MASIBAMBANE III 2007/8-2011/12

NATIONAL WATER SECTOR PROGRAMMETheme-Water for Growth & Development

Workshop for the orientation of newly appointed Masibambane Coordinators

Tropicana Hotel Durban5-6 March 2007

Kalinga Pelpola Director: Water Services Support and Programme Manager: Masibambane Water Sector Support Programme

CONTENTS1. What is MSB III NWSProgramme &

Framework2. MSB III Framework aligned to

Strategic Targets3. MSB III Roadmap and Timeframe4. GAP Analysis – Quadrant 1 5. GAP Analysis – Quadrant 26. Backlog Studies7. Equitable Share Analysis

MSB III NATIONAL WATER SECTOR PROGRAMME

• Why do we need a NWSP?

– The Sector Wide Approach implemented in the Water Services sector through Masibambane illustrated the benefits of ONE Strategy, ONE Work Plan and ONE Reporting System

– Initially the NWSP was prepared to apply for additional funds from National Treasury for the Water Services sector

– It consists of

• National Water Sector Implementation Strategy - Part 1

• Financial Analysis & Work Plan – Part 2

– The purpose of preparing the NWSP

• Extend SWAP approach to include Water Resources Sector

• Define an integrated strategy for all water sector stakeholders

• Plan & prioritize activities over multi year periods

• Align activities and budget to strategy

• ID areas where planned strategic objectives can not be met and initiate interventions

• Serve as benchmark to monitor & evaluate progress

MSB III National Water Sector Programme-What is it ? Part 1- National Water Sector Implementation Strategy

Part 2- Work Plan & Financial Delegation

– Consist of a Financial Delegation delegating the responsibilities for DWAF funds included in Quadrant 1 to all levels of management by DDG:R

– A Work Plan focusing on the first financial year of the 5-year NWSP aligned to

• Medium Term Strategic Objectives (MTSO)

• Water Services – SFWS

• Water Resources – NWRS

• DWAF Strategic Plan – KFA

• Sector Budget 2007/08-2009/10 per Province

• How does it differ from the NWSP & PWSP’s?

– NWSP provide the strategic direction for the entire Water Sector for the next 5 years and is a consolidation of the 9 PWSP’s and Strategic Plans of National Sector Stakeholders

– FD & Work Plan only focus on ‘year to year’ delegations included in the NWSProgramme

FRAMEWORK FOR NWSP and FD & WP2005 2006 2007 2008 2009 2010 2011 2012 2013

MSB - III € 33,000,000 € 33,000,000 € 33,000,000

EU 7-YEAR COUNTRY STRATEGY

5 YEAR NWSP 2007/08 - 2011/12

Prepare 5-Year Plan

Revise 5-Year Plan

5 YEAR NWSP 2009/10 - 2013/14Revise

5-Year Plan

FD & WP 2007/08

FD & WP 2008/09

FD & WP 2009/10

FD & WP Next 2 Years Indicative Budgets

2 Outer Years

FD & WP Next 2 Years Indicative Budgets

5 YEAR NWSP 2008/09 - 2012/13

2 Outer Years

FD & WP Next 2 Years Indicative Budgets

2 Outer Years

MSB III FRAMEWORKALIGNMENT OF FUNDING TO SFWS TARGETS

2005

MSB Funding

MSB - II € 19,000,000

MSB - III

20132009 2010 2011 2012

€ 30,000,000

2006 2007 2008

€ 30,000,000 € 30,000,000

€ 10,000,000

€ 15,000,000 € 15,000,000

€ 5,000,000

€ 30,000,000

Schools WS TargetH&H Education Schools

70% of Households practice safe sanitation

FBW Policy implemented By-laws in all WSA's

WSA's report against WSDP's SP's contracts with WSA's

SP's services ito BP for WSA WSA's report against KPI's

Clinics W&S Target

Water TargetWS Schemes transferred to WSA

Sanitation Target100% of Housholds practice safe sanitation

FBS Policy Implemented

Institutional Reform - 2013

TIMELINE OF THE NWSP 2007/08 to 2011/12

08/2005 03/2006

Obtain approval from Sector SH to

negotiate for MSB III

Start negotiate with donors to secure

MSB III

Define principles for MSB III

(SH approval)

Prepare NWSP submission to NT

(SH approval)

