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

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

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MEDIUM TERM BUDGET ALLOCATIONS FROM 2011/12 TO 2013/14

PART 1

Overview of medium term budget allocations

Description 2011/12 2012/13 2013/14

R 000 R 000 R 000

Indicative figures received 9,090,207 9,628,232 10,157,785

Plus: Additional Funds allocated to Baseline (details on slide 5)

1,006,591 1,260,390 984,193

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 allocation 9,936,225 10,231,487 10,883,476

4

Additional Funds allocated to Baseline

Description 2011/12 2012/13 2013/14

R 000 R 000 R 000

De Hoop Dam: Phases 2c-G construction 230,325 200,000 150,000

Regional Bulk Infrastructure Grant 100,000 384,000 468,000

Nandoni Pipeline: construction 203,000 317,000 0

Regulations Branch: Establishment 87,000 93,000 98,000

De Hoop Dam: Phase 2A 245,000 0 0

Improved Condition of Service 40,200 39,900 41,300

Acid Mine Drainage 75,000 150,000 0

Review of regulatory and pricing strategy 7,066 7,490 7,893

Harties Water Quality Programme 0 50,000 0

De Hoop Dam: Bulk Distribution 0 0 200,000

Prevention and Mitigation of Disaster Risks 19,000 19,000 19,000

TOTAL 1,006,591 1,260,390 984,193

5

Additional funds allocated to conditional grants: Local Government

Description 2011/12 2012/13 2013/14

R 000 R 000 R 000

Water Services Operating Subsidy 180,794    

Drought Relief Grant 450,000 0 0

TOTAL 630,794 0 0

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Adjustments to baselineDescription 2011/12 2012/13 2013/14

R 000 R 000 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: WoF 22,906 36,641 37,958

Budget decrease EPWP: WfW (13,863) (2,277) (4,748)

Decrease Indirect Grant: Water Services Subsidy (180,794)    

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DETAILED MEDIUM TERM BUDGET ALLOCATIONS PER PROGRAMME

PART 2

Overview of budget allocation per programmeProgramme 2010/11 2011/12 2012/13 2013/14

R 000 R 000 R 000 R 000

Administration 939,739 862,122 888,117 930,983

Water Sector Management 446,906 718,726 797,953 685,212

Water Infrastructure Management 2,238,232 2,607,963 2,658,070 3,039,102

Regional Implementation and Support 4,364,396 5,608,933 5,743,839 6,078,509

Water Sector Regulation 203,139 112,370 116,097 121,792

International Water Cooperation 10,781 26,111 27,411 27,878

TOTAL 8,203,193 9,936,225 10,231,487 10,883,476

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Overview of budget allocation per economic classificationItem description 2010/11 2011/12 2012/13 2013/14

R 000 R 000 R 000 R 000

Current Payments 3,727,598 4,005,157 4,586,023 4,619,305

Compensation of employees 1,147,277 1,195,422 1,272,415 1,348,769

Goods and Services 2,580,321 2,809,735 3,313,608 3,270,536

Transfers and subsidies 3,356,665 3,767,153 3,336,670 3,758,070

Provinces and municipalities 1,038,528 1,011,515 399,764 421,751

Departmental agencies and entities 2,059,328 2,503,542 2,525,845 2,899,366

Public corporations 4,127

Non profit Institutions 476

Households 73,900 59,596 218,436 233,764

Foreign governments and organisations 180,306 180,600 180,625 190,529

Universities and non-profit organization 11,900 12,000 12,660

Payments for capital assets 1,118,930 2,163,915 2,308,794 2,506,101

Buildings and other fixed assets 1,033,834 2,088,564 2,229,377 2,422,506

Machinery and equipment 72,520 60,646 63,952 67,320

Biological Assets 229

Land and sub-soil assets 56

Software and intangibles 12,291 14,705 15,465 16,275

TOTAL 8,203,193 9,936,225 10,231,487 10,883,476

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Programme 1: Administration budget allocationItem description 2010/11 2011/12 2012/13 2013/14

R 000 R 000 R 000 R 000

Ministry 35,512 25,673 26,632 28,079

Departmental Management (DG's Office) 142,251 92,194 88,873 93,599

Internal Audit 26,113 17,080 17,932 18,918

Corporate Services 399,102 358,241 375,135 394,710

Financial Management 175,577 165,342 159,737 164,650

Office Accommodation 161,184 203,592 219,808 231,027

Total 939,739 862,122 888,117 930,983

Including the efficiency savings -139,690 -140,293 -152,139

Including the additional allocation (salary adjustment)

10,452 10,773 11,151

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Programme 2: Water Sector ManagementItem description 2010/11 2011/12 2012/13 2013/14

