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REPORT ON THE MUNICIPAL INFRASTRUCTURE GRANT (MIG) PROGRAMME
QUARTERLY WORKSHOP
23 – 25 APRIL 2007
HELD AT HANS MERENSKY IN THE LIMPOPO PROVINCE
1. BACKGROUND
The dplg, regard the interaction with and coordination of provinces and sector departments as an integral part in, amongst other, the delivery of infrastructure services. One such a forum where issues are discussed is the quarterly workshop that was held from 23 to 25 April 2007 at Hans Merensky in the Limpopo Province. The workshop was attended by:
• Provincial Programme Management Units in all 9 provinces; • National provincial sector departments;
- Department of Public Works - Department of Water Affairs and Forestry - Department of Transport
• Project Management Units of Limpopo Municipalities.
The attendance register is attached as Annexure A. Recipients are urged to use the list to assist them to forge relationships with one another, not only in provincial contexts but also across provinces to cross pollinate one another on solution orientated approaches to service delivery. The programme for the workshop is attached as Annexure B.
From the discussions over the three days an action plan has been drafted which is enclosed as Annexure C.
ACTION LIST
Issues discussed Decisions and action By whom By when
Strategic priority areas for municipal infrastructure in 2007/08 • Overview of 2006/07; • Sustainable
infrastructure delivery and multi-dimensional support;
• Outcome from the round-table between Minister, mayors and councillors held on 23 March 2007.
Presentation/s attached as Annexure/s C1 and C2.
1. National to further communicate decisions of the round table discussions
2. Provinces to implement provincial round table actions and monitor municipal actions
3. Sector master plans and support strategies should be made available to provinces and municipalities to facilitate IDPs.
4. Strategic plan of branch and Chief Directorate to be communicated individually to provinces
5. Detailed 8 steam interventions to be distributed to provinces.
1. dplg, Dir: MIP
2. Province to monitor
3. Sector departments
4. Chief Directorate; Municipal Infrastructure
5. Chief Directorate municipal
Infrastructure
1. End of May 2007 2. Report by end of August
2007
3. Sector depts. by the end of May 2007
4. At the next quarterly meeting
5. As soon as it is approved by Cabinet
Capacity of PMUs • Ineffective and
insufficient capacity of PMUs
• Optimizing existing capacity e.g shared service could be enhanced more
• Deployment to be up-scaled
• Effective coordination between stakeholders through existing structures should be enhanced
Presentation/s attached as Annexure/s C3.
1. PMU guidelines to be discussed in sessions with municipalities and provinces
2. Provinces to receiveget latest version of PMU guidelines
3. Provinces to monitor PMUs according to guidelines, Weak performing PMUs identified and remedial actions identified
4. Rare-skills initiative of Government should be investigated on how it could be applied to the municipal PMUs.
5. The Dplg to continuously inform provinces on the progress made on the deployment. Matrix of deployment and various briefings of deployees to provinces.
1. dplg, Dir: MIG
2. dplg, Dir: MIG
3. Provinces
4. dplg, Dir: MIP
5. dplg, Dir: MIP
1. End of Aug 2007 1.
2. End of May 2007
3. Monthly monitoring and quarterly reporting to dplg
4. Coordination with JIPSA
5. Continuous
Capacity of provinces to monitor and support municipalities on infrastructure • Deployment to be
introduced in provinces and municipalities
• Provinces has challenges securing the necessary funding
Presentation/s attached as Annexure/s: C4 – Eastern Cape C5 – Free State C6 – Gauteng C7 – KwaZulu-Nartal C8 – Limpopo C9 – Mpumalanga C10 – Northern Cape
1. Provinces to indicate deployment requirements from DBSA by completing template developed by dplg.
2. The dplg to assist provinces during provincial budget hearings. Dplg to get dates from NT.
3. Provinces to submit budgetary requests to their HODs as input to provincial treasury
1. Provinces to indicate 2. dplg, Dir: IDF 3. Provinces
1. 4 May 2007 2. Dates to be determined. 3. Dates to be determined.
Provinces top report back on progress at next quarterly workshop.
Best practices by PMUs in 3 Municipalities Presentation/s attached as Annexure/s: C11 – Bela-Bela LM C12 – Greater Sekhukhune DM C13 – Thulamela LM C14 – Modimolle LM
- - -
Division of Revenue Act, 2007 Presentation/s attached as
1. Provinces to ensure that annual reports are submitted by municipalities to NT and dplg (section section 11(3) of DORA 2006)
1. Provinces
1. End of May 2007
Annexure/s C15 & C16
2. Communication between province and dplg should be improved. Copies of letters of allocations to be submitted to provinces by dplg.
2. dplg, Dirs: MIP & IDF 2. End of May 2007
Stopping of funds • R503m has been
stopped from the 2006/07 allocations.
• The decision of where funds will be reallocated vests with the Minister of Finance.
Presentation/s attached as Annexure/s C17
1. The implications of not allocating the stopped funds must be communicated to municipalities as expectancies have been created. The dplg to draft general communiqué. Note the important dates on slide 19 of Annexure 17
1. dplg 1. Mid June 2007
MIG formula Presentation/s attached as Annexure/s C18
1. The dplg to discuss formula review outcomes at the next quarterly workshop.
1. dplg 1. Next quarterly workshop
Construction industry and market factors impacting on municipal infrastructure • Impact of the
construction industry boom on the delivery of municipal infrastructure and MIG
Presentation/s attached as Annexure/s C19
1. More regular engagement between SAFCEC and stakeholders would be required.
1. The dplg to advice on this process.
1. Next quarterly workshop
MIG-MIS • Accelerating the
utilization of MIG-MIS through training and
1. Provincial training and system analysis at a municipal level should be done in cooperation with provinces
2. The dplg to provide names to provinces
1. dplg, Dir: IGIMS 2. dplg, Dir: IGIMS
1. End of May 2007 2. End of May 2007
assistance to municipalities and provinces.
Presentation/s attached as Annexure/s C20
of service providers in the provinces to do analyses and training.
Expanded Public Works programme (EPWP) Leadership of EPWP at a provincial level and the customization of guidelines in line with revised criteria and informing/ guiding municipalities. Presentation/s attached as Annexure/s: C21 – National EPWP office C22 – Eastern Cape C23 – Free State C24 – KwaZulu-Nartal C25 – Limpopo C26 – Mpumalanga C27 – Northern Cape C28 – North West
1. Existing projects to be evaluated and verified by EPWP (province) together with Provinces whether it conforms to EPWP principles or can be converted to EPWP under certain conditions. The process should be part of the KPI reporting verification processes for the quarter ending on 31 March 2007.
2. EPWP reporting by provinces at the quarterly workshop must be based on the latest confirmed data generated from the KPI reporting cycle.
3. EPWP Unit to provide reporting template for reporting at quarterly workshops
4. Provincial EPWP offices to lead process to capacitate municipalities. Coordination with provincial local government offices. EPWP to inform provinces of the capacity building time frames.
5. EPWP (together with EPWP provinces) to invite provinces to the national EPWP meetings.
6. EPWP to attend PMITT meetings. Where problems exist, provinces can contact nation EPWP office.
7. Presentation on EPWP training at the next quarterly meeting.
8. Province to receive the general EPWP progress report on municipalities.
1. EPWP (provinces) and Provinces.
2. Provinces
3. EPWP National Unit
4. EPWP (provinces) to inform provinces
5. Provinces to inform EPWP (provinces)
6. Provinces
7. EPWP National Unit
8. EPWP National Unit
1. (end June 2007)
2. Next quarterly workshop
3. (end June 2007)
4. End of May 2007
5. Continuous
6. Continuous
7. Next Quarterly meeting
8. End of May 2007
Service levels and unit 1. The dplg to discuss guidelines at the 1. dplg, Dir: MIG 1. Dates of sessions to be
cost Unit cost to be updated more frequently to keep tract with changing environment impacting on unit cost.
provincial sessions with municipalities and progress provided at the next quarterly workshop.
coordinated with provinces
IDPs and infrastructure
2. Results of IDP analyses to be presented at the next quarterly workshop
3. Western Cape to share “10 questions” with other Provinces to evaluating IDPs
4. Provinces to collect IDPs and evaluate it according to check lists. List to be forwarded by dplg.
5. Provinces to ensure that provincial departments do attend the IDP hearings to deal with infrastructure.
6. The dplg and provinces to ensure coordinating role in terms of those departments responsible for infrastructure in IDPs.
1. dplg
2. Western Cape Province
3. dplg, Dir:MIG
4. Provinces
5. dplg ( Dir:MIG) and provinces
1. Next quarterly workshop
2. End of May 2007
3. Mid June 2007
4. According to dates of hearings
5. According to dates of hearings
Asset management and comprehensive infrastructure plans Presentation/s attached as Annexure/s C29
1. The dplg to discuss guidelines at the provincial sessions with municipalities.
1. dplg, Dir: MIG 1. Dates of sessions to be coordinated with provinces
Non-Financial Monitoring processes • Role of provinces, sector
departments and dplg • Registration of projects • KPI reporting Presentation/s attached as Annexure/s C30
1. July 2007 (1st quarter) report to be based only on information as on the MIG-MIS.
2. Commitments on 07/08 finalised by April 2007.
3. Commitments on 08/09 finalised by August 2007.
1. Provinces and municipalities
2. Municipalities assisted by provinces
3. Municipalities assisted by provinces
1. As per reporting process
2. End of April 2007
3. End of August 2007
Municipal services - turn around projects and cost recovery Presentation/s attached as Annexure/s C31
- - -
Bulk Water Services infrastructure programme managed by DWAF • Specific purpose capital
grant to supplement the financing of the social component of regional bulk water & sanitation infrastructure
• Only for Regional Bulk water services infrastructure and for the social component.
• Allocation: • 07/08 … R300
million • 08/09 … R450
million • 09/10 … R650
million Presentation/s attached as Annexure/s C32
1. Policy document available 2. Project Checklist developed 3. Nomination process for 2008 99%
complete (need some confirmation, validation & budget reconciliation)
4. Project profiles being captured 5. Project list 2009 being finalized 6. DWAF to confirm Task Teams
established to support institutional as well as water resources components
7. Feasibility guide: 80% complete 8. Funding allocation to Regions by mid to
end May
1. DWAF 2. DWAF 3. DWAF
4. DWAF 5. DWAF 6. DWAF
7. DWAF 8. DWAF
1. Completed 2. Completed 3. 99% completed at April
2007
4. Continuous 5. Continuous 6. Next Quarterly
7. 80% complete 8. Mid May 2007
Water Supply & Sanitation: Making it happen Stakeholders in the water
sector have to indicate how they will succeed in meeting the targets
1. Reality action plan with the assistance with provinces and municipalities Clarity on goals to be delivered Funding reconciliation on backlogs Resource reconciliation Existing actions and projects alignment
1. DWAF assisted by provinces 1. Mid May 2007 and results communicated at next quarterly workshop
Presentation/s attached as Annexure/s C33 Eradication of bucket sanitation
•
- - -
Report by sector departments on the development of the sector support strategies Presentation/s attached as Annexure/s C34
1. The department together with roads agencies to assist municipalities with the classification of roads
1. Department of Transport to coordinate
1. Report at the next quarterly meeting on the coordination and interaction with municipalities on the process.
ANNEXURE A
ANNEXURE B
DEPARTMENT OF PROVINCIAL AND LOCAL GOVERNMENT MUNICIPAL INFRASTRUCTURE GRANT Tel: (012) 334 4994 Private Bag X804 Fax: (012) 334 4862 PRETORIA 0001
MUNICIPAL INFRASTRUCTURE GRANT (MIG) PROGRAMME QUARTERLY WORKSHOP
1
DATE : 23 – 25 April 2007
VENUE : Hans Merensky, Phalaborwa (Limpopo Province)
STAKEHOLDERS : (dplg, Provincial Departments of Local Government - Sector National, Provincial and Regional Departments, Limpopo PMUs)
PROGRAMME DAY 1: 23 April 2007 08:30 – 09:00 Tea and registration
09:00 – 09:10 Welcome and opening
Limpopo Province
09:10 – 09:30 Strategic priority areas for municipal infrastructure in 2007/08
• Overview of 2006/07 • Sustainable infrastructure delivery and multi-
dimensional support • Outcome from the round-table between
Minister, mayors and councillors held on 23 March 2007
DDG: FBS&I in dplg
09:30 – 09:50 Capacity of municipalities to implement municipal infrastructure
Revised Project Management Unit Guidelines Coordination and deployment of experts Preliminary results of the analysis on the
deployment of senior engineers through SAICE
dplg (Dirs: MIG & MIP)
09:50 – 10:10 Questions and discussion
10:10 – 13:10 Reports by provinces on current capacity to monitor and support municipalities on infrastructure
Current structure and functions of the Provinces on Municipal Infrastructure
Current capacity and budget Proposed structure of the Province, functions
and budget (15 minutes per presentation and 5 minutes per provinces for discussion)
Provinces
13:10 – 14:00 Lunch
DEPARTMENT OF PROVINCIAL AND LOCAL GOVERNMENT MUNICIPAL INFRASTRUCTURE GRANT Tel: (012) 334 4994 Private Bag X804 Fax: (012) 334 4862 PRETORIA 0001
MUNICIPAL INFRASTRUCTURE GRANT (MIG) PROGRAMME QUARTERLY WORKSHOP
2
14:00 – 15:00 Best practices by PMUs in 3 Municipalities (15 minutes per presentation and 5 minutes per PMU for discussion)
Limpopo PMUs
15:00 – 15:30 Division of Revenue Act, 2007 Overview of the Act Key areas of concern impacting on MIG
business processes and procedures MIG Financial monitoring framework and the
role of provinces, sector departments and dplg
dplg (Dir: IDF) & National Treasury
15:30 – 15:50 Tea and coffee
15:50 – 16:10 Questions and discussion
16:10 – 16:30 MIG formula review Results and further work to be done
dplg (Dir: IDF)
16:30 – 16:50 Questions and discussion
16:50 – 17:00 Summary and closure for day 1
DAY 2: 24 April 2007 07:30 – 08:00 Tea and registration
8:00 – 08:30 Construction industry and market factors impacting on municipal infrastructure
Impact of the construction industry boom on the delivery of municipal infrastructure and MIG
Henk Langehoven: SAFSEC
08:30 – 9:00 Questions and discussion
09:00 – 09:20 Institutionalisation of the MIG-MIS projects
dplg (Dir: IGIMS)
09:20 – 10:00 Questions and discussion
10:00 – 10:15 Tea and Coffee
10:15 – 10:25 Expanded Public Works Programme Technical support to municipalities
DPW – EPWP Unit
10:25 – 10:40 Questions and discussion
DEPARTMENT OF PROVINCIAL AND LOCAL GOVERNMENT MUNICIPAL INFRASTRUCTURE GRANT Tel: (012) 334 4994 Private Bag X804 Fax: (012) 334 4862 PRETORIA 0001
MUNICIPAL INFRASTRUCTURE GRANT (MIG) PROGRAMME QUARTERLY WORKSHOP
3
10:40 – 12:10 Provincial reports on the progress on EPWP implementation
• Projects • Coordination • Support to municipalities
(10 minutes per presentation)
Provinces
12:10 -12:30 Questions and discussion
12:30– 13:30 Lunch
13:30 – 13:50 Infrastructure planning in IDPs Preliminary results of the IDP analysis on
infrastructure Sector targets and master planning
dplg: (Dirs: MIG & Planning Implementation)
13:50 – 14:10 Questions and discussion
14:10- 14:30 Asset management and comprehensive infrastructure plans
dplg: (Dir: MIG)
14:30 – 15:00 Questions and discussion
15:00 – 15:15 Tea and coffee
15:15 – 15:45 Revised service levels and unit cost
dplg: (Dir: MIG)
15:45 – 16:10 Questions and discussion
16:10 – 16:30 Non-Financial Monitoring processes Role of provinces, sector departments and dplg Registration of projects
dplg (Dir: MIG)
16:30 – 16:50 Questions and discussion
16:50 – 17:00 Summary and closure of day 2 DAY 3: 25 April 2007 07:30 – 08:00 Tea and registration
08:00 – 08:30 Bulk Water Services infrastructure programme managed by DWAF
Funding criteria Conditions
Processes and procedures
DWAF
DEPARTMENT OF PROVINCIAL AND LOCAL GOVERNMENT MUNICIPAL INFRASTRUCTURE GRANT Tel: (012) 334 4994 Private Bag X804 Fax: (012) 334 4862 PRETORIA 0001
MUNICIPAL INFRASTRUCTURE GRANT (MIG) PROGRAMME QUARTERLY WORKSHOP
4
08:30 – 08:50 Questions and discussion
08:50 – 09:20 Eradication of bucket sanitation Progress and challenges Identification of gaps and interventions
DWAF
09:20 – 09:40 Questions and discussion
09:40 – 10:00 Solid Waste requirements
DEAT
10:00 – 10:20 Questions and discussion
10:20 – 10:40 Tea and Coffee
10:40 – 11:20 Report by sector departments on the development of the sector support strategies
11:20 – 11:30 Summary and closure of day 3
dplg
12:00 – 13:00 Lunch
ANNEXURE C
ANNEXURE C1
1
1
MIG QUARTERLY WORKSHOP: Strategic Priority Areas For
Municipal Infrastructure Delivery 2007/08
23 April 2007
2
Outline
• Strategic Context– Vision 2014– State of Nation Address 2007– Reading of the External Environment
• Likely Situation in 2009
• Factors that will promote Acceleration and achievement of 2014 vision
• Key Discussion Points
3
Strategic Context
4
OUTCOMES & TARGETSSustainable Human Settlements, Local Economies & Livelihoods
• Eradication of sanitation buckets - 2007• Access to potable water - 2008• Access to sanitation - 2010• Infrastructure for FIFA World Cup - 2010• Universal access to electricity - 2012• Halve poverty and unemployment - 2014• Upgrade all informal settlements - 2014• Accelerated housing delivery - 2014
South Africa Vision 2014
5
State of Nation Address 2007
• Harmonize planning across the three spheres of government
• Improve statistical database – community survey 2007
• Millennium Development Targets, and eradication of buckets in established settlements by end 2007
• Increase pace of housing delivery
• Intensify community outreach activities including izimbizo and extend coverage of multi-purpose community centres
6
State of Nation Address 2007
• Urgently fill vacancies in municipalities
• Improve effectiveness of anti-corruption strategy across all three spheres of government
• Roll-out Batho Pele campaign at local government level
• Maximise benefits of growing economy by intensifying second economy programs including:
– micro-finance, cooperatives– national youth service, – expanded public works, communal land rights – effective involvement of the institution of traditional leadership in
governance and development processes.
2
7
State of Nation Address 2007(South African Women in Dialogue,
drawing on experience form Tunisia and Chile)
• Define clearly the poverty matrix of our country;
• Develop a proper database of households living in poverty;
• Identify and implement specific interventions relevant to these households;
• Monitor progress in these households as the programmes take effect in graduating them out of poverty;
• In this context, address all indigence, especially the high numbers of women so affected;
• Co-ordinate and align all anti-poverty programmes to maximise impact and avoid wastage and duplication; and
• Accelerate the training of Family Social Workers at professional and auxiliary levels to ensure that identified households are properly supported and monitored. 8
Reading of External Environment• Economic growth without sufficient impact on poverty
eradication:– Risk that levels of indigence rise to unsustainable levels
• Economic growth not sufficiently underpinned by productive sector:– The current account deficit is increasing– Imports (consumables) are exceeding exports which is impacting
negatively on domestic employment creation
• Insufficient coverage of economic development outside traditional growth centres. Urban areas are not contributing enough to achieve and sustain 6% plus economic growth target.– Synergy between urban and rural and development needed as part
of single economy– Agriculture sector decline (bio-fuels potential), land reform slow– Growth of/in new towns taking place– Growth in number of households in urban areas
9
Reading of External Environment• The inadequate and inappropriate skills profile of South Africans is
impacting negatively on infrastructure and service provision and on ability of “Developmental State” to constitute requisite capacity as active economic development agent.
• Despite major progress with service delivery, community dissatisfaction stems from poor government communication, inadequate complaint management systems and lack of confidence in delivery structures
– Basic services are not extended rapidly enough in a sustainable and integrated manner.
– Perceptions of mismanagement and corruption surrounding government procurement processes
• Government revenue increasing, fiscal allocations increasing yet R70 billion municipal infrastructure funding gap and R120 billion for housing.
• Insufficient emphasis on community empowerment and building their self reliance in approach to “Developmental State”.
– Challenge is to move beyond delivery projects to systems of support and organisation of communities/households to undertake sustainable livelihoods
10
Likely Situation in 2009
11
Likely Situation in 2009(based on current funding provisions)
• Service Delivery– Bucket eradication target for established communities can be met by end
2007 if minimum service standard is applied. Bucket eradication in informal settlements by 2009 will depend on progress with housing delivery programme.
– Access to potable water by 2008 is under risk with current funding provisions. Likely to be met only in 2013/14 financial year.
– Access to sanitation by 2010 is under risk with current funding provisions. Likely to be met only in 2016 (dry sanitation) and 2030 (wet sanitation)
– Universal access to electricity by 2012 can be met if funding is increased from R1.39 billion to R3 billion annually.
– Need to deliver some 500 000 units per annum to reach 2014 housing target. Significant additional funding required for housing – A total of R124,7 Billion (at current prices) to reach housing target
12
Likely Situation in 2009Water: Since 1994 a total of 16,0 million people have been provided with a safe supply of water at different levels of service. The current backlog for basic water supply is 2 million households (8, 2 million people). The rate of delivery during 2005/06 was 1.1 million people or 250 000 households.
To achieve the 2008 sector target, a delivery of 2.7 million people per year or 675 000 households is required
To eradicate the backlogs will require R12 Billion way below the current DORA allocation of R3.5 billion.
2009 RATE OF DELIVERY WILL STILL BE BELOW REQUIRED RATE OF 675 000 Households per annum.
3
13 14
Likely Situation in 2009SANITATION:The current sanitation backlog is 3, 75 million households or 15.3 million people. The rate of delivery in 2005 was 200 000 households and the current estimate 100 000- 120 000 based on money spent is way below the required rate of delivery (800 000 to I million households per annum).
To achieve the 2010 sector target, a delivery of 1 million households at a cost of R3 billion per annum over the next four years totalling R12 billion is required.
The current DORA is R1.4 billion which can deliver 350 000 households.
2009 RATE OF DELIVERY BELOW REQUIRED RATE OF 900 000 Households per annum.
15 16
17
Likely Situation in 2009
ERADICATION OF THE BUCKET:
TOTAL BUCKETS IN INFORMAL AREAS TO BE ERADICATED BY DECEMBER 2007 IS 117 060 AS AT FEBRUARY 2007CURRENT RATE OF DELIVERY IS 5000 PER MONTHREQUIRED RATE IS AROUND 13 000.00 PER MONTH TO REACH THE TARGET
18
4
19
Likely Situation in 2009ELECTRICITY :The current electricity backlog is estimated at 3, 41 million households. The current National Electrification Funding (NEF) is approximately R1, 39 billion annually and is able to fund approximately 230 000 connections per year. In order to achieve universal access, an estimated total number of about 500 000 connections per annum is required at an estimated cost of R3, 6 billion. This does not include funding for bulk infrastructure.
2009 RATE OF DELIVERY (587 995) WILL STILL BE FAR BEHIND THE REQUIRED RATE OF DELIVERY 500 000.
20
Likely Situation in 2009
Free Basic Services
– At least 90% of households provided with Free Basic Water (FBW)
– At least 85% of households provided with Free Basic Electricity (FBE)
21
Factors that will Promote Acceleration
22
Factors that will Promote Acceleration
• Infrastructure and Service Provision– Close funding gaps– Technical and management capacity– Water resources– Bulk infrastructure especially in rural areas– Institutional arrangements (IGR, Powers and Functions)– Policy issues– Agreement on data, statistics, service levels and standards– Differentiated support approach– Technology innovations– Refurbishment and rehabilitation– Forward planning and project and contract management
23
Factors that will Promote Acceleration
• Differentiated Support Approach:
– Stream 1: General Support to Municipalities– Stream 2: Finalization of Programme to eradicate the
Bucket System– Stream 3: Pilot Project in 9 Target municipalities– Stream 4: Focused interventions in large low capacity
Municipalities– Stream 5: Support to small low capacity municipalities– Stream 6: Municipalities with low expenditure– Stream 7: Large well performing municipalities– Stream 8: Small well performing municipalities.
