department of water affairs and forestry select committee intergovernmental fiscal review chapter...

Department of Water Affairs and Forestry

SELECT COMMITTEE SELECT COMMITTEE

INTERGOVERNMENTAL INTERGOVERNMENTAL FISCAL REVIEWFISCAL REVIEW

CHAPTER 10:WATER & CHAPTER 10:WATER & SANITATIONSANITATION

6 September 20046 September 2004


PURPOSE PURPOSE

provide insight into government provide insight into government finances for policy makers, policy finances for policy makers, policy

analysts, representatives etcanalysts, representatives etc

“support Parliament in debating “support Parliament in debating and overseeing budgets and plans and overseeing budgets and plans

for essential services”for essential services”


OVERVIEWOVERVIEW

•Backlogs and size of the sectorBacklogs and size of the sector

•What is the WS sector?What is the WS sector?

•assets R 102 billionassets R 102 billion

•annual turnover R 12 billionannual turnover R 12 billion

•municipalities are responsible municipalities are responsible for water supply and sanitation at for water supply and sanitation at local levellocal level


Water Supply PerspectiveWater Supply Perspective(Census 2001 updated to Mar 2004)(Census 2001 updated to Mar 2004)

Total population : 47.4millionTotal population : 47.4million

31.5 m31.5 m(66%)(66%)

5.5 m5.5 m(12%)(12%)

6 m6 m(13%)(13%)

4.4 m4.4 m(9%)(9%)

Perspective 1:Perspective 1: People to be brought up to a bare minimum supply People to be brought up to a bare minimum supply I.e. safe source but still lacking qualityI.e. safe source but still lacking quality

Perspective 2:Perspective 2: Total people to be brought to within 200m. Total people to be brought to within 200m.

Perspective 3:Perspective 3: Total people to be brought up Total people to be brought up to in-house/yard connections.to in-house/yard connections.

4.4 m4.4 m

(9%)(9%)

10.4 m10.4 m

(22%)(22%)

15.9 m15.9 m

(34%)(34%)

Water in house or in yardWater in house or in yard

Standpipes Standpipes less than less than

200m200m

Standpipes Standpipes further than further than

200m 200m + +

boreholesboreholes

UnacceptableUnacceptableRiver, pool, River, pool, dam, streamdam, stream

Note : These figures reflect access to infrastructure, not necessarily effective services e.g water quality, flow & sustainabilityNote : These figures reflect access to infrastructure, not necessarily effective services e.g water quality, flow & sustainability


Sanitation PerspectiveSanitation Perspective(Census 2001 updated to Mar 2004)(Census 2001 updated to Mar 2004)

Total population : 47.4millionTotal population : 47.4million

26.1 m26.1 m55%55%

4.2m4.2m9 %9 %

17.1m17.1m36%36%

Perspective 1:Perspective 1: Total people to be brought to VIP. Total people to be brought to VIP.

Perspective 2:Perspective 2: Total people to be Total people to be brought up to flush toilet level of brought up to flush toilet level of service.service.

17.1 m17.1 m

(36%)(36%)

21.3 m21.3 m

(45%)(45%)

Flush toilet (connected to sewer Flush toilet (connected to sewer systems or septic tank)systems or septic tank) VIPVIP

UnacceptableUnacceptableNone, pit latrine, buckets, None, pit latrine, buckets, chemical (1.8 m people chemical (1.8 m people

using buckets )using buckets )

Note : These figures reflect access to infrastructure, not necessarily effective servicesNote : These figures reflect access to infrastructure, not necessarily effective services


Sanitation BacklogSanitation Backlog

• +- 17 million people lack access to basic +- 17 million people lack access to basic sanitation.sanitation.

• 11.7% of schools have no access to 11.7% of schools have no access to adequate sanitationadequate sanitation

• 15% of clinics lack access basic sanitation15% of clinics lack access basic sanitation

• 400 000 households still use bucket 400 000 households still use bucket sanitation.sanitation.


Sanitation ChallengesSanitation Challenges

• 300 000 people to be served this year300 000 people to be served this year

• Backlog to be cleared by 2010Backlog to be cleared by 2010

• All schools to be served by March 2005All schools to be served by March 2005

• All buckets eradicated by 2006All buckets eradicated by 2006

• Budget allocated to municipalities through Budget allocated to municipalities through MIG.MIG.