R 000 R 000 R 000 R 000

Policy and Planning Management and Support

3,738 5,481 5,810 6,130

Integrated Planning 160,491 233,292 315,137 177,951

Policy and Strategy 38,160 45,649 47,280 48,538

Water Ecosystem 29,805 39,583 42,007 44,010

Water Information Management 174,483 198,221 209,268 218,703

Institutional Oversight 40,229 196,500 178,451 189,880

Total 446,906 718,726 797,953 685,212

Including the efficiency savings

Including the additional allocation (salary adjustment)

-25,349 -26,062 -27,937

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Programme 3: Water Infrastructure Management

Item description 2010/11 2011/12 2012/13 2013/14

R 000 R 000 R 000 R 000

Infrastructure Dev. and Rehab. 2,098,211 2,440,826 2,482,577 2,853,957

Operation of Water Resources 140,021 167,137 175,493 185,145

Total 2,238,232 2,607,963 2,658,070 3,039,102

Including the efficiency savings -343,900 -415,000

Including the additional allocation (salary adjustment)

678,325 517,000 350,000

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Programme 4: Regional Implementation and SupportItem description 2010/11 2011/12 2012/13 2013/14

R 000 R 000 R 000 R 000

Regional Management and Support 10,054 9,204 9,756 10,293

Sector Support and Intergovernmental Relations

1,143,622 1,182,293 826,399 821,396

Institutional Establishment 0 10 10 10

Regional Programme Coordination 919 955 1,003 1,059

Natural Resource Management 912,196 1,269,527 1,405,850 1,480,153

Regional Bulk 893,000 1,775,340 2,233,107 2,418,808

Transfer of Water Schemes 880,320 685,740 720,004 759,604

Support Services 332,343 341,255 363,731 385,541

Water Services Projects 191,942 344,519 183,889 201,555

Integrated Catchments Management 0 90 90 90

Total 4,364,396 5,608,933 5,743,839 6,078,509

Including the efficiency savings 113,700 102,325 105,699

Including the additional allocation (salary adjustment)

646,748 547,057 586,080

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Programme 5: Water Sector RegulationItem description 2010/11 2011/12 2012/13 2013/14

R 000 R 000 R 000 R 000

Regulation Management and Support 3,186 3,437 3,643 3,843

Economic and Social Regulation 81,613 0 0 0

Water Use Authorisation 44,838 14,432 15,465 16,311

Drinking Water Quality and Waste Water Services

0 26,446 28,471 30,029

Resource Regulation 49,547 50,123 50,133 52,222

Compliance Monitoring 0 1,000 1,060 1,118

Enforcement 23,955 16,932 17,325 18,269

Total 203,139 112,370 116,097 121,792

Including the efficiency savings -10,840 -10,096 -10,685

Including the additional allocation (salary adjustment)

43,836 48,014 49,058

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Programme 6: International Water Cooperation

Item description 2010/11 2011/12 2012/13 2013/14

R 000 R 000 R 000 R 000

International Relation Management and Support

0 5,728 6,014 6,324

Africa Cooperation 10,781 10,643 11,170 11,252

Global Cooperation 0 9,740 10,227 10,302

Total 10,781 26,111 27,411 27,878

Including the efficiency savings

Including the additional allocation (salary adjustment)

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Variance between 2010/11 and 2011/12

Programme 2010/11 2011/12 Variance % in varianceR 000 R 000 R 000

Administration 939,739 862,122 -77,617 -8%

Water Sector Management 446,906 718,726 271,820 61%

Water Infrastructure Management 2,238,232 2,607,963 369,731 17%

Regional Implementation and Support 4,364,396 5,608,933 1,244,537 29%

Water Sector Regulation 203,139 112,370 -90,769 -45%

International Water Cooperation 10,781 26,111 15,330 142%

TOTAL 8,203,193 9,936,225 1,733,032 21%

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Reasons for variance Programme Reasons 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.

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BIDS SUBMITTED TO THE NATIONAL TREASURY

PART 3

Bids submitted Vs. Amounts receivedRecurrent  Branch   2011/12

R0002012/13 R000

2013/14 R000

Harties, Metsi A Me - My Water Regional Management

Requested 128,928 129,625 117,266

Received 0 50,000 0

Expansion and Strengthening of Regulation

Water Sector Regulation

Requested 87,000 93,000 98,000

Received 87,000 93,000 98,000

Office Accommodation for DWA Administration Requested 74,857 85,085 96,962

Received 0 0 0

Institutional Oversight: New Initiatives Water Sector Regulation

Requested 321,000 221,000 221,000

Received 0 0 0

Strengthening water resources protection functions in support sustainable development

Water Management

Requested 129,406 151,574 163,860

Received 0 0 0

Operational Cost Information Services Administration Requested 121,317 117,668 124,381

