WSSCC – 22 FEBRUARY 2007

NATIONAL WATER SECTOR PROGRAMMEvs.

FINANCIAL DELEGATION & WORK PLAN 2007/08

Dirk van der Boon

Water Sector Programme Management Support

Quadrant View of National Water Sector

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)

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

• Detailed Financial Analysis

• Work Plan

– 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

FINANCIAL DELEGATION & WORK PLAN2007/08

• What is it?

– Consist of a Financial Delegation delegating the responsibilities for DWAF funds included in Quadrant 1 to lower levels of management

– 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 the first year included in the NWSIP

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

FRAMEWORK FOR NWSP and FD & WP

2005 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

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

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

DWAF defines 5-year Strategic Plan – 2007/08 to 2011/12 30 June 2006

Request WSFMC members to submit allocation for next 5 years linked to Strategic Objective 15 July 2006

Request project and budget allocation needs from Regions and Stakeholders for 2007/08 (1st Request) 31 July 2006

Determine funds available from donors and MTEF Allocations for 2007/08 31 August 2006

Ascertain need for additional funding and make application to Donors and National Treasury 30 September 2006

Develop proposed allocation (vertical and horizontal) of funds to projects taking into account funding and donor constraints and ongoing contractual commitments 30 September 2006

Stakeholder consultation meetings 6 October 2006

Adjust available budget with the additional allocation received 11 October 2006

Allocation according to Strategic Objectives considering current contractual commitments 20 October 2006

Distribution of BAF to Regions, Clusters and Sector Stakeholders 27 October 2006

Regions and Sector Stakeholders provide project list supporting strategic objectives 10 November 2006

2007/08 FD PROCESS1

Determine the status of TAC Contracts in all 9 Regions (In progress) 16 Jan 2007

RPM Meeting 16 Jan 2007

Provide Feedback to DDG on Progress of TAC Contracts 23 Jan 2007

Final Budget requests from stakeholders per project 23 Jan 2007

Finalize Risk Document submission to DG 23 Jan 2007

Approval from DG on Bridging Finance 26 Jan 2007

Revise Vertical and Horizontal splits with recommendations 31 Jan 2007

Present and prepare Financial Delegation as per WSBE Recommendations 9 Feb 2007

Present to WSSCC for recommendation and approval 22 Feb 2007

One-on-One Sector Stakeholder Consultation meetings 22-28 Feb 2007

Circulate to BSC members for recommendation and approval 22-28 Feb 2007

Finalize 2007/08 Financial Delegation 1 March 2007

Approval of FD by DDG: Regions 8 March 2007

Distribute Financial Delegation to all 9 Regions 8 March 2007

Financial Delegation Revision Jul & Oct 2007

2007/08 FD PROCESS1

FD & Work Plan 2007/08Quadrant 1 - Financial Analysis per MTSO

Medium Term Strategic Objectives2007/08 FD

Building a better Africa and a better world 10,003,000

Building the economy and creating jobs 71,855,000

Human Resource Development

163,175,200

Speeding up delivery to meet basic needs

1,456,916,000

Transforming The State

377,363,000

Total 2,079,312,200

Speeding up delivery to meet basic needs

71%

Building the economy and creating jobs

3%

Building a better Africa and a better

world0%Transforming The

State18%

Human Resource Development

8%

1

FD & Work Plan 2007/08Quadrant 1 - Financial Analysis per KFA

Key Focus Area 2007/08 FD

KFA 10 - Water and Sanitation Services

291,929,000

KFA 11 - Water sector support

279,873,000

KFA 12 - Institutional support

152,360,200

KFA 13 - Transfers 18,755,000

KFA 14 - African participation

3,503,000

KFA 18 - Water services support

123,710,000

KFA 21 - Operations of Water Services

1,188,782,000

KFA 6 - Water Resource Integration 20,400,000

Total 2,079,312,200

KFA 10 14%

KFA 11 13%

KFA 2158%

KFA 61%

KFA 140%

KFA 131%

KFA 127%

KFA 186%

1

FD & Work Plan 2007/08Quadrant 1 - Financial Analysis per ProvinceProvince 2007/08 FD

EC 50,364,000

FS 23,178,000

GP 17,004,000

HO 601,476,000

KN 19,118,000

LP 88,652,000

MP 21,419,000

NW 21,095,000

NC 24,099,000

WC 24,125,200

WS Ops Sub 1,188,782,000

Total 2,079,312,200

WS Ops Sub58%

MP1%

NW1%

NC1%

WC1%

LP4%

KN1%

HO29%

GP1%

FS1%

EC2%

`

• The following Sector Partner support budgets are included in HO budget

– SALGA – R7m

– Dplg – R15m

• Retired Engineers – R10m

• Strategic Support – R5m

– Civil Society – R3.5m

– Dept of Health – R2m

1

QUADRANT 1 DWAF WATER SERVICES SPECIFIC

1 2006/2007

Expenditure Dec 06

MTEF Budget of

Prog 3

Donor Budget

Total Budget

Exp vs. Total

Budget

R' 000 R' 000 R' 000 R' 000 %

KFA 10 – Water & Sanitation Services 70,635 21,131 78,147 99,278 71%

KFA 11 – Water Sector Support 142,279 119,911 99,806 219,717 65%

KFA 12 – Institutional Support 70,968 57,109 91,617 148,726 48%

KFA 13 - Transfers 1,110 15,480 5,500 20,980 5%

KFA 14 – African Participation 0 400 2,500 2,900 0%

KFA 18 – Water Services Admin 81,466 116,096 0 116,096 70%

KFA 21 – Operation of Water Services 753,331 1,132,124 0 1,132,124 67%

KFA 6 – Water Resource Interface 3,994 0 9,250 9,250 43%

1,123,783 1,462,251

286,820 1,749,071 64%

• The Water Sector Support expenditure vs. budget as at 31 December 2006 was 47%

1

CONTACT DETAILS

• The FD & WP will be distributed electronically on 23 February 2007 to all WSSCC attendees for input and comments

• Due to final document to be approved early March 2007 comments should be received by 28 February 2007.

• Any queries and comments can be directed to

– Dirk van der Boon

• E-mail – vanderboond@dwaf.gov.za

• Tel # - 012-336 8357

– Asanda Ntshanga

• E-mail – ntshangaa@dwaf.gov.za

• Tel # - 012-336 7939