1. STRATEGIC OVERVIEW OF CATCHMENT MANAGEMENT AGENCIES (CMAs) AND PERFOMANCE OF INKOMATI AND BREEDE CMAS DURING 2011/2012 FINANCIAL YEAR Prepared for Portfolio Committee on Water and Environmental Affairs 23-24 April 2013

2. Table of Content 1.Policy & Legislative Mandates. 2.Alignment with National Government Outcomes 3.Progress made on establishment of CMAs. 4.Performance of Current CMAs 11/12 5.Summary & Conclusion. 2

3. PURPOSE The purpose of this presentation is to provide a consolidated strategic overview of the CMA establishment process and performance of the Inkomati and Breede- Overberg Catchment Management Agencies for the 2011- 2012 financial year. 3

4. CORE BUSINESS Policy & Legislative Mandate Policy & Legislation Description White Paper on Water & Sanitation, 1997 Recognised that water resource management is best undertaken through an integrated approach and the most appropriate unit for this to be done was on a catchment or systems basis. (Principle 22) National Water Act, 1998 Catchment Management Agencies (CMAs) are established in terms of Chapter 7 of the Act. Public Finance Management Act, National Public Entities listed as Schedule 3A under PFMA. National Water Resource Strategy, 2004 Provides a chapter on Water Management Institutions including plan to establish 19 CMAs (NWRS-2 will revise to 9) Raw Water Pricing Strategy, 2007 Defines Water Resource Management functions to be charged to users and funding framework for CMAs. National Development Plan, 2012. CMAs to be established by 2015. 4

5. Policy Context Water resources management is the protection, use, development, conservation, management and control of water resources; in particular the equitable allocation and beneficial use of water in the public interest, and the protection of the quality of water. Increasing scarcity means strong system interactions and complex trade-offs with growing water quality concerns. Catchments are the appropriate management unit Involvement of stakeholders critically important, but not abrogating role of Minister Build accountability to and legitimacy with stakeholders Manage according to hydrological boundaries 5

6. Contribution to government outcomes 6 Effective water resources management critical foundation to achieve the above outcomes 10 Protected and enhanced environment and natural resources 10 Protected and enhanced environment and natural resources 6 Efficient economic infrastructu re 6 Efficient economic infrastructu re 9 responsive, accountable, effective & efficient local government 9 responsive, accountable, effective & efficient local government 4 Employment & inclusive growth 4 Employment & inclusive growth 7 Vibrant & sustainable rural communities 7 Vibrant & sustainable rural communities

7. STATUS AS AT END OF MARCH 2013 7

8. CORE BUSINESS TOP TEN RISKS PROGRESS AND KEY TIMELINES 19 March 2012 Minister approved the establishment of nine CMAs in nine WMAs 21 May 2012Gazetting of WMAs for public consultation approved. June 2012 National Steering Committee established to oversee implementation (DWA, National Treasury, SALGA,CMAs, Civil Society.) 20 July 2012Gazette published (No 35517 ) on proposed WMA. Nov-March 2013 Business Cases and Proposals for Inkomati Usuthu and Breede Gouritz CMAs developed and prepared for Minister’s signature for gazetting notices for comment for 60 days. 8

9. CORE BUSINESS TOP TEN RISKS PROGRESS AND KEY TIMELINES April 2013Minister appoints the Advisory committee to recommend Board appointments to the Minister for Inkomati-Usuthu and Breede- Gouritz CMAS May 2013 Business Cases and Proposals for Limpopo and Pongola Umzimkhulu, developed and prepared for Minister’s signature for gazetting notices for comment for 60 days. August 2013 Gazette notices for the establishment of Inkomati Usuthu and Breede Overberg CMAS published. September 2013 New Boards for Inkomati-Usuthu and Breede-Gouritz CMAs appointed by the Minister. March 2014 Business plans submitted to Minister from Inkomati-Usuthu and Breede-Gouritz CMAS 9

10. Water Management Areas Limpopoo Olifants Vaal Orange Berg-Olifants Pongola- Mzimkulu Mzimvubu- Tsitsikamma Breede-Gouritz Inkomati- Usuthu Inkomati- Usuthu 10

