1. Presentation to the Portfolio Committee: Water and Environmental Affairs Presentation by Department of Water Affairs 30 – 31 March 2011 Budget allocation for the 2011/12 medium term

2. Contents Medium term budget allocations : from 2011/12 to 2013/14 Break down per programme and economic classification. Bids submitted to National Treasury and allocations received Earmarked vs. un-earmarked amounts 2

3. MEDIUM TERM BUDGET ALLOCATIONS FROM 2011/12 TO 2013/14 PART 1

4. Overview of medium term budget allocations Description2011/122012/132013/14 R 000 Indicative figures received 9,090,2079,628,23210,157,785 Plus: Additional Funds allocated to Baseline (details on slide 5) 1,006,5911,260,390984,193 Plus: Additional Funds allocated to Conditional Grants: Local Government (details on slide 6) 630,794 Minus: Adjustments to baseline (details on slide 7) (791,367)(657,135)(258,502) Total medium term allocation9,936,22510,231,48710,883,476 4

5. Additional Funds allocated to Baseline Description2011/122012/132013/14 R 000 De Hoop Dam: Phases 2c-G construction230,325200,000150,000 Regional Bulk Infrastructure Grant100,000384,000468,000 Nandoni Pipeline: construction203,000317,0000 Regulations Branch: Establishment87,00093,00098,000 De Hoop Dam: Phase 2A245,00000 Improved Condition of Service40,20039,90041,300 Acid Mine Drainage75,000150,0000 Review of regulatory and pricing strategy7,0667,4907,893 Harties Water Quality Programme050,0000 De Hoop Dam: Bulk Distribution00200,000 Prevention and Mitigation of Disaster Risks19,000 TOTAL1,006,5911,260,390984,193 5

6. Additional funds allocated to conditional grants: Local Government Description2011/122012/132013/14 R 000 Water Services Operating Subsidy180,794 Drought Relief Grant450,00000 TOTAL630,79400 6

7. Adjustments to baseline Description2011/122012/132013/14 R 000 Minus: Adjustments to baseline including(791,367)(657,135)(258,502) Efficiency savings: CoE(131,639)(118,395)(122,935) Efficiency savings: Goods and Services(116,806)(129,219)(138,304) Efficiency savings: Capital Infrastructure Projects (343,900)(415,000) Further cut effected by Cabinet(27,271)(28,885)(30,473) Budget increase EPWP: WoF22,90636,64137,958 Budget decrease EPWP: WfW(13,863)(2,277)(4,748) Decrease Indirect Grant: Water Services Subsidy(180,794) 7

8. DETAILED MEDIUM TERM BUDGET ALLOCATIONS PER PROGRAMME PART 2

9. Overview of budget allocation per programme Programme2010/112011/122012/132013/14 R 000 Administration939,739862,122888,117930,983 Water Sector Management446,906718,726797,953685,212 Water Infrastructure Management2,238,2322,607,9632,658,0703,039,102 Regional Implementation and Support4,364,3965,608,9335,743,8396,078,509 Water Sector Regulation203,139112,370116,097121,792 International Water Cooperation10,78126,11127,41127,878 TOTAL8,203,1939,936,22510,231,48710,883,476 9

10. Overview of budget allocation per economic classification Item description2010/112011/122012/132013/14 R 000 Current Payments3,727,5984,005,1574,586,0234,619,305 Compensation of employees1,147,2771,195,4221,272,4151,348,769 Goods and Services2,580,3212,809,7353,313,6083,270,536 Transfers and subsidies3,356,6653,767,1533,336,6703,758,070 Provinces and municipalities1,038,5281,011,515399,764421,751 Departmental agencies and entities2,059,3282,503,5422,525,8452,899,366 Public corporations4,127 Non profit Institutions476 Households73,90059,596218,436233,764 Foreign governments and organisations180,306180,600180,625190,529 Universities and non-profit organization 11,90012,00012,660 Payments for capital assets1,118,9302,163,9152,308,7942,506,101 Buildings and other fixed assets1,033,8342,088,5642,229,3772,422,506 Machinery and equipment72,52060,64663,95267,320 Biological Assets229 Land and sub-soil assets56 Software and intangibles12,29114,70515,46516,275 TOTAL8,203,1939,936,22510,231,48710,883,476 10

11. Programme 1: Administration budget allocation Item description2010/112011/122012/132013/14 R 000 Ministry35,51225,67326,63228,079 Departmental Management (DG's Office)142,25192,19488,87393,599 Internal Audit26,11317,08017,93218,918 Corporate Services399,102358,241375,135394,710 Financial Management175,577165,342159,737164,650 Office Accommodation161,184203,592219,808231,027 Total939,739862,122888,117930,983 Including the efficiency savings-139,690-140,293-152,139 Including the additional allocation (salary adjustment) 10,45210,77311,151 11

