DWAF BUDGET 20034

1
DWAF BUDGET 2003/4

• SALGA PRESENTATION TO PORTFOLIO COMMITTEEON WATER
  AFFAIRS AND FORESTRY
• 31 MARCH 2003

2
AIM

• SALGAs objective is to assist municipalities in
  fulfilling their developmental role. This is in
  line with their objects as set out in Section
  152 of the Constitution which provides that
  municipalities should amongst other requirements
  
• Ensure the provision of services to communities
  in a sustainable manner
• Promote a safe and healthy environment
• It is therefore essential that municipalities
  are
• Well capacitated
• Institutionally Sustainable
• And deliver high quality services in
  an equitable manner

3
BACKGROUND

• VISION
• A developmental and co-operative local
  government system in South Africa that is
  democratic and provides a better life for all.
• MISSION
• To build an integrated , sustainable organised
  local government association

4
MISSION Cont.

• Act as the voice of local government in
  provincial, national regional and international
  relations
• Supports and strengthens the capacity of
  municipalities
• Serves as the centre for knowledge an information
  management

5
STRATEGIC OBJECTIVES

• To continuously improve SALGAS ability to
  deliver high quality services to its members.
• To increase the impact and influence of organised
  local government.
• To increase the skills base within the sector
• x

6
STRATEGIC OBJECTIVES Cont.

• To leverage the collective buying power of
  municipalities to benefit the sector
• To ensure that South African local government
  plays a critical role in furthering Africas
  development at a regional and international level

7
SALGA STRUCTURES

• POLITICAL STRUCTURE
• National General Council
• National Executive Committee
• National Management Committee
• National Working Groups
• ADMINISTRATIVE STRUCTURE
• National Office in Pretoria
• Provincial Associations

8
NATIONAL GENERAL COUNCIL RESOLUTIONS ON FBW

• Undertake an audit of the reasons why some
  municipalities are not providing FBWS, and a
  strategy worked out accordingly
• FBWS should be defined with regards to sanitation
  at a level that leaves the community with a
  measure of dignity.

9
NGC RESOLUTION Cont.

• SALGA to engage fully with the National
  Sanitation strategy to ensure that South Africa
  meet the millennium backlog,
• eradication targets in a manner that is socially
  acceptable, and financially and environmentally
  sound.

10
NATIONAL CONTEXT

• SALGA is committed to promoting the achievement
  of the MTSOs of Cabinet, thus
• Speeding up delivery to meet basic needs
• Developing human resources
• Building the economy and creating jobs
• Combating crime and corruption
• Transforming the State
• Building a better Africa and a better world

11
SECTORAL TARGETS

• The Local Government Declaration issued at the
  WSSD, is indicative of municipal commitment to
  water and sanitation targets set through
• Millennium Development Goal for water South
  African target based on backlog eradication by
  2008
• WSSD target for sanitation backlog eradication
  2010, including the Ministerial target for bucket
  eradication by 2007
• The DWAF target for 2003 of an additional 1 000
  000 people served with basic water supply and 300
  000 households served with basic sanitationis
  noted.

12
INTERGOVERNMENTAL RELATIONS WITHIN THE SECTOR

• Given the challenges of service delivery,
  partnership is key, and the intergovernmental
  framework enables these relations to function in
  a manner that benefits developmental local
  government
• SALGA appreciates DWAFs openness to taking
  sector partners on board through the Masibambane
  approach

13
MASIBAMBANE SALGA PARTICIPATION

• SALGA plays a leadership role and participates as
  an equal partner in all Masibambane structures.
• In order to increase participation in sectoral
  processes, even non-Masibambane provinces, SALGA
  has increased its personnel, and place water
  services officers at provincial level.

14
CHALLENGES FOR WATER SERVICES DELIVERY

• Free basic water and sanitation delivery
• Sustainable transfer of DWAF assets
• Sanitation backlog eradication
• Impact of sectoral institutional restructuring on
  LG
• Capital programme implementation
• All these challenges need to be managed so that
  service delivery is realised.

15
IMPLEMENTATION OFFREE BASIC WATER

• Sound progress with 76 of municipalities
  providing to 26 704 348 people
• The 2003/4 budget makes a provision of R2.7
  billion on FBW, sanitation and refuse. It is
  envisaged that this allocation shall increase
  over time.
• Key challenges
• Development of Indigent policies
• Delivery of FBW to unserved and poor
  households
• Large scale meter installation
• Revenue collection and control

16
FBW CHALLENGES Cont.

• Other challenges include
• Availability of qualitative data to assess the
  impact of service delivery and therefore improve
  it.
• Consistency in data classification
• Un-availability of up-to date dis-aggregated data
  at municipal level.

