PUBLIC HEARINGS ON CONDITIONAL GRANTS AND CAPITAL EXPENDITURE

Select Committee on Finance

9th May 2007

CASP

Purpose

To provide trends and actual expenditure on CASP over the past three years

To provide status report on CASP projects undertaken during 2006/07

To highlight the challenges and proposed solutions thereof.

CASP 2006/07 FINANCIAL YEAR

The provincial allocation for the 2006/07 financial year was R 6 873 000.

Procurement was done through tender from technically sound service providers.

The three quote system was also partly used in the first quarter of the financial year.

Achievements

Infrastructure Supplied Service provider Value

30 x Boreholes Euphoria Consult R1 346 625

75 x Hydroponics DICLA R2 909 222

11 x Piggery Qutechnology R2 167931

Food Security Infrastr Three Q System R284 601

Other infrastructure Three Q System R162 836

TRENDS IN ALLOCATION AND ACTUAL SPENDING

YEAR ALLOCATION SPENT REMARKS

2004/05 4 600 000 4 600 00 100% spent

2005/06 5 727000 R1 330 300 Funds of R 4 396 700 was committed but roll-over was not granted.

2006/07 6 873 000 R6 871 215 99.974% Spent

CHALLENGES AND PROPOSED SOLUTIONS

Demand for infra-structure is much higher than our allocation.

LRAD projects enhancing and benefiting from GADS Non compliant service providers particularly on RLS

procurement, request for upfront payment and being technically not proficient.

There is a need to adopt a long term view to project planning and implementation.

Coordination with different local municipalities. MEC/MMC forum

Plans to enhance delivery

Procurement through the tender process limits working with a large number of service providers.

Monitoring and evaluation of quality of work done using the services of TDS and Knowledge and Project Management.

Tenders will be more attractive to quality service providers

Areas of growth and development

Streamline and align systems of developmental programs such as LRAD,CASP etc

Joint strategic/operational planning with all relevant stakeholders including local authorities.

Focusing on establishing massive impact projects that will cover various social aspects and move from individual projects (servicing hubs/corridors)

Landcare

Progress on 2006/7 LandCare projects

Project Name Allocation

as per DoRA

ZAR X 103

Additional allocations

ZAR X 103

Expenditure

ZAR X 103

Outputs

Bamba Manzi & Wonga Manzi alien vegetation removal projects (Mogale City & Elandsfontein)

R 3 115 R 335 R 3 150 114 jobs created1091 ha cleared

Progress on 2006/7 LandCare projects

Project Name Allocation

ZAR X 103

Expenditure

ZAR X 103

Variance

LandCare planning grant (utilised for branding and awareness workshops)

R 300 Nil Funds were only transferred in November.The Department committed funds in the previous financial year and has requested for a roll over of funds to be spent in 2007/8

Monitoring capacity

The Department has signed business plans and contracts with appointed service providers to implement projects on behalf of the Department

10 personnel are appointed to monitor operations of service providers

Monthly project steering committee meetings are held, involving all relevant stakeholders to monitor progress of the project

Weekly site visits are undertaken to verify operations on the ground

Monthly DoRA and quarterly non financial data reporting is provided to Treasury and DoA

Reports

Signed contracts bind service providers and municipalities to submit reports at agreed upon time frames

However some service providers delay in the timeous submission of reports, these issues are addressed with service providers and the Departmental personnel monitor written resolutions undertaken during project steering committee meetings

End