1. Briefing to Portfolio Committee on 3 rd Quarter Report – 2010/11 Nosipho Ngcaba Director-General Departmental of Environmental Affairs 25-26 January 2011

2. Presentation Outline -Departmental Expenditure per quarter for the 2010/2011 financial year -Departmental Expenditure to the third quarter of the 2010/2011 Financial Year -Reprioritizations of the Budget -Donor Funding Expenditure -MTEF Allocations and Baseline Adjustments -Challenges over the MTEF 2

3. Vote 29: Department of Environmental Affairs Revised Allocations 3 Adjusted Allocations 2010/2011R’000 Main Appropriation2 607 794 Shifting of Funds from other Departments - Department of Tourism for office Accommodation10 620 Shifting of Funds to Other Departments - Department of Agriculture, Forestry and Fisheries for fisheries function and Expended Public Works Programme’s fisheries project (141 400) Specific and Unforeseeable Economic and Financial Events - Salary and housing allowance increase 8 500 Unforeseeable and Unavoidable Expenditure - Repair of SA Agulhas engine3 000 Adjusted Appropriation2 488 514

4. Reprioritised Funds 2010/2011 for shortfalls 4 Proposed BranchR’000 EQP: Goods and Services to Compensation of Employees for new employees 15 631 Other reprioritized Compensation of Employees (including OSD of R9 m)19 700 Office Accommodation30 620 Total Reprioritization65 951

5. Expenditure for the 2009/2010 Financial Year per Programme per Quarter (Exc Tourism) ProgrammeFirst Quarter Second Quarter Third Quarter Fourth Quarter Total 1.Administration R’000 66 556 R’000 57 538 R’000 66 370 R’000 82 637 R’000 273 101 2. Environmental Quality and Protect67 94251 26572 67193 943285 821 3. Marine and Coastal Management133 237100 321271 776116 281621 615 5. Biodiversity and Conservation82 466126 12993 76584 493386 853 6. Sector Services and International Relat118 416251 966283 577469 4611 123 420 Total468 617587 219788 159846 8152 690 810 17%22%29%32% 5

6. Expenditure for the 2010/2011 Financial Year per Programme per Quarter ProgrammeFirst Quarter Second Quarter Third Quarter Total 1.Administration R’000 40 349 R’000 68 531 R’000 55 115 R’000 163 995 2. Environmental Quality and Protect73 80654 93291 586220 324 3. Oceans and Coastal Management53 01932 54325 486111 048 4. Climate Change19 095290 47439 846349 415 5. Biodiversity and Conservation91 36194 138117 564303 063 6. Sector Services and International Relat166 888170 365217 028554 281 Total444 518710 983546 6251702 126 18%29%22% 6

7. Expenditure outstanding for the last quarter 7 R’000 Transfer to Buyisa-e-Bag17 500 DPW payments for building leases and municipal services16 000 Public Entities Infrastructure: - iSimangaliso Wetland Park Authority - South African National Biodiversity Institute 8 000 Climate Change: COP 17 planning cost (awaiting invoices)4 000 SITA outstanding invoices8 500 EPWP Incentive Programme29 535 Bid Development Cost for new Departmental Building7 000 Total Expenditure outstanding98 535 Total Expenditure till 31 December 20101 702 126 Total (72%)1 800 661

8. Expenditure for the 2010/2011 Financial Year per Programme ProgrammeAdjusted Allocation Expenditure till 31/12/2010 Available Funds Remainder of Year % Spend till 31/12/2010 1. Administration R’000 270 225 R’000 163 995 R’000 106 230 % 61% 2. Environmental Quality and Protection 322 789220 324102 46568% 3. Oceans and Coastal Management 162 160111 04851 11268% 4. Climate Change 576 865349 415227 45061% 5. Biodiversity and Conservation 405 887303 063102 82475% 6. Sector Services, Environmental Awareness and International Relations 750 588554 281196 30774% Total 2 488 5141 702 126786 38868% 8

