DWAF FIVE-YEAR REVIEW Service delivery: a five year review 2004 to date Ms PAM YAKO

DWAF FIVE-YEAR DWAF FIVE-YEAR REVIEW REVIEW

Service delivery: a five year review Service delivery: a five year review 2004 to date2004 to date

Ms PAM YAKOMs PAM YAKO

Director-GeneralDirector-General

21 OCTOBER 200821 OCTOBER 2008

2

CONTENTCONTENT5-Year Overview : Achievements and

Challenges Annual Review Programme 1: AdministrationAnnual Review Programme 2: Water

Resources ManagementAnnual Review Programme 3: Water ServicesAnnual Review Programme 4: Forestry

FIVE-YEAR OVERVIEWFIVE-YEAR OVERVIEW

ACHIEVEMENTSACHIEVEMENTSFINANCIAL OVERVIEW FINANCIAL OVERVIEW CHALLENGESCHALLENGES

4

OVERVIEW OF OVERVIEW OF ACHIEVEMENTS ACHIEVEMENTS

Water Allocation ReformWater Allocation ReformWater Conservation and Water Demand Management: Strategy Water Conservation and Water Demand Management: Strategy finalised and published; finalised and published; Water Pricing Strategy revised and implementedWater Pricing Strategy revised and implementedNational Dam Safety Programme Management National Dam Safety Programme Management Water Use Authorisation – Licence tracking system deployed Water Use Authorisation – Licence tracking system deployed countrywidecountrywideLocal government supportLocal government supportAccess to basic servicesAccess to basic servicesLegislation (National Water Act; Forestry Laws Amendment Act)Legislation (National Water Act; Forestry Laws Amendment Act)

5

OVERVIEW OF OVERVIEW OF ACHIEVEMENTS (2)ACHIEVEMENTS (2)

Launch of Women’s OrganisationLaunch of Women’s Organisation Improved systems for monitoring water drinking quality Improved systems for monitoring water drinking quality

(Award Won) (Award Won) Development and Signing of Forest Sector BBBEE CharterDevelopment and Signing of Forest Sector BBBEE Charter Approval of policy to transfer indigenous forestsApproval of policy to transfer indigenous forests Conclusion of lease agreements for State Plantations Conclusion of lease agreements for State Plantations

(Amathole, MTO)(Amathole, MTO) Successful greening – Million Trees ProjectSuccessful greening – Million Trees Project Tabling the State of the Forests 2007 ReportTabling the State of the Forests 2007 Report Transfer of Knysna to SanParksTransfer of Knysna to SanParks Fire Protection Associations Regulations publishedFire Protection Associations Regulations published

6


Commissioning of new national infrastructure projects such as Commissioning of new national infrastructure projects such as Berg Water; VRESAP and Nandoni implementedBerg Water; VRESAP and Nandoni implementedDam safety rehabilitation programme implemented – to address Dam safety rehabilitation programme implemented – to address shortcomings of all DWAF damsshortcomings of all DWAF damsFull asset verification and validation process to the approximate Full asset verification and validation process to the approximate value of R90 billionvalue of R90 billionSeveral construction projects completed Several construction projects completed

7


Construction works completed:Construction works completed:- Mooi Mgeni Transfer Scheme Phase I- Morgenstond-Jericho Emergency Pumpstation part of

Usutu-Vaal Scheme - Rehabilitation of Nuwejaarspruit downstream of Sterkfontein

Dam - DSRP Bulskoek - Lower Olifantsriver balancing dam for the Water Users

Association- Bergriver Dam Access Road- La Motte Village Services- Berg River Supplement Scheme

8


International RelationsInternational Relations- Ratification of the SADC Forestry Protocol Ratification of the SADC Forestry Protocol - Conclusion of MoUs with Lesotho and Conclusion of MoUs with Lesotho and

Mozambique Mozambique - Nominating as a bidding country for World Water Nominating as a bidding country for World Water

Forum: 2012Forum: 2012- SADC Chairmanship of Water Ministerial SADC Chairmanship of Water Ministerial

CommitteeCommittee- Preparation to take over AMCOWPreparation to take over AMCOW- African Sanitation Conference – Ethekwini African Sanitation Conference – Ethekwini

