1. VOTE 30: ENVIRONMENTAL AFFAIRS Portfolio Committee Briefing 2013 MTEF 1 Nosipho Ngcaba Director-General Department of Environmental Affairs 16-17 October 2012

2. Presentation Outline MTEF 2013 Baseline Allocations MTEF 2013 Additional Funding proposals and motivations MTEF 2013 Allocations according to new Programme Structure 2

3. Baseline Allocations 3 ProgrammeAudited outcomeCurrentIndicative baseline MTEF R'0002009/102010/112011/122012/132013/142014/152015/16 1.Administration 285 074360 749379 640777 990 725 524 610 482638 574 2. Environmental Quality and Protection 285 820295 833298 016325 959 345 676 366 204383 049 3. Oceans and Coasts 353 947644 256876 337 411 635239 873 254 415266 117 4. Climate Change 011 760137 163 31 41933 016 34 95636 565 5. Biodiversity and Conservation 386 852421 974456 577579 324 511 361 541 597566 510 6. Environmental Sector Programmes and Projects 812 648655 4511 960 816 3 048 9943 319 7893 315 4243 467 924 Total2 124 3412 390 0234 108 5495 175 3215 175 2395 123 0785 358 739 Economic classification Compensation of employees253 966327 030471 649614 757640 256680 124718 828 Goods and Services431 313494 755960 521 833 682892 5921 133 2721 177 989 Transfers1 297 2791 162 3692 002 0823 256 1593 442 5403 247 5953 396 915 Payments for capital assets 141 684405 475674 186 470 723199 85162 08765 007 Payments for financial assets 99394111 0000 Total2 124 3412 390 0234 108 5495 175 3215 175 2395 123 0785 358 739

4. Baseline Allocation Trends over the MTEF Period per Programme ProgrammeReasons for increases/decreases 1 Administration Increase in the 2012/13 and 2013/14 financial years is due to Government Contribution of R220m and R146m respectively with regard to the PPP for the new departmental building. The unitary payment allocation of R60m per year was allocated from 2012/13 over the MTEF period. 2. Environmental Quality and Protection The allocations over the MTEF increase gradually to cover yearly increases. 4

5. Baseline Allocation Trends over the MTEF Period per Programme ProgrammeReasons for increases/decreases 3. Oceans and Coasts VAT to the amount of R187 million paid in April 2012 allocations for the 2012/13 financial year included Allocations for 2013/14 -2015/16 to cover normal cost for the research, integrated coastal management, oceans conservation and voyages to Marion, Gough and Antarctica. 4. Climate Change Allocations for climate change strategy activities included in the remainder of MTEF period 5

6. Baseline Allocation Trends over the MTEF Period per Programme ProgrammeReasons for increases/decreases 5. Biodiversity and Conservation Increase in 2012/13 allocation due to an additional allocation to SANPARKS for the rhino rangers of R80m. 6. Environmental Sector Programmes and Projects Refer detailed table below 6

7. Environmental Sector Programme Expanded Public Sector Programmes 2012/132013/142014/152015/16 Environmental Protection & Infrastructure Programme (EPIP) Additional funding 754 900 375 000 885 897939 235982 440 TOTAL (EPIP)1 129 900 885 897939 235982 440 Natural Resource Management1 496 7441 624 6892 007 4342 099 776 Infrastructure Investment o/w SANParks 122 350309 203 216 000* 368 755 270 000* 385 708 TOTAL (NRM)1 619 0941 933 8922 376 1892 485 484 Green Fund300 000500 000-- TOTAL3 048 9943 319 7893 315 4243 467 924 7 Note: Included in EPIP is the budget for Buyisa e Bag as transferred back to the Department under Sub-programme- Waste 2012/13 (+-24.5 million), 2013/14 (+-26.9 million), 2014/15 (28.6 million)