17
SANITATION DELIVERY

• SALGA has identified the delivery of sanitation
  as one of the key priorities.
• There are concerns with regards to the adequacy
  of consultation between municipalities and DWAF
  in the development of the White paper on Basic
  Household Sanitation, and the national strategy.
• It is anticipated that these shall be addressed
  and the outcome shall result in enhanced
  municipal support.

18
SANITATION Cont.

• Consideration to re-visit the policy, approach
  subsidy levels may be necessary.
• SALGA currently has a special focus on bucket
  eradication in support of the Ministerial target
  set for 2007.
• For ease of reference, it would be proper to
  indicate specifically the budget allocation for
  sanitation implementation

19
INSTITUTIONAL ARRANGEMENTS

• Focus is currently on three key areas
• Transfer of DWAF assets to municipalities
• Future role of water boards
• Catchment Management Agencies

20
TRANSFER OFDWAF ASSETS

• Significant progress has been made in this
  critical area which shall see the transfer of
  321 bulk schemes and 3027 rudimentary schemes
  transferred to 84 WSAs.
• DWAF and SALGA, together with DPLG and NT have
  finalised a Joint Transfer Policy to guide
  implementation
• SALGA notes the additional budget allocations
  made to the transfer programme, but wish to see
  an increasing trend in this regard.

21
TRANSFERS Cont.

• Furthermore, a dedicated grant to fund the
  transfer programme is welcome as it provides
  better planning, transparency and accountability.
• It is however noted that the time-frames outlined
  in the 2003 Bill under this grant, may not be
  feasible given the complex nature of the
  programme
• Joint implementation continuing through
• establishment of Joint Response Teams
• common provincial transfer action plans

22
WATER BOARDS

• SALGA supports the concept of the regionalisation
  of water service provision, that is driven by
  WSAs to achieve efficient and effective service
  delivery to all
• There is need to investigate whether the current
  Water board structure reaches the above
  objective, as this may contribute to the future
  clarity on the role of Water boards.

23
WATER BOARDS Cont.

• Transfer payments to Water boards are noted, and
  the allocations over the three budget cycles with
  a gradual phasing out of the transfer totals R301
  million.
• It is however anticipated that in the next
  budget, there shall be more specific information
  on these transfers to better inform policy.
• SALGA anticipates a co-operative approach with
  DWAF to articulate these roles.

24
CATCHMENTMANAGEMENT

• SALGA supports the over-arching goal of managing
  our scarce water resources effectively
• However, concern exists regarding the governance
  of CMAs and the role of the local sphere of
  government
• Concerns regarding the financial impact of the
  implementation of the national pricing strategy
  on municipalities, are heightened by the
  expenditure trends noted in the budget which
  indicate a significant decrease over the next
  budget cycle

25
WATER SERVICESPROJECTS GRANT

• This programme has posted an increase of
  approximately R 103 million from the 2002/3
  allocations, to the present level of R 1 102 812
• The DWAF Transfer programme makes special
  provision for the transfer of 375 of 1003
  completed RDP projects
• It would be proper for DWAF to ensure that the
  transfer of the balance of these schemes and
  those currently under implementation are
  sustainably transferred to WSAs

26
WS GRANT CONDITIONS

• Conditions should seek to
• Promote access to resources
• Enable participation and empower
• Be reflective of prevailing municipal pressures
  and priorities
• Ensure that institutional arrangements,
  administrative and human capacity is in place to
  respond to the requirements

27
CONDITIONS Cont

• There is therefore proper cause to facilitate
  access to this grant, and SALGA would work with
  DWAF to this end.
• In recognition of these challenges, it would be
  proper that DWAF demonstrates that is is
  supporting municipalities to meet the conditions
  set by the Department until the grant is phased
  into MIG.
• It is essential that the above-notes considering
  the wide ranging challenges faced by
  municipalities

28
SECTORAL INVESTMENT

• SALGA commends both the DWAF and NT for
  recognizing the constraints under which some
  municipalities operate as evidenced in the
  increased allocations
• The additional budgetary allocations and
  financial certainty that they brought to the
  sector are most welcome
• However, it is clear that to meet delivery
  targets even greater investment will be required.
  

29
Cont.

• Current challenges facing municipalities, as
  already outlined, including reducing
  infrastructure backlog, and eventually targeting
  subsidies to those most deserving, need to be
  addressed through the budget.
• Commitment is therefore necessary from DWAF to
  continue to increase budget allocations to
  improve service delivery

30
FINALLY

• SALGA shall continue to play a role within the
  sector by working with municipalities to achieve
  efficient service delivery.

31
SALGA

• THANK YOU