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

2. Introduction SALGA applauds President Mbeki `s instructions for:
All households having access to clean running water by 2009;
More than 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.

3. 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.

4. 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

5. 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

6. 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

7. 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 households in DWAF budget and Presidential target.

8. Free Basic Water
Progress with 76% of municipalities with available water services infrastructure providing FBW to 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?

9. 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.

10. 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

11. 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?

12. 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?