Business Case for the Pongola to Umzimkulu CMA D: WMI Governance.
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Transcript of Business Case for the Pongola to Umzimkulu CMA D: WMI Governance.
![Page 1: Business Case for the Pongola to Umzimkulu CMA D: WMI Governance.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c8f5503460f949481de/html5/thumbnails/1.jpg)
Business Case for the Pongola to Umzimkulu CMA
D: WMI Governance
![Page 2: Business Case for the Pongola to Umzimkulu CMA D: WMI Governance.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c8f5503460f949481de/html5/thumbnails/2.jpg)
Why develop a business case?• There are effectively two streams of work required in order to
establish a CMA.CMACMA
National Water Act
Public EntityPublic Entity
Public Finance Management Act
ProposalProposal
Govt Gazette
Govt Gazette
Business CaseBusiness Case
PFMA Schedules (3A)PFMA Schedules (3A)
MinisterMinister Joint Evaluation PanelJoint Evaluation Panel
Approval from AG to open an accountApproval from AG to open an account
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Requirements of a Business CaseThe business case will therefore be built around the following themes (capturing these elements):
•Motivation for the entity•Corporate form of the entity•Functions of the CMA•Organisational considerations•Financial arrangements•Institutional and governance arrangements•Mechanisms for Regulation and Oversight•Change management•Risk management•Implementation plan
Various addenda may be developed on specific issues, such as remuneration, performance management and contracts.
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![Page 5: Business Case for the Pongola to Umzimkulu CMA D: WMI Governance.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c8f5503460f949481de/html5/thumbnails/5.jpg)
Description of the Pongola-Umzimkulu WMA
•Location•Topography•Climate•Socio-Economic Dynamics•Water Availability and Requirements•Key Water Challenges
![Page 6: Business Case for the Pongola to Umzimkulu CMA D: WMI Governance.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c8f5503460f949481de/html5/thumbnails/6.jpg)
Description of the Pongola-Umzimkulu WMA
•Location•Topography•Climate•Socio-Economic Dynamics•Water Availability and Requirements•Key Water Challenges
![Page 7: Business Case for the Pongola to Umzimkulu CMA D: WMI Governance.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c8f5503460f949481de/html5/thumbnails/7.jpg)
Description of the Pongola-Umzimkulu WMA
•Location•Topography•Climate•Socio-Economic Dynamics•Water Availability and Requirements•Key Water Challenges
Figure 1: Economic contribution per sector in the CMA (KZN Provincial Planning Commission, 2011)
4%2%
22%
2%
3%
14%14%
20%
6%
13%Agriculture, Forestry,FishingMining and quarrying
Manufacturing
Electricity, gas and water
Construction
Wolesale, retail, catering,accommodationTransport, storage andcommunicationFinance, insurance, realestate, business servicesCommunity, social andpersonal servicesGeneral Government
![Page 8: Business Case for the Pongola to Umzimkulu CMA D: WMI Governance.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c8f5503460f949481de/html5/thumbnails/8.jpg)
Description of the Pongola-Umzimkulu WMA
•Location•Topography•Climate•Socio-Economic Dynamics•Water Availability and Requirements•Key Water Challenges
![Page 9: Business Case for the Pongola to Umzimkulu CMA D: WMI Governance.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c8f5503460f949481de/html5/thumbnails/9.jpg)
Strategic motivation
•Water as a finite resource• IWRM• Hydro boundaries• Subsidiarity• Development & empowerment• Viability
•Framework for CMA Establishment•Evolution of the CMA
• Legitimacy• Consolidation• Responsible Authority
![Page 10: Business Case for the Pongola to Umzimkulu CMA D: WMI Governance.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c8f5503460f949481de/html5/thumbnails/10.jpg)
Corporate Form
•Legal nature of CMA• Service Delivery Entity• PFMA, Schedule 3A
•A case for devolution• Stakeholder engagement• Ring-fencing risk• Access to skills, specialists
•Appropriate corporate form
Public Service including:National Government AgenciesProvincial Government Agencies
Public Entities including:Stewardship and Research EntitiesService Delivery EntitiesRegulatory and Statutory Advisory Entities
Government Enterprises including:Statutory Corporations and Financial IntermediariesState Owned CompaniesSubsidiary Companies of public entitiesState Interest Companies
Public Interest Institutions including:Education, Welfare, Recreation Institutions and Professional Bodies
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Legal Process•Introduction•Legal requirements
• Amendment of the boundaries of the water management area
• Disestablishment of the Thukela and Usuthu-Mhlatuze CMA
• Amending of the water management area and name of the Pongola-Umzimkulu CMA
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Functions of the CMA•Introduction•Delegation and assignment•Delegation of functions•Phased transfer of functions
• Phase 1: Developing relationships and legitimacy• Phase 2: Build capacity and consolidate • Phase 3: Fully functional and responsible authority
•Considerations for the delegation process•Implications for DWA structure and functions
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Functions of the CMA
Phase 1: Developing relationships and legitimacy• Involvement in water use registration and verification of water use• Advising and supporting licence applicants on the licensing process and
requirements • Advising DWA on water use authorisations and licenses• Checking of water use against licence conditions and informing DWA of the
results where compliance enforcement is required.• Validation of information submitted for registration.