Water Services Water Services & Water Resources

09/2006 12/2006

Prepare PWSP with input from SH

Prepare NWSP with input from meeting

WSSCC

02/2007

Prepare TAT to draft MSB III agreement

08/2007

Approve & Sign MSB III agreement

Quadrant View of National Water Sector Programme

1 2

3 4

DWAF: Water Sector SpecificWater Sector Support

-DWAF-Donor Funds

Programme 3: Water Services

Non-DWAF: Water Sector SpecificMIGEducationHealthHousingCities NetworkEquitable Share

DWAF: Water Resource SpecificProgramme 2: Water Resources - WR Interfaces

- Water Quality - Water Demand Mngmt - Water Conservation

Non-DWAF: Non-Water Sector SpecificCapacity Building Grants - LG FM Grant (NT) - LG Restructuring (NT) - MSIG (LG)

PROCESS LINKAGE BETWEEN NWSP AND FD & WP

5 year National Water Sector Programme

2007/2008 2008/2009 2009/2010 2010/2011 2011/2012

Financial Delegation & Work Plan 2007/08

Quadrant1DWAF: WS Specific –

Programme 3

Quadrant 2Non-DWAF WS Specific

Quadrant3DWAF: WR Specific

Programme 2

Quadrant 4Non-DWAF Non WS Specific

Funds are Regulated by Financial Delegation approved by DDG: Regions in accordance with PFMA

Q2 and Q4 are not covered by the Financial Delegation. These funds are regulated by the DoRA, PFMA and MFMA

ALIGNMENT OF OBJECTIVES IN THE WATER SECTOR

Cabinet MTSO’s (6)Cabinet MTSO’s (6)

SFWS (19)SFWS (19)

Water Sector StakeholdersWater Sector Stakeholders

Water Resources

NWRS (9)NWRS (9)

Water Services

DWAF – 9 RegionsDWAF – 9 Regions

SALGASALGADWAF - NationalDWAF - National - Regulations- Regulations

- Communications- Communications

- Sanitation- Sanitation

- IGR (Sector Support Strategy)- IGR (Sector Support Strategy)

- Institutional Reform Strategy- Institutional Reform Strategy

- Integrated Planning- Integrated Planning

- Africa Participation Plan- Africa Participation Plan

dplg (MIG incl.)dplg (MIG incl.)

- LG Strategic Agenda- LG Strategic Agenda

- LG Support Plan- LG Support Plan

DOEDOE

DOHDOH

Civil SocietyCivil Society

WINWIN

Cross CuttingCross Cutting - Gender- Gender

- Environmental- Environmental

- Appropriate Technology- Appropriate Technology

- HIV Aids- HIV Aids

Water ResourcesWater Resources - Water Conservation- Water Conservation

- Demand Management- Demand Management

- Water Allocation Reform- Water Allocation Reform

Water for Growth & Development – Main Theme

Private Sector InvolvementPrivate Sector Involvement

ESETAESETA

SAAWUSAAWU

National TreasuryNational Treasury

Jan

Feb

MarchApril

May

Jun

eJulyAug

SeptOct

Nov

Dec

08/10

08/11

`National

Prov

Local

Government Macro Planning FrameworkPoA 07 and broad

MTSF 08/11 ideasPreparation of PoA 08

Yearly Reports to Presidency 07 and 08

Local Govt planning 08/11

Medium Term BPS 08/11

MTEC Hearings for 08/11

SoNA/Prov Address 2007

Budget Speech 07/08

Local Govt finalise budget

07/08

Local Govt commences with

IDP 08/11

Draft MTSF 08/11

Local Govt PoA & budget 07/08

MTSF 08/11 adopted

NATIONAL WATER SECTOR WORK PROGRAMME

1. The National Water Sector Programme (NWSP) reflects Water Services & Water Resources strategy needed for the next 5 years (2007/08 - 2011/12)

2. The National WSP consists of information consolidated from :• 9 Provincial Water Sector Plan• DWAF Head Office plan with all directorates

supporting various stakeholders• dplg• SALGA• Civil Society• Cross Cutting Elements

• The National WSP incorporates and supports the sector strategy which consists of:

– Strategic Framework for Water Services – SFWS (2003 – 2013)

– DWAF Strategic Plan (5 years)– dplg Strategic Plan (5 years)– Local Government Support Strategy (5 years)– SALGA Support Strategy (3-5 years)

• Purpose of National WSP– To incorporate WS Strategy of all stakeholders– To determine the WS need for resources– To identify any gaps in allocation of budgets– To align budget to all strategic priorities

NATIONAL WATER SECTOR WORK PROGRAMME

(cont…)

