5 Year Strategic Plan and Budget For the Fiscal …pmg-assets.s3-website-eu-west-1.amazonaws.com/docs/120508icma … · 5 Year Strategic Plan and Budget For the Fiscal Years 2012-13

INKOMATI CATCHMENT MANAGEMENT AGENCY

Click to edit Master subtitle styleThe Inkomati Catchment Management

Agency

5 Year Strategic Plan and BudgetFor the Fiscal Years 2012-13 to 2016- 17

Presentation to Portfolio Committee:1


The Inkomati Water Management AreaLegislative and other mandatesThe Catchment Management StrategyThe Strategic Plan

Situational Analysis

Performance EnvironmentStrategic Outcome Orientated Goals and ObjectivesOrganisational EnvironementKey OutpBudget and RevenuRisk Management

Challenges

Contents

22

INKOMATI CATCHMENT MANAGEMENT AGENCY5/9/12

The Inkomati Water Management Area

33



Legislative MandateInitial Functions:

section 80 of the NWA

Section 19 and 20 (Water Quality & Pollution Control)

Section 25(2): Temporary transfer of waterSection 124: Appointment of an authorised person

Additional functions delegated by the Minister on 17 December 2010:

Includes schedule 3 (River Operations & Restrictions),

This, plus the n

sections 34(2) & 35(1), of the National Water Act

as well as other sections pertaining to the establishment of Water User Associations

First Catchment Management Agency (CMA) to be established, Government Notice No.397 of 26 MaOther MandatesCatchment Management StrategyPolicy Initiatives Strategic Adaptive Management as a framework for implemRevised Remuneration Policy and Organisational Structure

Legislative and other Mandates

55


The Catchment Management Strategy

66

INKOMATI CATCHMENT MANAGEMENT AGENCYDWA Manco P t ti

OBJECTIVES

Practical IWRM to achieve equitable, sustainable, and efficient uses of Inkomati water resources which meet evolving stakeholder needs and legal obligations

A sustainable water resourceCollaborative and coordinated IWRM for wise socio-economic

developmentSecure financial arrangements for

IWRM

WRM Sub Strategies Integration Sub Strategies Facilitation Sub Strategies

Resource Protection

(RDM)

Regulating Water Use

(SDC)

Cooperative Governance &

Institutions

Stakeholder Engagement

Information & Monitoring

Finance

Achieving equity

Managing flow

Managing water quality

Generating and managing knowledge

Achieving compliance and

enforcement

Generating revenue

Sub

Strategies

Strategic Action

Programmes

Chapters of the CMS

Strategic Action Programmes from Stakeholders

77


Situational Analysis in ICMA 5 Year Strategic Plan

88


The key focus of the ICMA for the next 5 year strategic period will be to functions whilst insuring that we continue to perform our initial functions Catchment Management Strategy and the Government Outcomes

Key Focus

99


Vital Attributes of the Water Management Area

Livelihoods in the catchment are inextricably tied to the health irrigation agriculture, forestry, mining and government;

The very variable, in both space and time, rainfall is large reaches where the soils are better and poverty levels are h

The catchment is a critical element of an intern healthy aquatic systems and good water supplyThe rivers are an important source of wKnowledge of Water Resource Management is available.Knowledge management and accessibility remainsThere is generally low skills base on water resource management particulThere are still large disparities in access to water and current water al

stakeholders.Although generally not good there are examples of we which can act as good examples.

Water use infrastructure is generally limited and water management is larg water storage facilities).

The wide altitudinal range from west to ea wetlands play a very important role.

Threats

Despite the willingness and commitment of some, issues. This is clearly related to both the perceived Integrated Water Resources Management. There is

Poor land and water use planning by th of equity and sustainability of water re expansion, degradation of scenic mosa

A continued lack of infrastructure (small dams, canals entrenches and exacerbates the imbalances of the past

Non compliance by developers and mining, and continued lack of rapidly reducing the sustainability of water resources. (Issues in n land use within wetlands and riparian zones; illegal regulation of plants; etc.)

Non-implementation of the Reserve and agriculturally biased flow re the ecosystem services upon which the poor subsist, biodiversity cons

Ineffective cooperative governance at national Department of Mineral Resources), provincial resources for improved equity, efficiency and

Institutional Realignment creates uncertainty about the future Insufficient water use charges impacts negatively on the eShortage of skilled personnel in the sector.