24
Factors that will Promote Acceleration
• National Project and Contract Management Facility
– Convert national targets into projects with clear activities anddeliverables per municipality and per sector
– Manage delivery directly in areas where there is no capacity
– Simultaneously build infrastructure planning and management capability in provinces and municipalities
– Undertake and build capacity for Comprehensive Infrastructure Plans
5
25
Factors that will Promote Acceleration
• Partnerships with private and or public specific service sector stakeholders (Energy, Water, Transport and Waste Environment sectors)
• Inter-sphere infrastructure planning and collaboration to create predictability and alignment of projects identified among spheres and across boundaries
26
FBSI Branch Role
27
Key Discussion Points
1. Funding Gap– Including revenue generation capability of municipalities,
REDs, etc– Borrowing framework– Targeting Indigents and funding FBS– Delivery in remote rural areas
2. Differentiated Support Approach3. Infrastructure regulatory role of dplg
– Service standards and new technologies4. Sustainable Human Settlements project with Dept of
Housing5. National Project Management Facility
28
Thank you
29
Millennium Development GoalsAnna Tibaijuka speech at World Urban Forum 2006, Under-Secretary General,
United Nations
• “Currently, more than one billion people are living in slums. This figure could easily reach 2 billion by 2030. The vast majority of these people live on less than one dollar a day. They lack safe water, a major contributing factor to malnutrition, disease and loss of productivity. In many communities, young girls spend hours every day fetching water and thus forgo their education. Most slum dwellers have no access to sanitation. In some of the slums my agency works in, there is no refuse collection and up to 300 people share a single toilet. HIV/AIDS, malaria and other diseases are rife and life threatening. Entire families, especially single mothers and their children, eke an existence from informal trading and services at the margins of human dignity. Crime, drugs and violence are daily realities.”
• “Worse still, when natural disasters strike, as we sadly witnessed with the Asian Tsunami, Hurricane Katrina and recent earthquakes in Pakistan and Indonesia, the poor are disproportionately and adversely affected.”
• “Unfortunately for these one billion slum dwellers, issues such as global warming and biodiversity are distant notions, far removed from their daily struggles and priorities. Their plight mirrors the huge chasm between rich and poor, between those who benefit from globalisation and those who are marginalised by it. ”
ANNEXURE C2
1
OUTCOMES OF THE ROUND-TABLE DISCUSSION ON THE
ACCELERATION OF INFRASTRUCTURE SERVICES
DELIVERY
MIG quarterly workshop – 23 April 2007
OBJECTIVES OF THE ROUNDTABLE DISCUSSION
• Develop a joint commitment to the five-year Local Government Strategic Agenda and interventions to enhance infrastructure services delivery in order to reach the service delivery targets
• Deepen the participation of sector departments to ensure sector support strategies that are aligned to lessons learnt from Project Consolidate and adequately address municipal challenges
• Better position the municipal infrastructure grant as one of Government’s tools to accelerate infrastructure service delivery
SUMMATION OF AREAS DISCUSSED
Backlog Targets:
• The backlog eradication targets will have to be met throughout the country and no municipality is exempted from meeting these targets.
Integrated Development Planning & IGR:
• Integrated development planning should be strengthened across all three spheres of government
• Intergovernmental relations machinery should continue to improve to better refine and improve the quality of and participation of stakeholders in the IDPs.
SUMMATIONA OF AREAS DISCUSSED
Municipal Infrastructure Grant:
• Most of the municipalities are not doing justice to the multi-year capital planning process
• A need to introduce processes that will allow them to start to plan for the next three years.
OUTCOMES & ACTIONSNationally:• Effective participation of sector departments in IDP processes to be
intensified i.e. IDP analysis week scheduled from 14-18 April
• Followed by provincial wide specific process for nat. & Prov depts to interact directly with municipalities on their IDPs
• Sector depts finalise their Master Sector Plans and Sector Support Strategies by May 2007 to support process above.
• Dedicated support by dplg and sector depts to Mun. which have not yet committed their total MIG 2007/08 allocations.
• Deployment should be up-scaled and skills be transferred to provinces and municipalities
• The dplg undertook to lead discussions on the budgetary implications as a result of meeting the service delivery targets.
OUTCOMES & ACTIONS
Provincial:
•MECs to undertake a process of verifying the backlog figures of munper sector, especially 2007 and 2008 targets.
•MECs provide a clear programme of intervention and action per municipality by the end of May 2007
- Plans the be adopted by Prov Cabinets- Should coincide with deploying the relevant expertise to provinces
and municipalities.
2
OUTCOMES & ACTIONS
Municipal:• Each municipality should develop CIPs with sets a clear programme of
delivery towards targets and that these plans informs credible IDPs.
• Final IDPs including budgets should be adopted by end June 2007.
• Vacancies of key managerial and technical areas should be filled by June 2007 and steps should be implemented for a more conducive environment and institutional stability in order to retain skills.
• The dplg will engage with NT with the view in putting municipalities in a position to recruit and retain the necessary skills.
• Projects must be identified to commit the total 2007/08 MIG allocations by the end April 2007.
CONCLUSION
• Set of guideline documents on sustainable infrastructure delivery are available that were implemented by 1 April 2007.
ANNEXURE C3
1
IMPACT ASSESSMENT: DEPLOYMENT OF
ENGINEERING SKILLS TO MUNICIPALITIES
BACKGROUND
Municipalities are responsible for providing the communities within their local jurisdiction with basic services. Infrastructure delivery is currently very low, and one of the key challenges is lack of engineering capacity to roll out infrastructure services.
To address the capacity challenge, the dplg through Project Consolidate has deployed technical experts to municipalities.
OBJECTIVES OF THE DEPLOYMENT
Provide hands-on support in order to fast track infrastructure service deliveryTo create sustainable engineering skills at municipal level, through:
• providing on the job training for graduates, and
• Experiential training for students to enable them to graduate
PROGRESS TO DATE
To date the dplg has deployed:51 senior engineers45 graduates 99 students180+ in house municipal staff being trained75 municipalities receiving hands on support
PROGRESS TO DATE CONT…
The intervention has also given support to R2 billion worth of projects which include:MIG projectsCapital projectsO&M ProjectsRehab projectsSavings by containing lossesIncreased income (revenue enhanced)
THE INTERVENTION RATIONALE
The criteria used for the selection of municipalities to benefit in the programmewere done in the following manner:A cross boundary municipalityA low capacity municipalityA project consolidate municipalityA nodal municipalityDistricts who are water services authorities and providers for the whole district.
2
THE IMPACT ASSESSMENTS
The dplg conducted the impact assessments with the purpose of measuring success with regards to the Deployment programme
The assessments were aimed at evaluating the effectiveness of the programme i.e.
Ability to deliver MIG projectsDevelopment of skillsStrategic planningAddressing O&M and other issues
IMPACT ASSESSMENT OBJECTIVES CONT/D
Showcasing of best practices Identify challenges Get feedback from beneficiary municipalities
SAMPLING
Eight municipalities were selected Mogale City - GautengEmfuleni - GautengZululand - KwaZuluNatalUgu - KZNPixley Ka Seme – Northern CapeMnquma – Eastern CapeFetakgomo – LimpopoBushbuckridge - Mpumalanga
METHODOLOGY
The following methods were used for the collection of data:Interviews with deployed engineersInterviews with graduates and studentsInterviews with municipal staffSite Visits
FINDINGS
The engineers managed to unblock some challenges experienced by municipalities:Fast tracking of MIG registrationEstablishment of PMUsEstablishment of technical departmentsAddressing O&M issuesAssist in the day to day running of the municipalityEnhancement of shared servicesSkills development – municipal staffSkills development - Students/ graduates
FINDINGS CONT/D
Fruitless expenditure tackledRevenue enhancementAddressing community needs and revenue enhancement
3
CHALLENGES IDENTIFIED
Engineers and students in some municipalities not being used effectivelySome municipalities do not have projects to implement – students unable to get any experienceIn some instances engineers proposals not taken into considerationIssues of powers and functions within municipalities
CHALLENGES CONT/D
In some municipalities there are staff members for the deployees to be able to transfer skillsNeed for up scaling of deployment In some instances lack of understanding-objectives of the deployment
LESSORNS LEARNT
Ownership of the programme by beneficiary municipalities is key- including by- in from municipal senior officialsMore cooperation –huge impactThe need for engineering support is very highNeed for effective coordination of the deplyment
LESSORNS LEARNT CONT/D
Need for regular assessments in order:- to identify bottlenecks and deal with them on
time- to get all stakeholders involved- to provide support to the stakeholders- Need to get provinces in charge of the
monitoring and supporting processes through the deployment
CONCLUSION
The deployment of engineering programme has made some significant progress and impact on the fast tracking of infrastructure delivery.
However, there is a need for all the three spheres to work jointly towards the effective utilisatisation and coordination of the deployed resources aimed at supporting municipalities.
THANK YOU
ANNEXURE C4
1
EASTERN CAPE
MUNICIPAL INFRASTRUCTURE SERVICES
MIG QUARTERLY WORKSHOP23 APRIL 2007
Presented By: Tshitsho Majavu
SENIOR MANAGERPURPOSE: TO IMPLEMENT POLICY, COORDINATE, FACILITATE, SUPPORT AND MANAGE THE PROVISION, UPGRADING, OPERATION AND MAINTENANCE OF INFRASTRUCTURE IN MUNICIPALITIESFUNCTIONS:1. TO DEVELOP AND IMPLEMENT INFRASTRUCTURE RELATED POLICIES AND MEASURE THE IMPACT
ON THE GROUND1. TO COORDINATE, FACILITATE, MONITOR AND EVALUATE THE PROVISIONING OF CAPITAL
PROJECTS IN MUNICIPALITIES 2. TO COORDINATE, FACILITATE AND SUPPORT THE OPERATIONS AND MAINTENANCE OF MUNICIPAL
INFRASTRUCTURE ASSETS
MUNICIPAL OPERATIONS & MAINTENANCE
PURPOSE: TO COORDINATE, FACILITATE AND SUPPORT THE OPERATIONS AND MAINTENANCE OF MUNICIPAL INFRASTRUCTURE ASSETSFUNCTIONS:1. Coordinate and facilitate the
the operations and maintenance of infrastructure assets by municipalities
2. Support, measure impact, and advise municipalities on best practices on sustainable operations and maintenanceof municipal infrastructure assets
______________________________________1 Project Manager (PL 12)1 Impact Assessor (PL 11)2 Deputy Chief Engineers (PL11)4 Principal Engineers (PL 10)
MUNICIPAL CAPITAL PROJECTS
PURPOSE: TO COORDINATE, FACILITATE,MONITOR AND EVALUATE THE PROVISIONING OF CAPITAL PROJECTS IN MUNICIPALITIES
FUNCTIONS:1. Coordinate and facilitate the provisioning of
capital projects in municipalities2. Monitor and evaluate the provisioning of
infrastructure projects in municipalities3. Measure the impact of infrastructure
provision and advise on policy development _______________________________________1 Chief Engineer (PL 12)1 Impact Assessor (PL 11)2 Deputy Chief Engineers (PL11)4 Principal Engineers (PL 10)4 Control Industrial Technicians (PL9)4 Senior Industrial Technicians (PL8)
1 Secretary (PL 6)
Purpose & Key Functions
PURPOSE:To develop and implement policy, coordinate, facilitate, support and manage the provision, upgrading, operation and maintenance of infrastructure in municipalities
Key functions:• To develop and implement infrastructure related
policies and measure the impact on the ground• To coordinate, facilitate, monitor and evaluate the
provision of infrastructure projects in municipalities • To coordinate, facilitate and support the operation and
maintenance of municipal infrastructure assets
Current Organogram Staffing
DEPARTMENTAL
CURRENT STAFF1 Project Manager (Acting SM)1 SecretaryDistrict (Cluster) Support1 Principal Engineers1 Impact Assessor
VACANCIES1 Senior Manager1 Project ManagerDistrict (Cluster) Support4 Deputy Chief Engineers7 Principal Engineers7 Control Industrial. Tech.1 Impact Assessors
-Complement-Capacitate
-Support
CURRENT SUPPORT(Ending in April 2007)
1 Project Manager1 Finance Manager
1 ITC Specialist2 Data Capturers
16%
84%
Delineation Process- June 2007Developmental Local
Government &
Traditional Affairs
Municipal Governance
Municipal SpatialPlanning & Land
DevelopmentAdministration
Municipal Integrated
DevelopmentStrategy
Municipal Infrastructure &
ServicesTraditional Affairs
Municipal Finance
Management
Spatial Planning
Municipal IDP / PMSSupport
Municipal Infrastructure
Support
IntergovernmentalRelations
Municipal Administration
Municipal Land Survey & Cadastral
Management
MunicipalSustainable
DevelopmentSupport
MunicipalDisaster
ManagementSupport
Municipal Public Participation
Municipal Valuations
MunicipalSpecialProjects
(MSP/PC etc)
Municipal FSB Support
Municipal Land Use Management& Administration
Municipal IGR
Special Projects
SENIOR MANAGERPURPOSE: TO DEVELOP AND IMPLEMENT POLICY, COORDINATE, FACILITATE, SUPPORT AND MANAGE THE
PROVISION, UPGRADING, MAINTENANCE, AND OPERATION OF INFRASTRUCTURE IN MUNICIPALITIESFUNCTIONS:
1. TO COORDINATE, FACILITATE AND SUPPORT THE DEVELOPMENT OFMUNICIPAL INFRASTRUCTURE POLICY AND MONITOR AND EVALUATE IMPLEMENTATIONOF INFRASTRUCTURE
2. TO DEVELOP SUPPORT OF CAPITAL PROGRAMME, CAPACITY MANAGEMENT AND MANAGE INFRASTRUCTURE PROJECTS IN MUNICIPALITIES3. TO COORDINATE AND FACILITATE SPATIAL INFORMATION AND PROMOTE INTEGRATION OF MACRO PLANS THAT WILL GUIDE STARTEGIC DIRECTION
IN INFRASTRUCTURE DELIVERY4. TO COORDINATE AND FACILITATE IMPLEMENTATION OF A POLICY FRAMEWORK OF THE MUNICIPAL INFRASTRUCTURE DEVELOPMENT FINANCE
MUNICIPAL INFRASTRUCTURE POLICY DEVELOPMENT AND IMPACT ASSESSEMNT
PURPOSE: TO COORDINATE, FACILITATE AND SUPPORT THE DEVELOPMENT OF MUNICIPAL INFRASTRUCTURE POLICY AND MONITOR AND EVALUATE IMPACTOF INFRASTRUCTURE
FUNCTIONS:1. Coordinate and facilitate the
development of municipal infrastructure policy
2. Monitor the implementation and impact of municipal infrastructuredelivery
3. Establish a monitoring and evaluationsystem for the implementation of infrastructure
4. Translate spatial planning, subsidisation and funding into strategic direction
1 Manager (PL 12)__________________________________(ORTDM/ ANDM) ( CHDM/ UKDM)(ADM/BCM) (CACADU/NMBM)2 Impact Assessors (PL 11)
MUNICIPAL INFRASTRUCTURE GRANTS
PURPOSE: TO DEVELOP SUPPORTOF CAPITAL PROGRAMME, CAPACITYMANAGEMENT AND MANAGE INFRASTRUCTURE PROJECTS IN MUNICIPALITIES
FUNCTIONS:1. Support the management of
infrastructure projects withinmunicipalities
2. Audit capacity to deliver infrastructureand develop the necessarymechanisms to build the capacity formunicipalities to manage their assetsin a sustainable manner
3. Develop a support mechanism for municipalities for on-going operationand maintenance of infrastructure
1 Chief Engineer (PL 12)___________________________________(ORTDM/ ANDM) ( CHDM/ UKDM)(ADM/BCM) (CACADU/NMBM)4 Deputy Chief Engineers (PL11)4 Principal Engineers (PL 10)
INTEGRATED GEOGRAPHICAL INFORMATION MANAGEMENT SYSTEM
PURPOSE: TO COORDINATE AND FACILITATE SPATIAL INFORMATION AND PROMOTE INTEGRATION OF MACRO PLANS THAT WILL GUIDE STRATEGIC DIRECTION IN INFRASTRUCTURE DELIVERY
FUNCTIONS:1. Develop and manage the provincial
integrated infrastructure data base2. Coordinate backlog studies by sector
departments and municipalities3. Manage and maintain GIS, MIG-MIS,
Website and EDMS for the directorate4. Coordinate spatial planning and
infrastructure macro plans based on IDPs in collaboration with sector dept.
5. Support municipalities with development of their own MIS for infrastructure development
1 Manager (PL 12)2 Data Capturers (PL 6)___________________________________(ORTDM/ ANDM) ( CHDM/ UKDM)(ADM/BCM) (CACADU/NMBM)4 MIS &GIS Managers (PL 11)
INFRASTRUCTURE DEVELOPMENT FINANCE
PURPOSE: TO COORDINATE AND FACILITATE IMPLEMENTATION OF A POLICY FRAMEWORK OF THE MUNICIPAL INFRASTRUCTURE DEVELOPMENT FINANCE
FUNCTIONS:1. Set up provincial fund administration
system 2. Compile monthly, quarterly and annual
financial reports3. Prepare DORA reports4. Reconciliation of disbursements against
expenditure5. Analyse financial implications of the
infrastructure delivery in municipalities6. Monitor and evaluate subsidisation and
funding mechanisms for grants, based on planning
1 Financial Manager (PL 12)2 Financial Data Capturers (PL6)____________________________________(ORTDM/ ANDM) ( CHDM/ UKDM)(ADM/BCM) (CACADU/NMBM)2 Financial Officers (PL 11)
1 Senior Admin Officer (PL 8)1 Secretary (PL 6)
2
Proposed Organogram: Purpose & Key FunctionsPURPOSE:
To develop implement policy, coordinate, facilitate, support andmanage the provision, upgrading, operation and maintenance of infrastructure in municipalities
Key Functions:• To coordinate, facilitate and support the development of municipal
infrastructure policy and monitor and evaluate implementation ofinfrastructure project
• To develop support of capital programme, capacity management and manage infrastructure projects in municipalities
• To coordinate and facilitate spatial information and promote integration of macro & micro plans that will guide strategic direction in infrastructure delivery
• To coordinate and facilitate implementation of a policy framework of the municipal infrastructure development finance
Proposed Organogram Staffing
CURRENT STAFF1 Project Manager1 SecretaryDistrict (Cluster) Support1 Principal Engineers1 Impact Assessor
VACANCIES1 Senior Manager3 Managers1 SAO4 Data CapturersDistrict (Cluster) Support4 Deputy Chief Engineers3 Principal Engineers2 Impact Assessors2 Financial Officers2 GIS & MIS Officers
-Complement-Capacitate
-Support
CURRENT SUPPORT(Started in April 2007)1 Programme Manager (DBSA)1 Finance Manager (DBSA) 2 Tech. Managers (PC)
ADDITIONAL SUPPORT REQUIRED1 ITC Manager2 Data Capturers
15%
85%
Avail. R7.2m Req. R5.9 m
Total Budget R13.1m
PPMU Key Challenges & Recommendations
The 2004 phased-out capacity grant to PMMUs should re-consideredN. Treasury with dplg should intervene and engage DHLGTA and P. Treasury
Budget constraints to provide continuous and sustainable support to municipalities (Funded / Unfunded mandate)
dplg’s “revised PMU guidelines” should also incorporate PMMU expected support role to municipalities Explore support initiatives (DBSA-SM)
PMMU capacity constraints to support the municipalities
The department’s “Scarce skills Attracting & Retention Policy” should be finalised (DPSA & dplg intervention)
The inability by Dept. to attract and retain experienced staff.
Chief Director and MIG-PPM should engage the SG, DDG-Local Govt and HRM-Manager (dplg intervention)
Lack of urgency by the Dept (HRM) in filling of posts
RECOMMENDATIONSCHALLENGES
ANNEXURE C5
1
FREE STATE PROVINCE
PROVINCIAL MIG MANAGEMENT UNIT (PMMU)
MIG National Quarterly Workshop23-25 April 2007
Phalaborwa, Limpopo Province
Background
R564m – 2006/07 MIG Allocation – 80% expenditureR1,050b – 2007/08 MIG AllocationR600m – 2007/08 Bucket AllocationBucket Eradication Backlog = ±83,00021 Receiving Municipalities13 Established PMUs
Functions
Coordination - PMMU, Sector Departments, DBSA, SAICE and BEC – PMITTMonitor, support and strengthen Municipalities –PMUsMonitor and update Backlogs – Sector DepartmentsMonthly reporting – Financial and non-financialEnsure IDP alignment and ensure that IDPs give priority to basic servicesTechnical support
Current Staff
Chief Director – Municipal InfrastructureProvincial MIG ManagerFinancial Manager3x MIG Coordinators
Existing Structure of PMMUDDG Local Government
Chief Director MunicipalInfrastructure
Director MIG
Financial Manager
MIG Co-odinator MIG Co-odinator MIG Co-odinator
Project/Technical Manager (V)
4 x Engineers(V)
Budget
There is no specific budget set aside for the PMMU The directorate is part of a Chief Directorate of Municipal Services and therefore its functions are budgeted for within the department’s budget
2
Challenges
Capacity within Municipalities – technical, administrative and financial
12 Municipalities needs assistance• 2x SAICE• 4x DBSA (technical)• 2x DBSA (financial)• 5x Bucket Eradication
PMU CapacityDelay in procurement – MunicipalitiesCapacity of Consultants and Contractors
Challenges
Communication: DPLG to ProvinceAllocation lettersRegistration lettersPMU approval lettersWithholding of fundsRe-allocation of funds
MISApproval of technical reports from DWAFTechnical monitoring
Comments / Recommendations
That a ring fenced budget be provided from national Treasury to undertake the duties of the PMMUMore work needs to done on communication between all stakeholders
THANK YOU
ANNEXURE C6
MIG Workshop Limpopo
23-25 April 2007
Gauteng Department of Local Government
2Kemmy Ojageer
Geographic Area
B O J A N A L A
S O U T H E R N
W A T E R B E R G
F R E E S T A T E
S E D I B E N G
E K U R H U L E N I
J O H A N N E S B U R GW E S T R A N D
N K A N G A L A
M E T S W E D I N G
G O V A N M B E K I
T S H W A N E
G A U T E N G
3Kemmy Ojageer
Municipal Infrastructure Support
4Kemmy Ojageer
Municipal Infrastructure SupportProgramme 4
Local Govt. Support
Municipal Infrastructure Support
Director: level 13Filled
EngineeringChief Engineer:
level 12Filled
Engineer: MIG and Capital projects
Level 10Filled
Project LeadersLevel 9
New PostCity of JHB
Final Reporting Co-ordinator
Level 12
Project leaders:Level 9
New postMetsweding
Project leaders: Level 9
New PostEhurhuleni
Project leaders:Level 9
New postTshwane
Project leaders:Level 9
New postMidvaal & Lesedi
Project leaders:Level 9
New postMogale City
Appendix BNew Organogram
2007/2008
Admin Assistant Level 07
Filled
Project leaders:Level 9
New postEmfuleni
Project leaders:Level 9
New postRandfontein
Project leaders:Level 9
New postRoving
Project leaders:Level 9
New postWestonaria
Admin AssistantLevel 6
New postAdmin Assistant
Level 6
Permanent staff
Current insourced to be replaced with permanenet
staff
Additional new staff required over and above permanent and current in sourced staff
5Kemmy Ojageer
Current Work Load• IDP involvement and monitoring• Bucket Eradication Programme• MIG and Capital Projects• Water and Sanitation Backlog Strategy and
Guidelines/Policy- Full water borne• Water and Sanitation for Schools and Clinics • Electricity Backlog Strategy/Policy for the
Province• Free Basic Services policy for the • REDS Implementation
6Kemmy Ojageer
Current Work Load• Project Consolidate (24 Engineers, 11 Graduates + 14 Students)• Master planning guidance• EPWP• 20 Priority Townships • Water Demand management for the province• Decentarlisation of Waste Water Treatment
Works for Gauteng• R500 Million Waste Water Treatment Works
in Emfuleni• CDW – Quick Scan of all wards
7Kemmy Ojageer
Best Practices by Unit• One project leader per municipality – minimum 2
days a week• More hands on identification of alignment of
projects• Better Statistical Information• Provincial Support is within 24 hours • Filling the gaps at municipal level• CDW information -422 on the ground + contact
details• Identifying possible EPWP projects• Hands on training of new staff• Consolidated meetings where possible
8Kemmy Ojageer
Impact on the province
• Current cost of consultants –R300 000 per month.