Ministerial Declaration on Sanitation 2008Ministerial Declaration on Sanitation 2008

9


Service Backlog in 2004/05

Achieved Total Served since 2004

2004/05 2005/06 2006/07 2007/08

Water 10,6 m people 1,51 m people

1 m people 1.25 m people

1,27 m people

5.03 m people

Sanitation 17,3 m people

1,3 m people

800 000 people

940 000 people

1,2 m people

4.24 m people

Bucket Eradication

252 254 units 0 62 206 units 71 747 units 95 218 units

228 991 units

Free Basic Water

14.8m people 300 000 people

2.46m people

490 000 people

4.95 m people

8,2 m people

10

STRATEGIC REVIEW - MAINSTRATEGIC REVIEW - MAIN

DWAF Allocation for 2008/09DWAF Allocation for 2008/09

The current yearThe current year

Total Exchequer Allocations

R586 million

R3 238million

R2 427million

R446million

AdminWater Resource

ManagementWater Services Forestry

R1 615million

R320million

Current Capital

Augmentation to WTE

11

EXPENDITURE TRENDS FROM EXPENDITURE TRENDS FROM 2004 - MEA2004 - MEA

Year Actual

R‘000

Budget

R‘000

2003/04 4,182,087 4,639,180

2004/05 3,776,946 3,823,112

2005/06 3,717,088 3,935,636

2006/07 4,305,650 4,660,303

2007/08 5,835,461 5,862,513

12

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

Actual

Budget

FINANCIAL OVERVIEW - MAINFINANCIAL OVERVIEW - MAINPAST PerformancePAST Performance

Expenditure trends for the Department over the past five years:Expenditure trends for the Department over the past five years:

1313

Year Revenue

R’000

Expenditure

R’000

2002/03 3,273,625 3,269,023

2003/04 3,787,155 5,000,361

2004/05 3,894,734 7,379,148

2005/06 4,756,504 5,293,020

2006/07 2,403,588 3,798,230

2007/08 1,921,759 4,181,024

EXPENDITURE TRENDS EXPENDITURE TRENDS FROM 2004 -FROM 2004 - WTE

Revenue and expenditure trend

14

CHALLENGESCHALLENGES Water quality issues Water losses in the municipalities Impact of land reform on commercial forestry Financing mechanisms on forestry enterprise

development Capacity of local government to deliver (skills,

finances) Sustainability (e.g. ageing) of infrastructure – asset

management Project implementation of new national infrastructure Impact of fires on timber supply

15

CHALLENGESCHALLENGES Legislative:

– Water Services Act: Section 78; Reimbursement of Water Boards – Forestry Act, – National Water Act: Regulatory Framework not integrated;

Institutions– Oversight– Establishment– Sustainability

Finance– SAP – Large system that requires proper implementation and post

implementation refinements– long term, user requirements– Inadequate capacity (lack of skilled resources)– Segregation between Exchequer and Trading Entity – functions,

staff issues– Extensive infrastructure assets – magnitude, spatial

distribution/location: Auditable asset plans needed Rehabilitation and refurbishment of ageing national infrastructure

16

ANNUAL REVIEW 2007/08ANNUAL REVIEW 2007/08

PROGRAMME 1: ADMINISTRATIONPROGRAMME 1: ADMINISTRATION

17

ADMINISTRATION FUNCTIONS ADMINISTRATION FUNCTIONS / BRANCHES/ BRANCHES

Corporate Services- HR- IT- Communications

Finance ODG Ministry

18

ACHIEVEMENTS ACHIEVEMENTS CORPORATE SERVICES CORPORATE SERVICES

2007/082007/08Targets Achievements

HR turnaround strategy:

60% elimination of backlogs in HR transaction work

200 pension withdrawal cases finalised; 70% of injury on duty cases completed

HR Efficiency improvements Business map for recruitment and selection developed; organisational structure validated and verified; Training on performance management provided to all SMS

Learning Academy: intake of 60 graduates

An intake of 145 graduate trainees; MoU signed with 13 Higher Learning Institutions (215 bursaries allocated to engineering, technical and scientific fields)