12. Programme 2: Water Sector Management Item description2010/112011/122012/132013/14 R 000 Policy and Planning Management and Support 3,7385,4815,8106,130 Integrated Planning160,491233,292315,137177,951 Policy and Strategy38,16045,64947,28048,538 Water Ecosystem29,80539,58342,00744,010 Water Information Management174,483198,221209,268218,703 Institutional Oversight40,229196,500178,451189,880 Total446,906718,726797,953685,212 Including the efficiency savings Including the additional allocation (salary adjustment) -25,349-26,062-27,937 12

13. Programme 3: Water Infrastructure Management Item description2010/112011/122012/132013/14 R 000 Infrastructure Dev. and Rehab.2,098,2112,440,8262,482,5772,853,957 Operation of Water Resources140,021167,137175,493185,145 Total2,238,2322,607,9632,658,0703,039,102 Including the efficiency savings -343,900-415,000 Including the additional allocation (salary adjustment) 678,325517,000350,000 13

14. Programme 4: Regional Implementation and Support Item description2010/112011/122012/132013/14 R 000 Regional Management and Support10,0549,2049,75610,293 Sector Support and Intergovernmental Relations 1,143,6221,182,293826,399821,396 Institutional Establishment010 Regional Programme Coordination9199551,0031,059 Natural Resource Management912,1961,269,5271,405,8501,480,153 Regional Bulk893,0001,775,3402,233,1072,418,808 Transfer of Water Schemes880,320685,740720,004759,604 Support Services332,343341,255363,731385,541 Water Services Projects191,942344,519183,889201,555 Integrated Catchments Management090 Total4,364,3965,608,9335,743,8396,078,509 Including the efficiency savings113,700102,325105,699 Including the additional allocation (salary adjustment) 646,748547,057586,080 14

15. Programme 5: Water Sector Regulation Item description2010/112011/122012/132013/14 R 000 Regulation Management and Support3,1863,4373,6433,843 Economic and Social Regulation81,613000 Water Use Authorisation44,83814,43215,46516,311 Drinking Water Quality and Waste Water Services 026,44628,47130,029 Resource Regulation49,54750,12350,13352,222 Compliance Monitoring01,0001,0601,118 Enforcement23,95516,93217,32518,269 Total203,139112,370116,097121,792 Including the efficiency savings-10,840-10,096-10,685 Including the additional allocation (salary adjustment) 43,83648,01449,058 15

16. Programme 6: International Water Cooperation Item description2010/112011/122012/132013/14 R 000 International Relation Management and Support 05,7286,0146,324 Africa Cooperation10,78110,64311,17011,252 Global Cooperation09,74010,22710,302 Total10,78126,11127,41127,878 Including the efficiency savings Including the additional allocation (salary adjustment) 16

17. Variance between 2010/11 and 2011/12 Programme2010/112011/12Variance% in variance R 000 Administration939,739862,122-77,617-8% Water Sector Management446,906718,726271,82061% Water Infrastructure Management2,238,2322,607,963369,73117% Regional Implementation and Support4,364,3965,608,9331,244,53729% Water Sector Regulation203,139112,370-90,769-45% International Water Cooperation10,78126,11115,330142% TOTAL8,203,1939,936,2251,733,03221% 17

18. Reasons for variance ProgrammeReasons for 2011/12 variance Administration Decrease of 8% is as a result of Efficiency savings amounting to R139m International Water Cooperation moved to programme 6 Water Sector Management Increase of 61% is as a result of Additional Funding of R75m i.r.o Acid Mine Drainage. R19m for the Prevention and mitigation of disaster risks The amount of R74m, for the Catchment Management Areas, was moved from Programme 5 to this programme. R44m was added to this programme for Financial Assistance to Poor Resource Farmers. Water Infrastructure Management Increase of 17% is as a result of Efficiency savings amounting to R344m was taken off this programme. R247m in respect of the construction of Water Services projects was moved to Programme 4. Additional funding allocation of R678m ( R475m for De Hoop Dam and R203m for Nandoni Pipeline). Regional Implementation and Support Increase of 29% is as a result of Efficiency Savings amounting to R114m. Additional Funding allocation of R647m( R51m for Regulations Branch: Establishment, R450m for Drought Relief and R100m for Regional Bulk and R23m for EPWP- Working on Fire). R247m for construction of Water Services Projects Water Sector Regulation Decrease of 45% is as a result of The amount of R74m, for the Catchment Management Areas, was moved from to this programme to Programme 2. Additional Funding for the amount of R43m ( R36m for Regulation Branch: Establishment and R7m for Acid Mine Drainage. R44m for Financial Assistance to Poor Resource Farmers moved to Programme 2. International Water Cooperation R14m moved from Programme 1 to establish the new branch. 18