• Telephone cost R10 000/month• Km’s -10 000km/month• Staff out of office – difficult to control• Municipalities see support as a permanent
post deployment and relax employment• Resignation rates at municipalities are to high
and therefore require continuous support.
9Kemmy Ojageer
PMU Capacity of Municipalities
• Gauteng: 3 Metro, 3 districts and 8 local Municipalities
• 6 PMUs established with MIG funds (Emfuleni, Ekurhuleni, Randfontein, Westonaria, City of Johannesburg and Kungwini)
• 5 PMU’s Internal Capacity(Tshwane, Lesedi, Midvaal and Mogale City, Nokeng Tsa Taemane)
10Kemmy Ojageer
Sector Department Integration
• DPLG - Good• DWAF Gauteng – excellent relationship• DPTRW on EPWP is non existent.• DME – weak• Housing – weak• Education – weak• SRAC- suitable• Treasury - weak
11Kemmy Ojageer
Funding + Engineers
• Province requires financial support for staffing
• Engineers are required for high level reporting, interventions and planning.
12Kemmy Ojageer
I Thank You
Ke a leboga
Baie Dankie
ANNEXURE C7
1
Mr Andre Evetts Provincial Programme ManagerMunicipal Infrastructure Grant Programme (MIG)KwaZulu-Natal
MUNICIPAL INFRASTRUCTURE GRANT PROGRAMME
(MIG) KWAZULU-NATAL
Presented by:Presented by:
Heartland of SA
Critical care High care
Moderate care
Capacity
Municipality
Local government – the game plan
Metro
Immediate target capacity level
X
X
THE CONSTITUTION
CHAPTER 3: CO-OPERATIVE GOVERNANCE
SECTION 40 (1) STATES THAT GOVERNMENT IS CONSTITUTED AS NATIONAL, PROVINCIAL AND LOCAL SPHERES OF GOVERNMENT WHICH ARE DISTINCTIVE, INTERDEPENDENT AND INTERRELATED
THE CONSTITUTION
SECTION 154 (1)
“The national government and provincialgovernments, by legislative and other
measures, must support and strengthen the capacity of municipalities to manage their own affairs, to exercise their powers and to
perform their functions”
THE CONSTITUTIONSECTION 155 (6)
“Each provincial government must establish municipalities in a manner consistent with the legislation enacted in terms of subsections (2) and (3) and, by legislative and other measures, must –(a) provide for the monitoring and support of local
government in the province; and
(b) promote the development of local government capacityto enable municipalities to perform their functions and manage their own affairs”
2
THE CONSTITUTIONSECTION 155 (7)
“The national government, subject to s 44, and the provincial governments have the legislative and executive authority to see to the effective
performance by municipalities of their functions in respect of the matters listed in
Schedules 4 and 5, by regulating the exercise by municipalities of their executive authority
referred to in section 156(1)”
THE CONSTITUTION
SECTION 139
When a municipality cannot or does not fulfil an executive obligation in terms of
legislation, the relevant provincial executive may intervene by taking any
appropriate steps to ensure fulfillment of that obligation,
THE MUNICIPAL SYSTEMS ACT
SECTION 105 (1)(a)
(1) The MEC for local government in aprovince must establish mechanisms,processes and procedures in terms ofs 155 (6) of the Constitution to-
(a) monitor municipalities in the provincein managing their own affairs,exercising their their powers andperforming their functions
THE MUNICIPAL SYSTEMS ACT
SECTION 105 (1) (b) & (c)
(b) monitor the development of local government capacity in the province; and
(c) assess the support needed bymunicipalities to strengthen theircapacity to manage their own affairs,exercise their powers and performtheir functions
SUMMARY OF CONSTITUTIONAL MANDATES
Establish
Support
Monitor
Build capacity
Supervise
Regulate
Function Mandate
s 155 (6)s 154 (1) ; s 155 (6)
s 155 (6) ; s 105s 154 (1) ; s 155 (6)
s 139
s 155 (7)
Documented roles of Province
Constitutional Mandates s154(1), s155(6), s139,s155(7) as well as the Municpal Systems Act s105(1) and s105(1)(b) and (c) entails monitoring, support and building of capacity of municipalities.
MIG Guideline document includes the responsibility matrix which details provincial functions
Management Business Plan, how to manage the MIG programme
Intervention process into the municipal affairs -Constitution
3
Ensure that IDP’s combine to form a viable development framework in line with PGDSEnsure that IDP’s give priority to the basic needs of communitiesCo-ordination of infrastructure developmentFinancial management of infrastructure development programmesProgramme managementBacklog analysis and PlanningTechnical supportMonitoring and supervisionCapacity building & establishment of appropriate management structuresAdjudication of project applicationsProject management and reportingSupport establishment of partnerships
From s 154 & s155
ROLE OF PROVINCE – OVERVIEW
(SPECIFIC TO INFRASTRUCTURE DEVELOPMENT)
Key emphasis
Making MIG happen in the Province
Providing support i.r.o. all implementation processesProviding technical advice on the MIG programmeRapid improvement in delivery linked to the developmental programmes of local governmentSynchronized infrastructure development with sector role-players such as housing deliverySupport and facilitate the Municipal PMUs / managementProvision of the GIS systemsExtended function for monitoring and training on EPWP at municipal levelResponsible for the MIG awareness campaigns through orientation and technical workshops, media awareness articles and events to celebrate MIG
SUPPORT
MIG implementation :FinanceAdministrationProgramme and Project ManagementIT & MIS
Capital Development PlanningHR specification and recruitmentEstablishment and sustaining of PMU’sProcurement and tender evaluationBacklogs / MIIP’s / CDP’sGIS
WHAT IS MONITORED ?
Project implementation “on the ground”
MIG KPI’s
Expenditure vs projection
Legal compliancing (MOA / NOA)
Technical compliance with business plan
Co-ordination with housing programme and IDP
Service provider vs allocation of powers/functions
Extent that backlogs are being addressed
Monthly MIS (??) warehouse reportsMonthly Executive ReportsMonthly Site Visit & Photographs reportsMonthly Municipal Managers Meeting ReportsMonthly Expenditure reportsMonthly Key Performance Indicator reportsMonthly Division Of Revenue Act reportsQuarterly MIS (??) KPI reportsQuarterly Cabinet Executive ReportsQuarterly reports to the Water and Sanitation CommitteeBi-annual Capacity Building ReportAnnual Strategic Policy ReportsAnnual Capacity Building ReportsProject Consolidate reports
REPORTING Responsibilities of Provincial MIG Management –Project level
Claim verification & draw downsCash flow managementEnsure all NOA contractual conditions are complied withCheck the design report & tender docsRatify the adjudication report & approval processEnsure the project programme & financials are in accordance with the business planMonitor the projectManage Key Performance Indicators (KPI’s)Approve variation orders and use of contingenciesFinal project inspectionImpact assessmentClose financial votesCertify conditions of NOA and Transfer Funding AgreementEnsure Division of Revenue Act compliance
4
Municipalities encouraged and supported to target to 110% expenditure by 31 March.The 10% surplus acts as a contingency in the event of the unknown, rain, festive season, calendar holidays etc.Additional regular meetings with Municipalities who produced unacceptable month end variances.Strong teamwork, support and monitoring by all Municipal Infrastructure Staff with all municipalities.
ENSURING 100% ALLOCATION EXPENDED BY 31 MARCH Current capacity
Provincial - six !Director & PA – not dedicated to MIGDeputy ManagerFinance Manager (on secondment)Project ManagerAdministration clerk (on secondment)4 x interns
Departmental restructuring – 26 months
Munics : 55 receiving
Draft new structure
37 posts
4 filled
10.8% occupancy
Issues
KZN Infrastructure funding historically and currently highest allocation nationally.
The municipal categorization of capacity, as seen by province, is Moderate Care, High Care, Critical Care =necessitates various levels of support at cost
The PMU funding as top slice to municipalities has not been adequate enough to cater for dedicated PMUs and some cases previous commitments on projects meant that the PMU funding had to be used to honour these.
Reliance on the Provincial support. Ability of Provincial support unit (PPMU) limited by Provincial capacity constraints
National MIG unit’s responsibility to build Provincial capacity
Universal top-slice created expectation that all munics must establish a PMU. Fundamentally flawed. Should be abandoned immediately in favour of shared services
The declaration of more new allocations to individual municipalities who previously did not have an allocation means more capacity building and training will be required on all aspects of the MIG in those municipalities
Continuous management structure to support and guide municipalities is a necessity
Local Government funding at provincial level (Prof.and Spec) is limited to sustaining ongoing support at least until PMU’s become self sufficient
No management fee since 05/06, in contravention of the Division of Revenue Act at the time
Issues Siyenza Manje deployment
Note : Other service providers were supporting Jozini & Hlabisa
5
Provincial MIG Manager
Thank you for your attentionAny questions ?
ANNEXURE C8
1
MIG: 2006/07MIG: 2006/0744thth QUARTER: NATIONAL WORKSHOPQUARTER: NATIONAL WORKSHOP
CAPACITY TO MONITOR AND SUPPORT CAPACITY TO MONITOR AND SUPPORT MUNICIPALITIES ON INFRASTRUCTUREMUNICIPALITIES ON INFRASTRUCTURE
23 23 –– 25 April 200725 April 2007
Presented by: D. T. SEROKAPresented by: D. T. SEROKA
MUNICIPAL INFRASTRUCTURE DEVELOPMENT (MID): CURRENT
STRUCTUREBRANCH: GM
MIDFilled
SBU: SM:CEMIDelActing
SBU: SMMIAM & FBS
Acting
DIVISION: MANAGER:MIAS
Acting
SPM (5 No.)4 Filled (-1)
SPM (5 No.)1 Filled
D/ MANAGERS(3NO.)
None Filled
PM (30 No.)4 Filled
PM (30 No.)3 Filled
A.O. & D. Cap(12 No.)
3 AO filled
Strategic Goal: To coordinate, capacitate and providehands on support to Local Government (Municipalities)in order to improve municipal infrastructure service delivery
Programmes: The branch is responsible for the following:
• Municipal Infrastructure Grant (MIG)• Municipal Provincial Infrastructure Grant (MPIG)• Integrated National Electrification Programme (INEP)• Municipal Infrastructure Assets Management• Free Basic Services
FUNCTIONS OF THE MUNICIPAL INFRASTRUCTURE DEV. BRANCH
FUNCTIONS OF THE MUNICIPAL INFRASTRUCTURE DEVELOPMENT BRANCH
(continued)Strategic Business Units (SBU):
The Municipal Infrastructure Delivery SBU is responsible for monitoring and supporting implementation of MIG, MPIG and INEP
The Municipal Infrastructure Asset Management & FBS SBU is responsible for monitoring and supporting operation, maintenanceand asset management of the infrastructure
The Municipal Infrastructure Administration Support division provides administrative support (logistics, records, secretariat, etc) to the whole branch.
Functions of Municipal Infrastructure Delivery SBU
• Manage project feasibility and registration to ensure that the
projects are feasible, comply with programme requirements and
facilitate MTEF budget commitment.
• Facilitate, guide and support municipalities on construction
financial requirements of the infrastructure delivery programmes.
• Facilitate, guide and support construction programme
management to provide impact of implemented projects, viz. key
performance indicators on technical and socio-economic aspects.
Functions of Municipal Infrastructure Delivery SBU (continued)
• Construction monitoring and evaluation to ensure compliance with built environment legislation, norms and standards.
• Facilitate and monitor the implementation of the labour intensive construction and EPWP in municipal infrastructure programmes in order to maximise life skills development and work opportunities
2
Functions of Municipal Infrastructure Asset Management & FBS SBU
• Manage the development and monitoring implementation of asset management plans
• Monitor and support infrastructure asset transfer• Build assets management capacity in Municipalities• Provide support to Municipalities in relation to asset management
and FBS• Manage the development and monitoring implementation of
indigent policies
Functions of Municipal Infrastructure Administration Support
• Collate and record keep reports on infrastructure programmes• Provide logistics and administrative support to the branch• Provide secretariat support to infrastructure and related co-ordination structures and infrastructuretask teams
• Update and maintain data information • Manage communication awareness programmes
EVALUATION OF CAPACITYProvincial level:• The current MID structure has 89 positions and 19 positions are
filled. This represents 21.3% capacity and thus 78.7% under capacity.
• This severe under capacity puts a lot of overload on the existing staff to monitor and support the even more under-capacitedMunicipalities.
• The budget required to run the complete structure above is at present value R16.3 million annually. There is a funding gap to cater for such a budget. The funding gap is R10 million annually.
• As such the above structure is being filled at a deliberate phased pace. Outsourced capacity was engaged to assist as an interim measure.
EVALUATION OF CAPACITY
Sector Departments (Including DPLG):
• In line with the MIG policy sector departments are to support municipalities in line with the sector department functions.
• In a more similar manner as above, there is an urgent need to quantify the capacity of the Sector Departments in view of supporting Municipalities.
• Visual observation of the support, points that there is also under-capacity at these sector departments.
EVALUATION OF CAPACITY
Municipalities:• It is most important that there must be full capacity at the
Municipal level because service delivery directly takes placethere
• The capacity referred to here is not only for the Technical/Infrastructure Services directorate but for the whole Municipal Institution. This is obviously so because the strategic and operational plans of Technical/Infrastructure Services directorate are dependent on strategic and operational plans of the Municipal Institution - INTEGRATION
• Furthermore, there has to be sharing of common informationbetween the Technical/Infrastructure Services directorate and other directorates within the Municipality.
EVALUATION OF CAPACITY
Municipalities (Continued):
• Therefore, at strategic level, the Municipal Manager has to provide the platform to encourage such sharing of information –ENABLEMENT ENVIRONMENT.
- This can take place inherently in structured strategic management meetings.
3
All Organisations:
• In any organization, the delivery of Municipal Infrastructure isdependent not only on the units directly responsible for the actual implementation and asset management (O & M) but also on other units indirectly (or quasi-directly) responsible.
- For example the units dealing with development planning and IDPs.
- Therefore there has to be some sharing of common information between such units and those directly dealing with implementation and asset management
EVALUATION OF CAPACITY"With our little more effort and commitment, an additional infrastructure can be developed to afford another South African an access to basic services“ PLEASE ENJOY YOUR STAY IN THE PLEASE ENJOY YOUR STAY IN THE
PROVINCEPROVINCE
THE HEARTLAND OF SOUTHERN AFRICATHE HEARTLAND OF SOUTHERN AFRICA–– DEVELOPMENT IS ABOUT PEOPLEDEVELOPMENT IS ABOUT PEOPLE
THANK YOU!!THANK YOU!!
ANNEXURE C9
1
4th MIG QUARTERLY WORKSHOP
HANS MERENSKY, LIMPOPO PROVINCE23- 25 APRIL 2007
MPUMALANGA PROVINCE
PPMU CURRENT STRUCTURECHIEF DIRECTOR : LOCAL GOVERNMENT
DEPUTY DIRECTOR (SPECIAL PROJECTS) – MPCC’s
DEPUTY DIRECTOR( MIG)
ASSISTANT DIRECTOR: (MPCC)ASSISTANT DIRECTOR: FINANCE
2X TECHNICIAN
2X ADMIN OFFICER
DIRECTOR: LOCAL GOVERNANCE (PPM)
INDUSTRIAL CONTROL TECHNICIAN
(OTHER)
STRUCTURE
• The current structure forms part of the Local Governance Chief Directorate.
• It is placed in a sub- directorate called Municipal Infrastructure
• The MIG personnel perform the following functions:
CURRENT CAPACITY AND FUNCTIONS• Promoting the development of local government
capacity to enable municipalities to perform their MIG function.
• Facilitate the building of institutional capacity in terms of :- Project management- Infrastructure investment planning- Financial management of capital budgets- Procurement procedures (Compliance with -CIDB
registration conditions)- Asset management- MIS data base (operation and management)- MIG administration and reporting system- Impact assessment
• Premier Special Infrastructure projects (e.g. Bucket Eradication, MPCC, Water Flagship projects)
PROPOSED STRUCTURECHIEF DIRECTOR (LOCAL GOVERNANCE)
DIRECTOR (MUNICIPAL INFRASTRUCTURE)
DEPUTY DIRECTOR DEPUTY DIRECTORDEPUTY DIRECTOR
ASSISTANT DIRECTOR ASSISTANT DIRECTORASSISTANT DIRECTOR
2X ADMIN OFFICER 2x ADMIN OFFICER2x ADMIN OFFICER
FUNCTIONS OF THE PROPOSED STRUCTURE
Infrastructure Investment Planning:
• Ensure that municipal IDPs combine to form a viable development framework across the province, and are vertically integrated with the Provincial Growth and Development Strategy.
• Support the determination of municipal backlogs and the provision GIS systems to support the planning process
• Ensure that IDPs give priority to the basic needs of communities and promote the social and economic development of communities.
2
FUNCTIONS CONT….• Support and monitor municipalities to prepare and
implement Water Services Development Plans (WSDP’s) –in cooperation with DWAF
• Ensure proper co-ordination between all municipal infrastructure programmes within the respective province
• Build capacity of municipalities to ensure the development of a three-year capital plan linked to its IDP and budgetAsset Management
• Build capacity of municipalities to ensure the development of a sustainable operational and maintenance programme
• GIS systems support for the development of an efficient and sustainable asset management programme.
FUNCTIONS CONT…..Monitoring and Evaluation
• Monitoring the financial status of municipalities through Project Viability
• Monitor compliance with DORA framework
• Monitor expenditure and advise when required
• Monitor progress on the removal of backlogs
• Monitor KPI’s during implementation
• Extract project registration forms from MIS and evaluate in terms of MIG criteria and recommend (sign off) for funding to National when in compliance
FUNCTIONS CONT….
Local Economic Development / Capacity Building
• Support the establishment of municipal service partnerships through the MIG programme
• Facilitate the implementation of labour-intensive methods in accordance with the EPWP Guidelines for labour intensive construction
• Approval of municipal capacity building business plans, which must include community based partnerships etc.
• Facilitation with other Provincial Sector Departments
And please visit Mpumalanga as well !!!! We do not only have animals and hotels but a
casino as well and all our Land Rovers have come home !!
ANNEXURE C10
1
MEC 1
DDG
Level 15
Director:
Office of the MEC
Level 13
MEC Support staff
X 7 posts (filled)
Sub-Dir: MISS
Dir: Communications
Level 13
Dir: Auxilliary Services
Level 13
Dir: HRM
Level 13
DDG Support Staff
CD: Dev. L/ Gov
Level 14
CD: Housing
Level 14
CD: Development and Planning
Level 14
CD: CFO
Level 14
Dir: IDP
Level 13
Dir: Disaster Mngt.
Dir: Housing Asset Management
Level 13
Dir: Housing Performance
Level 13
Dir: Urban Renewal and Human Settlement Redevelopment
Level 13
Dir:Integrated Municipal Infrastructure
Level 13
Dir: Municipal Finance
Level 13
Dir: Municipal Administration
Level 13
Dir: Development Administration
Level 13
Dir: Finance
Level 13
Dir: Supply Chain Mngt.
Level 13
Dir: Housing Planning & Research
NORTH WEST PROVINCIAL GOVERNMENT
APPROVED FUNCTIONAL AND ORGANISATIONAL STRUCTURE FOR THE DEPARTMENT OF DEVELOPMENTAL LOCAL GOVERNMENT AND HOUSING
TOP STRUCTURE
DEPARTMENT OF DEVELOPMENTAL LOCAL GOVERNMENT AND HOUSING
MEMBER OF THE EXECUTIVE COUNCIL
Purpose: To provide political and strategic leadership in the Department of Developmental Local Government and Housing through the implementation of the National and Provincial mandates
DEPUTY DIRECTOR GENERAL
Purpose: To provide strategic and administrative leadership in the department
Functions: 1. To promote and support properly consolidated and stable municipalities
2. To ensure the development of a habitable human settlement through the implementation of the National Housing Programmes and Housing Policy in the province
3. To ensure the consolidation of transparent and efficient Local Government Systems and creation of habitable human settlement
4. To ensure management, control and monitoring of departmental finances and human capital
Posts: 1 x Deputy Director General (Level 15)
CHIEF DIRECTORATE: DEVELOPMENTAL LOCAL GOVERNMENT
Purpose: To promote and support properly consolidated and stable municipalities
Functions: 1. To enhance effective integrated development process
2. To support municipal infrastructure and development
3. To co-ordinate disaster management and fire services
Posts: 1 x Chief Director (L. 14)
1 x Professional Assistant (L. 9)
CHIEF DIRECTORATE: HOUSING DELIVERY
Purpose: To ensure the development of habitable human settlement through the implementation of National and Provincial Housing Programmes and Policy in the province
Functions: 1. To ensure effective subsidy administration and management of claims
2. To ensure integrated and sustainable human settlement development and effective housing implementation
Posts: 1 x Chief Director (L. 14)
1 x Professional Assistant (L. 9)
CHIEF DIRECTORATE: DEVELOPMENT AND PLANNING
Purpose: To ensure the consolidation of transparent and effective local
government system and creation of habitable human settlement
Functions: 1. To monitor and support the performance of municipalities
2. To develop support framework for provincial MIG and Municipal Services support
3. To provide remedial actions for a sustained municipal performance
Posts: 1 x Chief Director (L. 14)
1 x Professional Assistant (L. 9)
CHIEF DIRECTORATE: CHIEF FINANCIAL OFFICER
Purpose: To ensure management, control and monitoring of departmental finances
Functions: 1. To manage the financial accounting and planning process
2. To provide strategic leadership in the implementation of the supply chain management
Posts: 1 x Chief Director (L. 14)
1 x Professional Assistant (L. 9)
2
NORTH WEST PROVINCIAL GOVERNMENT
APPROVED FUNCTIONAL AND ORGANISATIONAL STRUCTURE FOR THE DEPARTMENT OF DEVELOPMENTAL LOCAL GOVERNMENT AND HOUSING
CHIEF DIRECTORATE: DEVELOPMENTAL LOCAL GOVERNMENT
DIRECTORATE: INTEGRATED MUNICIPAL INFRASTRUCTURE
Purpose: To support municipal infrastructure and development
Functions: 1. To support municipalities in the implementation of FBS
2. To ensure integration of service delivery with other sector departments
3. To develop support framework for municipal MIG and municipal services support
Posts: 1 x Director (L. 13)
1 x Professional Assistant (L. 8)
1 x Cleaner (L. 2)
DIRECTORATE: DISASTER MANAGEMENT
Purpose: To co-ordinate disaster management and fire services
Functions: 1. To prepare and develop disaster response plan for the province
2. To co-ordinate the establishment of fire and disaster management centers
Posts: 1 x Director (L. 13)
1 x Professional Assistant (L. 8)
1 x Deputy Director (L.11)
2 x Assistant Director (L. 9)
1 x Senior Admin Officer (L. 8)
1 x Secretary (L.