8. Baseline Analysis 8 Baseline Allocations2012/2013 R’000 2013/2014 R’000 2014/2015 R’000 2015/2016 R’000 Current Expenditure1 448 4391 532 8481 813 3961 896 817 Compensation of Employees614 757640 256680 124718 828 Goods and Services833 682892 5921 133 2721 177 989 Office Accommodation PPP Unitary Payment Manning and Operation Polar Research Vessel Antarctica and Islands: Fuel, Food Supplies, etc Other Operational Cost Natural Resource Management Projects 76 610 60 000 64 000 17 451 381 101 234 520 76 420 60 000 67 115 19 867 416 481 252 709 81 005 60 000 70 542 21 059 446 436 454 230 84 731 60 000 74 373 22 028 467 432 469 425 Transfer Payments3 256 1593 442 5403 247 5953 396 915 Departmental Agencies and Accounts South African Weather Service iSimangaliso Wetland park Authority South African National Parks South African National Biodiversity Institute National Regulator for Compulsory Specifications Green Fund Foreign Governments and International Org Non-Profit Institutions Environmental Projects and Households (EPWP) 150 581 71 090 319 216 209 698 10 000 300 000 12 890 6 888 2 175 796 162 943 105 200 392 425 215 394 10 500 500 000 12 890 5 400 2 037 788 172 489 111 496 454 161 230 176 11 025 0 12 890 5 640 2 249 718 180 423 116 625 475 671 240 659 11 532 0 13 485 5 837 2 352 683 Payments for Capital Assets Machinery and Equipment SA Agulhas VAT Payment Accommodation: Government Contribution: PPP 470 723 62 000 188 000 220 000 199 851 53 851 146 000 62 087 0 65 007 0 Indicative Allocation5 175 3215 175 2395 123 0785 358 739

9. Baseline Allocation Trends over the MTEF Period per Economical Classification Economical Classification Reasons for increases/decreases Compensation of Employees Additional support for Natural Resource Management (NRM) function transferred from DWA Financial Management, Communications, Information Management, Human Resource Management, Facilities Management Goods and Services The unitary payment allocation of R60m per year was allocated from 2012/13 over the MTEF period Allocation for NRM small contractors Working on Water, Working for fire etc. These cannot be treated as transfer payments, but based on short-term orders 9

10. Baseline Allocation Trends over the MTEF Period per Economical Classification Economical Classification Reasons for increases/decreases Transfers The Green Fund allocation for payment to DBSA. R300m in 2012/13 and R500m in 2013/14. Increases in Expanded Public Works Programmes, Working for Water and Working on Fire Programme. Payments for capital assets Government Contribution of R220m and R146m respectively with regard to the PPP for the new departmental building. VAT to the amount of R187 million paid in April 2012 allocations for the 2012/13 financial year included Payment in financial assets Only actual expenditure are revealed in the schedule as this expenditure relates to thefts and losses. Funds are reprioritised from goods and services if approval is granted. 10

11. MTEF Motivations for Additional Funding Proposals 11 Possible Implementation of baseline reductions by National Treasury as indicated in the MTEF Guidelines: 1% for (2013/14); 2% for (2014/15) and 3% for (2015/16) Treasury also indicated that there may be no additional resource allocations in the first two years of MTEF Priority will be given to infrastructure development

12. Additional Funding Requests PRIORITY AREAS2013/142014/152015/16 1. Infrastructure Investment R’000 303 889 R’000 272 582 R’000 477 640 2. Science Based Priorities284 818360 200387 600 3. Job Creation775 0201 184 5711 298 210 TOTAL1 363 7271 817 3532 163 450 12

13. 1. Infrastructure Development ADDITIONAL FUNDING PROPOSALS2013/142014/152015/16 1. SIP Support (Presidential Projects) R’000 37 000 R’000 28 500 R’000 28 500 2. New Departmental Building70 00022 00032 000 3. South African National Biodiversity Institute0069 330 4. South African National Parks16 58917 83218 902 5. iSimangaliso Wetland Park Authority44 00030 000 6. Expansion of the Conservation Estate50 00075 000100 000 7. South African Weather Service36 30024 25048 908 8. Waste Services Infrastructure50 00075 000150 000 TOTAL303 889272 582477 640 13