9. Programme 1: Administration Sub-programmeAdjusted Allocation Expenditure till 31/12/2010 Available Funds Remainder of Year % Spend till 31/12/2010 1.Management R’000 37 259 R’000 21 452 R’000 15 807 % 58% 2. Corporate Affairs 135 37984 32951 05062% 3. Financial Management 30 88916 49214 39753% 4. Office Accommodation 66 69841 72224 97663% Total 270 225163 995106 23061% 9

10. Expenditure Analysis: Programme 1: Administration Activity Expenditure Till 31/12/2010 o Bid Development Cost: PPP: Departmental Building R’000 8 422 o Office Accommodation41 722 o Audit Fees and Audit Committees4 062 o Domestic Travel4 351 o Foreign Travel4 253 o Communication3 919 o Venue and Facilities1 745 o Compensation of Employees58 066 o Performance Bonuses5 098 o System Support and Livelink Specialist Services4 172 o Training and Staff Development1 732 10

11. Expenditure Analysis: Programme 1: Administration (continue) Activity Expenditure till 31/12/2010 o Leases R’000 673 o Catering977 o External Computer Services3 652 o Telecommunication Equipment4 767 o Training and Staff Development1 732 o Advertising and Marketing2 672 o Inventory (stationery, printing, fuel, cleaning,2 086 o Wildlife Environmental Society (COO)4 000 o Machinery and Equipment1 778 o Other expenditure (resettlement cost, printing, courier services, security services) 4 116 Total163 995 11

12. Programme 2: Environmental Quality and Protection ProgrammeAdjusted Allocation Expenditure till 31/12/2010 Available Funds Remainder of Year % Spend till 31/12/2010 1. Environmental Quality and Protection Mng R’000 8 385 R’000 2 846 R’000 5 539 % 34% 2. Regulatory Services 25 27916 9168 36367% 3. Pollution and Waste Management 30 12122 6577 46475% 4. Environmental Impact Management 40 24027 80412 43669% 5. Air Quality Management 35 15019 44415 70655% 6. Buyisa-e-Bag 35 00017 500 50% 7. South African Weather Service 148 614113 15735 45776% Total 322 789220 324102 46568% 12

13. Expenditure Analysis: Programme 2: Environmental Quality and Protection ActivityExpenditure till 31/12/2010 o Compensation of Employees R’000 54 834 o Performance Bonuses3 298 o Domestic Travel7 128 o Foreign Travel3 386 o External Computer Services1 153 o Training and Staff Development872 o Waste Management Officers Conference6 452 o Machinery and Equipment1 167 o Environmental Management Framework Waterberg1 134 o Prixley Ka Seme Local Municipality: Development of Environmental Mng2 486 o Other expenditure ( other consultants Annexure D)6 757 Total 88 667 13

14. Programme 3: Oceans and Coastal Management Sub-programmeAdjusted Allocation Expenditure till 31/12/2010 Available Funds Remainder of Year % Spend till 31/12/2010 1.Integrated Coastal Management R’000 56 856 R’000 33 051 R’000 23 805 % 58% 2.Coastal and Oceans Assessment and Research 105 30477 99727 30774% Total162 160111 04851 11268% 14

15. Expenditure Analysis: Programme 3: Oceans and Coastal Management Activity Expenditure till 31/12/2010 o Compensation of Employees R’000 38 503 o Performance Bonuses1 534 o Travel Domestic2 858 o Travel Foreign1 368 o Marine Oil Pollution Patrol: Helicopter Services4 044 o Vessel Operational Cost50 000 o Maintenance and Repair of SA Agulhas3 886 o Research and Advisory Services1 148 o Inventory: Stationery, Protective clothing, spares,2 797 o Advertising and marketing1 020 o Maintenance and Repair: Office Accommodation528 o Other Expenditure (machinery, equipment and office supplies)3 362 Total111 048 15

16. Programme 4: Climate Change Sub-programmeAdjusted Allocation Expenditure till 31/12/2010 Available Funds Remainder of Year % Spend till 31/12/2010 1.Research and Policy Analysis R’000 9 087 R’000 6 583 R’000 2 504 % 72% 2.Antarctic and Island Research ** 567 778342 832224 94660% Total576 865349 415227 45061% 16 **Note: Included R467,308 million for the replacement of the Polar Research Vessel. Installments according to agreement will be paid in September 2010 and January 2011.