11. Establishment Phase Operation Phase CMA IMPLEMENTATION PLAN Preparatory Phase Aug12-July 13 Sustain & Improve Aug 14-July 15 and beyond Gazetting of WMAs Appointment of Chief Executive Time Frames Project Phases Cross Cutting Activities Approach PHASE 2 : PHASE 2 : Berg-Olifants-Doorn, Vaal, Olifants and Limpopo 1 Month 2 Months 1 Month PHASE 1 : Breede-Gouritz, Inkomati-Usuthu and Pongola Mzimkhulu PHASE 3 : Orange, Mzimvubu-Keiskamma Implementation of Initial Functions Delegation of functions Implementation of Initial Functions Delegation of functions Office Accommodation 8 Months HIGH LEVEL PROJECT PLAN FRAMEWORK Finalising Business Cases Approval of Business Cases by NT and listing under PFMA Gazetting of CMAs Appointment of Governing Board Setting up of National Steering Committee Setting up of Regional Steering Committees Budget secured MTEF Human Resources SystemsSystems Aug12-July 13 Aug13-July 14 Aug14-July 15 and beyond Aug13-July 14 Appointment of dedicated team 11

12. Scale of CMAs  R507 million in 2011/12 budgeted for water resource functions (slide 14 provides the detail)  R408 million in 2012/13 –Proto-CMAs  60 000 customers to be registered and billed.  600 staff with about 400 vacancies. 12

13. Projected phased costs per CMA Establishment time frame per CMA is 5 years Phased establishment for 9 CMAs over 8 years – completed by 2019/2020 (thereafter costs level off) Timing and Rollout of CMA Costs Years 13

14. CMA Total Costs Total costs to increase to R600 million per annum This is 30% increase in current DWA regional office estimates Current Regional Office budget for WRM reflected by the dotted red line Phased Increase of Total CMA Costs Years Cost 14

15. Fixed grant for 2 years provided before billing is delegated to CMA Total cost of R230 million over 4 years Excludes R49 million for BOCMA & ICMA 2. Establishment Grant Years Cost of Establishment Grant 15

16. GOVERNANCE Strategic Intent Statement Vision and objectives as outlined in the National Water Resources Strategy 2. Shareholder Compact Minister and conclude a shareholder compact annually (Treasury Regulation 29.2) (Not applicable to CMAs) Documents the mandated key performance measures and indicators to be attained by the CMASs in delivering the desired outcomes and objectives as agreed between the Board and the Minister. Corporate Plan CMASs submit corporate plans and budgets annually to Minister and National Treasury at least one month before the start of financial year (PFMA Sec 52). Ccorporate plan must contain implementation details to attain the key performance measures and indicators outlined in shareholder compact and desired outcomes and objectives outlined in the strategic intent statement. 16

17. NWRI WB 2+1 WB 2+1 WB 3 WB 3 Reporting and governance CMA 9 CMA 2 CMA 1 Water board 3 TCTA Minister DWA Institutional oversight (national & regional) DWA Institutional oversight (national & regional) Parliament Public institutions report to the public and Parliament through Annual Reports and Annual Financial Statements and to the Department with quarterly performance reports WRC Minister appoints boards; approves shareholder compact Portfolio Committee reviews reports and plans (hearings, visits) (1) Oversee institutional establishment ; (2) Oversee governance (manage board appointment processes, training etc.); (3) Oversee shareholder compact ; (4) Oversee business plans, quarterly performance reports and financial statements etc. (1) Oversee institutional establishment ; (2) Oversee governance (manage board appointment processes, training etc.); (3) Oversee shareholder compact ; (4) Oversee business plans, quarterly performance reports and financial statements etc. 279 WUAs &Irrigation Boards GOVERNANCE 17

18. PERFOMANCE OF INKOMATI AND BREEDE CMAS DURING 11/12 FINANCIAL YEAR 18

19. STRATEGIC Stakeholder Perspective Financial Perspective Developmental & Environmental Advice stakeholders on protection & use of water, ensure community participation. Build a financially sound institution,ensure collection of water use charges and Value for money. Water Resource Planning, Resource Protection & Waste, Compliance Monitoring & Enforcement, Developing Human Resources, Sharing knowledge & creating partnerships. River Systems Operations, Registration of Water Use, Support licensing process. Establishment of Water User Associations Learning & Growth CMA SCORE CARD Ensure effective, efficient and sustainable management of water resources in the Water Management Area 19