Context for the Management of the Inkomati Catchment

The Inkomati economy is highly dependent on water, with drivers. Irrig

Rainfall in the catchment is spatially and temporally variable, and does no

Eco-tourism is based on the catchmentPoor municipal wasUncoordinatUncontroThe National Water Act is the enabling piece of legisl catchment.

Catchment water use is currently characterised implemented); inefficient use in many, but not obligations; and virtual water export, in the for

There is very poor enforLegislative implementation is lacking, particularly in terms of: the transformation of irrigation boards to WUAs; and co-operative go institutional transformation in the country.

There is a wide diversity of water users, cuGross disparities in technological a spatial distribution of water and lan

There are vast d (particularly tech productive land,

Despite many challenges to wa development in the catchment o

There is a perception that despite a general acceptance of the need for cha its lack of implementation, frustrating the water reform process.

The implementation of the Interim Inco-Maputo AThe Inkomati Water Management Area is part of an internatio of Swaziland.

Geographically, the catchm Swaziland and Mozambiqu

Performance Environment

1010


Strategic Outcome Orientated Goals & Objectives

DWA Priorities:

Contribute to Economic Growth, Rural Development, Food Security and Land Reform (Outcome 6; 7 and 9)

To promote Sustainable and Equitable Water Resources Management (Outcome 10).

Strengthening the regulation of the water sectorContribute to Improved International Relations (Outcome 11)Build capacity to deliver Quality Services

ICMA Objectives:

Ensure Effective, Efficient and Sustainable Management of Water ResourcesEnsure Collaborative and Co-Ordinated IWRM for

Promote and Pursue an International Developmental Agenda Promote Knowledge Generation and DistributionEnsure Effective and Efficient Management of ICMA Resources

CMS Strategic Action P

Achieving EquityWater Availability and Flow ManagementManaging Water QualityGenerating and Managing Knowledge

Achieving Compliance and Enforcement

Generating Revenue

Support Local Government to deliver services (Outcome 9).

1111


DWA PRIORITY 2: TO PROMOTE SUSTAINABLE AND EQUITABLE WATER RESOURCES MANAGEMENT (OUTCOME 7 & 10)

ICMA Strategic Objective 1: Ensure Effective, Efficient and Sustainable Management of Water Resources

CMS Strategic Action Programme 1: Achieving Equity

Outputs Output Statement Performance Indicator Baseline FunctionsStaff Bold = appoint Norm = ex.

Validation and Verification of water use

Validation and verification completed including review of work done. Investigate and finalise Access to WARMS systems

Percentage of validation and verification completed

70% completed of 6800

S 35(1)

Manager (Engineer) SP&Ops ASM: Plan Coord

Water Allocation Plan (WAP)

WAP to commence when verification complete (contract commence, identify priority areas for CL & announce CL in priority areas). Compile Disaster Management Plan (droughts, floods, pollution) when PRIMA complete.

Percentage of Water Allocation Plan completed

Nil

CMS S 80(b)

EM: WU, WRP&P, I&P Manager (Engineer) SP&Ops ASM: Plan Coord

Identify Priority groundwater regions. Commence Regional Groundwater Plan.

Groundwater Studies 1 NGS

EM:WRP&P

Established Water Users Associations and transformed Irrigation

2 WUAs established Number of WUA established (7 in Total)

2 S 92 EM: I&PEM: WU Board Secretary

Support the 4 existing WUA Number of existing WUA supported

2S 80(a) (c)

EM: WUEM:I&P Board S

1212


Organisational Environment

NB. This Organisational

Structure is currently under review by the

Governing Board to reduce costs and improve efficiency

1313


Key outputs in the Strategic Plan per Functional Area

1414


Management

Strategic Planning, RepoMarketing and Communication

Governance

Good cooperate governance effectively implemented

Informed legal services provided

Management and Governance

1515


Verification of Existing

Data Gathering and Assessment completion in miOnce verification completed, commence with the Water Allocation Plan (WAP) for the catchment and then finalise comThe classification of the Rivers will be completed in collaboration with DWA and in parallel wi

Integrated planning and operations of river sy

Continue Crocodile River operations systems implementation. Finalise th

Support and partake in various Scientific projects underway in the WMA aiming at improving the operations of our river systems

Continue with Crocodile River Operations forum and establish Sabie River operations Forum dur

Stakeholder Centered progressive implementation of the Reserve

Directly linked to the operation of river systems

Operational

Purchase of river flow and rainfall data loggers to support the river operations process above will be finalised and data acquisition and maintenanceOperational Information Database and website will be installed and implemented during 2013.