2 x General Worker (L. 4)
1 x Cleaner (L.2)
CHIEF DIRECTORATE: DEVELOPMENTAL LOCAL GOVERNMENT
Purpose: To promote and support properly consolidated and stable municipalities
Functions: 1. To enhance effective integrated development process
2. To support municipal infrastructure and development
3. To co-ordinate disaster management and fire services
Posts: 1 x Chief Director (L. 14)
1 x Professional Assistant (L. 9)
1 x Senior Admin Officer (L. 8)
1 x Cleaner (L. 2)
9
DIRECTORATE: MUNICIPAL FINANCE
Purpose: To monitor and support the performance of municipalities
Functions: 1. To monitor the financial performance of municipalities
2. To monitor the implementation of Municipal Performance Management System
3. To monitor the contribution of housing and implementation of the BEE Act as it relates to housing and infrastructure
4. To provide a data warehouse and reporting tool to support and enhance the monitoring of municipalities at provincial level
Posts: 1 x Director (L. 13)
1 x Professional Assistant (L. 8)
1 x Admin Clerk (L. 2)
1 x Cleaner (L.2)
DIRECTORATE: MUNICIPAL ADMIN.
Purpose: To develop support framework for provincial MIG and capacity building support
Functions: 1. To co-ordinate municipal capacity building programmescommensurate with assignment of functions
2. To develop and implement capacity building strategies to prepare municipalities for accreditation
3. To promote community participation in governance
4. To co-ordinate the Community Development Workers programme in the Province
Posts: 1 x Director (L. 13)
1 x Professional Assistant (L. 8)
1 x Cleaner (L. 2)
NORTH WEST PROVINCIAL GOVERNMENT
APPROVED FUNCTIONAL AND ORGANISATIONAL STRUCTURE FOR THE DEPARTMENT OF DEVELOPMENTAL LOCAL GOVERNMENT AND HOUSING
DIRECTORATE: INTEGRATED MUNICIPAL INFRASTRUCTURE
Sub-Directorate: Municipal Service Partnerships (MSP)
Purpose: To ensure integration of service delivery with other sector departments
Functions: 1. Liaise with PPP on municipal investment
2. Monitor and evaluate the impact of partnerships on service delivery
Posts: 1 x Deputy Director (L. 11)
1 x Assistant Director (L. 9)
1 x Senior Admin Officer (L. 8)
Sub-Directorate: Municipal Infrastructure Grant (MIG)
Purpose: To develop support framework for municipal MIG and municipal services support
Functions: 1. Ensure proper co-ordination between all municipal infrastructure programmes in the province
2. Assist in the compilation of district and provincial MIG business plans
3. Spearhead the MIG capacity building and training programmes
4. Develop control mechanisms to monitor compliance with procurement
Posts: 1 x Deputy Director (L. 11)
2 x Project Manager (L. 10)
1 x Assistant Director (L. 9)
3 x Technician (L. 9)
2 x Senior Admin Officer (L. 8)
2 x Senior Admin Clerk (L. 5)
DIRECTORATE: INTEGRATED MUNICIPAL INFRASTRUCTURE
Purpose: To support municipal infrastructure and development
Functions: 1. To support municipalities in the implementation of FBS
2. To ensure integration of service delivery with other sector departments
3. To develop support framework for municipal MIG and municipal services support
Posts: 1 x Director (L. 13)
1 x Professional Assistant (L. 8)
1 x Cleaner (L. 2)
Sub-Directorate: Free Basic Services (FBS)
Purpose: To support municipalities in the implementation of FBS
Functions: 1. Support municipalities in the implementation and provision of FBS
2. Facilitate and support municipalities to establish and maintain indigent registers
3. Support municipalities in sustaining provision of FBS
4. Monitor and evaluate the provision of FBS by municipalities
Posts: 1 x Deputy Director (L. 11)
1 x Assistant Director (L. 9)
1 x Senior Admin Officer (L. 8)
11
Capacity: Infrastructure Directorate
• The Directorate is made up of 3 Sub-Directorates : FBS, MSP & MIG which are closely linked in terms of basic service delivery.
• FBS & MSP Sub-Directorates are newly established and still vacant: due process of appointment has commenced and to be finalized by June 2007.
• Currently the MIG Sub-Directorate is operating with the Director, Deputy Director, 2 Project Managers, Senior Admin Officer and Senior Admin Clerk.
• The above mentioned staff component of 6 people utilizes a budget of R1,8m a which is 30% of the required budget to staff the entire Directorate.
• The Directorate has 20 posts, with 6 occupied,14 vacant off which 5 are in the process of being filled across the entire Directorate.
• The entire Directorate require a budget of R4.4m to be fully staffed.
Challenges & Assistance Required
• Poor linkage working relation between the Housing and Infrastructure Directorates.
• Limited IT resources ( Laptops, Internet Access, Digital Camera, Printers, Scanners, Binding Machines)
• Inadequate Office Space for staff to operate effectively and efficiently.
• Field staff members not being able to do site visits due to limited traveling allowance .
• Short term deployment of 4 senior engineers at the province to assist and capacitate provincial staff.
• Funding to staff vacant posts.
2
Functions of the Directorate
• Coordination of Electrification Programme• Coordination of Water & Sanitation Programme• Implementation and monitoring of Bucket
Eradication Programme.• Coordination of Provincial MIG Quarterly
meetings with all municipalities, DWAF, DPW, DACE & Eskom
• Capturing of MIG registration forms on the MIS on behalf of all municipalities.
• Verification and signing off of MIG registration forms to DPLG
Functions of the Directorate
• Coordination of monthly district MIG working sessions.
• Hands-on support to municipalities, whereby MIS training and its usage is done at municipal level.
• Technical support and advice to municipalities in terms of tender specification and documentation.
THANK YOU
NW Integrated Municipal Infrastructure
(MIG)
ANNEXURE C11
1
BELABELA--BELABELA
PMU REPORT ON MIG PROJECTSPMU REPORT ON MIG PROJECTS
BELABELA--BELABELA•• POPULATION POPULATION 6200062000•• BACKLOGSBACKLOGS
•• WATERWATER 4800 4800 h/hh/h•• SANITATIONSANITATION 5200 5200 h/hh/h•• HOUSINGHOUSING 4000 houses4000 houses
BELABELA--BELABELA
R 0.00-R 1.99-R 1.94R 0.00DIFFERENCE
R 5.66R 4.58R 4.08REVISED ALLOCATION
R 6.57R 6.02R 3.99ORIGINAL ALLOCATION
2008/092007/082006/072005/06YEAR
BELABELA--BELABELA
•• PROJECTSPROJECTS–– 05/0605/06
•• Road pavingRoad paving•• Borehole system (planning)Borehole system (planning)•• Radium sewer plant (planning)Radium sewer plant (planning)
–– 06/0706/07•• Borehole system (construction)Borehole system (construction)•• Radium sewer plant (constructionRadium sewer plant (construction•• ExtentionExtention water purification (planning)water purification (planning)
BELABELA--BELABELA
–– 07/0807/08•• Extension of water purification (construction)Extension of water purification (construction)•• EctensionEctension of sewer purification (planning)of sewer purification (planning)
ANNEXURE C12
1
Greater Sekhukhune Greater Sekhukhune District MunicipalityDistrict Municipality
PMU PMU forfor
National Quarterly National Quarterly migmig WorkshopWorkshopin Limpopoin Limpopo
Introduction• The Greater Sekhukhune District
Municipality is located in Limpopo Province.
• This district was created in December 2000 as a category C municipality cross-border with Mpumalanga, with jurisdiction over five category B municipalities
• It represents 1.2million population with about 220 000 households.
Waterberg
Capricorn
Vhembe
Mopani
Bohlabela
Sekhukhune
Map 1
SCALE:
7 0 7 14 21 Kilometers
N
CLIENT:
COMPILED BY:
BASE DATA BY:
Limpopo ProvinceDepartment of Water Affairs & ForestryPlanning & Information
SCALE 1 : 700 000
SEKHUKHUNE INTEGRATED SPATIAL DEVELOPMENT FRAMEWORK
GIS Project SolutionsPolokwaneTel.: 015 - 296 4854Ref: 0010/projects/sekhukhune a3isdf maps.apr
Hannes Lerm & AssociatesPolokwaneTel.: 015 - 296 0851
LOCALITY PLAN
Base Map Legend:
Dams
RiversMain Roads District Municipal Boundaries
Local Municipalities
Communities
LEGEND:Local Municipalities
FetakgomoGroblersdalMakhudutamagaMarble HallTubatse
SekhukhuneTubatse
Fetakgomo
Makhudutamaga
Marble Hall
GroblersdalMPUMALANGA
LIMPOPO
Motse
Steelpoortrivier
Lepellane
Mosesrivier
Nku m
pi
Ngw
aritsi
Puleng
Elandsr ivier
Mohlaletsi
Molomahlapi
Motseleopa
Moopetsi
Gemsbokspruit Sp ekb oomri vi er
Khathazweni
Monametsi
Moh
lap i
tse
Motsephiri
Selonsrivier
Rooikraaldam
Olifant sriv ier
Steelpoortrivier
Ol ifantsrivier
Olifa
ntsr
ivier
Ngwari tsi
O lifants
rivier
Olifant srivier
Olifantsr ivier
Flag Boshielo Dam
Der Bochem Dam
LepellanedamPiet Gouwsdam
Rooikraal Dam
Lehlagare MatlalaLola Mantes Dam
Mahlangu Dam
Dr. Eiselen Dam
Mapoch's Dam
Locality Map: South Africa
NORTHERN CAPE
WESTERN CAPE
EASTERN CAPE
FREE STATE
NORTH WEST
KWAZULUNATAL
GAUTENGMPUMALANGA
LIMPOPO
Waterberg
Capricorn
Vhembe
Mopani
Bohlabela
Sekhukhune
Locality Map: Limpopo Province
SEKHUKHUNEDISTRICTMUNICIPALITY
Socio-economic challenges
• Our District represents fragmented medium density settlements (about 500 households each) effecting in costlyservice provision.
• There are mostly households with the minimum living level.
Socio-economic challenges
• The poverty and unemployment is a common characteristic of this Unimproved (natural) Grassland with a homogenous, largely traditional, predominantly rural (95%) Sepedi (83.4%)residents.
• The low level of education is another indicator of the “vicious downward cycle of poverty”.
Socio-economic challenges
2
80% 69%
EnvironmentEnvironment
• The granite tableau is holding high the GSDM area.
• There are 11 potential bulk water sources, which are dispersed over 1 324 437ha in extent.
• District is located OUTSIDE major towns –Pretoria is about 200km to the south and Polokwane 200km to the North. Nelspruit is about 150km on the East.
Socio-economic opportunities• Significance of mining (world biggest platinum group)
0 10 20 30 40 50 60 70 80 90 100
Percentage of World Total
Titanium Minerals - 2
Alumino-Silicates - 1
PGMs - 1
Vanadium - 1
Chrome ore - 1
Ferrochromium - 1
• Relatively low HIV/ AIDS infection rate
Mining• The Fetakgomo and Tubatse municipality
areas, partially also Marble Hall and Groblersdal are of mining interest.
• The Bushveld Complex is the world largest reserve of platinum group metals.
• The Transvaal Supergroup provides for mining of limestone, dolomite, manganese, Lead and Zinc.
12
Spatial Dimension of Mining
Source: Council for Geoscience; Greater Sekhukhune District Municipality 2025 Development Strategy (2005/2006); GeoTimes Dec 2003
Bushveld ComplexBushveld ComplexBushveld Complex
Mining Resources in Sekhukhune1
World’s largest reserve of platinum group metals (PGMs)VanadiumTitanium CopperChrome Nickel
World’s largest reserve of platinum group metals (PGMs)VanadiumTitanium CopperChrome Nickel
Makhuduthamaga
Tubatse
Fetakgomo
Steelpoort
Burgersfort
OhrigstadGreater Marble
Hall
Greater Groblersdal
Groblersdal
Marble Hall
N11
2
2
1
Transvaal SupergroupTransvaal SupergroupTransvaal Supergroup2
LimestoneDolomiteManganeseLeadZinc
LimestoneDolomiteManganeseLeadZinc
3
Agriculture ( but only30%land under commercial farming)
• There are 974 commercial and subsistence farms in Tubatse, 264 subsistence farms in Makhudutamaga, 225 farms in Groblerdal,148 in Marble Hall and 55 in Fetakgomo areas.
• Marble Hall and Groblersdal are having predominantly commercial farming.
• The maize, wheat, cotton, tobacco, grapes, citrus, vegetables, soy beans & peas, sunflower, also game, sheep, goats and some cattle are produced.
Agriculture Production
Makhuduthamaga
Tubatse
Fetakgomo
Steelpoort
Burgersfort
Marble Hall LM
Groblersdal LM
Groblersdal
Marble Hall
Marble HallMarble HallMarble Hall
FetakgomoFetakgomoFetakgomo
55 farmsMaize, wheat, vegetables, cattle and goat
55 farmsMaize, wheat, vegetables, cattle and goat
MakhuduthamagaMakhuduthamagaMakhuduthamaga
TubatseTubatseTubatse976 farms Commercial farming of maize, wheat, cotton, tobacco, grapes, citrus, vegetables, game, sheep and goatsSubsistence farming of maize and wheat
976 farms Commercial farming of maize, wheat, cotton, tobacco, grapes, citrus, vegetables, game, sheep and goatsSubsistence farming of maize and wheat
GroblersdalGroblersdalGroblersdal
Predominantly Commercial Farming Areas Predominantly Subsistence Farming Areas
146 farmsMaize, tobacco, cotton, sunflower, citrus fruits, grapes, vegetables, soy beans and peas
146 farmsMaize, tobacco, cotton, sunflower, citrus fruits, grapes, vegetables, soy beans and peas
264 farmsMaize, wheat and vegetables264 farmsMaize, wheat and vegetables
225 farmsMaize, tobacco, cotton, sunflower, citrus fruits, vegetables, grapes, soy beans and peas
225 farmsMaize, tobacco, cotton, sunflower, citrus fruits, vegetables, grapes, soy beans and peas
Source: Greater Sekhukhune LED (Urban-Econ 2003); www.agis.agric.za
Loskop Valley
N11
SiloAbattoir
Ohrigstad
Cotton Processing Plant
Tourism(potential but not fully exploited)
• Makhuduthamaga contains series of ecological assets like Leolo Mountains, Olifants and Lepelle Rivers, Maphanama Caves, Bapediculture and historical sites, and it is targeted as a location of District Administration Capital.
• Tubatse as a large and growing mining sector has created solid demand for accommodation and restaurant facilities for business travellers. There are also Echo Caves- a popular natural attraction located along a tourist road to Kruger Park. There is Tsate – the seat of the former Sekhukhune empire and the Premier Heritage Site. The Klein Drakensberg Escarpment and several rivers add to richness of Tubatse.
• Marble Hall as close to Johannesburg is a supplier for an agri – business. The Schuinsdraai Nature Reserve and Flag Boshielo Dam as natural resources with Ndebele culture, and small airfield are able to attract interest.
• Groblersdal with close proximity to Johannesburg and Pretoria, with agri –business, Loskop Valley and Loskop Dam, Mapoch caves, Ndebele culture and planned construction of de Hoop Dam could provide tourism opportunities.
Tourism
Pretoria, Johannesburg
Polokwane
Makhuduthamaga LM
Tubatse LM
Fetakgomo LM
Steelpoort
Burgersfort
Ohrigstad
Greater Marble Hall
LM
Greater Groblersdal
LMGroblersdal
N11
R555
R37
Tourism Inputs by Local Municipality
Source: Glen Styn; “Greater Sekhukhune District Tourism Development Strategy Status Quo Report”, October 2005; Interviews, Sekhukhune DM Website
TubatseTubatseTubatse
Large and growing mining sector has created solid demand for accommodation and restaurant facilities for business travelersThe Echo Caves: a popular natural attraction located along a tourist road to Kruger ParkTsate: the seat of the former Sekhukhune Empire and premier heritage siteKlein Drakensberg Escarpment and several rivers
Large and growing mining sector has created solid demand for accommodation and restaurant facilities for business travelersThe Echo Caves: a popular natural attraction located along a tourist road to Kruger ParkTsate: the seat of the former Sekhukhune Empire and premier heritage siteKlein Drakensberg Escarpment and several rivers
Marble HallMarble HallMarble Hall
Proximity to Johannesburg and PretoriaAgri-businessSchuinsdraai Nature Reserve and Flag Boshielo DamNdebele cultureSmall airfield
Proximity to Johannesburg and PretoriaAgri-businessSchuinsdraai Nature Reserve and Flag Boshielo DamNdebele cultureSmall airfield
Marble Hall
GroblersdalGroblersdalGroblersdal
Proximity to Johannesburg and PretoriaAgri-businessLoskop Valley and Loskop DamMapoch CavesPlanned construction of De Hoop DamNdebele culture
Proximity to Johannesburg and PretoriaAgri-businessLoskop Valley and Loskop DamMapoch CavesPlanned construction of De Hoop DamNdebele culture
Makhuduthamaga and Fetakgomo
Makhuduthamaga and Makhuduthamaga and FetakgomoFetakgomo
Contain a series of ecological assets, including:– Leolo Mountains– Olifants and Lepelle
Rivers– Maphanama Caves
Bapedi culture and historical sites
Contain a series of ecological assets, including:– Leolo Mountains– Olifants and Lepelle
Rivers– Maphanama Caves
Bapedi culture and historical sites
Greater Sekhukhune District MunicipalityGreater Sekhukhune District MunicipalityGSDM started as a cross GSDM started as a cross border new district to lead border new district to lead in in transformationtransformation Marble Marble Hall, Groblersdal and Hall, Groblersdal and Tubatse well established Tubatse well established municipalities and to municipalities and to provide support to also provide support to also newly created Fetakgomo newly created Fetakgomo and and MakhuduthamagaMakhuduthamagamunicipalities.municipalities.
4
Greater Sekhukhune District Municipality
• The Government grants provided for our growth, establishment and development.
• We are strongly supported as a nodal and IRSDP area.
• The opportunities given fed our ambition to stand up to all challenges.
Greater Sekhukhune District Municipality
• GSDM covers 13 266km2
• There are 546 villages and 5 towns as per IDP recognition with population of 1.2million
• The area is governed by 5 municipalities: Tubatse is biggest with highest population of 283 083 people
Makhuduthamaga represents 275 038 peopleGroblersdal – 231 484, Marble Hall -126 976 and Fetakgomo – 96 501 people.
Greater Sekhukhune District Municipality• The following are provincial and district
growth points : • Makhuduthamaga: Jane Furse and
Phokwane• Fetakgomo: Apel• Marble Hall: Van der Merweskraal &
Elandskraal;• Groblersdal: Motetema & Monsterlus• Tubatse: Burgersfort, Steelpoort,
Mecklenburg, Orighstad& Driekop
Greater Sekhukhune District Municipality
• GSDM is a water authority for all areas as from July 2003, is responsible for all district roads and Fetakgomo Municipality internal roads. Also storm water management in Tubatse municipality. In addition it must provide management of waste disposal .
Technical Services and PMUTechnical Services and PMU
•• The Technical Services Division is still under The Technical Services Division is still under establishment to fulfil expected role as for Water establishment to fulfil expected role as for Water Authority , district roads and other allocated Authority , district roads and other allocated functions.functions.
•• The opportunity given byThe opportunity given by MMIG to createIG to create thethePMU is of effective assistPMU is of effective assistanceance inin ththe process.e process.
PMU structurePMU ManagerMuriel Teisho
Koos de JonghAssistant ManagerAlso water & sanitation
Ester RadingwanaAssistant ManagerAlso roads &EPWP
PMR. Mahlankwane
(Groblerdal)
PMEllias Mamphane
also Electricity
PMMolomo Malesela
also road
PMvacant(Tubatse)
PMR. Mariri
(Makhudutamaga)
Ass. PMK. Phaahla
(Marble Hall)
Dimakatso MogaleQuantity Surveyor
Ass. PMM. Marishane
Ass.PMC. Mashabela
PMK. Ramantswana
Julia Keurdeladministration
8 On contracts
Mathung MatlalaAccountant
Ass. PMAnna Sehlapelo
(Fetakgomo)
Jackson Jackson RaksantshoRaksantshoData capturerData capturer
9 District Official
5
Technical Services and PMUTechnical Services and PMU
•• The PMU team consisting of 16 members has 8 The PMU team consisting of 16 members has 8 people on contract and 9 are permanently people on contract and 9 are permanently appointed by the GSDM.appointed by the GSDM.
•• There is no adequate administration support. There is no adequate administration support. •• A proposal has been submitted in the new PMU A proposal has been submitted in the new PMU
Business Business Plan toPlan to appoint on contract additional appoint on contract additional 4 4 members.members.
GSDM budget
• The MIG allocation until now is the biggest portion of GSDM budget.
MunicipalInfrastructureGrant
MunicipalInfrastructureGrant
MunicipalInfrastructureGrant
MunicipalInfrastructureGrant
Sekhukhune MIG allocations
143.8153.3
168.6
186
020406080
100120140160180200
R m
illio
n
2004/05 alloc 2005/06 alloc 2006/07 alloc 2007/08
In summary:
R651.7m allocation versus R1 474m as registered projects MIG value
Sekhukhune MIG PMU performance
50%
100%
38%
90%
100%89%
100%
0%10%20%30%40%50%60%70%80%90%
100%R m
illio
n
2004/5 utilisation end of March 2004/5 utilisation June2005/6 utilisation March 2005/06 utilisation June2005/06 Utilisation Sept 2006/7 utilisation March2006/07 utilisation April
March 05
March 06
June 05
June 06 Sept 06 March 07 April 07
Greater Sekhukhune District Municipality• The Councilors' were our planners. The
community interventions were responded to and pushed through the political interventions.
• Our financial Officers were dictating values of our projects, regardless of infrastructure need or functionality.
• We learned during implementation. We responded to emergencies, to outcries of communities previously disadvantaged.
• We did feasibility studies to find out why we are constantly behind our target.
• We learned about GSDM specifics of geology and topography.
• The challenges for budget utilisation are related to the state of organisational establishment and the political interventions, especially as the cross border district.
• From October 2006 GSDM started to register projects to address the backlog, not allocated budget.
• The infrastructure planning and capital asset management is still not fully established, but there is progress and promising recognition of the matter.
6
Status of projects
• Our MIG Project List reflects 172 projects as registered.
• 116 projects are reported as completed but service is not fully delivered everywhere.
• 51 registered projects, including 9 schemes provide for our multiyear commitment.
Schemes
43.366Lebalello BWS8
95.9106.3Olifantspoort BWS3
251268Mooihoek - 38
Tubatse
9
44.4547Grob/Luckau-137
106.8113.7Legolaneng -9Elias Motsoaledi
6
234.09234.09Fetakg roads -175
12.213.4Mohlalet/Mal- 6Fetakgomo4
15.4435.46Rietfon/Spi - 82
48.7654.6Nkadimeng-20Makhuduthamaga
1
BalanceRmillion
MIG value Rmillion
Name & no of villages served
Municipality
Schemes
54.6
48.8
35.5
14.4
106.3
95.9
13.4
12.2
234
233.8113.7
106.8
47
44.5
66
43.3
268251
0
50
100
150
200
250
300
Nkadimeng Rietfontein Olifantspoort Mohlaletsi Fetakgomoroads
Legolaneng Grobl/Luckau Lebalello Mooihoek
total cost balance
MIG projects• Those 172 projects consist 163 projects
for basic residential services and 9 projects for public services
• There are 9 urban and 163 rural projects• There are 10 rehabilitation and 162 new• There are 140 water projects, 15
sanitation, 9 roads, 6 taxi ranks, 1 solid waste, 1 Municipal offices
Projects’ status
• 172 registered• 116 completed• 48 under construction• 1 design& tender• 7 pre-implementation
116
48
17
completed constructiondesign pre-implement
Summary : 172MIG projects, 51 presently for implementation
209.32
73.45
408.05
353.62
68.6833.34
326.55
198.34
449.07
323.13
0
50
100
150
200
250
300
350
400
450
Makhuduthamaga Fetakgomo Marble Hall Elias Motsoaledi Tubatse
Allocation Balance
39p
8p
29p
9p
36p14p
40p
10p
28p
11p
7
GSDM Summary : 51 presently for implementation
836494
692119
238474234022
37596
288599072
55159000
720112000
10320
0100000200000300000400000500000600000700000800000900000
37 water 4 roads 5sanitation
5 taxi rank 1 firestat 1 offices
value balance
12095.5
138
263.6263.6
208.5
149.595
138113
95
246
79.1 95.50
50100150200250300
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Accumulative scheduledAccumulative transfersActual accumulative expendituresIntervention
Performance in 2006/07, including rollover
Completed project• We reported on 4th quarter KPI that 116 projects
certified as completed utilised R316.4M and made impact on 664 114 statistical households
• On those projects were constructed the following: for water: 62new & 2 rehabilitated boreholes, 60
new &2 rehabilitated reservoirs, 7new &2 rehab water treatment plants, 13 pump stations,138km of new and 8km rehabilitated supply lines, 349km of new and 60km rehabilitated reticulation pipelines, 11 245 new stand pipes & 4 085 metered yard connections. We provided 4 023 water meters on existing infrastructure to address the cost recovery.