18 Learner interns enrolled 17 larner interns enrolled and completed experiential learning programme

19



50% of policies and strategies developed

Strategic framework on women empowerment and gender equality developed

50% of strategies and policies reviewed and developed

Strategic considerations DWAF staff trained on gender mainstreaming

Learning Academy: intake of 60 graduates

An intake of 145 graduate trainees; MoU signed with 13 Higher Learning Institutions (215 bursaries allocated to engineering, technical and scientific fields)

Learnership – no of interns enrolled 17 learner interns enrolled and completed experiential learning programme

20



Business enabling Information Services Architecture created

Business Continuity Plan for SAP, Disaster Recovery Plan for Flood Management System completed

Branding outlook improved: 5% new branding interventions implemented

5% new branding interventions implemented

21

ACHIEVEMENTS FINANCE 2007/08ACHIEVEMENTS FINANCE 2007/08Targets Achievements

Restructuring of Finance Branch and regional components: Segregation of Main Account and Water Trading activities

Finance structure indicating the segregation between the Main Account and Water Trading Entity has been approved

A policy document on the linking of functions to either the Main Account or Water Trading Entity has been developed

Restructuring of Finance Branch and regional components: 80% target achieved with populating finance structures

The placement of key SMS members in Finance – CFO, 3 CDs and 7 Directors

Structures for regions have been finalised

Change management meetings held in all 9 provinces

Migration plan developed to link staff to either Main Account or Trading Entity

22

ACHIEVEMENTS WTE 2007/08ACHIEVEMENTS WTE 2007/08

Targets Achievements

100% of all revenue due collected and banked

Project Siyanqoba launched in 2007 to assist with reduction of outstanding debtors; Top 20 clients accounts reconciled

100% implementation of SAP SAP implemented

Implementation of effective supply chain management system: 100% compliance

Committees established in line with National Treasury practice notes

23

HISTORY OF AUDIT OUTCOMESHISTORY OF AUDIT OUTCOMES

2003/04 Annual Report. Adverse opinion as the department did not comply with S40(1)(b) of the PFMA

2004/05. Audit report contained various items that led to emphasis of matter

2005/06 annual report- financial statements prepared on accrual basis. Disclaimer as material items did not meet the required reporting standards.

24

HISTORY OF AUDIT OUTCOMESHISTORY OF AUDIT OUTCOMEScontcont

2006/07 Audit Report qualified opinion– terms of the treatment of assets, – independent checks and reconciliations and the BAS

reconciliation and an incomplete commitment register and – an emphasis of matter in relation to compliance with PFMA

and performance monitoring 2007/08 Audit Report qualified opinion

– mainly due to the incomplete asset register, – treatment of the suspense account and– the disclosure of loans and receivables.

25

WTE SPECIFIC REORGANISATION WTE SPECIFIC REORGANISATION INITIATIVESINITIATIVES

BackgroundBackground Trading entity was established in 1983 .Trading entity was established in 1983 . Water Services and Working for Water was moved from Water Services and Working for Water was moved from

the Trading Entity to Main Account.the Trading Entity to Main Account. One consolidated Trading Account (Water Trading Entity One consolidated Trading Account (Water Trading Entity

and Equipment Trading Entity was merged .and Equipment Trading Entity was merged . Turnaround – financial situation from loss to profit – Turnaround – financial situation from loss to profit –

operation efficiency driveoperation efficiency drive Financial systems development and implementation - SAPFinancial systems development and implementation - SAP

2626

PROJECTS UNDERTAKEN - PROJECTS UNDERTAKEN - WTEWTE

The following are the projects implemented to ensure an unqualified audit The following are the projects implemented to ensure an unqualified audit opinion:opinion:

Khanya Khanya - HR turnaround project- HR turnaround project

Sakhile Sakhile –Infrastructure verification projectInfrastructure verification project–Resulted in Asset Register for Infrastructure assets that complies with minimum requirementsResulted in Asset Register for Infrastructure assets that complies with minimum requirements–Improved asset management processesImproved asset management processes

SiyanqobaSiyanqoba–Approved Asset Management, Revenue Management, and other business processes and Approved Asset Management, Revenue Management, and other business processes and policiespolicies

HlanyisaHlanyisa–Moveable asset register projectMoveable asset register project–Moveable asset register developed that complies with minimum requirementsMoveable asset register developed that complies with minimum requirements