Water Allocation PlanCatchment Management Strategy

Approved in 2012-13. Implementation thereafter. Revise once NWRS com

Water Resources Planning & Operations

1616


Discharge and water resour

Monitor existing 126 DWA Sites. Implement new working procedures and review monitoring sites and indicators.Commence new Laboratory Services Contract The Survey of the Acid Mine Drainage threat will be finalised and a plan to mitigate will be developed.

Water resourc

Respond to 100% of pollution Incidents

Compliance Monitoring and Enforcement

Expanding CME mandate as further delegations are forthcoming from DWA.

Authorised and Metered Water Use

Commence with water Quality authorisation recomFinalise Installation of water meters on Middle Komati river. Prioritise furth

The River Health Programme.

ICMA central to revitalisation of RHP as it is important to gauge the effectiveness of the implementation of the reserve. HavContinue CME for section 19 and 20 water uses (pollution control).

Resource Protection & Water Use

1717


Provision of informed advice to DWA on International agreements

Play a meaningful role in the implementation of the Interim Inco-MaputoPartake in the Joint Water Commissi task teams and forums

Exchange of knowledge and expert

Attend relevant international program

Improved International Relations

1818


The establishment of Water User A

This is still hampered by the current

Effective stakeholder (sectors) participation

Involve all sectors. Partake in new 4 year WRC project on implementing S Management.

Establish Farmers Associations to support equity impro

Strengthen co-operative governance responsibilities

Evaluate documents, advise officials and make recommendation on IDP’ Environmental Framework and any other relevant plans, policies and doc

Support Mbombela Reconciliation Strategy

Finalising information sharing agreem environmental affairs as priorities.

The ICMA will also strive to become a member of RAMDEC and continu

In the following years the ICMA will commence with t government departments.

Build knowledge s

Relevant meetings, forums, projects, conferences, networks, organisations

Institutions and Participation

1919


Billing of Water Users

The ICMA will be involved in tariff determinations immediately. Once th transferred to the ICMA during the 5 year period.

The revenue required to achieve all of the prioritised strategic actions w

Sound Financial Services ImplementedSound corporate servic

Corporate and Finance

2020


Commenced:

Completion of the CMS Verification of existing Water Use Landcover ClasUpdating of Cadastral Technical support contract for real time operTechnicInstall Water Meters in the Middle KomatiInstall River Flow and Rainfall Data Loggers and imExploring Critical Feedback ComponBiomonitoring in Support of River Health programme

To be commenced:

Water Allocation Plan, linked to classification of Rivers by DWAAcid mine Drainage Survey and StrategyLaboratory ContractGroundwater Strategy

Major Core Function Projects

2121


Financial Strategies

Transfer of Billing functi

Ito the NWA, the Inkoma to take up this function o wter use information on W

Inter Basin Transfer Charges

All revenue for water transferred out of the catchment by Eskom is curren earmarked as revenue due to the ICMA.

Waste Discharge Charge System

The implementation of this system by DWA has be piloted in the Inkomati.

2222


Revenue Source 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17Est. Outcome (R) Budget (R) % Budget (R) Budget (R) Budget (R) Budget (R)

ICMASalaries and Wages 19,072,218 28,726,337 56.0% 30,306,283 31,973,129 33,731,651 35,586,892

Support Staff10,237,495

20.0% 10,800,557 11,394,588 12,021,290 12,682,461Core Function Related Staff 18,488,842 36.0% 19,505,728 20,578,543 21,710,363 22,904,433

Goods and Services 16,598,787 22,572,069 44.0% 23,749,691 25,055,924 26,434,000 27,887,870

General Expenses17,638,497

34.4% 18,544,773 19,564,735 20,640,796 21,776,040

Repair and Maintenance709,568

1.4% 748,594 789,767 833,204 879,030

Contribution to Capital Outlay1,824,004

3.6% 1,924,324 2,030,162 2,141,821 2,259,621Board Related Costs 2,400,000 4.7% 2,532,000 2,671,260 2,818,179 2,973,179SUB TOTAL ICMA 35,671,005 51,298,406 54,055,974 57,029,053 60,165,651 63,474,762

less variance already transferred in 2011-12 by DWA for 2012- 13.