14. Notes to Strategic Infrastructure Development Projects Authorisation Processes for Strategic Projects To address the identified challenges related to infrastructural build program and lengthy authorisation processes Proactive approach for pre-assessment of projects Reduction in the number of authorisations required Proactive undertaking of Strategic Environmental Assessments, Environmental Management Frameworks, Standard Operating Procedures, Environmental Management Plans per Minister identified geographical areas Department also identified amendments which could be made to the current EIA regulations which will improve the efficiency the this assessment and authorisation tool MTEF: R25 000 R25 000 R25 000 14

15. Notes to Strategic Infrastructure Development Projects Continued Integrated Permitting System (IPS) Mapping all authorisation processes Develop an electronic on-line system IPS will be designed to accommodate any current and future permitting/licensing/authorisation requirements of the department and its provincial/local government partners; (possibly DMR and DWA) IPS will reduce the delivery time of new or enhanced permitting modules MTEF: R12 000R3 500R3 500 15 TOTAL MTEF: R37 000 R28 500 R28 500

16. New Departmental Head Office PPP contract for the new building was signed on 26 June 2012 and construction commenced in July 2012 ICT infrastructure over 3 years (e.g. networks and Geographic Information Systems): required (R70 million) For the reduction of debt Government contributed additional (R366 million) in 2012/13 Unitary payment for the building is R60 million per annum. Required is R88 million per annum MTEF: R70 000R22 000 R32 000 16 Notes to Strategic Infrastructure Development Projects Continued Occupation mid-year for 2013/14 discounted by 10 million

17. South African Biodiversity Institute (Sanbi) Security Infrastructure enhancement across SANBI Campuses (R14.5 million) Longterm Ecological Research Facility (R5.5 million) Vehicle Replacement across SANBI (R20.35 million) Refurbishment of existing infrastructure (R5.49 million) New Administration Building for SANBI located in Kirstenbosch (R10 million) Community Outreach Infrastructure (R10.490) Information Technology: Infrastructure Development Programme (R3 million) MTEF R69 330 (2015/16) 17 Notes to Strategic Infrastructure Development Projects Continued

18. South African National Parks Indigenous Forest Management in Garden Route MTEF: R16 589R17 832 R18 902 18 iSimangaliso Wetlands Parks Authority Infrastructure Development: Charters, Bhangazi, CFR and Sodwana MTEF: R44 000R30 000 R30 000

19. Expansion of the conservation estate Expansion of ecological sustainability and increased resilience to climate change. Setting of targets for protected area expansion Provision of maps and mechanisms protected area expansion MTEF: R50 000 R75 000R100 000 19 Notes to Strategic Infrastructure Development Projects Continued

20. South African Weather Services High Performance Computer System Global Atmospheric Watch and Airborne Monitor Infrastructure Development Preventative Maintenance Plan World Meteorological Organisation (WMO) Information System - assist in ensuring that meteorological data from Africa are assimilated in global numeral weather prediction model Infrastructure Security - security of state assets, critical weather information and aviation industry e.g weather stations and air quality monitoring stations across the country MTEF: R36 300R24 250 R48 908 20 Notes to Strategic Infrastructure Development Projects Continued

21. Waste Services Infrastructure To address historical backlog of waste services for urban informal, tribal and rural formal areas To improve kerbside domestic waste collection services to underserviced communities To implement Cabinet approved policy (October 2010) for the provision of Basic Refuse Services for Indigent households Funding to cover infrastructure upgrades (landfills and transfer stations), purchase of collection vehicles, increase in personnel for refuse collection (involvement of SMME’s). To address 80% of 300 unlicensed landfills and improper operating sites To increase recycling infrastructure and buyback facilities MTEF: R50 000 R75 000R150 000 21 Notes to Strategic Infrastructure Development Projects Continued