Overview of recent reformsOverview of recent reforms

• Mention the Strategic Framework for Water Mention the Strategic Framework for Water Services as a comprehensive policy framework Services as a comprehensive policy framework for water servicesfor water services

• list the set of goals as in the SFFWSlist the set of goals as in the SFFWS

• institutional reform (not mentioned)institutional reform (not mentioned)

• regulatory strategy (not mentioned)regulatory strategy (not mentioned)

• MIG (mentioned)MIG (mentioned)


Important trends in expenditure and Important trends in expenditure and budgets budgets

• Table 10.2: Total WS budget decrease from Table 10.2: Total WS budget decrease from (03/04) R 2608 million to R 1334 million in (03/04) R 2608 million to R 1334 million in 04/05.04/05.

• Table 10.3: Capital expenditure on DWAF Table 10.3: Capital expenditure on DWAF budget down from R 1102 million in 03/04 to R budget down from R 1102 million in 03/04 to R 160 million in 04/05 and zero by 2006/07160 million in 04/05 and zero by 2006/07

• Table 10.4: Municipal Infrastructure Grant Table 10.4: Municipal Infrastructure Grant (MIG) is R 4 400 million in 04/05.(MIG) is R 4 400 million in 04/05.

• Table 10.4: Water and Sanitation allocation is R Table 10.4: Water and Sanitation allocation is R 2 300 million of this.2 300 million of this.


Important trends (2)Important trends (2)

• DWAF’s operating support will be phased out as DWAF’s operating support will be phased out as schemes are transferred to municipalitiesschemes are transferred to municipalities

• Move of capital funds from DWAF to Move of capital funds from DWAF to municipalitiesmunicipalities

• MIG allocations are made in terms of a formula, MIG allocations are made in terms of a formula, based on backlogs,powers and functions and based on backlogs,powers and functions and poverty.poverty.

• Significant allocations to Water and sanitation Significant allocations to Water and sanitation but…...but…...


Important Issues/Comments Important Issues/Comments

• Budget still inadequate to erase backlogs on time Budget still inadequate to erase backlogs on time especially sanitation and in light of demands on especially sanitation and in light of demands on higher levels of sanitationhigher levels of sanitation

• corresponding operational grant (Equitable corresponding operational grant (Equitable share) to cover running expenses for all this new share) to cover running expenses for all this new infrastructure is a growing concern.infrastructure is a growing concern.

• Disputes about backlog figures between some Disputes about backlog figures between some municipalities and national governmentmunicipalities and national government


The MIG and DWAF’s new role The MIG and DWAF’s new role • Funds for basic services directly allocated Funds for basic services directly allocated

to municipalities.to municipalities.

• Interim phase in periodInterim phase in period

• MIG is a conditional grantMIG is a conditional grant

• DWAF negotiated set of sector conditionsDWAF negotiated set of sector conditions

• Planning very important-DWAF to guide Planning very important-DWAF to guide and support processand support process


MIG and DWAF’s new role (2) MIG and DWAF’s new role (2) • Ensure that government’s objectives are Ensure that government’s objectives are

met.met.

• Monitor and regulate against national Monitor and regulate against national policy and conditionspolicy and conditions

• Share information and intervene where Share information and intervene where necessarynecessary

• Report progress to Cabinet.Report progress to Cabinet.


Important trends in expenditure and Important trends in expenditure and budgets (2)budgets (2)

• Table 10.5: Bulk of money is in the metrosTable 10.5: Bulk of money is in the metros• Table 10.6: There are 4 water boards that seems Table 10.6: There are 4 water boards that seems

to have problems with financial viability I.e. to have problems with financial viability I.e. where operating expenditure exceeds income.where operating expenditure exceeds income.

• Table 10.7: Interesting facts about employees in Table 10.7: Interesting facts about employees in the sector----please note that DWAF’s figures is the sector----please note that DWAF’s figures is not correctly reflected--it excludes all operating not correctly reflected--it excludes all operating staff in provinces.staff in provinces.

• Page 138: Staff to be transferred is from WS Page 138: Staff to be transferred is from WS function to LG and not WR function.function to LG and not WR function.


ConclusionsConclusions

• Reforms are important but will take time. Reforms are important but will take time. (Institutional and regulatory reforms)(Institutional and regulatory reforms)

• Agree on huge challenges for transfers.Agree on huge challenges for transfers.• MIG on its own will not speed up delivery unless MIG on its own will not speed up delivery unless

there is the capacity to spend money well and there is the capacity to spend money well and effectively effectively

• Support strategies (and actions) to LG crucialSupport strategies (and actions) to LG crucial• Sustainability and operations important Sustainability and operations important • Monitoring and reporting on progress keyMonitoring and reporting on progress key


The ENDThe END

Thank youThank you

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