Completed project
• For sanitation one pump station was rehabilitated
• We completed one site for waste disposal • Job opportunities were created for 6 956
persons with 497 039 man-days and 727 labourers received training as reported.
EPWP
Presently the GSDM PMU is providing only Learnership ProgrammeHR training division to be involved for several tasks:
a) Training analysisb) Monitoring compliance for skill transfer
and non- accredited trainingc) Permanent employmentd) Community Partnership contracts
Areas requiring improvement
Effective evaluation of performance of consultants( we keep consultants who are aggressively abusing GSDM by charging high fees, over designing infrastructure or are incompetent) Effective evaluation of performance of contractors (we are appointing contractors who failed previous projects; who are over committed or who do not comply with requirements)Improvement of management in Technical DivisionImprovement of SYSTEMATIC performance
8
Areas requiring improvement
Office space :- the project management carries important
recordPMU administration capacity to be increased:
- the project and programme management requires efficient administration, including databases maintenance
Challenges for DistrictChallenges for DistrictExpectation and backlogExpectation and backlogPoverty and unemploymentPoverty and unemploymentLow human development indexLow human development indexSocial and physical disintegration of communitiesSocial and physical disintegration of communitiesThreatened environmentThreatened environmentDrought, shortage of water, very high water costDrought, shortage of water, very high water costPoor tourism infrastructurePoor tourism infrastructureLimited investment from public and private Limited investment from public and private sector, also disinvestment due to rural naturesector, also disinvestment due to rural natureCommunal nature of landownershipCommunal nature of landownershipLow revenue base for district municipalityLow revenue base for district municipalityLack of ability to attract relevant skillsLack of ability to attract relevant skills
Challenges for PMUChallenges for PMU•• Lack of established and effective planning Lack of established and effective planning
municipality divisionmunicipality division•• Lack of recognition of PMU line functionLack of recognition of PMU line function•• Lack of effective assistance byLack of effective assistance by support divisions support divisions
of municipalityof municipality•• Lack of adequate performanceLack of adequate performance of support of support
divisionsdivisions•• Inadequate or not availabInadequate or not availablele facilities: office facilities: office
space, internet,space, internet, phophone line, cameras, cars etcne line, cameras, cars etc
Challenges for PMUChallenges for PMU•• MIS MIS –– due to GSDM poor facilities to operatedue to GSDM poor facilities to operate•• MIS backlogMIS backlog•• Lack of record on completed projectsLack of record on completed projects•• Inefficient project registration processInefficient project registration process
a) everybody overloadeda) everybody overloaded, t, therherefore delays in efore delays in attending to MISattending to MISb) MIS errorsb) MIS errorsc) incorrect settings c) incorrect settings delaying actions or ability to delaying actions or ability to correctcorrect
Challenges for PMUChallenges for PMU•• Different interpretations of priorities and Different interpretations of priorities and
requirementsrequirements•• Lack of improvement of performance and lack Lack of improvement of performance and lack
of interest to improve capacity or gain of interest to improve capacity or gain experienceexperience
•• Lack of leadership andLack of leadership and dynadynamism in mism in managementmanagement inin Technical DivisionTechnical Division
Achievements• GSDM attended to issues of
organisational establishment (human resources and policies)
• District crafted an approach for local economic development
9
Way ForwardRevision of organisational structure and effective appointmentsRevision of internal processes:
a) Planning and prioritiesb) Procurementc) Flow of submissionsd) Project hand over
Involvement of HR for EPWP implementationReconciliation of asset against MIG Project List
Acknowledgement
• PMU TEAM effort• Support received 1) Internally 2) From Province3) From DPLG4) From DWAF
Thank you for your attention and the opportunity to talk about
Sekhukhune•• GSDMGSDM
ANNEXURE C13
23-May-07
PRESENTATION BY THULAMELA MUNICIPALITY:
BEST PRACTICE ON MIG PROGRAMME IMPLEMENTATION
MIG WORKSHOPApril 2007
PRESENTATION BY PRESENTATION BY THULAMELA MUNICIPALITY:THULAMELA MUNICIPALITY:
BEST PRACTICE ON MIG PROGRAMME BEST PRACTICE ON MIG PROGRAMME IMPLEMENTATIONIMPLEMENTATION
MIG WORKSHOPMIG WORKSHOPAprilApril 20072007
Presenter: Mr A. C. Mphagi (PMU Manager)Presenter: Mr A. C. Mphagi (PMU Manager)23-May-07 2
BACKGROUND
• Thulamela is one of the four local municipalities of the Vhembe District and a medium capacity.
• Population = 584 563• 20% Urban and 80% Rural• Gets its direct mig funding from
2005/6 financial year.
23-May-07 3
INFRASTRUCTURE BACKLOGS
• Roads & Stormwater:→ Urban Streets (About 150 km; only 49,4 km tarred)→ Rural areas: upgrade the access collectors to uplift
the living standards • Sports Facilities:
→ Have 9 centres: to develop various sporting codes.→ Scope: Grassed soccer field, roofed pavilion with
change rooms and ablutions, swimming pool, one volley + basket ball court, one netball + tennis court, borehole with storage and irrigation, fencing and parking.
• Other public infrastructure: Solid waste disposal and transfer stations, taxi and bus ranks, and cemeteries.
23-May-07 4
INSTITUTIONAL SET-UP
• A committee based PMU was established in 2005/6, with specialization in consideration
• Additional personnel for special municipal focuses were included, e.g. EIA and IDP
• In-house PMU manager is almost full time with no additional remuneration. Other members support on part time basis.
• On progress to have full-time PMU, through the review of Organogram.
23-May-07 5
TRAINING CAPABILITIES
Management of projects
UNISAAdvanced Certificate in Project Management
1
Environmental management
North West University
Environmental Law for Environmental Managers
1
Management of projects
Continue Education at University of Pretoria
Advanced Programme in Project Management
1
Assist in the Mana-gement of projects
CE at UP Project Management Principles and Practices
4
Evaluate contractsCE at UPContract Management15
Update maps Intergraph Systems SA
GIS5
Co-ordinate EIA and get ROD
North West University
Environmental Impact Assessment
1
OHS auditingAdvantage ACTIntegrated SHEQ Internal Auditors
2
OutcomeInstitution Type of training No. of personnel
23-May-07 6
CHALLENGES
• Poor performance by emerging service providers.Mix experienced with emerging.
• dplg financial year vs Municipal financial year. Budget adjustment.
• Under estimation.Appoint project consultants to do detailed cost estimates.
• Low unit cost of roads and stormwater.dplg to revise the unit cost
• Project identification and community involvement.Co-ordinate all stakeholders, like civics and traditional leaders, through Ward Councillors.
• Lots of hiccups in the initial year, because of no planningPlan ahead
23-May-07
23-May-07 7
OUR STRENGTH
• Conduct EIA a year before – have a budget. • Feasibility study and Designs approval prior
implementation financial year – plan to have a budget.
• Monthly meetings of the PMU as preparation for monthly meetings with consultants.
• Use of different consultants.• Planned appointments of students for in-service
training and of the people with disability, in the projects.
• Full support by management.
23-May-07 8
IMPACT MADE BY MIG
• 18.7 km of tarred streets, one solid waste disposal site, and one sport facility were constructed in 2005/6.
• 6.5 km of tarred streets, 11.8 km gravel roads, two sports facilities, and 5.5 km concrete strip road are under construction for 2006/7.
• Budget: mig = R44 674 251-47 and municipal counter = R19 000 000-00, for both 2005/6 and 2006/7. 16 projects were implemented.
• 78 083 households benefited and 365 people got employment.
23-May-07 9
OVERALL MUNICIPAL PROGRESS AS ON 28 FEBRUARY 2007
• Spent R21 700 315.75 from the allocation of R23 705 202.49; i.e. 91.5%
• Time elapsed in the financial year is 91.7%.
• THANK YOU
23-May-07 10
TSHIKOMBANI BASIC SPORTS FIELD
Pavilion under construction
23-May-07 11
TSHIKOMBANI BASIC SPORTS FIELD
Swimming pool under construction
23-May-07 12
TSHIKOMBANI BASIC SPORTS FIELD
Pavilion
23-May-07
23-May-07 13
TSHIKOMBANI BASIC SPORTS FIELD
Netball & Tennis Court
23-May-07 14
TSHIKOMBANI BASIC SPORTS FIELD
Swimming pool
23-May-07 15
MAKWARELA TO HOLLYWOOD ROAD
23-May-07 16
THOHOYANDOU UNIT J MAIN STREET
23-May-07 17
TSHIAVHA ACCESS ROAD
ANNEXURE C14
1
MODIMOLLE LOCAL MODIMOLLE LOCAL MUNICIPALITYMUNICIPALITY
MIG QUARTERLY WORKSHOPMIG QUARTERLY WORKSHOP2323--25 APRIL 200725 APRIL 2007PHALABORWAPHALABORWA
Modimolle means “a place of spirits’’named after a majestic mountain visible
from the N1.The Municipality is situated South-East of
the Waterberg District Municipality.It shares borders with Bela-Bela to the
south, Mookgopong to the North, and Thabazimbi to south-West, Lephalale to
the West and Mogalakwena to the North-west.
1. INTRODUCTION
The Municipality is at the centre of the District Municipality and hence the
administrative capital of the Waterberg District Municipality.
Municipal Demarcation Board Municipal Demarcation Board number: NP 365. number: NP 365. Municipal area: 5543.5 KmMunicipal area: 5543.5 Km²²..Modimolle is the administrative Modimolle is the administrative capital of the Waterberg region and capital of the Waterberg region and consist of three settlements viz, consist of three settlements viz, Modimolle/Phagameng, Mabatlane Modimolle/Phagameng, Mabatlane and Mabaleng the remainder of the and Mabaleng the remainder of the area is predominantly farming areas area is predominantly farming areas and portion of the Waterberg and portion of the Waterberg Biosphere Reserve.Biosphere Reserve.
Modimolle Municipality is 155 Km Modimolle Municipality is 155 Km southsouth--west of Polokwane the west of Polokwane the Provincial capital and the Gateway Provincial capital and the Gateway international airport, 30Km from the international airport, 30Km from the world acclaimed Nylsvlei with world acclaimed Nylsvlei with Ramsar status and 149 Km from Ramsar status and 149 Km from Lephalale near Botswana.Lephalale near Botswana.Modimolle has hot summers and mild Modimolle has hot summers and mild winters which makes it an all year winters which makes it an all year tourist destination.tourist destination.
Modimolle town is growing as a Modimolle town is growing as a commercial centre and is renowned commercial centre and is renowned for its export quality grapes and other for its export quality grapes and other fruits such as melons and peaches.fruits such as melons and peaches.
2
LIMPOPO PROVINCELIMPOPO PROVINCE2. INFRASTRUCTURE 2. INFRASTRUCTURE
DEVELOPMENT AND BASIC DEVELOPMENT AND BASIC SERVICE DELIVERYSERVICE DELIVERY
MabatlaneMabatlane X 4
(200 – Middle-High300 – RDP)Mabaleng
Mabatlane X 3Modimolle X 24Mabatlane X 3Modimolle X 11Phagameng X 8Phagameng X 10
StandardRDPRDPRDP
StandardRDP
StandardStandard
RDP
BULK SUPPLYHousehold
Connections50023770Water Reticulation15070303001 100
WATER
LOCATIONSERVICE LEVEL REQUIREMENT
BACKLOGINTERVENTION
INTERVENTION BACKLOG SERVICE LEVELREQUIREMENT
LOCATION
SANITATION Bulk StorageUpgrading of sewerplants and ponds
Sewer Reticulation500
1 00323715070
30300
1 100
Standard
RDP/Standard
RDPRDP
StandardRDP
StandardStandard
RDP
ModimolleMabatlaneMabaleng
Mabatlane(200 – Middle-High
300 – RDP)Phagameng X 9
MabalengMabatlane X 24Mabatlane X 3
(Old Stadium area nextto Community Hall)
Modimolle x 11Modimolle X 8
Phagameng x 10
INTERVENTION BACKLOG SERVICE LEVELREQUIREMENT
LOCATION
ELECTRICITY Bulk supply150300237
Reticulation500
1 0032371507030300
1 100
Standard
RDP/Standard
RDPRDP
StandardRDP
StandardStandard
RDP
Modimolle X 24Phagameng X 8
Mabaleng
Mabatlane X 4(200 – Middle-High
300 – RDP)Phagameng X 9
MabalengModimolle X 24Mabatlane X 3Modimolle X 11Phagameng X 8Phagameng x 10
INTERVENTION BACKLOG SERVICE LEVELREQUIREMENT
LOCATION
ELECTRICITYStreetlights
500
1 0032371507030300
1 100
HouseholdConnections
500
1 0032371507030300
1 100
RDPRDP
StandardRDP
StandardStandard
RDP
RDP
RDPRDP
StandardRDP
StandardStandard
RDP
Mabatlane X 4(200 – Middle-High
300 – RDP)Phagameng X 9
MabalengModimolle X 24Mabatlane X 3
Modimolle X 11Phagameng X 8Phagameng x 10
Mabatlane X 4(200 – Middle-High
300 – RDP)Phagameng X 9
MabalengModimolle X 24Mabatlane X 3
Modimolle X 11Phagameng X 8Phagameng x 10
INTERVENTION BACKLOG SERVICE LEVELREQUIREMENT
LOCATION
LAND AND HOUSING LandLandfill sites
Future expansionAgri-village
Housing – low cost70300
1 003110
Housing – Middle/High20030200300
StandardRDP/Middle/High
Standard
RDPRDPRDPRDP
Middle/HighMiddle/HighMiddle/HighMiddle/High
Mabatlane & MabalengMabatlane
Ward 3
MabatlaneMabatlane X 4
Phagameng X 9Phagameng X 10
MabatlaneModimolle X 11
BosveldsigPhagameng x 8
3
INTERVENTION BACKLOG SERVICE LEVELREQUIREMENT
LOCATION
ROADS ANDSTORMWATER
Roads: Construction10km upgrade
5 km10 km5 km5 km5 km
15 km
Roads resealing2 km
20 km20 km
Storm Water10 km5 km
10 km10 km1 km2 km
20 km
StandardStandard
RDPRDP
StandardStandardStandard
StandardStandardStandard
StandardStandardStandardStandardStandardStandardStandard
LesedingMabatlane X 4
MabatlaneMabalengMabalengModimolle
Phagameng
MabatlaneModimolle
Phagameng
LesedingMabatlane
Mabatlane X 4Mabaleng
Modimolle X 11Modimolle x 15
Phagameng
INTERVENTION BACKLOG SERVICE LEVELREQUIREMENT
LOCATION
SOLID WASTE &ENVIRONMENT
Solid Waste &Environment
1 ha per nodal pointfor expansion of
cemeteries
1 ha Municipal area
TRANSPORT Sheltered TaxiRanks
As per taxi regulations Mabatlane,Mabaleng,
Modimolle &Phagameng
SPORT, ARTS,CULTURE ANDRECREATION
Lack of recreationalfacilities
Lack of adequateLibrary facilities
Standard
Standard
Municipal area
Municipal area
3. BEST PACTICES BY 3. BEST PACTICES BY MUNICIPALITIESMUNICIPALITIES
• 3.1 ROLE OF PMU• Understanding the structure, system and
culture of a Municipality.• Selling the PMU idea • PMU’s attitude: Aggressively pushing for
implementation
3.2 PROJECT LIFE CYCLE (FOUR 3.2 PROJECT LIFE CYCLE (FOUR PHASE)PHASE)
1.1. Conceptual PhaseConceptual Phase2.2. Planning PhasePlanning Phase3.3. Implementation Phase Implementation Phase 4.4. CloseClose--out Phaseout Phase
1.1. CONCEPTUALCONCEPTUAL
-- Master Plans inform the IDP processMaster Plans inform the IDP process-- Stakeholder involvement (NGOStakeholder involvement (NGO’’s s
Community, Councilors, WSDP and Community, Councilors, WSDP and other plans)other plans)
- Identification of Projects
2.2. PLANNINGPLANNING
–– Registering identified Projects from Registering identified Projects from IDP,IDP,
-- MIG Guidelines forming the basis of MIG Guidelines forming the basis of planning,planning,
-- Identifying risks, Constraints and Identifying risks, Constraints and other problems,other problems,
-- Municipal BudgetMunicipal Budget
4
-- Identifying crucial Stakeholders and Identifying crucial Stakeholders and involving them in the planning and involving them in the planning and development of projects development of projects requirements,requirements,
-- Planning for procurement Planning for procurement -- Developing the O&M PlanDeveloping the O&M Plan
3.3. IMPLEMENTATIONIMPLEMENTATION
-- Supply Chain Management Supply Chain Management -- The PMU to influence the process The PMU to influence the process
3.1. PROCUREMENT PROCESS
3.1. APPOINTMENT OF CONSULTANTS3.1. APPOINTMENT OF CONSULTANTS
–– Clear Scope of Work (Clear Scope of Work (ToRToR))-- Feasibility studies, technical Feasibility studies, technical
repots,EIA, preliminary , final design repots,EIA, preliminary , final design and Contract documentation and Contract documentation
–– Monitoring ConsultantMonitoring Consultant’’s performances performance
3.2. APPOINTMENT OF CONTRACTOR3.2. APPOINTMENT OF CONTRACTOR
-- Monitoring the Quality of WorkmanshipMonitoring the Quality of Workmanship-- Monitoring the Targeted outputsMonitoring the Targeted outputs-- Maximize Local Employment Maximize Local Employment
incorporating EPWP guidelinesincorporating EPWP guidelines
3.3. MANAGING THE CASHFLOW3.3. MANAGING THE CASHFLOW
-- Role of the Consultant Role of the Consultant
-- Role of Client Role of Client
-- InterventionIntervention
3.4.3.4. CLOSE CLOSE –– OUT OUT
-- Close Close ––Out Report (MIG 9)Out Report (MIG 9)-- O&M ImplementationO&M Implementation-- Retention (MIG10)Retention (MIG10)
5
4. CHALLENGES & 4. CHALLENGES & INTERVENTIONSINTERVENTIONS
- Scarcity of Local Competent Contractors –Seek assistance from Public works to provide learnerships
- Interference – Establishing Communication Guidelines between PMU and other Stakeholders
- Budget Constraints - ??? MODIMOLLE 1ML WATER TOWER
RESEALING OF ROAD-MODIMOLLE MODIMOLLE TAXI RANK
FENCING AROUND PHAGAMENG CEMETRY ROAD PAVING AT PHAGAMENG
6
THANK YOUTHANK YOU
ANNEXURE C15
1
MIG QUARTERLY WORKSHOP
23 – 25 APRIL 2007
PERFORMANCE OF THE MUNICIPAL INFRASTRUCTURE GRANT (MIG) – 2005/06 AND 2006/07 FINANCIAL YEARS
PART A: 2005/06 FINANCIAL REPORT
2005/06 FINANCIAL REPORT• Municipalities spent R5, 417 billion out of the total allocation of
R5, 436 billion as at the end of March 2006
• Expenditure represents 99,6 percent of the total transferred and the allocation
• Free State (99,4 %), KZN (99,0 %), KZN (99,0 %), Mpumalanga(98,9 %) and Northern Cape (97,7 %), are the provinces that are struggling to spend 2005/06 allocation.
