PRESENTATION TO THE PORTFOLIO COMMITTEE ON WATER AFFAIRS AND FORESTRY DWAF BUDGET 2004/5 31 MAY 2004

Introduction SALGA applauds President Mbeki `s instructions for: All households having access to clean running water by 2009; More than 300 000 households provided with basic sanitation during 2004/5; All schools having access to clean water and sanitation by end 2004/5; Review within six months of local government equitable share allocation and formula and local government resources; and Assistance to local government in ensuring that Ward Committees function properly.

Introduction SALGA `s objective is to assist municipalities in delivering services in an equitable, affordable and sustainable manner. SALGA recognizes that not all our people benefiting from government policies as result of local government services delivery track-record. Welcomes the focus on functioning and resources of local government. Recognises that many municipalities need to improve the efficiency of their water and sanitation services.

Key challenges Free Basic Water and Sanitation delivery Sustainable transfer of DWAF assets Eradication of sanitation backlog Impact of sectoral institutional restructuring on local government Capital programme implementation

Budget 2004/5 SALGA supports DWAF `s 2004/5 Budget which reflects the changing function of DWAF from implementing water and sanitation services delivery to sector leader, supporter and regulator Comments limited to five key areas: - Sanitation - FBW - Transfers - Catchment Management Agencies - Masibambane Sectoral programme

Sanitation SALGA has identified the delivery of basic sanitation as one of its key priorities Agreement that White Paper on Basic Household Sanitation (2001) should be amended to align it with new Water Services Strategic Framework Revisiting of the policy, approach and subsidy levels are necessary Lack of implementation strategy for sanitation remains a concern Raise the need for assistance to local government in developing financial models for the delivery of free basic sanitation

Sanitation Flagging three key issues: - Sanitation in peri-urban areas; - The future of disused VIP `s; and - School sanitation. Clarity: 2004/5 budget allocation for sanitation implementation? Clarity: Link between target of 85 000 households in DWAF budget and Presidential target.

Free Basic Water Progress with 76% of municipalities with available water services infrastructure providing FBW to 26 704 348 people. Key challenges in delivering FBW: Development and implementation of indigent policies Delivery of FBW to unserved and poor households Large scale meter installation Billing systems, debt collection and municipal arrears Availability of quantitive data to assess the impact of service delivery and impact thereof Consistency in data classification Unavailability of up-to-date dis-aggregated data at municipal level Clarity: 2004/5 budget provision for FBW implementation?

Transfers Amount budgeted decreases from R425 million in 2003/4 to R411 million in 2004/5 150 schemes targeted for by March 2005 The Joint Transfer policy indicates all schemes are to be transferred by June 2005 While SALGA has always been supportive of the process, it has consistently stated that the timeframes may not be met Clarity: The target stated in the Budget vote imply that the deadline has been amended.

Catchment Management Budget indication: Transfers and subsidies to provinces and municipalities increases from R528 million in 2003/4 to R766 million in 2004/5 Seven proposals for establishment of CMA `s at advanced stage Six CMA `s to be established by March 2005

Catchment Management Comment: As indicated to DWAF in 2002, SALGA `s concerns at lack of municipal involvement in the NW Act process and NWRS roll-out is having an impact now on municipal participation and/or support of these initiatives. Clarity: DWAF `s focus on the establishment of CMA `s in light of service delivery imperatives?

Masibambane Flagship programme for SALGA, having demonstrable benefit to water sector, SALGA and municipalities Indications are that budget allocations for 2004/5 to particularly strengthening WSA `s, WSP `s and sector collaboration activities have been limited. Clarity: Donor funding directed to these activities?