SAP super users and trainersSAP super users and trainers

OVERVIEW OF OVERVIEW OF ANNUAL EXPENDITURE ANNUAL EXPENDITURE

2006/07

R’000

2007/08

R’000

Increase/ (Decrease)

WTE(accrual-based)

3 798 231 4 181 024 10%

Main- Cash-based 4 305 650 5 385 396 25%

Total 8 103 881 9 566 420 18%

EXPENDITURE PER EXPENDITURE PER PROGRAMME: PROGRAMME:

2007/08 2007/08 Budget

R’000

Actual

R’000

% spent

Administration 602 849 601 719 100%

Water Resources Management

2 912 352 2 465 674 85%

Water Services 1 874 007 1 866 926 100%

Forestry 469 607 451 077 96%

OVERVIEW OF ANNUAL OVERVIEW OF ANNUAL FINANCIAL STATEMENTS - FINANCIAL STATEMENTS -

MEAMEA2006/07

R’000

2007/08

R’000

% Increase/Decrease

Administration 526 729 601 719 14%

Water Resources Management

1 872 479 2 465 674 32%

Water Services 1 454 758 1 866 926 28%

Forestry 441 240 451 077 2%

30

REASONS FOR REASONS FOR UNDERSPENDING - MEAUNDERSPENDING - MEA

AdministrationAdministration:: Under spending is mainly attributed to the transfer of Under spending is mainly attributed to the transfer of staff to municipalities which could not be completed due to protracted staff to municipalities which could not be completed due to protracted negotiations with receiving municipalities and funds will be rolled over negotiations with receiving municipalities and funds will be rolled over to 2007/08 financial year. Insignificant under expenditure.to 2007/08 financial year. Insignificant under expenditure.

Water ResourcesWater Resources:: Under spending is mainly attributed to the De Hoop Under spending is mainly attributed to the De Hoop Dam Project that could not commence as planned as a result of delays Dam Project that could not commence as planned as a result of delays in finalising the Environmental Impact Assessmentin finalising the Environmental Impact Assessment

Water ServicesWater Services:: Under spending is mainly due to delays in finalising Under spending is mainly due to delays in finalising transfer agreements with local government in respect of transfer of transfer agreements with local government in respect of transfer of schemes. Insignificant under expenditure.schemes. Insignificant under expenditure.

ForestryForestry: There was a delay in the implementation of the BE charter. : There was a delay in the implementation of the BE charter. Insignificant under expenditureInsignificant under expenditure

31

OVERVIEW OF WTEOVERVIEW OF WTEOperating revenue and expenditure analysis

32

OVERVIEW OF WTEOVERVIEW OF WTE

Operating income analysis

-200,000400,000600,000800,000

1,000,0001,200,0001,400,0001,600,000

Servicesrendered

Income fromconstruction

Rentalincome

2007

2008

33

OVERVIEW OF WTEOVERVIEW OF WTE

Operating expenditure analysis

-500,000

1,000,0001,500,0002,000,0002,500,000

Adm

inis

trativ

eex

pens

es

Tran

sfer

s an

dsu

bsid

ies

Empl

oyee

cost

s

Depr

ecia

tion

Oth

erop

erat

ing

expe

nses

2007

2008

2006/07: AUDITOR-2006/07: AUDITOR-GENERAL REPORTSGENERAL REPORTS

Exchequer Trading Forestry

Trust

Disclaimer

Qualification

Emphasis of matter

Unqualified

35

2007/08: AG REPORT2007/08: AG REPORT

Exchequer Trading Forestry

Trust

Disclaimer

Qualification Emphasis of matter Unqualified

36

KEY HIGHLIGHTS FROM AG KEY HIGHLIGHTS FROM AG REPORT- 2007/08REPORT- 2007/08

Unsubstantiated additions to the asset register

Unverified biological assets Unverified accounts receivable-WTE Immovable assets- scientifically valued but

more refinements required later Non-compliance/No adherence to policies

and procedures wrt to: Debtors and DoRA Lack of staff skills- capacity Management monitoring and reviews of

transactions

ACTION: CURRENT ACTION: CURRENT PROJECTSPROJECTS

• Sakhile – Immovable asset management projectSakhile – Immovable asset management project• Moveable asset management project: to be Moveable asset management project: to be

finalised in March 2009finalised in March 2009• SAP implementation (system, training etc.)SAP implementation (system, training etc.)• Accounting firm – resources (capacity needs) in Accounting firm – resources (capacity needs) in

regionsregions• Siyanqoba-Revenue function reorganisation Siyanqoba-Revenue function reorganisation

project: addressing process issues around project: addressing process issues around revenue managementrevenue management