Phase 2: Build capacity and consolidate• Resource Directed Measures• Water Resources Monitoring • Disaster Management• Water Conservation and Demand Management• Operating of Waterworks• general authorisations and limited authorisation functions• Institutional Oversight
Phase 3: Fully functional and responsible authority • Water Use Authorisation and Licensing• Compulsory Licensing• Issuing of Directives
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Organisational Arrangements
•Proposed functional structure of the Pongola-Umzimkulu CMA
![Page 15: Business Case for the Pongola to Umzimkulu CMA D: WMI Governance.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c8f5503460f949481de/html5/thumbnails/15.jpg)
Organisational Requirements
•Staffing requirements•Human resource considerations•Mechanisms for Regulation and Oversight•Change management•Internal change management•Rebranding and stakeholder engagement strategy
![Page 16: Business Case for the Pongola to Umzimkulu CMA D: WMI Governance.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c8f5503460f949481de/html5/thumbnails/16.jpg)
Organisational Requirements
•Staffing requirements•Human resource considerations•Mechanisms for Regulation and Oversight•Change management•Internal change management•Rebranding and stakeholder engagement strategy
Total staff 5 31 40 56 63 72
CEO 1 1 1 1 1 1
Manager 1 6 6 6 6 6
Senior 2 8 12 16 19 22
Junior 1 11 15 22 26 31
Admin 1 5 6 11 11 12
Total staff 3 13 16 26 26 26
CEO 0 0 0 0 0 0
Manager 0 3 3 3 3 3
Senior 1 4 4 8 8 8
Junior 1 4 5 10 10 10
Admin 1 2 4 5 5 5
Total staff 3 21 22 32 34 42
CEO 0 0 0 0 0 0
Manager 0 3 3 3 3 3
Senior 1 6 6 10 11 14
Junior 1 8 9 13 14 19
Admin 1 4 4 6 6 6
Yr0 Yr1 Yr2 Yr3 Yr4 Yr5
So
uth
ern
Cen
tral
No
rth
ern
Total Staff in Year 5 = 140
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Organisational Requirements
•Staffing requirements•Human resource considerations•Mechanisms for Regulation and Oversight•Change management•Internal change management•Rebranding and stakeholder engagement strategy
![Page 18: Business Case for the Pongola to Umzimkulu CMA D: WMI Governance.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c8f5503460f949481de/html5/thumbnails/18.jpg)
Financial Arrangements
•Sources of Finance•Flow of capital•Financial systems arrangements•Financial analysis
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![Page 19: Business Case for the Pongola to Umzimkulu CMA D: WMI Governance.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c8f5503460f949481de/html5/thumbnails/19.jpg)
Institutional and governance arrangements•Corporate Governance Principles•CMA Governing Board•Board membership•Process for appointment of board•Governance Committee Structures•Appointment of CEO
![Page 20: Business Case for the Pongola to Umzimkulu CMA D: WMI Governance.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c8f5503460f949481de/html5/thumbnails/20.jpg)
Risk & Risk Management
•Complexity of the project•Spheres of Government•Stakeholder acceptability•Delegation of powers and functions•Financial management•Climate change and natural disasters•Human resources•Organisational technologies
![Page 21: Business Case for the Pongola to Umzimkulu CMA D: WMI Governance.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c8f5503460f949481de/html5/thumbnails/21.jpg)
Implementation Considerations
•Institutional establishment• WMA boundaries• Ring fencing revenue• Development of the Business Case• Stakeholder engagement• Establishment of the CMA
•Organisational development• Appoint the Governing Board• Establish initial systems• Appoint CEO• Transfer and appoint staff
![Page 22: Business Case for the Pongola to Umzimkulu CMA D: WMI Governance.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c8f5503460f949481de/html5/thumbnails/22.jpg)
Implementation Considerations
•Operationalisation• Develop first Business Plan• Transfer of seed funds• Delegation of functions• Oversight and monitoring
•Stakeholder engagement and capacity building• Establish and implement engagement plan• Establish and implement capacity building and support programme
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Thank You!