1. MASIBAMBANE III 2007/8-2011/12 NATIONAL WATER SECTOR PROGRAMME Theme - Water for Growth & Development Workshop for the orientation of newly appointed Masibambane Coordinators Tropicana Hotel Durban 5-6 March 2007 Kalinga Pelpola Director: Water Services Support and Programme Manager: Masibambane Water Sector Support Programme

2. CONTENTS 1.What is MSB III NWSProgramme & Framework 2.MSB III Framework aligned to Strategic Targets 3.MSB III Roadmap and Timeframe 4.GAP Analysis – Quadrant 1 5.GAP Analysis – Quadrant 2 6.Backlog Studies 7.Equitable Share Analysis

3. MSB III NATIONAL WATER SECTOR PROGRAMME Why do we need a NWSP? –The Sector Wide Approach implemented in the Water Services sector through Masibambane illustrated the benefits of ONE Strategy, ONE Work Plan and ONE Reporting System –Initially the NWSP was prepared to apply for additional funds from National Treasury for the Water Services sector –It consists of National Water Sector Implementation Strategy- Part 1 Financial Analysis & Work Plan – Part 2 –The purpose of preparing the NWSP Extend SWAP approach to include Water Resources Sector Define an integrated strategy for all water sector stakeholders Plan & prioritize activities over multi year periods Align activities and budget to strategy ID areas where planned strategic objectives can not be met and initiate interventions Serve as benchmark to monitor & evaluate progress

4. MSB III National Water Sector Programme-What is it ? Part 1- National Water Sector Implementation Strategy Part 2- Work Plan & Financial Delegation –Consist of a Financial Delegation delegating the responsibilities for DWAF funds included in Quadrant 1 to all levels of management by DDG:R –A Work Plan focusing on the first financial year of the 5-year NWSP aligned to Medium Term Strategic Objectives (MTSO) Water Services – SFWS Water Resources – NWRS DWAF Strategic Plan – KFA Sector Budget 2007/08-2009/10 per Province How does it differ from the NWSP & PWSP’s? –NWSP provide the strategic direction for the entire Water Sector for the next 5 years and is a consolidation of the 9 PWSP’s and Strategic Plans of National Sector Stakeholders –FD & Work Plan only focus on ‘year to year’ delegations included in the NWSProgramme

5. FRAMEWORK FOR NWSP and FD & WP

6. MSB III FRAMEWORK ALIGNMENT OF FUNDING TO SFWS TARGETS

7. TIMELINE OF THE NWSP 2007/08 to 2011/12 08/200503/2006 Obtain approval from Sector SH to negotiate for MSB III Start negotiate with donors to secure MSB III Define principles for MSB III (SH approval) Prepare NWSP submission to NT (SH approval) Water Services Water Services & Water Resources 09/200612/2006 Prepare PWSP with input from SH Prepare NWSP with input from meeting WSSCC 02/2007 Prepare TAT to draft MSB III agreement 08/2007 Approve & Sign MSB III agreement

8. Quadrant View of National Water Sector Programme 1 2 3 4 DWAF: Water Sector Specific Water Sector Support -DWAF -Donor Funds Programme 3: Water Services Non-DWAF: Water Sector Specific MIG Education Health Housing Cities Network Equitable Share DWAF: Water Resource Specific Programme 2: Water Resources - WR Interfaces - Water Quality - Water Demand Mngmt - Water Conservation Non-DWAF: Non-Water Sector Specific Capacity Building Grants - LG FM Grant (NT) - LG Restructuring (NT) - MSIG (LG)

9. PROCESS LINKAGE BETWEEN NWSP AND FD & WP 5 year National Water Sector Programme 2007/20082008/20092009/20102010/20112011/2012 Financial Delegation & Work Plan 2007/08 Quadrant1 DWAF: WS Specific – Programme 3 Quadrant 2 Non-DWAF WS Specific Quadrant3 DWAF: WR Specific Programme 2 Quadrant 4 Non-DWAF Non WS Specific Funds are Regulated by Financial Delegation approved by DDG: Regions in accordance with PFMA Q2 and Q4 are not covered by the Financial Delegation. These funds are regulated by the DoRA, PFMA and MFMA

10. ALIGNMENT OF OBJECTIVES IN THE WATER SECTOR Cabinet MTSO’s (6) SFWS (19) Water Sector Stakeholders Water Resources NWRS (9) Water Services DWAF – 9 Regions SALGA DWAF - National - Regulations - Regulations - Communications - Communications - Sanitation - Sanitation - IGR (Sector Support Strategy) - IGR (Sector Support Strategy) - Institutional Reform Strategy - Institutional Reform Strategy - Integrated Planning - Integrated Planning - Africa Participation Plan - Africa Participation Plan dplg (MIG incl.) - LG Strategic Agenda - LG Strategic Agenda - LG Support Plan - LG Support Plan DOE DOH Civil Society WIN Cross Cutting - Gender - Gender - Environmental - Environmental - Appropriate Technology - Appropriate Technology - HIV Aids - HIV Aids Water Resources - Water Conservation - Water Conservation - Demand Management - Demand Management - Water Allocation Reform - Water Allocation Reform Water for Growth & Development – Main Theme Private Sector Involvement ESETA SAAWU National Treasury