(5,755,496)

Less Project Commitments not spent in 2011-12

(2,280,550)

Less estimated unspent funds from 2011-12

(4,675,962)

TOTAL ICMA BUDGET REQUIRMENT FROM DWA HO 2012-13 38,586,398 54,055,974 57,029,053 60,165,651 63,474,762

DWA RODWA - RO Salaries 3,350,390 3,551,412 3,746,740 3,952,811 4,170,215

DWA - RO Goods & Services 1,341,500 1,415,283 4,960,756 5,233,598 5,521,445SUB TOTAL DWA RO 1,274 4,691,890 4,966,695 1,486,047 1,567,780 1,654,007

TOTAL REVENUE 40,129,931 55,990,296 59,022,669 58,515,100 62,026,006 65,747,567Notes: 40% of new appointments Budget is expected not to be required as the appointments will only be completed during the year under review.

ICMA Budget

2323


Summary Per Division:

Department 2012-13 2013-14 2014-15 2015-16 2016-17

Salaries and Wages

Goods & Services Total %

Governance 1,248,272 2,462,258 3,710,530 7.2% 3,914,611 4,117,040 4,343,477 4,582,368

Office of the CEO 3,057,445 536,551 3,593,996 7.0% 3,791,668 3,997,671 4,217,543 4,449,508

Corporate & Finance 5,931,778 3,357,225 9,289,003 18.1% 9,799,900 10,325,671 10,893,583 11,492,730

Institutions & Participation 4,852,304 1,201,138 6,053,442 11.8% 6,386,382 6,731,477 7,101,708 7,492,302

Water Use 9,431,231 5,392,275 14,823,506 28.9% 17,288,799 18,206,050 19,207,383 20,263,789

Water Resource Planning & Programs 4,205,307 4,820,585 9,025,892 17.6% 9,532,214 10,043,442 10,595,831 11,178,602

General expenses 4,802,037 4,802,037 9.4% 4,834,048 5,075,752 5,354,918 5,649,439

SUB TOTAL 28,726,337 22,572,069 51,298,406 55,547,622 58,497,103 61,714,444 65,108,738

Divisional & Core Function Budgets

Support & Core Function Budgets: 2012/13

Budget (R) %ICMA

Support Related 21,395,566Core Function Related 29,902,840

DWA RO (Core function related) 4,691,890Sub Total Core Function Related 34,594,730 61.8%Sub Total Support Related 21,395,566 38.2%2424


Risk Management

Key Risk Areas

Key risks

Steps to mitigate

Table of Key Risks:

1.

Information Management

Inadequate management information systems ‐

The technology risk relates to the compatibility of the system

and integrity of data. Other concerns around information management systems relate to the appropriateness

and suitability of the data and technological systems to be handed over by DWA.

We

are

developing

a

Master

Systems

Plan

as

a

strategic

tool

to

map

a

way

forward

in

this

regard

and

engage DWA on a consensus decision regarding systems and staff transfer

Inadequate institutional knowledge management – this relates to long outstanding governing board vacancies,

the appointment of the CEO and high staff turnover.

Hand over report has been prepared for the new governing board to be appointed, minutes of all meetings

are kept, attraction and retention policy has been developed

Legend:

2525


2.

Organisational Risk

Lack

of

approved

and

implemented

CMS

– the

delays

in

the

approval

of

the

CMS

results

in

lack

of

strategic

policy alignment, inadequate management of the catchment area and lack of alignment of the CMS with Spatial

Development

Submitted first generation CMS for consultation with MinisterInstitutional

Re‐alignment

–

uncertainties

in

the

institution,

stakeholders

and

users.

This

impacts

on

forward

planning

We participate in the institutional re‐alignment programInadequate corporate governance ‐

In the absence of corporate policies, corruption is likely to take root. For an

example,

people

may

not

declare

their

business

interests,

whist

taking

business

decisions

on

behalf

of

the

institution.

This

can

result

in

non‐compliance

with

the

legislation

and

can

take

the

ICMA

off

the

strategic

direction towards an internationally acclaimed institution

Financial

management

policies

and

human

resources

management

policies

have

been

developed

including

governing board charters and performance contracts are signed with all staff

Poor

stakeholder

perception ‐

The

rejection

of

the

ICMA

by

water

users

and

key

stakeholders

was

seen

as

highly

probable

and

as

a

risk

with

significant

consequences

should

it

materialise.

Stakeholder

perception

impacts on the ICMA’s credibility which in turn impacts on issues such as the ICMA’s ability to co‐ordinate WRM

in the WMA, its ability to recover water use charges and its ability to manage and control the water resources.