• In Free State and Mpumalanga no expenditure was reported for the past three months
• KZN and Northern Cape report expenditure of less than a million a month
Consolidated report 2005/06
18 26799.665 417 896100.005 436 1615 436 161Total
0100.00297 027100.00297 027297 027Western Cape
0100.00422 254100.00422 254422 254North West
3 86997.75168 316100.00172 184172 184Northern Cape
3 81598.94356 689100.00360 506360 506Mpumalanga
6 73599.07721 033100.00727 769727 769Limpopo
1 34499.881 114 934100.001 116 2781 116 278KwaZulu Natal
0100.00841 414100.00841 414841 414Gauteng
2 50499.42432 408100.00434 913434 913Free State
0100.001 063 817100.001 063 8171 063 817Eastern Cape
Amount not yet
spent (R'00
0)
% Exp from total alloc
Actual Exp to date (R'000)
% Transffrom total alloc
Transf to date
(R'000)Allocation
(R'000)
Province
List of Municipalities still spending 2005/06 funds per province
2
LIMPOPO
6 73599.07721 033766.7194 922727 769Total
11099.7951 792100.0051 90251 902Waterberg DM
6 62593.0288 296100.0094 92294 922Bohlabela DM
Amount not yet spent
(R'000)
% Exp from total alloc
Actual Exp to date (R'000)
% Transffrom total alloc
Transf to date
(R'000)Allocation
(R'000)
Municipality
KWAZULU NATAL
1,34499.881 114 934100.001116 2781116 278Total
6898.624 841100.004 9094 909Nkandla
75582.343 520100.004 2744 274Maphumulo
52175.661 620100.002 1412 141Mkhambathini
Amount not yet
spent (R'000)
% Exp from total alloc
Actual Exp to date (R'000)
% Transffrom total alloc
Transf to date
(R'000)Allocation
(R'000)
Municipality
MPUMALANGA
3 81598.94356,689100.00360 506360 506Total
3 81592.4046,393100.0050 20850 208Gert Sibande DM
Amount not yet spent
(R'000)
% Exp from total alloc
Actual Exp to date
(R'000)
% Transffrom total
alloc
Transf to date
(R'000)Allocation
(R'000)
Municipality
NORTHERN CAPE
3 86997.75168 316100.00172 184172 184Total
65391.266 820100.007 4737 473Tsantsabane
2 47178.889 230100.0011 70011 700Frances Baard DM
74588.605 788100.006 5326 532Siyancuma
Amount not yet spent
(R'000)
% Exp from total alloc
Actual Exp to date (R'000)
% Transffrom total alloc
Transf to date
(R'000)Allocation
(R'000)
Municipality
FREE STATE
2 50499.42432 408100434,913434,913Total
25798.1913 90610014 16214 162Lejweleputswa DM
2 24783.1711 10010013 34713 347Xhariep DM
Amount not yet
spent (R'000
)
% Exp from total alloc
Actual Exp to date (R'000)
% Transffrom total alloc
Transf to date
(R'000)Allocation
(R'000)
Municipality
PART B: 2006/07 FINANCIAL REPORT
3
2006/07 FINANCIAL REPORT• The total MIG allocation for the 2006/07 financial
year is R6, 265 billion
• R5,767 billion transferred to municipalities
• Municipalities have spent R5,162 billion as at end March 2007
• Expenditure represents 82 % of the total allocation and 90% of transferred amount
2006/07 FINANCIAL REPORT
604,98390%82%5,162,39392%5,767,3756,265,300TOTAL
3,21999%99%300,918100%304,137304,137Western
Cape
43,14891%84%443,58693%486,733525,574North West
24,65580%75%98,06994%122,725130,922Northern
Cape
159,53062%54%254,87888%414,408470,284Mpumalanga
58,22192%86%704,50393%762,723821,264Limpopo
86,75393%92%1,157,22499%1,243,9771,262,412KZN
54,88993%87%784,36793%839,257898,554Gauteng
54,81489%80%452,81990%507,633563,896Free State
119,75389%75%966,02884%1,085,7821,288,257Eastern
Cape
Amount not yet
spent (R'000)
% Expenditure
from the amount transferred
% Expenditure from total allocation
Actual Expenditure to date (R"000)
% Transferred from total allocation
Transferred to date (R '000)
Allocation (R'000)PROVINCE
Monthly comparative analysis of Actual Transfers against Actual expenditure
MONTHAMOUNT
TRANSFERRED EXPENDITURE VariancesAPRIL 182,971 76,888 106,083MAY 271,537 129,449 142,088JUNE 420,119 264,499 155,620JULY 620,486 263,459 357,026AUGUST 288,187 334,277 -46,089SEPTEMBER 432,785 408,078 24,707OCTOBER 384,725 367,682 17,043NOVEMBER 499,741 466,423 33,319DECEMBER 399,479 602,481 -203,003JANUARY 532,995 443,905 89,090FEBRUARY 814,165 659,320 154,844MARCH 918,187 1,120,415 -202,228TOTAL 5,765,375 5,136,876 628,499
Monthly Expenditure trends per province
P r o v i n c e O c t - 0 6 N o v - 0 6 D e c - 0 6 J a n - 0 7 F e b - 0 7 M a r - 0 7E x p t o d a t e
E a s t e r n C a p e 7 7 7 3 1 8 1 1 9 2 1 0 2 3 4 0 8 9 3 9 0 9 7 8 8 5 1 5 5 5 6 5 9 5 4 2 6 1F r e e S t a t e 3 2 2 4 6 4 3 8 6 0 2 9 4 0 8 5 5 1 0 2 5 7 3 6 9 1 1 4 5 2 8 4 5 2 8 1 9G a u t e n g 5 8 7 6 7 5 9 5 3 9 1 7 9 4 9 8 7 1 7 0 1 3 3 7 2 3 2 4 5 3 2 5 7 8 2 3 2 1K w a Z u lu N a t a 6 1 1 3 8 9 1 1 3 1 2 1 5 5 2 8 6 1 6 5 8 1 5 3 2 0 2 2 6 0 7 1 1 1 1 5 3 8 8 6L im p o p o 4 1 8 4 5 7 2 1 4 3 9 8 1 0 3 6 7 8 9 5 8 6 2 4 4 1 8 2 1 1 2 6 9 9 3 9 2M p u m a la n g a 2 1 6 5 4 1 8 8 7 1 5 2 8 2 1 1 9 9 1 5 4 8 3 2 1 4 6 4 3 8 2 5 4 6 4 4N o r t h e r n C a p e 5 1 0 6 1 2 4 6 3 1 1 9 8 8 8 2 0 7 2 0 0 8 5 1 4 8 4 8 9 8 0 6 9N o r t h W e s t 4 9 8 4 6 5 8 3 0 0 4 7 4 3 5 3 9 9 4 6 3 7 0 1 2 5 5 6 4 2 4 4 0 5 6 6W e s te r n C a p e 1 9 3 4 9 2 8 9 2 3 2 6 9 0 9 1 4 6 2 2 2 5 4 7 8 4 5 2 4 5 3 0 0 9 1 8T o t a l 3 6 7 6 8 2 4 6 6 4 2 3 6 0 2 4 8 1 4 4 3 9 0 5 6 5 9 3 2 0 1 1 2 0 4 1 5 5 1 3 6 8 7 6
THANK YOU
ANNEXURE C16
1
Presentation to MIG Quarterly WorkshopDivision of Revenue Act, 2007
23 April 200723 April 2007PhalaborwaPhalaborwa
Overview of the Act• Section 9 (1) – duties of transferring officer in relation to
schedule 4 allocation– Ensure transfers made according to payment schedule– Monitoring expenditure and non-financial information
• Monitoring system approved by NT• System doesn’t impose undue burden to munics• System compatible and integrated with other systems• System is consistent with sections 11(2) and 23
– Evaluating the performance of programmes and submit to treasury within six months after the end of financial year
• Section 9 (2) - Coordinate role players– Should avoid duplication– Avoid undue pressure
Overview of the Act• Section 11 (1) – duties of receiving officer in relation to
schedule 4 allocation– Complying with the framework of schedule 4– The manner in which it spends and allocate schedule 4
• Section 11(2) –– follows the budget process– Report expenditure to NT and transferring officer
• Section 11(3) –– annual report to reflect on performance of programme as the
framework– Submit a quarterly performance report to transferring officer 30
days after the end of each quarter
Overview of the Act• Section 13 – duties in relation to financial statements and
annual reports– Financial statements to reflect all funds transferred to
municipalities – Indicated transfers that were withheld in each municipality– Indicate any re-allocations by NT– Certify to NT that transfers were deposited into primary bank
accounts of municipalities– Annual reports to:
• Should indicate reasons for withholding of transfers• Indicate to what extent municipalities were monitored for compliance• Indicate to what extent the allocation achieved objectives and outputs• Indicate any non-compliance with this Act and indicate any steps
taken to address non-compliance
Overview of the Act
• Section 15(1) – reflects purpose and objectives of the programme
• Section 15(2) – reflects on the transferring mechanism of the grant
• Section 15(3) – Allocation of less than R2 million to be listed as allocation to category B as per section 22(1)(a)
• Section 15(4) – municipalities receiving MIG should table 3-year Capital budget in accordance with MFMA
Overview of the Act• Section 22(1) – NT must within 14 days after DORA,
publish in a gazette-– Allocations per municipality of each schedule 4 to local
government– The framework for schedule 4
• (2) - NT must publish in the gazette any amendments or revision to allocations or frameworks according that is authorized by any adjusted budget
• (3) – NT may at any time revise or amend framework in consultation with transferring national officer to correct any error or omission– An amendment or correction takes effect on publication thereof in
a gazette
2
Overview of the Act• Section 23 (1) – MIG framework should be designed to promote
comprehensive reporting on output for a programme or function funded or partly funded by an allocation
• (2) MIG framework may– Include a condition requiring the registration of projects with a national department
or any other organ of state prior to financial year or municipal financial year in which the project will be implemented or such later date as may be agreed between the transferring officer and receiving officer, provided that such later date may not delay or impede the commencement of that project in the relevant financial year
– Not include a condition for a national department or any other organ of state other than the relevant municipality or NT in respect PPP, to approve specific projects or budgets
– Requiring a report on spending other than the reports required in terms of section 11 or approved by NT
• Section 24 (1) – an allocation referred to in schedule 4 may only be utilized for the purpose stipulated in the schedule concerned and in accordance with the framework published in terms of section 22
Matters Raised by the dplg with the Committee on 7 March 2007 (sec 23)
• MIG grant framework is the summary of the policy and emphasises the conditions and targeted outputs for that grant that need to be complied with
• Project registration is crucial in capturing baseline information for monitoring and reporting purposes
• The dplg, has in terms of project registration, assisted municipalities to commit 97%, 70%, and 48% of projects for the 2007/08, 2008/09 and 2009/10 financial years respectively
• Sec 40 should not only cover Infrastructure Grants to Provinces but include the Infrastructure Grants to municipalities as well
dplg 20 March 2007 8
Matters Raised on Sec 23 cont..
It is proposed that Section 23(2) (a) be amended as follows:
“(2) The framework referred to in subsection (1) should –(a) Include a condition requiring the registration of a project with a national
department or any other organ of state only if the registration of such projects complies with section 40(2).”
It is proposed that a new Section 40(2) be inserted to read as follows:
“(2)(a) The receiving officer of a Municipal Infrastructure Grant must by 30 June 2007, submit all the project registrations forms (business plans) for the projects to be implemented in 2008/09 financial year to the National Transferring Officer.
(b) The submission in this regard must indicate the projected start and completion dates for such projects.
dplg 20 March 2007 9
Matters Raised on Sec 23
(c) The national transferring officer must evaluate and review the project registration forms (business plans) and certify to National Treasury by submitting the commitments for 2008/09 per municipality by 31 August 2007.
(d) The national transferring officer in consultation with the receiving officer must ensure that the supply chain management processes for projects to be implemented during the 2008/09 financial year must be finalised by 31 March 2008.
(e) The receiving officer of a Municipal Infrastructure Grant in a category C municipality, must, by 1 October 2007, certify to the National Treasury that its capital budget is co-ordinated with all category B municipalities located within that category C municipality.”
dplg 20 March 2007 10
Outcomes of Discussions between dplg and National Treasury re Sec 23
• It was agreed that and understood that it should be ensured thatthe conditions of the MIG are adhered to by municipalities that are recipients of the grant
• It was also understood and confirmed by the National Treasury that both the actual Bill/Act and the accompanying grant frameworks have equal standing from a compliance and legal point of view, and that municipalities must comply with both
• It was therefore agreed that the clause as proposed in the Division of Revenue Bill 2006 be retained as is; that the dplg’s suggested insertions for section 40 which were meant to strengthen the dplg’s proposals regarding section 23, be included in the framework for the MIG as these are compliance matters
dplg 20 March 2007 11
Overview of the Act• Section 24 (1) – TNO may withhold MIG transfers for a period
not exceeding 30 days if-– Non-compliance with the conditions of the allocation– Roll-overs not spent– Significant under spending from previous transfers
• (3) TNO must, 7 working days or such shorter notice as may be approved by NT- Gives the relevant receiving officer-– Written notice of the intention to withhold the allocation– An opportunity to write written representations– Inform the relevant PT and NT of its intention to withhold– Notice should include the reasons for withholding
• (5) withholding for more than 30 days but less than 120 days– Facilitate compliance– Minimize under spending risk– TNO to submit of proofs of 3 when requesting withholding for more than
120 days– Gives notice for final withholding
3
Overview of the Act • Section 26 – NT may stop allocation in its discretion or on request of TNO
– Persistent or material non-compliance– Anticipation of significant under spending
• NT must when stopping the allocation– Comply with section 38 of MFMA– Inform relevant PT– Publish funds stopped in a gazette
• The Minister may by notice in a gazette, may approve that an allocation or portion of such allocation stopped be used to meet that municipality’s outstanding statutory and financial commitments
• Section 27(1) – NT may when it stops the allocation after consultation with TNO, determine that a portion or a full allocation that will not be spent be re-allocated to one or more municipalities
• The re-allocation to be spent in the next financial year should be deemed as the roll-overs
Overview of the Act• Section 30 – duties relating to category C municipalities
– No letter than 13 April 2007 submit to NT and all the Bs the budget as tabled in accordance with section 16 of MFMA
– Budget should indicate all the funds to be transferred or spent on behalf of Bs and disclose allocation criteria
– Must strive not to duplicate functions performed by Bs and transfer funds for infrastructure development including funds replacing RSC levies
– May spend directly if they:• They retain functions in terms of MSA• If B has, in the opinion C weak capacity and dplg and NT concur with the opinion• If MIG allocation for B is transferred via the District in terms of section 36
– C municipality must before implementing any capital project consult the B before implementation and agree on which municipality is responsible for O&M
• 33 (3) (b) – the TNO of schedule 4 must submit a payment schedule to NT for approval by 13 April 2007.
• (4) TNO should provide the receiving officer with the copy of payment schedule before transferring
• 34 – Amend of payment schedule• Transfer to low capacity municipality – TNO and NT
MIG FRAMEWORK
Conditions
• Prioritise residential infrastructure for water, sanitation, refuse removal, streets lighting, solid waste, connector and bulk infrastructure, and other municipal infrastructure like roads, in line with the MIG policy framework and/or other government sector policies established before the start of the municipal financial year.
• Compliance with Chapter 5 of the Municipal Systems Act (2000). Infrastructure investment and delivery must be based on an Integrated Development Plan that provides a medium to long-term framework for sustainable human settlements and is in accordance with the principles of the National Spatial Development Perspective
• Municipalities must adhere to the labour-intensive construction methods in terms of the Expanded Public Works Programme (EPWP) guidelines
• Compliance with the Division of Revenue Act, including additional reporting requirements on spending and projects as approved by National Treasury
MIG FRAMEWORK
Process for approval of 2008 MTEF allocations
• The receiving officer of a Municipal Infrastructure Grant must by 01 August 2007, submit all the project registrations forms for the projects to be implemented in 2008/09 financial year to the National Transferring Officer.
• The receiving officer must submit to the transferring officer by31 October 2007 the detail project implementation plan of all the projects to be implemented in the 2008/09 financial year. Such details should include timelines regarding project designs, initiation of procurement, and EIA approvals.
• Final allocations to be submitted to the National Treasury by 31 October 2008
Important dates to note
Province and dplg31-July-0731-July-07
Due date was August 2006, please submit
before 30 April 2007
Project registration forms
Province and dplg15-Mar-0915-Mar-0815-Mar-07
PMU business plan/revised budget
Province and dplg15-Mar-0915-Mar-08
15-Mar-07 –Outstanding ones must please be
send to dplg and province ASAP
A letter of acceptance of conditions
National Treasury1-Apr-091-Apr-081-Apr-07
Submission of Capital Plan
Province and dplg15-Mar-0915-Mar-08
15-Mar-07 –Some EC and GT
municipalities did not submit on time
Submission of payment schedule
Receiving office
2009/10 Financial Year
2008/09 Financial Year
2007/08 Financial YearActivity
ANNEXURE C17
1
1
MIG
QU
AR
TE
RLY
WO
RK
SH
OP
23
-25
AP
RIL
20
07
DEP
AR
TM
EN
T O
F P
RO
VIN
CIA
L
AN
D L
OC
AL G
OV
ER
NM
EN
T (
dp
lg)
2
thedplg the dplg the dplg the dplg the dplg the dplg
Sco
pe o
f P
rese
nta
tio
n
Sec
tion 1
1 –
duties
of
rece
ivin
g o
ffic
er in r
espec
t of
schedule
4
allo
cation
Sec
tion 1
5 –
Munic
ipal
Infr
astr
uct
ure
Gra
nt
Sec
tion 2
3 –
Fram
ework
for
sched
ule
4 a
lloca
tion
Sec
tion 2
5 –
Withhold
ing o
f an
allo
cation
Sec
tion 2
6 –
Sto
ppin
g o
f an
allo
cation
Sec
tion 2
7 –
Re-
allo
cations
aft
er s
toppin
g o
f al
loca
tion
Sec
tion 2
8 –
Unsp
ent
conditio
nal
allo
cations
Sec
tion 3
3 –
Pay
men
t sc
hed
ule
Sec
tion 3
4 -
Am
endm
ent
of
the
pay
men
t sc
hedule
MIG
fra
mew
ork
–co
nditio
ns
and p
roce
ss for
appro
val
of 2008
MTEF
allo
cations
Import
ant
date
s to
rem
em
ber
3
thedplg the dplg the dplg the dplg the dplg the dplg
Sec
tion
11
–du
ties
of
rece
ivin
g of
fice
r in
res
pec
t of
Sch
edu
le 4
allo
cati
on
11
. (1
) A r
ecei
ving o
ffic
er is
resp
onsi
ble
for—
(a)
com
ply
ing w
ith t
he
fram
ework
for
a Sch
edule
4 a
lloca
tion a
s publis
hed
in t
erm
s of
sect
ion 2
2;
and
(b)
the
man
ner
in w
hic
h it
allo
cate
s an
d s
pen
ds
a Sch
edule
4 a
lloca
tion.
(2)
The
rece
ivin
g o
ffic
er o
f a
munic
ipal
ity
must
—
(a)
ensu
re a
nd c
ertify
to
the
Nat
ional
Tre
asury
that
the
munic
ipalit
y—(i
) in
dic
ate
s, o
r if r
equired
, ex
clusi
vely
appro
priat
es e
ach p
rogra
mm
efu
nded
or
par
tial
ly f
unded b
y th
is a
lloca
tion in its
annual
budget
; an
d(i
i) m
akes
public
, in
acc
ord
ance
with t
he
requirem
ents
of
sect
ion 2
1A o
f th
e M
unic
ipal Sys
tem
s Act
, th
e co
nditio
ns
and o
ther
info
rmat
ion in
resp
ect
of
the
allo
cation t
o f
acili
tate
per
form
ance
mea
sure
men
t an
d t
he
use
of
required
inputs
and o
utp
uts
; an
d
(b)
as p
art
of
the
report
req
uired
in t
erm
s of
sect
ion 7
1 o
f th
e M
unic
ipal
Finan
ce
Man
agem
ent
Act
, re
port
to t
he
Nat
ional
Tre
asury
and t
he
tran
sfer
ring n
atio
nal
off
icer
on s
pen
din
g a
nd p
erfo
rman
ce a
gai
nst
pro
gra
mm
es.
4
thedplg the dplg the dplg the dplg the dplg the dplg
Sec
tion
11
–du
ties
of
rece
ivin
g of
fice
r in
res
pec
t of
Sch
edu
le 4
allo
cati
on
(4)
The
rece
ivin
g o
ffic
er m
ust
rep
ort
agai
nst
pro
gra
mm
esfu
nded
or
par
tially
funded
by
a Sch
edule
4 a
lloca
tion a
gai
nst
the
rele
vant
fram
ework
in its
annual
fin
anci
al s
tate
men
ts a
nd a
nnual
rep
ort
.
(5)
The
rece
ivin
g o
ffic
er m
ust
, w
ithin
tw
o m
onth
s af
ter
the
end o
f th
e finan
cial ye
ar a
nd w
her
e re
leva
nt
the
munic
ipal finan
cial ye
ar,
eval
uat
e its
per
form
ance
in r
espec
t of
pro
gra
mm
esfu
nded
or
par
tially
funded
by
an a
lloca
tion a
nd s
ubm
it s
uch
eva
luat
ion t
o t
he
tran
sfer
ring n
atio
nal
off
icer
.
5
thedplg the dplg the dplg the dplg the dplg the dplg
Sec
tion
15
-M
IG
15
. (1
) The
Munic
ipal
Infr
astr
uct
ure
Gra
nt
set
out
in S
ched
ule
4
supple
men
ts t
hef
undin
gof
infr
astr
uct
ure
pro
gra
mm
esfu
nded
fro
m
munic
ipal budgets
to e
nab
le m
unic
ipalit
ies
to a
ddre
ss b
ackl
ogs
in
munic
ipal in
fras
truct
ure
req
uired
for
the
pro
visi
on o
f bas
ic s
ervi
ces.
(2)
The
Munic
ipal In
fras
truct
ure
Gra
nt—
(a)m
ust
be
tran
sfer
red,
direc
tly
to a
cat
egory
A,
B o
r C m
unic
ipalit
y th
at
has
the
pow
ers
and f
unct
ions
refe
rred
to in s
ection 8
4 o
f th
e M
unic
ipal
Str
uct
ure
s Act
to p
rovi
de
munic
ipal in
fras
truct
ure
in r
espec
t of
those
pow
ers
and f
unct
ions;
and
(b)
may
be
tran
sfer
red v
ia t
he
rele
vant
cate
gory
C m
unic
ipalit
y to
aca
tegory
B m
unic
ipal
ity
if—
6
thedplg the dplg the dplg the dplg the dplg the dplg
Sec
tion
15
-M
IG
(i)
the
allo
cation t
o t
he
cate
gory
B m
unic
ipal
ity
is les
s th
an R
2 m
illio
n;
or
(ii)
the
tran
sfer
ring n
atio
nal
off
icer
, in
consu
ltat
ion w
ith t
he
National
Tre
asury
, id
entifies
the
cate
gory
B m
unic
ipal
ity
as n
ot
bei
ng a
ble
to
man
age
or
adm
inis
ter
the
allo
cation.
(3)
Allo
cations
refe
rred
to in s
ubse
ctio
n (
2)(
b)
must
be
liste
d a
s an
al
loca
tion t
o t
hec
ateg
ory
B m
unic
ipalit
y in
the
public
atio
ns
refe
rred
to in
sect
ion 2
2(1
)(a)
.
(4)
A m
unic
ipalit
y re
ceiv
ing t
he
Munic
ipal In
fras
truct
ure
Gra
nt
must
tab
le
a th
ree-
year
cap
ital
budget
as
par
t of
its
budget
for
the
2007/0
8
finan
cial ye
ar in a
ccord
ance
with t
he
Munic
ipal Fi
nan
ce M
anag
emen
t Act
, unle
ss e
xem
pte
d in t
erm
s of
that
Act
.
2
7
thedplg the dplg the dplg the dplg the dplg the dplg
Sect
ion
23
–Fr
amew
orks
for
Sch
edu
le
4 a
lloca
tion
(1)T
he
fram
ewor
k fo
r a
Sch
edule
4 a
lloca
tion m
ust
be
des
igned
to
pro
mote
com
pre
hen
sive
rep
ort
ing o
n o
utp
uts
for
a pro
gra
mm
eor
fu
nct
ion f
unded
or
par
tial
ly f
unded
by
the
allo
cation.
(2)
The
fram
ework
ref
erre
d t
o in s
ubse
ctio
n (
1)
may
—(a
)incl
ude
a co
nditio
n r
equirin
g t
he
regis
trat
ion o
f a
pro
ject
with
a nat
ional
depar
tmen
t or
any
oth
er o
rgan
of
stat
e prior
to t
he
finan
cial
year
or
munic
ipal
fin
anci
al y
ear
in w
hic
h t
he
pro
ject
will
be
imple
men
ted o
r su
ch lat
er d
ate
as m
ay b
e ag
reed
bet
wee
n t
he
tran
sfer
ring n
atio
nal
off
icer
and t
he
rece
ivin
g o
ffic
er,
pro
vided
that
su
ch lat
er d
ate
may
not
del
ay o
r im
ped
e th
e co
mm
ence
men
t of
that
pro
ject
in t
he
rele
vant
finan
cial
yea
r; a
nd
(b)
not
incl
ude
any
conditio
n—
(i)
for
a nat
ional
dep
artm
ent
or
any
oth
er o
rgan
of
stat
e, o
ther
than
the
rele
vant
pro
vince
or
munic
ipalit
y or
the
Nat
ional
Tre
asury
in r
espec
t of
a public
priva
te p
artn
ersh
ip,
to a
ppro
ve s
pec
ific
pro
ject
s or
budget
s; o
r(i
i) r
equir
ing a
rep
ort
on s
pen
din
g o
ther
than
the
report
s re
quired
in
term
s of
sect
ion 1
1 o
r as
appro
ved b
y th
e N
atio
nal
Tre
asury
.8
thedplg the dplg the dplg the dplg the dplg the dplg
Sec
tion
25
–W
ith
hol
din
g of
allo
cati
on
(1)
Subje
ct t
o s
ubse
ctio
ns
(2)
and (
3),
a t
ransf
erring n
atio
nal off
icer
may
w
ithhold
the
tran
sfer
of
a Sch
edule
4,
5,
6 o
r 7 a
lloca
tion o
r an
y port
ion o
f su
ch a
lloca
tion f
or
a per
iod n
ot
exce
ed
ing
30
days,
if—
(a)t
he
pro
vince
or
munic
ipal
ity
does
not
com
ply
with t
he
pro
visi
ons
of
this
Act
or
conditio
ns
to w
hic
h t
he
allo
cation,
as p
rovi
ded
for
in t
he
rele
vant
fram
ework
, is
subje
ct;
(b)
roll-
ove
rs o
f co
nditio
nal
allo
cations
appro
ved b
y th
e N
atio
nal
Tre
asury
in a
ccor
dan
ce w
ith s
ection 2
8 h
ave
not
bee
n s
pen
t; o
r
(c)
expen
diture
on p
revi
ous
tran
sfer
s during t
he
finan
cial ye
ar r
efle
cts
signific
ant
under
-spen
din
g,
for
whic
h n
o s
atis
fact
ory
exp
lanat
ion is
giv
en.