Received 0 0 0

Economic Regulatory and Pricing Strategy Review Project

Water Sector Regulation

Requested 7,066 7,490 7,893

Received 7,066 7,490 7,893

Water Allocation Reform Water Sector Regulation

Requested 51,000 61,000 68,000

Received 0 0 0

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Additional funds requested and received capitalpolicy bids

Capital  Branch   2011/12 R000

2012/13 R000

2013/14 R000

Olifants River Water Resources Development Project (Phase 21)

NWRI Requested 4,087,000 8,137,000 3,614,000

Received 475,325 200,000 350,000

Mokolo and Crocodile River (West) Water Augmentation Project (Phases 1 and 2)

NWRI Requested 94,000 233,000 420,000

Received 0 0 0

Olifants Doorn River Water Resources Project: Raising of Clanwilliam Dam

NWRI Requested 11,000 212,000 567,000

Received 0 0 0

Mdloti River Development: Raising of Hazelmere Dam

NWRI Requested 49,100 43,100  

Received 0 0 0

Groot Letaba River Water Development Project

NWRI Requested 117,000 258,000 483,000

Received 0 0 0

Regional Bulk Infrastructure Grant (RBIG) Regional Management

Requested 92,140 491,860 2,809,000

Received 100,000 384,000 468,000

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Additional funding received

DESCRIPTION 2011/12 2012/13 2013/14

R 000 R 000 R 000

Improved Conditions of service 40,200 39,900 41,300

Acid Mine Drainage 75,000 150,000

Nandoni Pipeline: Construction 203,000 317,000

Nelson Mandela Bay Emergency disaster Relief Fund

450,000

Prevention and Mitigation of Disaster Risks 19,000 19,000 19,000

Total Received 787,200 525,900 60,300

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EARMARKED VERSUS UN-EARMARKED FUNDING PER PROGRAMME

PART 4

Overview of earmarked vs. un-earmarked funding

DESCRIPTION 2011/12 2012/13 2013/14

R 000 R 000 R 000

Un-earmarked funding 2,612,210 2,725,119 2,876,672

Earmarked funding 7,324,015 7,506,368 8,006,804

Total 9,936,225 10,231,487 10,883,476

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Breakdown of earmarked funding per programmeDescription 2011/12 2012/13 2013/14

R 000 R 000 R 000

Programme 1: Administration

Building Capacity: Learning Academy 20,000 - -

Devolution of Public Works 203,592 219,808 231,027

Additional Capacity 7,420 - -

Total 231,012 219,808 231,027

Programme 2: Water Sector Management

Acid mine drainage 75,000 150,000

Prevention and mitigation of disaster risks 19,000 19,000 19,000

Total 94,000 169,000 19,000

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Breakdown of earmarked funding per programmeDescription 2011/12 2012/13 2013/14

R 000 R 000 R 000

Programme 3: Water Infrastructure Management

Capital Investment in Water Resource Schemes 1,582,501 1,785,577 2,314,057

De Hoop Dam : Phase 2C-G construction 230,325 200,000 150,000

Nandoni Pipeline: Construction 203,000 317,000

De Hoop Dam : Phase 2A construction 245,000

De Hoop Dam : Bulk Distribution 200,000

Resource Infrastructure (Current) 167,137 175,493 185,145

Total 2,427,963 2,478,070 2,849,202

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Breakdown of earmarked funding per programme

Description 2011/12 2012/13 2013/14

R 000 R 000 R 000

Programme 4: Regional Implementation and Support

Regulations Branch: Establishment 2,488 8,454 12,698

Regulations Branch: Establishment 48,842 46,416 45,122

Harties Water quality programme 50,000

Construction of Water Services Projects 344,519 183,889 201,555

Building Capacity: Compliance Monitoring and Enforcement

10,000 -

-

Nelson Mandela Bay emergency disaster relief fund 450,000

Regional Bulk Infrastructure Grant 1,775,340 2,233,107 2,418,808

Water Services Operating Subsidy 660,729 700,830 739,359

Working For Water 814,777 855,516 902,570

Working On Fire 242,502 254,627 268,632

Working For Water : Expanded Public Works Programme 118,270 172,943 180,109

Working On Fire: Expanded Public Works Programme 60,837 86,860 90,939

Total 4,535,212 4,592,642 4,859,792

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Breakdown of earmarked funding per programmeDescription 2011/12 2012/13 2013/14

R 000 R 000 R 000

Programme 5: Water Sector Regulation

Regulations Branch: Establishment 13,920 15,303 15,567

Review Regulatory and Pricing Strategy 7,066 7,490 7,893

Regulations Branch: Establishment 21,750 24,055 24,323

Total 42,736 46,848 47,783

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END

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