17. Expenditure Analysis: Programme 4: Climate Change Activity Expenditure till 31/12/2010 o Relief Voyages to Marion Island, Gough and Antarctica (Fuel, Groceries, Medical, Helicopter) R’000 21 393 o Manning and Operational cost for SA Agulhas38 502 o Climate Change Innovation2 226 o Compensation of Employees14 404 Total76 525 17

18. Programme 5: Biodiversity and Conservation Sub-programmeAdjusted Allocation Expenditure till 31/12/2010 Available Funds Remainder of Year % Spend till 31/12/2010 1.Biodiversity and Conservation Mng R’000 8 512 R’000 5 369 R’000 3 143 % 63% 2. Biodiversity and Heritage 21 46719 7631 70492% 3. Transfrontier Conservation and Protected Areas 34 99516 38018 61547% 4. iSimangaliso Wetland Park Authority 21 36516 0245 34175% 5. South African National Parks 176 718139 60437 11479% 6. South African National Biodiversity Institute 142 830105 92336 90774% Total 405 887303 063102 82475% 18

19. Expenditure Analysis: Programme 5: Biodiversity and Conservation Activity Expenditure till 31/12/2010 o Compensation of Employees R’000 20 896 o Performance Bonuses1 660 o Travel: Domestic3 467 o Travel: Foreign6 359 o Event Promoters1 336 o Feasibility Studies, System for Protected Areas, Biodiversity Systems2 033 o Venues and Facilities1 049 o Protected Areas feasibility study800 o Other Operational cost ( machinery, operational, printing, communication)3 912 Total41 512 19

20. Programme 6: Sector Services, Environmental Awareness and International Relations Sub-programmeAdjusted Allocation Expenditure till 31/12/2010 Available Funds Remainder of Year % Spend till 31/12/2010 1.Social Responsibility, Policy and Projects R’000 534 015 R’000 378 267 R’000 155 748 % 71% 2. International Cooperation 40 00726 08813 91965% 3. Environmental Awareness 40 41229 77210 64073% 4. Infrastructure Investment 136 154120 15416 00088% Total 750 588554 281196 30774% 20

21. Expenditure Analysis: Programme 6: Sector Services, Environmental Awareness and International Relations Activity Expenditure till 31/12/2010 o Compensation of Employees R’000 50 638 o Membership Fees2 849 o Hosting of the Green Economy4 967 o Hosting of Women and Environment Conference5 700 o GEF: International Membership Fees6 200 o Travel: Domestic9 911 o Travel: Foreign8 264 o EPWP Projects (Annexure B)334 710 o Resettlement Cost1 122 o Machinery and Equipment1 422 o System Support GIS, web based programmes,3 079 o Other Operational Cost (inventory, stationary, operating expenditure)5 265 Total434 127 21

22. Expenditure per Economic Classification ProgrammeAdjusted Allocation Expenditure till 31/12/2010 Available Funds Remainder of Year % Spend till 31/12/2010 Current Payments R’000 844 760 R’000 557 621 R’000 287 139 % 66% -Compensation -Goods and Services 332 832 511 928 248 932 308 689 83 900 203 239 75% 60% Transfers and Subsidies 1 170 475859 552310 92373% -Departmental Agencies and Projects -Foreign Governments -Non-Profit Institutions 1 118 351 9 000 43 124 829 741 6 187 23 624 288 610 2 813 19 500 74% 69% 55% Capital Assets 473 279284 953188 32658% -Machinery and Equipment -- Software 472 912 367 284 771 182 188 141 185 60% 50% Total 2 488 5141 702 126786 38868% 22