9
thedplg the dplg the dplg the dplg the dplg the dplg
Sec
tion
25
–W
ith
hol
din
g of
allo
cati
on
(5)
(a)
The
Nat
ional
Tre
asury
may
when
a t
ransf
erring n
atio
nal off
icer
is
withhold
ing a
n a
lloca
tion in t
erm
s of
subse
ctio
n (
1)
inst
ruct
or
appro
ve a
req
ues
t fr
om
that
tra
nsf
erring n
atio
nal
off
icer
to w
ithhold
an
allo
cation f
or
a per
iod longer
than
30 d
ays,
but
not
exce
edin
g 1
20
day
s, if
the
withhold
ing w
ill—
(i)
faci
litat
e co
mplia
nce
with t
his
Act
or
the
conditio
ns
to w
hic
h t
he
allo
cation is
subje
ct;
or
(ii)
(ii)
min
imis
eth
e ri
sk o
f under
spen
din
g.
(b)
A t
ransf
erring n
atio
nal
off
icer
must
, w
hen
req
ues
ting t
he
withhold
ing
of
an a
lloca
tion in t
erm
s of
this
subse
ctio
n,
subm
it p
roof
of
its
com
plia
nce
with s
ubse
ctio
n (
3)a
nd a
ny
repre
senta
tions
rece
ived
fro
m
the
rece
ivin
g o
ffic
er,
to t
he
Nat
ional
Tre
asury
.
10
thedplg the dplg the dplg the dplg the dplg the dplg
Sec
tion
26
–St
oppi
ng
of a
lloca
tion
(1)
Des
pite
sect
ion 2
5,
the
Nat
ional
Tre
asury
may
in its
dis
cret
ion o
r at
th
e re
ques
t of
a tr
ansf
erring n
atio
nal
off
icer
sto
p t
he
tran
sfer
of—
(a)a
Sch
edule
4,
5 o
r 6 a
lloca
tion r
efer
red t
o in s
ection 2
5(1
) to
a
pro
vince
or
munic
ipal
ity
on t
he
gro
unds
of
per
sist
ent
and m
ater
ial
non-c
om
plia
nce
with t
he p
rovi
sions
of
this
Act
, or
a c
onditio
n t
o w
hic
h
the
allo
cation,
as p
rovi
ded
for
in t
he
rele
vant
fram
ework
, is
subje
ct;
or
(b)
a Sch
edule
4,
5,
6 o
r 7 a
lloca
tion r
efer
red t
o in s
ection 2
5(1
) if t
he
Nat
ional
Tre
asury
antici
pat
es t
hat
a p
rovi
nce
or
munic
ipalit
y w
ill
subst
antially
under
spen
d o
n t
hat
pro
gra
mm
eor
allo
cation in t
he
finan
cial ye
ar.
11
thedplg the dplg the dplg the dplg the dplg the dplg
Sec
tion
27
–R
e-al
loca
tion
aft
er
stop
pin
g o
f al
loca
tion
(1)T
he
Nat
ional
Tre
asury
may
, w
her
e it s
tops
an a
lloca
tion in t
erm
sof
sect
ion 2
6,
afte
r co
nsu
ltat
ion w
ith t
he
tran
sfer
ring n
atio
nal
off
icer
, det
erm
ine
that
a p
ort
ion o
r th
e al
loca
tion t
hat
will
not
be
spen
t be
real
loca
ted t
o o
ne
or
mor
e pro
vince
s or
munic
ipalit
ies
on c
onditio
n
that
the
allo
cation w
ill b
e sp
ent
in t
he
finan
cial ye
ar o
r th
e nex
t finan
cial ye
ar.
(2)
The
real
loca
tion o
f a
port
ion o
r th
e fu
ll allo
cation o
n c
onditio
n t
hat
th
e al
loca
tion w
ill b
e sp
ent
in t
he
nex
t finan
cial ye
ar r
efer
red
to in
subse
ctio
n (
1),
must
be
dee
med
to
be
a ro
ll-ove
r ap
pro
ved b
y th
e N
atio
nal
Tre
asury
in t
erm
s of
sect
ion 3
1(2
)(a)
.
12
thedplg the dplg the dplg the dplg the dplg the dplg
Sec
tion
28
–U
nsp
ent
con
dit
ion
al
allo
cati
ons
(1)
Des
pite
the
pro
visi
ons
of
the
Public
Fin
ance
Man
agem
ent
Act
or
the
Munic
ipal Fi
nan
ce M
anag
emen
t Act
rel
atin
g t
o r
oll-
ove
rs,
any
conditio
nal
allo
cation,
exc
ludin
g t
he
Gau
train
Rap
id L
ink
allo
cation,
that
is
not
spen
t at
the
end o
f a
finan
cial
ye
ar r
ever
ts t
o t
he
Nat
ional
Rev
enue
Fund,
unle
ss t
he
rele
vant
rece
ivin
g o
ffic
er c
an p
rove
to
the
satisf
action o
f th
e N
atio
nal
Tre
asury
that
the
unsp
ent
allo
cation is
com
mitte
d t
o iden
tifiab
le p
roje
cts.
(2)
Des
pite
subse
ctio
n (
1),
the
Nat
ional
Tre
asury
may
at
the
reques
t of a
tran
sfer
ring n
atio
nal
off
icer
, pro
vinci
al t
reas
ury
or
munic
ipal
ity
appro
ve—
(a)
roll-
ove
rs f
rom
a c
onditio
nal
allo
cation t
o t
he n
ext
finan
cial
yea
r; a
nd
(b)
spen
din
g o
f a
port
ion o
f a
conditio
nal
allo
cation o
n a
ctiv
itie
s re
late
d
to t
he
purp
ose
of
that
allo
cation w
her
e th
e pro
vince
or
munic
ipal
ity
pro
ject
s si
gnific
ant
unfo
rsee
able
and u
nav
oid
able
ove
r sp
endin
g o
n its
budget
.
3
13
thedplg the dplg the dplg the dplg the dplg the dplg
Sec
tion
33
–P
aym
ent
Sch
edu
le
(3)
(a)
The
Nat
ional
Tre
asury
must
appro
ve t
he
pay
men
t sc
hed
ule
s fo
r Sch
edule
s 4,
5 a
nd 6
allo
cations.
(b)
The
tran
sfer
ring n
atio
nal
off
icer
of
a Sch
edule
4,
5 o
r 6 a
lloca
tion
must
subm
it a
pay
men
t sc
hed
ule
to t
he
Nat
ional
Tre
asury
for
ap
pro
val bef
ore
13
Ap
ril 2
00
7.
(c)
Prio
r to
the
subm
issi
on o
f a
pay
men
t sc
hed
ule
in t
erm
s of
par
agra
ph
(b)
thet
ransf
erring
nat
ional
off
icer
must
—
(i)
in r
elat
ion t
o a
Sch
edule
4 a
lloca
tion,
con
su
lt t
he r
ele
van
t re
ceiv
ing
off
icer;
14
thedplg the dplg the dplg the dplg the dplg the dplg
Sec
tion
33
–P
aym
ent
Sch
edu
le
(4)
Th
e t
ran
sferr
ing
nati
on
al off
icer
of
a S
ched
ule
4,
5 o
r 8
allo
cati
on
mu
st p
rovid
e t
he r
ece
ivin
g o
ffic
er
wit
h a
co
py o
f th
eap
pro
ved
paym
en
t sc
hed
ule
pri
or
to m
akin
g t
he f
irst
tra
nsf
er
in a
ccord
an
ce t
here
wit
h.
15
thedplg the dplg the dplg the dplg the dplg the dplg
Sec
tion
34
–A
men
dm
ent
of p
aym
ent
sch
edu
le
(1)
Su
bje
ct t
o s
ub
sect
ion
(2
), a
tra
nsf
err
ing
nati
on
al off
icer
of
a
Sch
ed
ule
4,
5 o
r 6
allo
cati
on
mu
st w
ith
in t
hre
e d
ays
of
the
wit
hh
old
ing
or
sto
pp
ing
of
an
allo
cati
on
in
term
s o
f se
ctio
n 2
5
or
26
, am
en
d a
paym
en
t sc
hed
ule
as
a r
esu
lt o
f th
e
wit
hh
old
ing
or
sto
pp
ing
of
an
allo
cati
on
in
term
s o
f th
is A
ct.
(2)
Th
e N
ati
on
al Tre
asu
ry m
ay,
in t
he i
nte
rest
of
bett
er
deb
t an
d
cash
-flo
w m
an
ag
em
en
t or
to d
eal w
ith
fin
an
cial
mis
man
ag
em
en
t or
slow
sp
en
din
g a
men
d a
ny p
aym
en
t sc
hed
ule
fo
r an
allo
cati
on
lis
ted
in
Sch
ed
ule
2,
3,
4,
5 o
r 6
on
no
tifi
cati
on
to—
(a)
the h
ead
of
a p
rovin
cial tr
easu
ry,
in t
he c
ase
of
a p
rovin
cial
allo
cati
on
; an
d (
b)
the a
cco
un
tin
g o
ffic
er
of
the n
ati
on
al
dep
art
men
t re
spo
nsi
ble
for
loca
l g
overn
men
t, i
n t
he c
ase
of
a
loca
l g
overn
men
t allo
cati
on
.
16
thedplg the dplg the dplg the dplg the dplg the dplg
Sec
tion
34
–A
men
dm
ent
of p
aym
ent
sch
edu
le
(3)
A p
aym
en
t sc
hed
ule
am
en
ded
in
term
s of
sub
sect
ion
(1
) or
(2)
mu
st t
ake a
ccou
nt
of
the m
on
thly
sp
en
din
g c
om
mit
men
ts
of
pro
vin
ces
or
mu
nic
ipaliti
es,
th
e r
even
ue a
t th
e d
isp
osa
l o
f p
rovin
ces
or
mu
nic
ipaliti
es
an
d t
he m
inim
isati
on
of
risk
an
d
deb
t se
rvic
ing
cost
s fo
r all
th
ree s
ph
ere
s of
govern
men
t.
(4)
An
am
en
dm
en
t of
a p
aym
en
t sc
hed
ule
in
term
s o
f su
bse
ctio
n
(2)
pre
vail
s over
an
y a
men
dm
en
t m
ad
e i
n t
erm
s of
sub
sect
ion
(1
).
(5)
Th
e t
ran
sferr
ing
nati
on
al
off
icer
mu
st i
mm
ed
iate
ly i
nfo
rm t
he
rece
ivin
g o
ffic
er
of
an
y a
men
dm
en
t to
a p
aym
en
t sc
hed
ule
in
acc
ord
an
ce w
ith
su
bse
ctio
ns
(1)
or
(2).
17
thedplg the dplg the dplg the dplg the dplg the dplg
MIG
FR
AM
EWO
RK
Co
nd
itio
ns
•P
rio
riti
se r
esi
den
tial in
frast
ruct
ure
for
wate
r, s
an
itati
on
, re
fuse
re
mo
val,
str
eets
lig
hti
ng
, so
lid
wast
e,
con
nect
or
an
d
bu
lk i
nfr
ast
ruct
ure
, an
d o
ther
mu
nic
ipal in
frast
ruct
ure
lik
e
road
s, in
lin
e w
ith
th
e M
IG p
oli
cy f
ram
ew
ork
an
d/
or
oth
er
go
vern
men
t se
cto
r p
olici
es
est
ab
lish
ed
befo
re t
he s
tart
of
the
mu
nic
ipal fi
nan
cial year.
•C
om
plian
ce w
ith
Ch
ap
ter
5 o
f th
e M
un
icip
al
Syst
em
s A
ct
(20
00
). I
nfr
ast
ruct
ure
in
vest
men
t an
d d
elivery
mu
st b
e b
ase
d
on
an
In
teg
rate
d D
evelo
pm
en
t P
lan
th
at
pro
vid
es
a m
ed
ium
to
lon
g-t
erm
fra
mew
ork
for
sust
ain
ab
le h
um
an
sett
lem
en
ts a
nd
is
in
acc
ord
an
ce w
ith
th
e p
rin
cip
les
of
the N
ati
on
al S
pati
al
Develo
pm
en
t P
ers
pect
ive
•M
un
icip
ali
ties
mu
st a
dh
ere
to
th
e lab
ou
r-in
ten
sive
con
stru
ctio
n m
eth
od
s in
term
s o
f th
e E
xp
an
ded
Pu
blic
Work
s P
rog
ram
me (
EP
WP
) g
uid
elin
es
•C
om
plian
ce w
ith
th
e D
ivis
ion
of
Reven
ue A
ct,
incl
ud
ing
ad
dit
ion
al re
port
ing
req
uir
em
en
ts o
n s
pen
din
g a
nd
pro
ject
s as
ap
pro
ved
by N
ati
on
al
Tre
asu
ry18
thedplg the dplg the dplg the dplg the dplg the dplg
MIG
FR
AM
EWO
RK
Pro
cess
for
ap
pro
val o
f 2
00
8 M
TEF a
llo
cati
on
s
•T
he r
ece
ivin
g o
ffic
er
of
a M
un
icip
al
Infr
ast
ruct
ure
Gra
nt
mu
st
by 0
1 A
ug
ust
20
07
, su
bm
it a
ll t
he p
roje
ct r
eg
istr
ati
on
s fo
rms
for
the p
roje
cts
to b
e i
mp
lem
en
ted
in
20
08
/0
9 f
inan
cial year
to t
he N
ati
on
al
Tra
nsf
err
ing
Off
icer.
•T
he r
ece
ivin
g o
ffic
er
mu
st s
ub
mit
to t
he t
ran
sferr
ing
off
icer
by
31
Oct
ob
er
20
07
th
e d
eta
il p
roje
ct im
ple
men
tati
on
pla
n o
f all
the p
roje
cts
to b
e im
ple
men
ted
in
th
e 2
00
8/
09
fin
an
cial year.
S
uch
deta
ils
sho
uld
in
clu
de t
imelin
es
reg
ard
ing
pro
ject
d
esi
gn
s, in
itia
tio
n o
f p
rocu
rem
en
t, a
nd
EIA
ap
pro
vals
.
•Fin
al allo
cati
on
s to
be s
ub
mit
ted
to t
he N
ati
on
al Tre
asu
ry b
y
31
Oct
ob
er
20
08
4
19
thedplg the dplg the dplg the dplg the dplg the dplg
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T D
ATE
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ct re
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ding
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ust p
leas
e be
se
nd to
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gan
d pr
ovin
ce A
SA
PA
lette
r of a
ccep
tanc
e of
con
ditio
ns
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iona
l Tr
easu
ry1-
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n
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ome
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t sub
mit
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me
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mis
sion
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paym
ent s
ched
ule
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eivi
ng
offic
e
2009
/10
Fina
ncia
l Yea
r20
08/0
9 Fi
nanc
ial Y
ear
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ncia
l Yea
rA
ctiv
ity
20
thedplg the dplg the dplg the dplg the dplg the dplg
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OR
TAN
T D
ATE
S TO
REM
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ER 15th
12th
10th
6th
3rd
D
raw
dow
ns
20th
18th
16th
10th
6th
3rd
DO
RA
repo
rt an
d re
vise
d pa
ymen
t sc
hedu
le
25th
20th
10th
6th
3rd
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orts
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ectio
n 25
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ports
)
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Mon
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ucke
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MM
UM
unic
ipal
itie
s to
PM
U
Mile
ston
es d
ates
per
mon
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21
Th
an
k y
ou
ANNEXURE C18
1
1
Revision of the MIG Allocation Formula
Presentation to MIG Quarterly Workshop -Understanding the Problem
24 April 2007
2
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lg TERMS OF REFERENCES
The issue of revenue raising capacityThe issue of DevelopmentPoverty levelsBulk infrastructure and issues regarding unit costsPerformance vs non-performanceInformation that feeds the formulaAlignment with the housing subsidy grantAlignment with other grantsReducing the E-componentRing-fencing funds for other sectors in the P-component
3
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lg The MIG Allocation Formula
Step 1: Dividing MIG Allocation into componentsMIG(F) = B + P + E + N + M
WhereB is for basic residential infrastructure(75% of the total MIG allocation). This component is further divided into water and sanitation (72%), roads and stormwater (23%), and “other” (namely refuse removal and street lighting) (5%).P is for public municipal facilities, and comprises 15% of the total MIG allocation. E is an amount allocated for other institutions and micro-enterprises, and comprises 5% of the total MIG allocation.N is for nodal municipalities and comprises 5% M is an allocation intended to allow for performance related adjustments
4
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lg
Step 2: Dividing between Metros and Locals
5%
Number of households living in areas identified as nodes and earning less than R1,100 per month according to Census 2001
N
5%Number of households earning less than R1,100 per month according to Census 2001
E
15%Number of households earning less than R1,100 per month according to Census 2001
P
3.75%Number of households with less than adequate refuse removal service according to Census 2001
“Other”
17.25%Number of households living in informal dwellings according to Census 2001
Roads
54%
Number of households with less than adequate water supply according to Census 2001Number of households with less than adequate sanitation service according to Census 2001
Water and sanitation
B
Percentage of total MIG fund divided between municipalities using
this parameter
ParameterSub-componentComponent
5
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MIG Funds Split – 2007/08 – 2009/10
9,130,2308,003,0906,478,564
0%0%0%M-Component
456,512400,155323,9285%5%5%N-Component
456,512400,155323,9285%5%5%E-Component
1,369,5351,200,464971,78515%15%15%P-Component
342,384300,116242,9465%5%5%Other
1,574,9651,380,5331,117,55223%23%23%Roads
0000%0%0%Electricity
4,930,3244,321,6693,498,42572%72%72%Water & sanitation
6,847,6736,002,3184,858,92375%75%75%B-Component
6
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lg Step 3: “Rolling up” to Districts
Where a district is authorized for that function the allocation made to the local municipality for that function is rolled up to the district municipalityFor analysis purposes it has been more appropriate to analyse trends in MIG allocations prior to it being rolled upIt must also be noted that 2006/07 was the first FY for MIG to be allocated directly to each municipality. Prior to this lower capacity municipalities had their allocation made to their district municipality, who was to administer it on their behalf.
2
7
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lgMIG allocation to each of the three Municipal categories in 2005/6 FY
-
500
1,000
1,500
2,000
2,500
3,000
All As All Bs All CsMunicipal category
MIG
allo
catio
n (R
mill
ion)
8
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lg
MIG allocation to each of the three municipal categories in 2006/7 FY
-
500
1,000
1,500
2,000
2,500
3,000
All As All Bs All CsMunicipal category
MIG
allo
catio
n (R
mill
ion)
9
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lg MIG allocation for each of the seven municipal sub-categories in 2005/6 and 2006/7 FYs
-
500
1,000
1,500
2,000
2,500
A B1 B2 B3 B4 C1 C2
Municipal sub-category
MIG
allo
catio
n (R
mill
ion)
2005/6 2006/7
C1s have a reduced allocation, as MIG is now allocated directly,C1s have a reduced allocation, as MIG is now allocated directly,based on powers and functions.based on powers and functions.
10
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lg MIG allocation for metropolitan and local municipalities in 2006/7 FY
-
500
1,000
1,500
2,000
2,500
A B1 B2 B3 B4
Municipal sub-category
MIG
allo
catio
n (R
mill
ion)
••This is before rolling up to districts and presents a geographicThis is before rolling up to districts and presents a geographical split.al split.••B4 municipalities receive largest MIG allocation, followed by MeB4 municipalities receive largest MIG allocation, followed by Metros & B1stros & B1s
11
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lg
-
500
1,000
1,500
2,000
2,500
A B1 B2 B3 B4
Municipal sub-category
MIG
allo
catio
n (R
mill
ion)
Water & Sanitation Roads Other P E N
Disaggregation of MIG allocations for metropolitan and local municipalities in 2006/7 FY
••High MIG allocation to B4 municipalities is driven by water and High MIG allocation to B4 municipalities is driven by water and sanitation, and large sanitation, and large P component.P component.••Allocation to metropolitan municipalities is driven by a large rAllocation to metropolitan municipalities is driven by a large roads component, as oads component, as well as fairly large water and sanitation and P components.well as fairly large water and sanitation and P components.••The allocation for B1 municipalities is driven mainly by a fairlThe allocation for B1 municipalities is driven mainly by a fairly large roads y large roads
componentcomponent.. 12
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relation to parameters used in the allocation formula
49%34%50%6%50%39%B4
9%15%15%12%13%13%B3
29%9%9%8%8%9%B2
2%16%16%25%13%15%B1
10%26%10%49%16%23%A
NP and EOther BRoadsWater and sanitation
Affected component
Share of poor households
living in identified nodes
in 2001
Share of poor households in
2001
Share of households with
inadequate refuse service in
2001
Share of households
living in informal
dwellings in 2001
Share of households with
inadequate water and
sanitation in 2001
Share of MIG allocation in 2006/7 FY
3
13
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Requirements vs Allocations in 2006/7 FY
-
1,000
2,000
3,000
4,000
5,000
6,000
A B1 B2 B3 B4
Municipal sub-category
Rm
illio
n
Required capital expenditure from MSFM Actual MIG allocation
14
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lgTheoretical capital funding gap in each of the metropolitan and local municipal sub-categories in 2006/7
10,9755,75716,732Total
57%2,9522,2565,208B4
71%1,8297522,580B3
58%7475361,282B2
65%1,6748822,556B1
74%3,7741,3325,106A
(R million)(R million)(R million)
Capital funding gap as % of capital expenditure requirement
Capital funding gapActual MIG allocation in 2006/7
Capital expenditure requirement from MSFM for 2006/7
••Metros and B1s are likely to fill gap with own source revenue orMetros and B1s are likely to fill gap with own source revenue or borrowingborrowing••Large funding gap for B3 and B4 is of concern. Unlikely to accesLarge funding gap for B3 and B4 is of concern. Unlikely to access s borrowed fundsborrowed funds 15
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lg
MIG allocation per household in 2006/7
-
100
200
300
400
500
600
700
800
900
A B1 B2 B3 B4Municipal sub-category
MIG
allo
catio
n pe
r hou
seho
ld (R
)
••This is before rollingThis is before rolling--up funds to districtsup funds to districts••B4s receive a large MIG allocation and are sparsely populated, rB4s receive a large MIG allocation and are sparsely populated, resulting in esulting in a high allocation per householda high allocation per household
16
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dp
lg
MIG allocation per poor household in 2006/7 FY
-
200
400
600
800
1,000
1,200
1,400
A B1 B2 B3 B4Municipal sub-category
MIG
allo
catio
n pe
r poo
r hou
seho
ld
(R)
••Allocations to B2 and B4 are slightly higherAllocations to B2 and B4 are slightly higher••The P and E subThe P and E sub--components make up a slightly smaller proportion of the components make up a slightly smaller proportion of the total MIG allocations for B2 and B4 municipalities. This means ttotal MIG allocations for B2 and B4 municipalities. This means that there hat there are comparatively fewer poor households are comparatively fewer poor households ““sharingsharing”” the full MIG allocation.the full MIG allocation.••B2 and B4 represent largest proportion of poor households livingB2 and B4 represent largest proportion of poor households living in nodes in nodes -- effectively receive an additional MIG allocation under Neffectively receive an additional MIG allocation under N--componentcomponent
17
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lg MIG allocation per un-served household in 2006/7 FY
-
500
1,000
1,500
2,000
2,500
3,000
A B1 B2 B3 B4Municipal sub-category
MIG
allo
catio
n pe
r hou
shol
d w
ith
inad
equa
te w
ater
(R)
••High in As, but low in B4s. High in As, but low in B4s. In B4, more than half of MIG allocation is made up of the W&S coIn B4, more than half of MIG allocation is made up of the W&S component. mponent. However, in As, the W&S component makes up only 37% of the totalHowever, in As, the W&S component makes up only 37% of the total MIG MIG allocation. This means that comparatively fewer unallocation. This means that comparatively fewer un--served households served households ““shareshare”” the full MIG allocation.the full MIG allocation.