• WTE- Operational Efficiency DriveWTE- Operational Efficiency Drive• Implementation of approved Finance structures Implementation of approved Finance structures

for Regionsfor RegionsClean Audit – March 2009Clean Audit – March 2009

38

WTE SPECIFIC REORGANISATION WTE SPECIFIC REORGANISATION INITIATIVESINITIATIVES

BackgroundBackground Trading entity was established in 1983 .Trading entity was established in 1983 . Water Services and Working for Water was moved from Water Services and Working for Water was moved from

the Trading Entity to Main Account.the Trading Entity to Main Account. One consolidated Trading Account (Water Trading Entity One consolidated Trading Account (Water Trading Entity

and Equipment Trading Entity was merged .and Equipment Trading Entity was merged . Turnaround – financial situation from loss to profit – Turnaround – financial situation from loss to profit –

operation efficiency driveoperation efficiency drive Financial systems development and implementation - SAPFinancial systems development and implementation - SAP

3939

AUDIT OUTCOME 2007/08 (FIFTH AUDIT OUTCOME 2007/08 (FIFTH YEAR)YEAR)

40

ANNUAL REVIEW: 2007/08ANNUAL REVIEW: 2007/08

PROGRAMME 2: PROGRAMME 2:

WATER RESOURCES MANAGEMENTWATER RESOURCES MANAGEMENT

41

WATER RESOURCES WATER RESOURCES MANAGEMENT BRANCHESMANAGEMENT BRANCHES

Policy and Regulation Regions National Water Resources

Infrastructure

42

EQUITABLE AND SUSTAINABLE SUPPLYEQUITABLE AND SUSTAINABLE SUPPLY

Targets AchievementsApproval of financial assistance to

Resource Poor Farmers (RPFs) Subsidies granted to five groups of farmers (130)

Regulations for financial support to RPFs approved

Submission for approval for financial assistance application processed and amount to approx 100% of budget of R27m spent

Subsidised tariffs billed correctly

Water Allocation Reform (WAR) Validation of registered water use completed in Mokolo, Olifants, Inkomati, Jan Diesels and Mhlatuze

Verification is taking place in Jan Diesels, Mhlathuze and the Upper Vaal WMAs.

A Water Allocation Plan has been developed for Mhlathuze and Frameworks for Water Allocation for Inkomati and Jan Dissels.

Water Use Authorization.

Water use licenses applications evaluated and use authorized

90 Licenses Issued (2007/8)

ACHIEVEMENTS 2007/08ACHIEVEMENTS 2007/08

43

EQUITABLE AND SUSTAINABLE SUPPLYEQUITABLE AND SUSTAINABLE SUPPLY


National Strategies developed to reconcile water availability and use

12 pre-feasibility and feasibility studies on reconciliation solutions completed

Studies to set up water resource models for 2 catchments completed and 4 more well advanced

Reconciliation strategies developed for 2 large systems, 2 more well progressed.

Feasibility studies completed for Mooi-Mgeni. Transfer Scheme Phase II Spring Grove Dam and Olifant River WR development projects (De Hoop Dam)

Clanwilliam Dam raising implementation completed Support given to all joint River Basins studies

Support offered on all joint River Basin Studies

Joint plan for Lower Orange River between RSA, Lesotho, Namibia, Botswana)


44

PROTECTION POLICIES AND MEASURESPROTECTION POLICIES AND MEASURES


Classification of water resources Draft position paper done and stakeholder workshop conducted for consultation

Draft regulations completed

Reserve Determination concluded 25 Rapid level Reserves completed determined to facilitate ad hoc license applications

A desk-top Reserve methodology for estuaries finalized

Comprehensive Reserve for compulsory licensing completed and implemented in Letaba and Inkomati, Olifant Doorn and Komme/Seekole WMAs