23. Expenditure per Economic Classification Current Payments ProgrammeAdjusted Allocation Expenditure till 31/12/2010 Available Funds Remainder of Year % Spend till 31/12/2010 Current Payments R’000 % -Compensation -Goods and Services 332 832 511 928 248 932 308 689 83 900 203 239 75% 60% Total 844 760557 621287 13966% 23

24. Current Expenditure till 31 December 2010 NotesExpenditure till 31/12/2010 Goods and ServicesR’000 Administrative Fees Advertising Assets less than R5 000 Audit Cost: External Bursaries employees Catering: Departmental Activities Communication Computer Services Consultants and Advisory Services (Annexure D) Operating and Manning of Research Vessels (DAFF) Entertainment Inventory (including stores for Antarctica) Operating Leases Owned and leasehold property expenditure (maintenance, pest control) Travel and Subsistence : Air Transport, Car Rental, Accommodation, Daily Allowances (Annexure A) Venues and Facilities ( Conventions, Lekgotla, 5D, Minmec, Mintec, Conferences) Training and Staff Development Other Operating Expenditure ** 365 3 132 2 399 4 062 257 1 702 6 641 5 351 78 970 55 922 91 15 298 41 018 3 884 53 329 9 547 3 486 23 445 Total308 869 24

25. Current Expenditure till 31 December 2010 NotesExpenditure till 31/12/2010 Other Operating Expenditure ** R’000 Printing and Publications International Membership Fees Resettlement Cost Air Charter Services and landing rights (Voyage to Marion Island) Courier Services Harbour Services Storage Licences 2 201 2 902 2 722 11 467 472 253 6 2 Total23 445 25

26. Transfer Payments ProgrammeAdjusted Allocation Expenditure till 31/12/2010 Available Funds Remainder of Year % Spend till 31/12/2010 Transfers and Subsidies R’000 % -Departmental Agencies and Projects -Foreign Governments -Non-Profit Institutions 1 118 351 9 000 43 124 826 491 6 187 23 624 291 860 2 813 19 500 74% 69% 55% Total 1 170 475856 302314 17373% 26

27. Transfer Payments: Departmental Agencies and Projects ProgrammeAdjusted Allocation Expenditure till 31/12/2010 Available Funds Remainder of Year % Spend till 31/12/201 0 South African Weather Service -Financial Assistance -Infrastructure Development -Modernization Programme (New radar equipment) R’000 135 915 92 500 7 654 R’000 113 157 92 500 7 654 R’000 22 758 0 % 83% 100% 27

28. Transfer Payments: Departmental Agencies and Projects ProgrammeAdjusted Allocation Expenditure till 31/12/2010 Available Funds Remainder of Year % Spend till 31/12/2010 South African National Parks -Financial Assistance -Parks Development & Establish -Road Subsidy -Kids in Parks -Marine Protected Areas -Qwa Qwa National Park -Knysna Unfunded Land R’000 112 557 22 261 12 000 1 664 16 150 5 086 5 000 R’000 89 875 17 809 9 600 1 331 12 920 4 069 4 000 R’000 22 682 4 452 2 400 333 3 230 1 017 1 000 % 80% 28

29. Transfer Payments: Departmental Agencies and Projects (continue) ProgrammeAdjusted Allocation Expenditure till 31/12/2010 Available Funds Remainder of Year % Spend till 31/12/2010 iSimangaliso Wetland Park Authority -Financial Assistance -Forestry Rehabilitation -Infrastructure Development R’000 16 365 5 000 23 000 R’000 12 274 3 750 15 000 R’000 4 091 1 250 8 000 % 75% 65% 29