20. DWA’s OVERSIGHT ROLE OVER CMAs Compliance monitoring List of Documents submitted to the MinisterLegislation Annual Report & Audited Financial StatementsPFMA: Sec 55 (d) Business PlansTR 30.1.1 and Schedule 4 of the National Water Act, 1998 Budget of estimated revenue & expenditure for the year PFMA: Sec 53(1) Quarterly Reports on actual revenue & expenditure for the quarter & projection of expected expenditure & revenue for remainder of financial year TR 26.1 TR 30.2.1 Financial misconduct procedures reportTR 33.3.1 20

21. 21 The Breede-Overberg CMA

22. 22 The Inkomati CMA

23. CMAs FINANCIAL PERFORMANCE CMASBUDGET R million ACTUAL EXPENDITURE R million ICMA35,35427,514 BOCMA18, 093 16, 223 Both CMA received unqualified audits with no matters of emphasis 23

24. BOCMA PERFORMANCE (1) OBJECTIVESINDICATORSACHIEVEMENTSREASONS Registered water useComplete 48 waste discharge registration forms 30 completedOutstanding registration information Authorised water useProcess 50% of all licence applications received AchievedNone Control and compliance of water use Audit 40 reports of all water use 126 achievedNone Comment on 140 land use / rezoning applications 204None Validation and verification of water use Complete 50% of water users validation and verification 40% achievedInception report completed and validation in certain catchments has commenced Establish Water User Associations and transform Irrigation Boards Transform 4 Irrigation Boards 2 achievedVye boom IB cannot be transferred under current BOCMA delegations 24

25. BOCMA PERFORMANCE (2) OBJECTIVESINDICATORSACHIEVEMENTSREASONS Ensure reserve compliance Process licenses with relevant water use conditions 44% achievedOutstanding information Develop 2 water quality status reports 2 achievedNone Water resource information systems Establish water use registration system Partially achievedCurrently testing the WARMS of the DWA Develop and implement GIS system AchievedNone Develop water management system Not achievedOngoing engagement with the DWA 25

26. ICMA PERFORMANCE (1) OBJECTIVESINDICATORSACHIEVEMENTSREASONS Validation and verification of water use Complete 90% validation and verification including review of work done Not AchievedLost data from the Surveyor General that must inform the Cadastral Project delayed the process of validation and verification project Establish Water User Associations and transform Irrigation Boards Establish 2 WUAsNot achievedLimitation of current delegations to transformation of WUAs with staff and loans Metered water usePhase 1: Survey pump stations and engage stakeholders for the process of installing water meters between Mananga and Tonga AchievedNone 26

27. ICMA PERFORMANCE (2) OBJECTIVESINDICATORSACHIEVEMENTREASONS Integrated Planning and Operations of River Systems Operate the Crocodile decision support system AchievedNone install 34 real time River flow and 15 real time Rainfall data loggers to support operations of river system AchievedNone Discharges and Water Resource Quality Effectively Monitored Monitor 100% of registered sites 75% achieved 1338 registered sites monitored Although 100% samples were taken at the monitoring points not all the samples could be tested Water resource pollution remedied Respond to 100% reported pollution incidents within 24 hours AchievedNone Investigate and implement access to DWA WMS system AchievedNone 27

28. ICMA PERFORMANCE (3) OBJECTIVESINDICATORSACHIEVEMENTSREASONS Water quality status report Produce and disseminate 4 water quality reports 1 report achievedDelays in receiving laboratory results Compliance monitoring and enforcement effectively implemented Conduct 65 monitoring and enforcement inspections including both quality and quantity 49 inspections conducted Shortage of staff 28

29. SUMMARY & CONCLUSION The BOCMA and the ICMA have continued to establish their institutional legitimacy in water resource management and have achieved a majority of their annual targets and objectives for the 2011/12 financial year The project plan for the amalgamation of Breede-Goutitz and Inkomati-Usuthu is being implemented. 29

30. THANK YOU !!!!