19. BIDS SUBMITTED TO THE NATIONAL TREASURY PART 3

20. Bids submitted Vs. Amounts received Recurrent Branch 2011/12 R000 2012/13 R000 2013/14 R000 Harties, Metsi A Me - My WaterRegional Management Requested128,928129,625117,266 Received050,0000 Expansion and Strengthening of Regulation Water Sector Regulation Requested87,00093,00098,000 Received87,00093,00098,000 Office Accommodation for DWAAdministrationRequested74,85785,08596,962 Received000 Institutional Oversight: New InitiativesWater Sector Regulation Requested321,000221,000 Received000 Strengthening water resources protection functions in support sustainable development Water Management Requested129,406151,574163,860 Received000 Operational Cost Information ServicesAdministrationRequested121,317117,668124,381 Received000 Economic Regulatory and Pricing Strategy Review Project Water Sector Regulation Requested7,0667,4907,893 Received7,0667,4907,893 Water Allocation ReformWater Sector Regulation Requested51,00061,00068,000 Received000 20

21. Additional funds requested and received capital policy bids Capital Branch 2011/12 R000 2012/13 R000 2013/14 R000 Olifants River Water Resources Development Project (Phase 21) NWRIRequested4,087,0008,137,0003,614,000 Received475,325200,000350,000 Mokolo and Crocodile River (West) Water Augmentation Project (Phases 1 and 2) NWRIRequested94,000233,000420,000 Received000 Olifants Doorn River Water Resources Project: Raising of Clanwilliam Dam NWRIRequested11,000212,000567,000 Received000 Mdloti River Development: Raising of Hazelmere Dam NWRIRequested49,10043,100 Received000 Groot Letaba River Water Development Project NWRIRequested117,000258,000483,000 Received000 Regional Bulk Infrastructure Grant (RBIG)Regional Management Requested92,140491,8602,809,000 Received100,000384,000468,000 21

22. Additional funding received DESCRIPTION2011/122012/132013/14 R 000 Improved Conditions of service40,20039,90041,300 Acid Mine Drainage75,000150,000 Nandoni Pipeline: Construction203,000317,000 Nelson Mandela Bay Emergency disaster Relief Fund 450,000 Prevention and Mitigation of Disaster Risks19,000 Total Received787,200525,90060,300 22

23. EARMARKED VERSUS UN-EARMARKED FUNDING PER PROGRAMME PART 4

24. Overview of earmarked vs. un-earmarked funding DESCRIPTION2011/122012/132013/14 R 000 Un-earmarked funding2,612,2102,725,1192,876,672 Earmarked funding7,324,0157,506,3688,006,804 Total9,936,22510,231,48710,883,476 24

25. Breakdown of earmarked funding per programme Description2011/122012/132013/14 R 000 Programme 1: Administration Building Capacity: Learning Academy20,000-- Devolution of Public Works203,592219,808231,027 Additional Capacity7,420-- Total231,012219,808231,027 Programme 2: Water Sector Management Acid mine drainage75,000150,000 Prevention and mitigation of disaster risks19,000 Total94,000169,00019,000 25

26. Breakdown of earmarked funding per programme Description2011/122012/132013/14 R 000 Programme 3: Water Infrastructure Management Capital Investment in Water Resource Schemes1,582,5011,785,5772,314,057 De Hoop Dam : Phase 2C-G construction230,325200,000150,000 Nandoni Pipeline: Construction203,000317,000 De Hoop Dam : Phase 2A construction245,000 De Hoop Dam : Bulk Distribution 200,000 Resource Infrastructure (Current)167,137175,493185,145 Total2,427,9632,478,0702,849,202 26

27. Breakdown of earmarked funding per programme Description2011/122012/132013/14 R 000 Programme 4: Regional Implementation and Support Regulations Branch: Establishment2,4888,45412,698 Regulations Branch: Establishment48,84246,41645,122 Harties Water quality programme 50,000 Construction of Water Services Projects344,519183,889201,555 Building Capacity: Compliance Monitoring and Enforcement 10,000 - - Nelson Mandela Bay emergency disaster relief fund450,000 Regional Bulk Infrastructure Grant1,775,3402,233,1072,418,808 Water Services Operating Subsidy660,729700,830739,359 Working For Water814,777855,516902,570 Working On Fire242,502254,627268,632 Working For Water : Expanded Public Works Programme118,270172,943180,109 Working On Fire: Expanded Public Works Programme60,83786,86090,939 Total4,535,2124,592,6424,859,792 27

28. Breakdown of earmarked funding per programme Description2011/122012/132013/14 R 000 Programme 5: Water Sector Regulation Regulations Branch: Establishment13,92015,30315,567 Review Regulatory and Pricing Strategy7,0667,4907,893 Regulations Branch: Establishment21,75024,05524,323 Total42,73646,84847,783 28

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