Factors

such

as

the

lack

of

engagement

with

key

stakeholders,

the

ICMA

not

being

seen

as

independent

from

DWA,

and

slow

and

ineffective

take

up

of

water

resources

management

functions

were

seen

as

factors

that

could contribute to this risk.

The

division

Institutions

and

Participation

has

been

established

to

focus

on

stakeholder

relations,

engagements

and

institutional

transformation

Risk Management

2626


3.

Human Resources

Inadequate

human

resources

management

–

Inability

to

attract

and

retain

appropriately

skilled

staff

especially

engineers, management of change especially with regards integration of DWA staff into ICMA

Revised remuneration structure being developed that will allow us to offer competitive remuneration

Inadequate management of integration of staff – low staff morale and conflict in the workplace.

We

are

drafting

transfer

agreements

with

the

transfer

steering

committee

and

conducting

continuous

consultations with affected staff members

4.

Financial Viability

Financial

instability ‐

inability

to

collect

water

use

charges

due

to

inadequate

systems

and

staff

capacity.

Poor

debt collection and small‐base charge recovery will lead to a hike in charges. The un‐affordability by water users

and

accompanying

perception

of

poor

financial

management

of

the

DWA

by

water

users

can

result

financial

instability of the ICMA

Engage DWA regarding the transfer of the billing functionFraud

and

theft ‐

This

risk

relates

to

abuse

of

ICMA’s

assets,

vandalism,

theft,

bribes,

and

falsification

of

data

(billing and tenders). Taken together, these factors can undermine the financial viability and the credibility of the

ICMA

Disciplinary

policies,

code

of

conduct

for

employees,

insurance

of

assets,

fraud

prevention

strategy

and

plan

other financial policies

Risk Management

2727


5.

Operational

Inadequate

implementation

of

delegated

water

resource

management

functions

– CMS

not

approved

leads

to

inability to allocate/ utilise water equitably and sustainably,

over‐allocation

of

water,

excessive

unlawful

water

usage, biased usage towards one or other sector

Engagement with DWA to get transfer of staff, systems and hand over of functions and finalise full delegation

of functions

Poor water resource quality – this risk relates to pollution of the resource leading to legal

action against ICMA,

health risks of users, other financial implications.

Public awareness programmes on pollution and work together with the monitoring and enforcement unit of

DWA

Risk Management

2828


6.

Business Continuity and External Environment

Business

interruption ‐

Strikes

and

other

business

interruption

events

could

lead

in

loss

of

data

through

fire,

assets

loss,

and

any

other

negative

disruptions

like

loss

of

institutional

memory

can

lead

to

a

close

down

or

prolonged period of recovery impacting on stakeholder perception

as well as credibility.

Insurance, back up of data, human resource management policies

Natural

disasters ‐

Climate

change

and

natural

disasters

like

fires,

droughts

and

floods

as

a

result

of

climate

change impacts on the environment and minimize the availability of water and safety thereof, thus undermining

the business of the ICMA. The catchment management area is prone

to these natural types of disasters.

Participation in the disaster management forums of the districts

and implementation of the River Operation

Systems

Poor

cooperation

between

various

spheres

of

government

and

the

ICMA

–

inadequate

legislation

to

facilitate

cooperation

between

public

entities

and

government

leads

to

business

processes

not

being

aligned

with

governmental policies and thus inability to perform IWRM

We

participate

in

IDP

forums,

Water

Sector

collaboration

forums,

stakeholder

consultation

forums

of

the

ICMA, and publications like news letter and annual reports.

Risk Management

2929


Appointment of CEO

The appointment of a new CEO has been delayed This is impacting the ability of the relevant Execu

Staff Transfers

The final HR transfer agr affecting the ability of th

Tariffs and B

Ito the NWA, the Inkomati CMA is the relevant water management institu to take up this function once the links to the DWA WARMS and Billing s

The CMS

Approval to gazette for public comment was granted by the minister in M

Implementation of the Delegated F

The ICMA received these delegations on 17 Dec 2010 and the Strat Plan i hampering implementation and these have been pointed out to DWA. AmThe establishment of WUA must allow employment of staff, not currentlyThe entire verification of existing lawful use should be delegated from sec

Representation on Ramdec

Challenges

3030

Documents

5 Year Strategic Plan and Budget For the Fiscal …pmg-assets.s3-website-eu-west-1.amazonaws.com/docs/120508icma … · 5 Year Strategic Plan and Budget For the Fiscal Years 2012-13