In the 2008/09 financial year, the Department of Water Affairs and Forestry under spent by 8.20 per cent on its overall budget. This under-spending was attributed to the slow spending in De Hoop Dam project. It was indicated that disbursements of funds could not proceed due to delays in conclusion of the negotiations to finalise memorandum of understanding with 23 mines. The main challenge that faces this project was perpetual rolling over of funds