30. Transfer Payments: Departmental Agencies and Projects (continue) ProgrammeAdjusted Allocation Expenditure till 31/12/2010 Available Funds Remainder of Year % Spend till 31/12/2010 South African National Biodiversity Institute -Financial Assistance -Implementation of Business Plan -Climate Change Research -Infrastructure Investment -Expansion of Botanical Gardens R’000 101 231 30 000 10 000 3 000 R’000 75 923 22 500 7 500 2 000 3 000 R’000 25 308 7 500 2 500 8 000 0 % 75% 20% 100% Council for Scientific and Industrial Research1000 0% Projects492 570334 710157 86069% Total1 118 351826 491291 86074% 30

31. Transfer Payments: Projects and Expanded Public Works Programme ProgrammeAdjusted Allocation Expenditure till 31/12/2010 Available Funds Remainder of Year % Spend till 31/12/2010 Expanded Public Works Programme: Incentives R’000 65 365 R’000 19 499 R’000 45 866 %% Expanded Public Works Programme (Annexure B) -Sustainable Land Base Livelihoods -Working on Waste -Working for the Coast -Training Programme -People and Parks 427 205 140 526 73 853 46 646 6 714 47 472 111 99474% Total492 570334 710157 86069% 31

32. Transfer Payments: Foreign Governments and International institutions ProgrammeAdjusted Allocation Expenditure till 31/12/2010 Available Funds Remainder of Year % Spend till 31/12/2010 Global Environmental Fund R’000 9 000 R’000 6 187 R’000 2 813 % 0% Total 9 0006 1872 8130% 32 First installment was paid to GEF in first quarter. Payment for final installment (R2.8 million) will be paid in March 2011.

33. Transfer Payments: Non-Profit Institutions ProgrammeAdjusted Allocation Expenditure till 31 December 2010 Available Funds Remainder of Year % Spend till 31/12/201 0 Buyisa-e-Bag * R’000 35 000 R’000 17 500 R’000 17 500 % 50% National Association for Clean Air 1 000 0100% Kwa-Zulu Natal Conservation Board: Maloti 1 124 0100% African World Heritage Fund 2 0000 0% World Wildlife Society of South Africa (WESSA)*** 4 000 0100% Total 43 12423 62419 50013% 33 Buyisa-e-Bag: Final payment to be determined through commitments provided to the Department.

34. Payment for Capital Assets ProgrammeAdjusted Allocation Expenditure till 31 December 2010 Available Funds Remainder of Year % Spend till 31 December 2010 Capital Assets R’000 % -Machinery and Equipment** -Software 472 912 367 284 771 182 188 326 185 60% 50% Total 473 279284 953188 32658% 34 **Note: Included R467,308 million for the replacement of the Polar Research Vessel. Further Installment will be made during January 2011.

35. Payment of Capital Assets NotesExpenditure First Quarter Expenditure Second Quarter Expenditure Third Quarter Total Expenditure till 31/12/2010 Machinery and Equipment R’000 Computer Equipment Fixed Air Conditioner Furniture and Office Equipm Gardening Equipment Kitchen Appliances Photographic Equipment Lifting and handling Equipment Medical & Alied Equipment Tents and Flags Audio Visual Equipment Telecommunication Equipment Ship and Marine Equipment (Replacement Polar Vessel) 655 46 9 0 46 0 476 0 416 20 48 0 106 0 91 4 359 269 445 2 618 12 1 979 0 19 246 194 33 5 501 3 432 3 749 58 2 404 20 48 65 246 300 33 96 4 860 272 877 Total776274 9419 039284 756 35

36. Foreign Aid Assistance 2010/2011 Name of Donor Country PurposeFunds Available Expenditure till 31/12/2010 UNEP2 nd National Communication for Convention and Climate Change R’000 1 133 R’000 997 UNEP *Hazardous Materials Management Programme6540 UNEP *National Roundtable on Sustainable Consumption and Reduction3170 Denmark *Environmental Capacity Building Programme168 Denmark *National Waste Management Strategy Programme 12880 Denmark *National Air Quality Project6300 36 * Limited funds available as projects will end during the current financial year.