11. Jan Feb March April May June July Aug Sept Oct Nov Dec 08/10 08/11 ` National Prov Local Government Macro Planning Framework PoA 07 and broad MTSF 08/11 ideas Preparation of PoA 08 Yearly Reports to Presidency 07 and 08 Local Govt planning 08/11 Medium Term BPS 08/11 MTEC Hearings for 08/11 SoNA/ Prov Address 2007 Budget Speech 07/08 Local Govt finalise budget 07/08 Local Govt commences with IDP 08/11 Draft MTSF 08/11 Local Govt PoA & budget 07/08 MTSF 08/11 adopted

12. NATIONAL WATER SECTOR WORK PROGRAMME 1.The National Water Sector Programme (NWSP) reflects Water Services & Water Resources strategy needed for the next 5 years (2007/08 - 2011/12) 2.The National WSP consists of information consolidated from : 9 Provincial Water Sector Plan DWAF Head Office plan with all directorates supporting various stakeholders dplg SALGA Civil Society Cross Cutting Elements

13. The National WSP incorporates and supports the sector strategy which consists of: –Strategic Framework for Water Services – SFWS (2003 – 2013) –DWAF Strategic Plan (5 years) –dplg Strategic Plan (5 years) –Local Government Support Strategy (5 years) –SALGA Support Strategy (3-5 years) Purpose of National WSP –To incorporate WS Strategy of all stakeholders –To determine the WS need for resources –To identify any gaps in allocation of budgets –To align budget to all strategic priorities NATIONAL WATER SECTOR WORK PROGRAMME (cont…)

14. GAP ANALYSIS QUADRANT 1 – DWAF SPECIFIC 2007/20082008/20092009/20102010/20112011/2012Total Management Support Overheads 72,841,349 73,878,251 74,929,914 75,996,547 77,078,363 374,724,424 Donor Funding ¹ - - - - - - - Departmental Baseline 148,022,640 156,903,998 166,318,238 176,297,333 186,875,173 834,417,382 - Prof & Spec 141,995,480 150,515,219 159,546,121 169,118,889 179,266,022 800,441,731 Funds available to DWAF: Water Services Specific (Excluding Water Ops Subsidy) 362,859,469 381,297,469 400,794,273 421,412,768 443,219,558 2,009,583,537 Funds required by DWAF (Refer to DWAF Requirements) 703,485,934 775,592,823 805,322,621 804,465,403 832,805,708 3,921,672,488 Shortfall(340,626,465)(394,295,354)(404,528,347)(383,052,635)(389,586,150)(1,912,088,952) ¹ - Donor funds are not yet contractually committed

15. GAP ANALYSIS QUADRANT 2 – NON DWAF WATER SERVICES SPECIFIC - According to the MIG: Registered Projects database at 30 June 2006 Water & Sanitation projects represented 61% of total. According to the MIG Database of all registered MIG Projects 21,4% are Sanitation Infrastructure projects including Bucket Eradication projects and 39.6% is Water. After 2008 the funds available for Water is eliminated and Sanitation after 2010. ² - The percentage in brackets is the estimated benefit that will accrue to the Water Sector. ³ - Only includes budget information received from Ethekwini Metropolitan. 4 - WS Operating Subsidy was included in this table with Non-DWAF as it relates to infrastructure operate and maintenance. 2007/082008/092009/102010/112011/12Total Municipal Infrastructure Grant - ² 3,994,624,040 4,912,384,900 1,723,361,000 1,826,762,660 1,936,368,419 14,393,501,019 Eradication of Bucket Sanitation 600,000,000 - - - - Hospital Revitalisation Grant (5%) ² 85,350,000 99,150,000 105,099,000 111,404,940 118,089,236 519,093,176 Integrated Housing and Human Settlement Dev Grant (10%) ² 793,800,000 872,100,000 924,426,000 979,891,560 1,038,685,054 4,608,902,614 Provincial Infrastructure Grant (5%) ² 266,200,000 284,850,000 301,941,000 320,057,460 339,260,9081,512,309,368 Cities Network ³ 271,000,000 314,000,000 239,000,000 179,000,000 1,182,000,000 Equitable Share (35%) ²4,015,124,0004,554,953,4004,782,701,070 5,021,836,124 5,272,927,93023,647,542,523 Water Services Operating Subsidy 4 1,040,025,0001,130,507,0001,198,337,420 1,270,237,665 1,346,451,925 5,985,559,010 Funds available Quadrant 2: Non-DWAF Water Services Specific 11,066,123,040 12,167,945,300 9,274,865,490 9,709,190,409 10,230,783,471 52,448,907,710 Funds required by DWAF (Refer to DWAF Requirements) 14,683,390,414 15,417,159,649 12,309,689,705 12,728,176,030 9,227,623,472 64,366,039,270 Shortfall(3,617,267,374)(3,249,214,349)(3,034,824,215)(3,018,985,622)1,003,160,000(11,917,131,560)

16. QUADRANT 3 & 4 GAP ANALYSIS Currently Quadrant 3 only consist of –Drought Relief –Integrated Water Resource Management Quadrant 3 requires further development in the future Included in Quadrant 4 are the Capacity Building grants: –LG Financial Management Grant (National Treasury) –Municipal Systems Improvement Grant (dplg) –LG Restructuring Grant (National Treasury)

17. EQUITABLE SHARE ALLOCATION TO MAINTAIN “NEW INFRASTRUCTURE” FOR WATER AND SANITATION SERVICES

18. THE END

19. CHALLENGES Taking the theme Water for Growth & Development forward- addressing poverty Priorities in the SONA Priorities in the Minister’s Programme (Internal & External) Moving from WS to WR interface Improve Programme & Financial Management Strengthen M&E Support NEPAD & SADC and emerging democracies Collaboration & knowledge sharing are the strength