The Portfolio Committee recommended the following in response to the most important challenges in the water sector: . The Portfolio Committee noted with concern the under expenditure recorded by the Department and the subsequent loss and funds returned to the Department of Finance. This type of under expenditure needs to be corrected and should not reoccur in future financial years; . It was unacceptable that only 60% of targets set by the Department and agreed to by the Department, are achieved, yet 96% of the total budget has been spent. Targets set need to be SMART and results must be linked to expenditure; . The Portfolio Committee noted with concern the amounts of 30 days or more owing to the Water Trading Entity by water users. A measurable programme with targets and dates needs to be submitted to the committee to monitor this on a quarterly basis. The Portfolio Committee further requested the Water Trading Entity to supply a detailed programme of action with specific time frames and deadlines dealing with, metering of water volumes to users, where applicable, the challenge facing charging of water consumption by non licensed users, data cleansing of information relating to water users and debtors within the Water Trading Entity; . The Portfolio Committee noted that the number of vacancies as well as acting positions, including that of the Director-General do pose challenges to the effective work of the Department. The Portfolio Committee requested that the Department urgently expedite processes in filling vacancies; . The Portfolio Committee requested that the Department delineate and provide updated statistics on water utilisation by sectors such as agriculture and industry; and . The Portfolio Committee noted the critical role of water and sanitation that has been further recognised in terms of the Strategic Integrated Project (SIP 18). The Department in collaboration with the Departments of Human Settlements and Cooperative Governance, and working together with Provinces and relevant Local Government is charged with the responsibility of integrating its work, through infrastructure development, for the eradication of backlogs and sustained delivery of quality services to the people of South Africa. In order to facilitate effective and timely investment in infrastructure and improve operations and maintenance, the Department is developing a comprehensive investment plan. This plan will inform budgeting and integrated planning based on a life-cycle approach, which includes planning and construction costs, operation and maintenance, financing costs and the costs of sustainable water management. Capital investment in new water and sanitation infrastructure for the entire value chain including the refurbishment of existing infrastructure is projected to require an estimated R670 billion over the next ten years. In light of the above, the Portfolio Committee recommends that the Department must, as a matter of urgency, provide a proposed budget for the medium term in this regard.