45



Berg Water Project supplement scheme completed

Pumpstations, abstraction works, Irrigation release and various pipelines at 99%(100) completion

De Hoop dam and Associated works Detail design 90%(93)

Realignment of road at 35%(45)

Dam construction 12%(15)

Hluhluwe Regional Water Scheme

Treatment plant, resevoirs & pipelines 91%

88%

Vhembe district water treatment plant 95% 93%

Rehabilitation of 4 dams 4 Dams rehabilitated

NATIONAL WATER RESOURCES INFRASTRUCTURE

46

ANNUAL REVIEW: 2007/08

PROGRAMME 3: WATER SERVICESPROGRAMME 3: WATER SERVICES

47

WATER SERVICES BRANCHESWATER SERVICES BRANCHES

Policy and Regulation Regions

48



100% buckets eradicated in formal settlements

80.4% (95218) of buckets eradicated

Geotechnical problems caused delays in EC, Northern Cape and Freestate

100% clinics provided with access to water supply & sanitation

100% clinics provided with access to water supply and adequate water supply

92% of clinics provided with adequate sanitation

300 000 households provided with basic sanitation

1.12 million people served

Access 2 water 1.27 million people served

Schools backlog eradicated with 5% 69 out of 96 schools provided with water services

51 out of 86 schools provided with access to sanitation

Basic sanitation and water services provision:

49

ACHIEVEMENTS 2007/08 ACHIEVEMENTS 2007/08

National transfers – 97% of targeted schemes have been National transfers – 97% of targeted schemes have been transferred; remaining 3% in final stagestransferred; remaining 3% in final stagesRegional Bulk Infrastructure – R1.4b allocated over three years, Regional Bulk Infrastructure – R1.4b allocated over three years, R300m for 2007/08R300m for 2007/08Sector Policies, Regulations, Guidelines and StrategiesSector Policies, Regulations, Guidelines and Strategies

Draft National Water Services Regulation StrategyDraft National Water Services Regulation Strategy Revised draft Revised Water Services BillRevised draft Revised Water Services Bill Facilitation of the adoption and approval of a joint National Facilitation of the adoption and approval of a joint National

Water Services Sector Support StrategyWater Services Sector Support Strategy Draft Institutional Reform StrategyDraft Institutional Reform Strategy Infrastructure Asset Management StrategyInfrastructure Asset Management Strategy Draft Intergovernmental Relations FrameworkDraft Intergovernmental Relations Framework Good Practice Report on Free Basic Water, billing systems, Good Practice Report on Free Basic Water, billing systems,

meter reading and tariff structuresmeter reading and tariff structures Draft guideline for Debt Management of Water BoardsDraft guideline for Debt Management of Water Boards

50

ACHIEVEMENTS 2007/08ACHIEVEMENTS 2007/08MasibambaneMasibambane

Financing agreement Masibambane 3 amounting to R68 billion signedFinancing agreement Masibambane 3 amounting to R68 billion signed Masibambane 3 = Water for growth and development, integrates Masibambane 3 = Water for growth and development, integrates

water services and water resourceswater services and water resources Draft concept document for Water for growth and developmentDraft concept document for Water for growth and development

Local government supportLocal government support Planning support – development of key performance indicator Planning support – development of key performance indicator

structure reports for each Water Service Authority (WSA) as part of structure reports for each Water Service Authority (WSA) as part of IDP review process; development of backlog eradication strategies for IDP review process; development of backlog eradication strategies for each WSAeach WSA

Technical assessment of all new Municipal Infrastructure Grant (MIG) Technical assessment of all new Municipal Infrastructure Grant (MIG) projects for water supply and sanitationprojects for water supply and sanitation

Eight technical experts deployed to relevant municipalitiesEight technical experts deployed to relevant municipalities ““A water services authority legislative handbook” been published as a A water services authority legislative handbook” been published as a

tool that will be an enabler for regulatory support and reinforcement of tool that will be an enabler for regulatory support and reinforcement of regulations and complianceregulations and compliance

51


Provision of Basic ServicesProvision of Basic Services 84% of South African population have access to Free Basic Water84% of South African population have access to Free Basic Water 97.6% of WSAs implementing Free Basic Water programme97.6% of WSAs implementing Free Basic Water programme