22. 2. Science Based Priorities ADDITIONAL FUNDING PROPOSALS2013/142014/152015/16 1.Oceans and Coasts R’000 182 118 R’000 164 200 R’000 152 500 2.Effective Management and Conservation of Biodiversity South African National Biodiversity Institute - Strengthening Science based policy advice on biodiversity assets and ecological infrastructure 41 000145 500157 500 25 000 3.Implementation of National Climate Change Response Strategy61 70050 50052 500 TOTAL284 818360 200387 600 22

23. Oceans and Coasts Oceans and Coastal Hazards Risk Management -Collection of information and impacts of climate change on ocean services, vulnerable coastal communities, coastal biodiversity and intensity of storm surges -Development of information management systems and operational responses Utilisation of SA Agulhas II and the Algoa Research Vessel (180 days at sea) - For research purposes in climate change, oceanography, deep ocean environments, biodiversity and marine top predators Use of Helicopters: off-loading for the SA Agulhas II (3 x trips per annum) - Antarctica, Gough and Marion Forecasting system for Ocean monitoring and global change tracking Upgrading of research laboratories: safety, overcrowding, inadequate chemical and gas storage facilities. MTEF: R182 118R164 200 R152 500 23 Notes to Science Based Priorities

24. Effective Management and Conservation of Biodiversity Implementation of key legislation to fulfil the sustainable development agenda Improvement of human capacity and financial resources for the effective management of Biodiversity and Conservation Species and ecosystems management governance frameworks development and negative impact mitigation Provision of timely detection and responses to illegal wildlife trade activities and poaching Integrated permitting system for NEMBA - review and amendment of national and provincial legislation 6 000 7 000 9 500 -Capacity development for provincial government 10 000 100 000 100 000 -Local communities to participate in biodiversity economy 20 000 30 000 40 000 -Assessment and monitoring of management effectiveness 5 000 8 500 8 000 MTEF : R41 000 R145 500 R157 500 24 Notes to Science Based Priorities Continued

25. Implementation of National Climate Change Response Strategy Mitigation of climate change potential threats to sustainable development goals Coordinate the implementation of the National Climate Change Response Policy (NCCRP) as the Lead Agent Integrated adaptation responses: early warning and forecasting systems, research, capacity and technology development for disaster risk reduction Determine medium-term (decade-scale) and long-term climate projections that define the range of future climate conditions and associated impacts. Research, capacity development, and technology development for disaster risk reduction Development of adaptation and response sector plans Additional obligations for the department to leverage donor funding Monitoring and Evaluation Systems development for Air Quality Information Systems, Green House Gas Emissions, carbon tax offset mechanisms MTEF: R 61 700R50 500 R52 500 25 Notes to Science Based Priorities Continued

26. 3. Job Creation ADDITIONAL FUNDING PROPOSALS2013/142014/152015/16 1.Green Fund R’000 0 R’000 500 000 R’000 500 000 2.Working for Waste441 621231 658254 824 3.Environmental Programmes240 000349 811410 298 4.Pilot Biodiversity Economy Programmes15 00020 00025 000 5. SANPARKS: Rhino Rangers78 39983 10288 088 TOTAL775 0201 184 5711 278 210 26 Note: Green Fund for 2012/13 – R300 million and 2013/14 – R500 million already allocated

27. Green Fund Green Fund as a transition mechanism for sustainable job-creation growth path to a low carbon and resource efficient green economy Achievement of the first three ‘windows’ for the Green Fund as agreed to by the Mancom are projects related to: Greening Cities and towns, Environmental and Natural Resource Management Low Carbon Economy. R500 000 (2014/15) R500 000 (2015/16) 27 Notes to Job Creation Priorities cont…