GAP ANALYSISQUADRANT 1 – DWAF SPECIFIC

2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 Total

Management Support Overheads 72,841,349 73,878,251

74,929,914

75,996,547

77,078,363 374,724,424

Donor Funding ¹ -

- -

- -

-

- Departmental Baseline

148,022,640

156,903,998

166,318,238

176,297,333

186,875,173 834,417,382

- Prof & Spec

141,995,480

150,515,219

159,546,121

169,118,889

179,266,022 800,441,731

Funds available to DWAF: Water Services Specific (Excluding Water Ops Subsidy)

362,859,469

381,297,469

400,794,273

421,412,768

443,219,558 2,009,583,537

Funds required by DWAF (Refer to DWAF Requirements)

703,485,934

775,592,823

805,322,621

804,465,403

832,805,708 3,921,672,488

             

Shortfall (340,626,465) (394,295,354) (404,528,347) (383,052,635) (389,586,150) (1,912,088,952)

¹ - Donor funds are not yet contractually committed

GAP ANALYSISQUADRANT 2 – NON DWAF WATER SERVICES SPECIFIC

- According to the MIG: Registered Projects database at 30 June 2006 Water & Sanitation projects represented 61% of total. According to the MIG Database of all registered MIG Projects 21,4% are Sanitation Infrastructure projects including Bucket Eradication projects and 39.6% is Water. After 2008 the funds available for Water is eliminated and Sanitation after 2010.

² - The percentage in brackets is the estimated benefit that will accrue to the Water Sector.³ - Only includes budget information received from Ethekwini Metropolitan.4 - WS Operating Subsidy was included in this table with Non-DWAF as it relates to infrastructure operate and maintenance.

2007/08 2008/09 2009/10 2010/11 2011/12 Total

Municipal Infrastructure Grant - ²

3,994,624,040 4,912,384,900 1,723,361,000 1,826,762,660

1,936,368,419 14,393,501,019

Eradication of Bucket Sanitation 600,000,000 - - - - 600,000,000

Hospital Revitalisation Grant (5%) ² 85,350,000 99,150,000 105,099,000 111,404,940 118,089,236 519,093,176

Integrated Housing and Human Settlement Dev Grant (10%) ² 793,800,000 872,100,000 924,426,000 979,891,560 1,038,685,054 4,608,902,614

Provincial Infrastructure Grant (5%) ² 266,200,000 284,850,000 301,941,000 320,057,460 339,260,908 1,512,309,368

Cities Network ³ 271,000,000 314,000,000 239,000,000 179,000,000 179,000,000 1,182,000,000

Equitable Share (35%) ² 4,015,124,000 4,554,953,400 4,782,701,070 5,021,836,124 5,272,927,930 23,647,542,523

Water Services Operating Subsidy 4 1,040,025,000 1,130,507,000 1,198,337,420 1,270,237,665 1,346,451,925 5,985,559,010

Funds available Quadrant 2: Non-DWAF Water Services Specific

11,066,123,040 12,167,945,300 9,274,865,490

9,709,190,409

10,230,783,471 52,448,907,710

Funds required by DWAF (Refer to DWAF Requirements)

14,683,390,414 15,417,159,649 12,309,689,705

12,728,176,030

9,227,623,472 64,366,039,270

Shortfall (3,617,267,374) (3,249,214,349) (3,034,824,215) (3,018,985,622) 1,003,160,000 (11,917,131,560)

QUADRANT 3 & 4 GAP ANALYSIS

• Currently Quadrant 3 only consist of– Drought Relief– Integrated Water Resource Management

• Quadrant 3 requires further development in the future

• Included in Quadrant 4 are the Capacity Building grants:– LG Financial Management Grant (National Treasury)– Municipal Systems Improvement Grant (dplg)– LG Restructuring Grant (National Treasury)

EQUITABLE SHARE ALLOCATION TO MAINTAIN “NEW INFRASTRUCTURE”

FOR WATER AND SANITATION SERVICES

EQUITABLE SHARE TO MAINTAIN "NEW INFRASTRUCTURE"WATER & SANITATION

05,000

10,00015,00020,00025,00030,00035,00040,00045,00050,00055,00060,00065,000

2006

2007

2008

2009

2010

2011

2012

2013

2014

Water Sanitation Water SanitationEquitable ShareCAPEX

THE END

CHALLENGES•Taking the theme Water for Growth & Development forward- addressing poverty•Priorities in the SONA•Priorities in the Minister’s Programme (Internal & External)•Moving from WS to WR interface•Improve Programme & Financial Management•Strengthen M&E•Support NEPAD & SADC and emerging democracies•Collaboration & knowledge sharing are the strength