Vuna AwardsVuna Awards Effective and best support to local government Vuna Award given Effective and best support to local government Vuna Award given

to DWAF by the Centre of Public Service Innovationto DWAF by the Centre of Public Service Innovation

2010 FIFA World Cup2010 FIFA World Cup Water sector business plan and implementation strategy which Water sector business plan and implementation strategy which

covers adequate water and sanitation services, public toilets and covers adequate water and sanitation services, public toilets and greening in host cities, has been developedgreening in host cities, has been developed

All host cities have water safety and security plansAll host cities have water safety and security plans

52

ANNUAL REVIEW 2007/08ANNUAL REVIEW 2007/08PROGRAMME 4:FORESTRYPROGRAMME 4:FORESTRY

53

FIVE YEAR REVIEW 2003/2004

• Policy on transfer of natural forests and state forest land (e.g. nurseries) finaliZed

• Fire Protection Association regulations gazetted

• Fire Danger Rating System notice issued• SADC Forestry Protocol ratified by Parliament• Criteria and Indicators (for SFM) published

piloted in various forest types and scales

54

2004/2005

• Conclusion of lease agreements for state plantations (Amathole & MTO)

• FinaliZation of delegation of the management control of indigenous forests to SANPARKS in the Southern Cape and Tsitsikama areas.

• Amendment of NFA and NVFFA• Forestry incorporated into the PGDS’s of both

Limpopo and E Cape Provinces• Audits of leased plantations conducted

55

2005/2006 i

• Forestry BBBEE Charter process launched and Steering Committee members appointed

– Charter development process launched at the Forestry Indaba in April 2005 & Steering Committee established

– During 2005/06 a draft Charter was developed– Consultative workshops took place & specific workshops for women to

ensure their participation & involvement• Signing of agreement with the Russian Federation on Forestry

(exchange of expertise and information agreed on)• 59 Fire Protection Association registered• Criteria and Indicators manual, checklist and guidelines (for

sustainable forest management) produced• MoU with South African Weather Services signed to

communicate dangers of fires

56

2005/2006 ii

• Forest Enterprise Development– Central to government’s poverty eradication agenda and key

component of BBBEE in Forest Sector– Initiatives include: Transfer of State Forests; afforestation

strategy for EC & KZN; and inclusion of forestry as key sector in PGDSs

– Support establishment of community projects – R 2 million spent from the Community Facilitation Fund

• Access to benefits from State Forests– Participatory Forestry Projects initiated to promote

sustainable job opportunities & socio-economic upliftment

57

2006/2007 i

• The Champion Trees and Protected Tree species list approved by Minister and gazetted

• Partnership with Working on Fire for the roll-out of Firewise Campaign

• Forests and woodlands symposium held in Port Elizabeth

• EC Strategic Environmental Assessment completed for Water Management Area 12 (Mzimkhulu and Mzimvubu Catchments)

• Law enforcement policy approved in October 2006

58

2006/2007 ii2006/2007 ii

Forestry BBBEE Charter- SC approved Draft Charter and recommended the initiation of the final stakeholder

consultation

Forest Enterprise Development & Livelihood Development- Continued projects initiated during 2005/06- Afforestation – roles clarified & afforestation guidelines and development protocols

produced- Continued support to community projects- Studies conducted to identify further FED opportunities: Bee-keeping; forage

mapping; and the potential of essential oils in enterprise development

National Greening Strategy- Revised National Greening Strategy approved and provincial & local government

greening strategies drafted

Transfer of Assets- Initiatives launched to convert plantations into more viable forestry business

packages & implement a strategy aimed at ensuring transferred packages that will contribute to social and economic development (M&M transfer formalized)

59

2007/2008

Regulations in place for forest management

• Draft Regulations reviewed and finalized• National list of Champion Trees revised and updated

for gazetting• Mapping of Kathu forest completed and proposal for

gazetting Kathu as protected woodland submitted• Red Data natural forest species listed for biodiversity

protection purposes• Forest sub type classification for three forest types

completed

60

2007/2008

State of Forests Report

The 2006 State of Forestry Sector was compiled and reported to Parliament

61

2007/2008

Transformation/BBBEE Charter Targets

• Charter Steering Committee finalised text of the Charter• Final Charter text submitted for third party analysis• Preparations for gazetting and signing the Charter underway• Minister appointed the Charter Council and the Chairperson• Implementation plan finalised based on comments received

from Regions• Forest Charter Implementation Unit’s role and functions finalized

and process to establish unit initiated• Negotiations with the Industrial Development Cooperation (IDC)

have been initiated, regarding the disbursement of FED funds

62

2007/2008

Community development • In Mpumalanga 2 projects are supported (i.e. Salique – Forestry

land released and technical support to communities provided)• Injaka – Business development and institutional arrangements • Gauteng – Nursery cooperative initiated and in process of

registration. Project/ business plan developed. Marula utilisation programme initiated.

