyond Olifants River Water Resources Development Project (Phase 2C) Construct infrastructure on time, within budget, to the appropriate standards and in a sustainable socio/environmental manner 39 km out of 40 km pipeline laid Water delivery for full Phase 2C: Nov 2015 Completion of defects liability period in Nov 2016 Komati Water Scheme Augmentation Project: Pump station and Pipeline Manage the funding and debt on the infrastructure projects in a manner that achieves cost- effective funding, taking into account current and projected market conditions as well as managing risks Outstanding debt of R1 183 million A debt reduction of R58 million resulting in an outstanding gross debt of R1 125 million Projected outstanding debt as of 31 March 2017 R 1 061 million Projected outstanding debt as of 31 March 2018 R981 million Debt repayment 2033 12

13. Sub Header Project Predetermined Objectives for the Financial Year Projected Progress as of 31 March 2015 Medium Term Targets Planned milestones for 2015/16 Planned milestones for 2016/17 Planned milestones for 2076/18 and Beyond Mokolo and Crocodile River (West) Water Augmentation Project: Pump Station and Pipeline Manage the funding and debt on the infrastructure projects in a manner that achieves cost-effective funding, taking into account current and projected market conditions as well as managing risks Outstanding debt of R1 040 million A debt increase of R263 million resulting in an outstanding gross debt of R1 303 million Projected outstanding debt as of 31 March 2017 R 1 348 million Projected outstanding debt as of 31 March 2018 R 1 337 million Debt repayment 2033  Phase 1 Augmentation of existing Scheme Construct infrastructure on time, within budget, to the appropriate standards and in a sustainable socio/environmental manner Ready for trial operation Ready for Operation: Nov 2015 Completion of defects liability period Refurbishment of existing pipeline Design and specification finalisation: April 2015 Award of construction contract November 2015 Re-commissioning of pipeline November 2016 Completion of defects liability period November 2017 13

14. Sub Header Project Predetermined Objectives for the Financial Year Projected Progress as of 31 March 2015 Medium Term Targets Planned milestones for 2015/16 Planned milestones for 2016/17 Planned milestones for 2076/18 and Beyond Acid Mine Drainage: Pump Stations and Treatment Plant  Western Basin Acid mine drainage is treated to the correct standard before discharge to the environment Discharge of effluent in accordance with standards set in directive  Central Basin Acid mine drainage is treated to the correct standard before discharge to the environment Declared operational Dec 2014 Discharge of effluent in accordance with standards set in directive Completion of defects liability period Dec 2015  Eastern Basin Construct infrastructure on time, within budget, to the appropriate standards and in a sustainable socio/environmental manner 15% complete Ready for operation in Jan 2016 Completion of defects liability period Jan 2017 14

15. Capital Expenditure:  TCTA strategy recognises the role in transforming our economy, by implementing quality, affordable infrastructure.  Based on the identified infrastructure projects which we have been directed to implement.  Includes MCWAP2.  Excludes potential projects 15

16. Capital Expenditure:  TCTA strategy recognises the role in transforming our economy, by implementing quality, affordable infrastructure.  Based on the identified infrastructure projects which we have been directed to implement.  Includes MCWAP2.  Excludes potential projects 16

17. 17  Where the major construction and engineering contracts have been awarded the cost projections are based on the most recent financial reviews conducted by the contractor and engineer.  Escalation assumptions, potential variation orders and claims to the completion of the respective contracts also projected in the reviews.

18.  Capital Expenditure R2 667m Increased activity on the new mandates received viz. LHWP2 and MCWAP2. Whilst BWP and VRESAP are in close out phase, MMTS and KWSAP are entering the final phases of construction. Work on ORWRDP and MCWAP continues. Capex per projectBudget 2015/16 R’mil BWP 3,15 ORWRDP 363,97 VRESAP 0,73 MMTS2 106,81 KWSAP 8,83 MCWAP 346,18 AMD (short term) 775,48 LHWP2 795,29 MCWAP2 277,04 Total 2 677,48 18

19.  Directly Controllable Expenditure R356m Increased running costs resulting directly from increased project activity.  Indirectly Controllable Expenditure R1 258m Variable royalties increase based on Eskom selling price increase, and O&M costs for LHWP and AMD increase.  Tariff Billing R4 370m Billing for MCWAP commences, increases based on inflation and estimated volumes for most projects with the exception of LHWP which decreases due to a change in the tariff methodology.  Funding Requirement R3 985m To meet expected capital expenditure, running expenditure and finance charges. 19

20. Budget 2014/15 Budget 2015/16 Capital Expenditure 3 639 2 677 Tariff Billing ( 4 893) ( 4 752) Running Expenditure 1 4571 625 Funding Requirement 3 985 4 370 20

21. Employment group OriginGender LocalElse-whereFemaleMale Total Dec-14Mar -14 Unskilled112812249061129883 Semi-skilled94572811215611663946 Other (skilled & staff)8236877373450480 Total 32422309 Note TCTA reports on the number of people employed on site at the end of each reporting period 21

22. THANK-YOU 22