37. Foreign Aid Assistance 2010/2011 (continue) Name of Donor Country PurposeFunds Available Expenditure till 31/12/2010 DenmarkUrban Environmental Management Programme R’000 18 722 R’000 11 730 LesothoProgramme and Institutional Support for African Institute for the Environmentally Sound Management and Hazardous and other Wastes 144 MauritiusProgramme and Institutional Support for African Institute for the Environmentally Sound Management and Hazardous and other Wastes 154 World BankAfrican Stockpile Programme(694)26 NorwayEnvironmental Co-operation Programme10 7718 312 Total32 12721 611 37

38. Transfer to Projects 2010/11 InstitutionsExpenditure Sustainable Land Base Livelihoods 160,605,673 Working on Waste 45,487,130 Working for the Coast 53,877,065 People and Parks 59,766,535 Beneficiary Training 14,973,561 TOTAL 334,709,968 38 For details refer Annexure B

42. Projects Performance April 2010 – December 2010 IndicatorPerformance Number of accredited person training days created 12 676 Number of Full Time Equivalents (FTE) created 6 642 Number of new Work Opportunities created 15 742 Number of SMMEs used (empowerment) 138 Number of youth benefiting from the NYS 541 42

43. Baseline –MTEF 2011/12-2013/14 2011/122012/132013/14 Departmental Baseline Additional Funds Allocated to Baseline -Compensation of employees adjustment (Baseline) -Expanded Public Works Programme: Expansion -Combating Wildlife Trafficking and Improved conditions of Service -Isimangaliso : Infrastructure and operational costs - Improve Oil Spill response capability -Combating environmental crime -COP 17* Adjustments to Baseline -Replacement of Polar Vessels ends 2012/13 -Replacing SA Agulhas Research Vessel -Non-core goods and services* -Further savings effected by Cabinet* CARRY THROUGH COSTS OF FUNDS SHIFTED IN 2010/11 DAFF (Compensation, operational and fisheries projects) R’000 2,817,536 297,945 76,969 - 16,800 - 4,176 - *200,000 (85,422) - *(76,969) *(8,453) (197,375) R’000 3,058,729 146,011 78,602 30,000 22,100 - 3,606 1,703 - (615,128) - (527,350) (78,602) (9,176) (203,653) R’000 3,226,959 186,657 84,170 30,000 22,600 30,000 7,782 1,805 - (647,747) (555,563) - (84,170) (8,014) (139,722) 2010 MTEF A L LOCATIONS (to be included in 2010 ENE)2,832,6842,385,9592,625,847 For details refer Annexure C

44. Allocation of cuts from Operations 2011/122012/132013/14 - Cut from goods and services* Allocations Correction of Compensation Baseline Provision for Critical Posts SANBI- Compensation and Operations iSimangaliso – Compensation and Operations Ocean and Coasts - Accommodation -Further cuts effected by Cabinet* Buyisa e Bag Ministry Allocation Women & Environment TOTAL R’000 (76,969) 46,049 12,000 13,000 3,500 2,420 (8,453) (5,000) (3,453) - (85,422) R’000 (78,602) 48,561 12,600 11,375 3,550 2,516 (9,176) (5,000) 824 (5,000) (87,778) R’000 (84,170) 52,236 13,230 11,833 3,859 3,012 (8 014) (5,000) 2 291 (5,305) (92,184)

45. Challenges over the MTEF -Decrease in Baseline for Use of Goods and Services: Main areas: Vessel Operating costs Accommodation Municipal Services Funding of New building Green Economy and Environmental Awareness, Events and projects -Decreasing Donor funding -Funding of Entities infrastructure developments, operations and deficits