• KZN – Sokhulu Multipurpose Nursery: Concept document developed for the nursery

• Indigenous Aloe nursery in Empangeni– Task team including the local municipality formed to develop a project plan and help drive the project

63

2007/2008

Community development• North West – Mooifontein plantation: Produced a turn around

strategy with local government which includes planting of hybrid Eucalyptus

• Eastern Cape – Nqabhara: Establishing Community Forestry Agreement bestowing rights and responsibilities for management and use the forest

• Limpopo – Morebeng Land Reform Project: MoU in place with LIBSA, FSA and DWAF

• Vhembe and Mopani Small growers – Established and registered a cooperative

• Northern Cape: 2 nurseries• Conversion of wattle jungle continued with Ithemba Trust

64

2007/2008

Transfers and land management

Assignment of DWAF’s IFM function to the Provincial Government KZN: Transfer of Mtunzini and Sokhulu plantations not finalized

due to land reform process not being finalizedMpumalanga: Transfer of Injaka plantationLimpopo: Transfer of Rossbach plantation Compliance audits were conducted in MTO, Singisi, SiyaQhubeka

lease packagesRentals collected from MTO, SQF, Singisi and AFC leasesManzengwenya and Mbazwana transfer model approved

65

2007/2008

Fire governance and regulation

• A total of 34 FPAs registered in high to extreme fire risk areas covering an area of 6 million hectares

• Three FPA registered in low to medium veldfire risk areas

• NVIS being used to capture fire incidents and modified to allow capturing of fire incidents outside FPA areas

• Full implementation of the National Fire Danger Rating System not achieved

66

2007/2008

Management of state plantations Total of 16 audits on commercial plantations completed and 3 on

Indigenous forest estatesCorrective Actions Required are being taken in plantations & indigenous

forest areasAnnual Plans of Operations were implemented and management on

plantations progressed as plannedUpdated the growing stock management plans and stock mapsUpdated 41 maps for Category B Commercial plantations and 38

Category C plantationsTotal area planted in this year is 4849 ha, constitute 30% of the unplanted

areaFire protection plans were developed and refinedA total of 105 fires damaged or destroyed 2373 ha of planted area,

constituting 4% of the planted estate

67

2007/2008

Greening and community development • 501 000 Fruit trees planted• 145 000 Ornamental indigenous species planted• Only Gauteng and Mpumalanga has reached the

provincial targets• 2010 World Cup interventions:• DWAF plan in place including water and forestry• DWAF greening plan amalgamated and aligned to

DEAT GREEN plan• Plan communicated to host cities

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2007/2008

Greening and community development • Local government has developed and aligned greening plans (all

Metros, Rustenburg, Midvaal, and Ngaka Modiri Molema district municipality)

• Million Trees Programmed (Other initiatives)• Draft MoUs negotiated with DALA in Mpumalanga, GDACE and

Department of Health in Gauteng• Joint greening project with Department of Agriculture in the Western

Cape at Villiersdorp.• Developing an integrated Clean and Green Programme with Ethekwini

Metro • In the Regions 105 Arbor week events were organised and successfully

executed• In total 22 Eduplant events were supported• Mpumalanga hosted the Arbor City Award program this year and

Mkhondo local municipality was awarded the title

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Challenges

• Impact of land claims on commercial forestry• Governance (transfer of indigenous forests to

other state institutions)• Negative impact of fires on timber supply• Financing mechanisms for forestry enterprise

development• Post settlement support

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THANK YOUTHANK YOU

Documents

DWAF FIVE-YEAR REVIEW Service delivery: a five year review 2004 to date Ms PAM YAKO