28. Environmental Programmes: Working for Waste Integrated intervention to increase capacity to municipalities for landfill operations, waste collection planning and administration, separation at source and refuse collection Awareness Campaigns for impact of waste on health An estimated 4 777 jobs to be created for young people in municipalities as Landfill Site Assistants, Waste Collection Administrators, and Environmental Awareness Educators, construction activities associated with the building or erection of landfill sites, offices, ablution facilities as well as weigh pad platforms at landfill sites across the country Assumptions: - Piloting of separation of waste at source +-10 000 households -Per capita waste generation stats 1.3 kg per day -Costing of 30 ton trucks between 2 million to 4 million -Average households +- 4 people -Estimated recyclables calculated as 75% of waste is recyclable -Operational costs +-10% of the value of the vehicles MTEF: R441 621 R231 658 R254 824 28 Notes to Job Creation Priorities cont… Refer to detail breakdown

29. Working for Waste2013/14 R’000 2014/2015 R’000 2015/2016 R’000 Salaries for 4 777 Young people150 234165 257181 783 Security Personnel at landfill sites36 00039 60043 560 Material & Equipment Weighpads15 000 Waste Bins31 500 Protective Clothing3 577 Site Office at Landfills15 000 Material Recovery Facility45 000 Training and Awareness Training of Young People and Implementers by DEA1 000 Training of Young People by Implementers9 000 Transport32 193 Awareness Campaign36 000 Transportation of recyclables (Capital)18 000 Transportation of recyclables (Operational)1 8001 9802 178 Project Management fees at 12%47 31624 82027 302 TOTAL MTEF441 621231 658254 824

30. Environmental Programmes - Working for the Coast Rehabilitation of coastal environment Return on Investment: Functioning and benefits from coastal ecosystems. Tourism enhancement. Quality of life benefits for communities Main focus: Rehabilitation of degraded sand-dunes, estuaries and coastal environment. Cleaning up of litter on beaches (particularly the risk posed by plastics) Upgrading and maintenance of facilities and infrastructure along the coast, including pathways that reduce degradation of coastal environment MTEF: R140 000 R149 800 R160 300 30 Notes to Job Creation Priorities Continued

31. Environmental Programmes - People and Parks Urgent need to create infrastructure in an around the protected areas and parks Ownership by communities to contribute to the creation of small enterprises Upgrading of facilities and infrastructure currently in dilapidated state within the protected areas Investment and return on investment for people adjacent to the parks Conservation of natural resources and cultural heritage Development and upgrading of infrastructure in and around protected areas, development, benefit sharing models for communities, ancillary industries and SMME / BEE development Priority declared by MINMEC: Mpumalanga and Limpopo MTEF: R100 000 R200 000 R250 000 31 Notes to Job Creation Priorities Continued

32. Pilot Biodiversity Economy Programmes Skills development for SMMEs in the following areas: Wildlife and Hunting Sector Nature based enterprises – bee keeping industry, hoodia, pelargonium, devils claw, aloes etc Wildflowers Protected areas – nature based tourism interventions Rehabilitation of Drylands Bioprospecting MTEF: R15 000 R20 000 R25 000 32 Notes to Job Creation Priorities Continued South African National Parks Rhino Rangers for protection of Rhinos MTEF: R78 399 R83 102 R88 088

33. Allocations per new proposed programme structure over the MTEF period New proposed structure not yet changed in the Financial Management System (BAS) 33

34. Allocations per Proposed Programme Structure Programme2011/20122012/132013/142014/152015/16 1. Administration R’000 293 995 R’000 763 522 R’000 712 806 R’000 597 000 R’000 624 462 2. Legal, Authorisations, Compliance and Enforcement 73 968100 513106 690113 237118 446 3. Oceans and Coasts 876 337221 815239 873254 415266 118 4. Climate Change and Air Quality 325 315215 358231 189244 735255 992 5. Biodiversity and Conservation 456 577486 367511 361541 597566 510 6. Environmental Programmes 2 046 4612 673 9943 319 7893 315 4243 467 934 7. Chemicals and Waste Management 35 89650 59253 53156 67059 277 Total4 108 5494 512 1615 175 2395 123 0785 358 739 34

35. THANK YOU FOR YOUR KIND ATTENTION THANK YOU