18
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lg
MIG allocation to each of the formula components in 2006/7 FY
-500
1,0001,5002,0002,5003,0003,5004,0004,5005,000
B P E N M
MIG
allo
catio
n (R
mill
ion)
W & S Roads Other
4
19
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lgComposition of MIG allocations compared to composition of required capital expenditure in 2006/7 FY
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Formula Required (MSFM)
Com
posi
tion
of M
IG e
xpen
ditu
re
Water and sanitation Roads Other B P
20
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he
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dp
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dp
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he
dp
lg
Expenditure on MIG for each of the seven municipal sub-categories in 2005/6 FY
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
A B1 B2 B3 B4 C1 C2Municipal sub-category
Expe
nditu
re o
n M
IG (R
mill
ion)
21
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lg Expenditure on MIG compared to allocation for each of the seven municipal sub-categories in 2005/6 FY
-
500
1,000
1,500
2,000
2,500
A B1 B2 B3 B4 C1 C2
Municipal sub-category
Expe
nditu
re o
n M
IG (R
mill
ion)
Allocation Actual expenditure••Significant overSignificant over--spend by B4s and spend by B4s and underspendunderspend by Districts in 2005/6.by Districts in 2005/6.••It is likely that MIG funds were effectively allocated to the B4It is likely that MIG funds were effectively allocated to the B4 local local municipalities by their districts.municipalities by their districts.••Note however that the substantial underNote however that the substantial under--spend by C2 district spend by C2 district municipalities may indicate some capacity problems.municipalities may indicate some capacity problems.
22
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lg Expenditure on each of the MIG components for each of the seven municipal sub-categories in 2005/6 FY
-
200
400
600
800
1,000
1,200
1,400
1,600
A B1 B2 B3 B4 C1 C2
Municipal sub-category
Expe
nditu
re o
n M
IG c
ompo
nent
s (R
mill
ion)
B P E
••Dominance of BDominance of B--component is component is noteablenoteable..
23
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he
dp
lg
Composition of expenditure on MIG in 2005/6 FY
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Formula Actual
Com
posi
tion
of M
IG e
xpen
ditu
re
Water and sanitation Roads Other B P E
24
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dp
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dp
lg
2005/6 FY compared to formula allocation
0%5%E
6%16%P
94%79%B
6%4%“Other” B
25%18%Roads
63%57%Water and sanitation
ActualFormula
••Over 60% of MIG is spent on W&SOver 60% of MIG is spent on W&S••25% spent on roads. This is more than allocated by formula, whic25% spent on roads. This is more than allocated by formula, which may h may indicate an underindicate an under--allocation to roadsallocation to roads••B makes up 94% of expenditure (79% in formula), indicating a lacB makes up 94% of expenditure (79% in formula), indicating a lack of k of priority given to P & E components by municipalitiespriority given to P & E components by municipalities
5
25
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dp
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dp
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dp
lg
Expenditure on the elements of the B component in 2005/6 FY
-
500
1,000
1,500
2,000
2,500
3,000
3,500
Water andsanitation
Roads andstormw ater
Solid w aste Street lighting
Municipal sub-category
Expe
nditu
re o
n el
emen
ts o
f B
com
pone
nt (R
mill
ion)
26
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dp
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dp
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he
dp
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he
dp
lg t
he
dp
lg
Expenditure on the elements of the P component in 2005/6 FY
-
50
100
150
200
250
Communityfacilities
Social services Emergencyservices
Parks and openspaces
Public transport
Municipal sub-category
Expe
nditu
re o
n el
emen
ts o
f P
com
pone
nt (R
mill
ion)
27
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dp
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he
dp
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he
dp
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he
dp
lg t
he
dp
lg t
he
dp
lgComposition of expenditure on water and sanitation infrastructure for each of the seven municipal sub-categories in the Western Cape and Eastern Cape provinces in 2005/6 FY
0%
20%
40%
60%
80%
100%
A B1 B2 B3 B4 C1 C2 Total
Municipal sub-category
Com
posi
tion
of e
xpen
ditu
re o
n w
ater
and
san
itatio
n in
fras
truc
ture
type
s
Internal reticulation Connector Bulk
••Small proportion of total W&S expenditure is spent on internal rSmall proportion of total W&S expenditure is spent on internal reticulation eticulation in As and B1s. in As and B1s. ••These are largely urban. As a result, internal reticulation is lThese are largely urban. As a result, internal reticulation is likely to be ikely to be funded through the housing subsidy in these municipalities, not funded through the housing subsidy in these municipalities, not MIG.MIG.
28
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dp
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dp
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he
dp
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he
dp
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he
dp
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he
dp
lg Expenditure on MIG projects for new infrastructure and rehabilitation in 2005/6 FY
0%
10%
20%30%
40%
50%
60%
70%80%
90%
100%
A B1 B2 B3 B4 C1 C2
Municipal sub-category
Com
posi
tion
of e
xpen
ditu
re o
n M
IG p
roje
cts
New Rehabilitation
29
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lg Summary of Key Issues
30
the
dp
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he
dp
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he
dp
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he
dp
lg Information on Backlogs
Outdated Census Information from 2001Current Arrangements for measuring backlogs have shortcomings
They build forward from the 2001 census, with additions made based on a wide range of sources which probably have variable accuracy. This means that progressive inaccuracies can potentially occur. The water services and electricity monitoring systems do not have a common information base in terms of the unit of measurement (households, dwellings or consumer units). The information collection systems are not based universally on municipal systems and municipalities, in turn, are not consistent in the information they use for planning purposes. There is no system for monitoring access to roads and no sound roads classification system.
6
31
the
dp
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he
dp
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he
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg Population Dynamics
-
500
1,000
1,500
2,000
2,500
A B1 B2 B3 B4
Tota
l MIG
allo
catio
n (R
mill
ion)
Census 2001 Dynamic
••Population Growth, currently, is not adequately dealt with by MIPopulation Growth, currently, is not adequately dealt with by MIGG••The above figure shows the projected MIG allocation if migrationThe above figure shows the projected MIG allocation if migration since since 2001 is taken into account2001 is taken into account
32
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dp
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dp
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he
dp
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he
dp
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he
dp
lg Alignment with Housing Subsidies
Need for alignmentFragmentation of Housing ResponsibilityImplementation Arrangements need housing to take the leadMisalignment of Targets
Strategic ResponseNational Programme AlignmentInstitutional ReformTargetsEligibility ThreshholdsCapital Grant AlignmentPlanningImplementationM&E
33
the
dp
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he
dp
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he
dp
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he
dp
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he
dp
lg t
he
dp
lg Alignment with other grant streams
Increasing number of capital grants available to municipalities for infrastructure and housingIn contrast to concept of MIG – single capital grant funding stream with greater autonomy to municipalities with respect to capital programmesCausing difficulty for municipalities especially Metros
34
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dp
lg t
he
dp
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he
dp
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he
dp
lg t
he
dp
lg t
he
dp
lg
Nationalfiscus
DPLG DoH
Prov Deptsof Housing
NT
Municipalities DevelopersEskom
DoTDME
NDPG IHAHSDPTIFINEP
Formulabased
Applicationbased
Applicationbased
Applicationbased
Applicationbased
Municipalinfrastructure
Public transportinfrastructure
‘Economic’ &social
infrastructure
Electricityinfrastructure
Housing & related
infrastructure
SARCC
Financial Framework
MIG
DLA
Land grant
Applicationbased
Residentialland
35
the
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg
Funding Gap in Economically Weak Municipalities
MIG is intended to be used only for the funding of basic infrastructure to the poor. Yet economically weaker municipalities (C2 and B4s particularly)cannot raise capital for infrastructure themselves to cover the infrastructure they must provide to non-residential consumer units and higher income residential consumer units. Therefore they use MIG funds for this purpose, in contrast to the intention of the grant. This issue needs to be addressed either through a change in the MIG rules or through new arrangements to make loan finance available to these municipalities, something which will be very difficult.
36
the
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg Unit Costs Adjustment
Key concern is over the higher costs of bulk services in rural areas, in comparison with urban conditions (currently not adequately addressed in the report). However, it is notable that distribution infrastructure is generally much less expensive in rural areas (water connections communal, no need for road access to each dwelling, etc).Further, the level of service required in urban areas is higher (for example it is not possible to use on site sanitation in ‘urban core’ areas).All of these factors need to be taken into consideration and will receive specific attention in the following reports.
7
37
the
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg “Lumpiness” of Investment
This is a problem for smaller municipalities where there may be only a few projects a year. These projects may run over two years. This creates a particular set of problems for small municipalities in establishing a steady stream of funding and spending this funding consistently every year. The problem was recognised when the original MIG policy was developed and the following options were considered:
Allow small municipalities to accumulate funds for a given period either in their own accounts or in accounts kept for them by dplg.Accept that there will be variability and provide for this in the monitoring arrangements (This does imply some acceptance of roll-over of funds from year to year).
There may be other solutions to this problem which need to be investigated
38
the
dp
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he
dp
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he
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg
Borrowing / Revenue Raising Capacity
There has been an argument that those municipalities which can raise capital themselves through access to their own reserves orborrowing, sufficient to fund basic infrastructure to the poor, should do so and should not get MIG allocations or get reduced MIG allocations. At this stage there is uncertainty about the merits of a borrowing capacity adjustment, but the arguments will be explored as part of this project.
39
the
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg Splitting of Roads Allocation
The responsibility for the district roads function, as defined in the Municipal Structures Act has been assigned, with many local municipalities, in fact, having been given the function.However, where the function is retained by the district there is no certainty as to which roads the district is responsible for as a road classification system has not been implemented in most provinces. Often the problem is broader than this as there is also uncertainty relating to the interface between provincial and municipal roads.Finally, in the case of municipal roads, there is no certainty of the length of roads that they are responsible for outside settlementboundaries – this makes funding allocations very difficult
40
the
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg Nodal status
A concern has been raised that that the N-component does not differentiate, between urban and rural nodes.88% of the MIG N-component is allocated to municipalities that are ISRDP nodes. Only 12% goes to municipalities that are URP nodes, This is in line with their share of the nodal poor.The merits of further disaggregating the formula to deal separately with the urban and rural poor are not clear.
41
the
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg Levels of Poverty
Currently in the MIG allocation model, a poor household is defined as a household with an income of R1 100 per month or less. There are a number of poverty lines used in allocating funds in South Africa:
R800 per month: used for calculating the Basic Services component of the Equitable ShareR1 686 per month: used to determine eligibility for a state pensionR3 600 per month: used to determine eligibility for housing subsidies
It has thus been suggested that the poverty line used in calculating MIG allocations should be aligned with these other poverty lines, particularly, that used for housing subsidies.
42
the
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg
Impact of different poverty lines on MIG
-
500
1,000
1,500
2,000
2,500
A B1 B2 B3 B4
Tota
l MIG
allo
catio
n (R
mill
ion)
R 800 R 1,600 R 3,200
••Raising the poverty line results in the reRaising the poverty line results in the re--allocation of MIG funding away allocation of MIG funding away from more rural municipalities (B3 and B4) towards more urban from more rural municipalities (B3 and B4) towards more urban municipalities (A and B1). municipalities (A and B1). ••This is because of the way that income is distributed in South AThis is because of the way that income is distributed in South Africafrica
8
43
the
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg Performance of Municipalities
The MIG Allocation Formula currently has the M-component which is intended to be used for a performance related adjustment that may either be positive or negative. This component has yet to be used. Concern has been expressed that the formula keeps allocating funds to municipalities that have performed poorly with regard to MIG spending. There are a number of arguments as to why it may be premature to be using the M-component of the formula:
It is likely that MIG funds were effectively allocated to the B4 local municipalities by their district partners.The lumpiness of investment in smaller municipalities that was dealt with earlier. The nature of the project cycle, often dictates that funds may need to be rolled over to another year. Therefore annual expenditure is too short a timeframe to measure.
44
the
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg Performance (continued)
It is arguable that the M-component can be most appropriately used on a medium-term timeframe of evaluating performance (over 2-3 years). However, its focus could be more than just expenditure on MIG and should additionally include measuring the impact that MIG is having on backlog targets and on good financial management and governance.This component of the formula should be explored for its potential to incentivise certain requirements e.g. low volume roads using labour-based methods.
45
the
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg Ring-fencing per sector
There is a view that MIG should hold municipalities, to the respective sectoral splits used in the formula, in their MIG expenditure at local level. The analysis done earlier indicates that municipalities only spent 6% on infrastructure related to the P-component of the formula, while the formula allocates 16%. This indicates that municipalities are not prioritising infrastructure related to the P-component, in line with the formula used to calculate their MIG allocation.However, ring-fencing is in contradiction to intention of MIG – a consolidation of capital grants to municipalities for infrastructure while giving them the autonomy to prioritise infrastructure programmesNot only can ring-fencing be unnecessarily constraining on municipalities, it is also unclear how this could be regulated effectively.
46
the
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg t
he
dp
lg
47
Thank you
ANNEXURE C19
1
MIG PRESENTATION• INTRODUCTION• ECONOMIC GROWTH OUTSTRIPPED
INFRASTRUCTURE EXPANSION• WHAT IS ON THE CARDS?• IMPACT OF GROWTH
– PEOPLE– EQUITY– PROFITS, ESCALATION, PRODUCTIVITY– MATERIALS
SNAPSHOT OF THE ECONOMIC SITUATION (1)TOTAL DEMAND/PRODUCTION/INCOME =
• CONSUMPTION SPENDING (FAST GROWTH)• INVESTMENT (MODERATE GROWTH)• GOVERNMENT SPENDING (PRUDENT GROWTH)
• EXPORTS (CONSTRAINED GROWTH)• IMPORTS (FAST GROWTH)
= BALANCE OF PAYMENTS DEFICIT= A LITTLE INFLATION= ECONOMIC GROWTH OUTSTRIPPED
INFRASTRUCTURE GROWTH
SNAPSHOT OF THE ECONOMIC SITUATION (2)
ECONOMIC GROWTH OUTSTRIPPED INFRASTRUCTURE GROWTH
INVESTMENT LAGGED DRAMATICALLY• MACRO/BULK INFRASTRUCTURE
– ROADS/ BRIDGES & BORDER POSTS– WATER/SEWERAGE SCHEMES– RAIL AND HARBOUR INFRASTRUCTURE– AIRPORTS– ELECTRICITY
• MICRO/RETICULATION INFRASTRUCTURE: MIG
GDP and Construction Growth
-15
-10
-5
0
5
10
15
20
60 65 70 75 80 85 90 95 20
Perc
enta
ge (%
)GDP grow th Construction Grow th
EX SARB
Economic infrastructure lagging economic growth
EX SARB
% Points difference GDP/Capital Stock growth
-3
-2
-1
0
1
2
3
4
60 65 70 75 80 85 90 95 20
Perc
enta
ge (%
)
5 year moving average
Paved national and provincial roads, passenger vehicles,and commercial vehicles for transport of goods
0
100
200
300
400
500
1940 1950 1960 1970 1980 1990 2000
Inde
x (1
970
= 10
0)
Paved roads Passenger vehicles Goods vehicles
2
30 000
35 000
40 000
45 000
50 000
55 000
60 000
65 000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Years
Cap
acity
(MW
)
Total Existing System (Including Decommissioning) Total Imports (MW)Cahora Bassa Hydro firmRTS Simunye Plants Build Pumped Storage Plants (Peaking)Build Open Cycle Gas Turbine plants (Peaking) Build Base Load PlantsForecast peak Demand before DSM Peak Demand after DSMRequired Capacity (Approximately 12% RM) Required Capacity at 15% RM
Greenfield PF (Fast Track) - Earliest 2013
Greenfield PS (Fast Track) - Earliest 2013
Pumped Storage Braamhoek - Earliest 2011
Greenfield FBC Fast Track - Earliest 2011
Greenfield CCGT Generic - Earliest 2010
CCGT 1 - Earliest 2009
Brownfield PF- Earliest 2009
Komati - Earliest 2010
Grootvlei Earliest 2007
Camden
Open Cycle GT - Earliest 2008
EX Eskom
Electricity generation installed capacity and utilisation
Utilization of Social InfrastructureIntegrationTransportTradeSustainable jobsProductivityEconomic productionTaxes to afford social infrastructure
Roads & BridgesRailwaysHarboursAirportsAgricultureManufacturingMining
Economicinfrastructure
HealthWelfareEconomic production
Water and SanitationTelecommunicationsElectricity
Social &Economic infrastructure
HealthEducationWelfareProductivity
HousingSchoolsHospitalsService Centers
SocialInfrastructure
Impact on Society/Economy
Type of Infrastructure Investment
Category
Growth in population vs Stock of Social infrastructure (06 = estimates)
-4
-3
-2
-1
0
1
2
85 90 95 0 5
Perc
enta
ge P
oint
EX SARB and ASSA
OUTCOMES & TARGETSSustainable Human Settlements, Local Economies & Livelihoods
• Eradication of sanitation buckets - 2007• Access to potable water - 2008• Access to sanitation - 2010• Infrastructure for FIFA World Cup - 2010• Universal access to electricity - 2012• Halve poverty and unemployment - 2014• Upgrade all informal settlements - 2014• Accelerated housing delivery - 2014
South Africa Vision 2014
3
Likely Situation in 2009: Service Delivery– Bucket eradication target for established communities can be met by
end 2007 if minimum service standard is applied. Bucket eradication in informal settlements by 2009 will depend on progress with housing delivery programme. Access to sanitation by 2010 is under risk with current funding provisions. Likely to be met only in 2016 (dry sanitation) and 2030 (wet sanitation)
– Access to potable water by 2008 is under risk with current funding provisions. Likely to be met only in 2013/14 financial year.
– Universal access to electricity by 2012 can be met if funding is increased from R1.39 billion to R3 billion annually.
– Need to deliver some 500 000 units per annum to reach 2014 housingtarget. Significant additional funding required for housing – A total of R124,7 Billion (at current prices) to reach housing target
Factors that will Promote Acceleration: Infrastructure and Service Provision
• FUNDS– Close funding gaps
• PEOPLE– Technical and management capacity– Forward planning and project and contract management
• BULK SUPPLY– Water resources– Bulk infrastructure especially in rural areas
• “HEAD OFFICE” STUFF– Institutional arrangements (IGR, Powers and Functions)– Policy issues– Agreement on data/statistics/service levels/standards
• PROGRAMS/INTERVENTIONS– Differentiated support approach– Technology innovations– Refurbishment and rehabilitation
WHAT IS TO BE DONE?
• GROWTH BASED ON STABILITY & EXCELLENT NATIONAL TREASURY & SARB
• GROWTH CAUSED INCREASED DEMAND FOR ECONOMIC INFRASTRUCTURE (ROADS,WATER, ELECTRICITY, RAIL CONNECTIONS, PORTS)
• SOSIAL INFRASTRUCTURE PROVISION NEEDS TO ACCELERATE
THEREFORE:• NEXT PHASE OF GROWTH DEPENDS ON
INCREASED CAPACITY OF ECONOMIC INFRASTRUCTURE
• ACCELERATION OF SOCIAL INFRASTRUCTURE AS WELL.
ASGI-SA• 3 Broad Initiatives:
– Development of the Olifants River System– The Development of the Durban Gauteng
Corridor;– Roll-out of broad band capacity
• Specific Plans– 120 Billion by Eskom over next 5 years;– R53 billion by Transnet of which R40 billion will
be for ports, railway and petroleum pipeline;– R 5.2 billion for Airports– R19.7 billion for water infrastructure– R7.5 billion - 2010
Which Authorities?
R Million 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09National Departments 5952 6022 7262 7835 8884 10578 12381Provincial Departments 15491 19642 21586 24412 31989 36201 40669Municipalities 13100 16687 17053 24759 26046 27296 28524PPP 849 1552 1106 1594 3776 4776 3672Extra-budgetary public entities 2854 3053 3470 3650 4116 4521 4927Non-financial public entities 26803 21375 22145 27566 37694 42092 43662Total 65049 68331 72622 89816 112505 125464 133835
2006 MTEF Capital Expenditure and Infrastructure Maintenance
•The total allocation from 2003/04 to 2005/06 was R230.7 billion and the total over the MTEF is R371.8 billion. An increase of 61%.
•Non-financial public entities will be responsible for 33% or a R123 billion over the MTEF.
4
What Infrastructure?
0
10000
20000
30000
40000
50000
60000
70000
Previous MTEF Current MTEF
Mill
ion
Water Sanitation Electricity Housing Education Health Roads Rail Ports Courts Police Infrastructure Prisons
96%
120%
76%
Transnet Priority Projects (Estimates)
R3-6 bnEnd 2007Petronet PipelineR2.394 bnEnd 2007Orex LineR1.075 bnIn ProgressOrex Line
R4.454Oct 2007Port of Ngqura berth 3 & 4
R4.917 bnDec 2006Port of Ngqura berth 1 & 2
R5.5 bnAug 2007CPT Container Terminal
R1.43 bnJune 2008Durban Pier 1
R1.6-1.8 bnLate 2007Durban Harbour Entrance Channel
ValueStartProject Name
ESKOM• R120 bill – Generation
– RTS – R10 bn– Coal – R90 bn (ALPHA)– OCGT– Pump Storage (HOTEL)
• R15 bill – Transmission– Erecting lines and building substations
• R20 bill - Distribution
2010 WORLD CUP
December 2008Jan/Feb 2007Nov/Dec 2007Till Oct/Nov 2006PETER MOKABA
December 2008November 2006Sept/Oct 2006Till Aug/ Sept 2006FNB
December 2008January 2007Nov/Dec 2006Till Oct 2006GREEN POINT
December 2008October 2006Aug/Sept 2006CompleteNELSON MANDELA
December 2008January 2007Oct/Nov 2006Till Aug/SeptMBOMBELA
Nov/Dec 2008November 2006Sept/Oct 2006Till July/Aug 2006ETHEKWINI
CONSTRUCTIONCOMPLETION
CONSTRUCTIONCOMMENCEMENT
TENDERING & AWARD
DESIGNPHASE
STADIUM
Private Sector
– 87 Projects announced worth R134.9 bill
– Manufacturing R68.2 bill
– Mining R32 bill for next 5 years
– Real Estate Developments R30 bill
Nedbank Project Listing
CONCLUSIONS & IMPLICATIONS• UNPRECEDENTED AMOUNTS WILL BE SPENT• MAIN FOCUS AREAS: ECONOMIC
– ELECTRICITY– ROADS– PORTS
• MAIN FOCUS AREAS: SOCIAL– WATER– SEWERAGE
• CONSTRUCTION PROBABLY ON NEXT LONG TERM GROWTH PATH– IF IT CAN BE DELIVERED
5
Construction Works
0%
5%
10%
15%
20%
25%
30%
35%
195519561957195819591960196119621963196419651966196719681969197019711972197319741975197619771978197919801981198219831984198519861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
GOV PRIVATE BUS CONSTRUCTION WORKS
4% Real – GDP
GFCF – 25%
CW – 20%-25%
60 65 70 75 80 85 90 95 00 5 10 15 2010
20
30
40
RA
ND
BIL
LIO
N
Optimistic
Pessimistic
Reality
2000 = 100
CONSTRUCTION WORKS SCENARIOS
CONSTRUCTION WORKS FORECAST
10
20
30
40
50
60
70
60 65 70 75 80 85 90 95 0 5 10 15
Ran
d B
illio
n (2
005
= 10
0)
2006.q4 2005.q4 2006:q4 2005:q4C O N FID EN C E** 9.25% (197) 36.29% (180) 15.37% (384) 49.8% (332)TEN DER S -19.16% 7.03% -13.86% 5.67%C O N TR AC T AW ARD S* 38.00% 20.73% 28.00% 16.26%EM PLO YM EN T 7.12% 20.74% 13.40% 12.00%TU R NO VER 19.48% 16.72% 14.40% 14.30%
IN D IC ATO R6 M O N THS TO 12 M O N TH S TO
Value of Awards and Number of Tenders
0
1
2
3
4
5
6
7
8
95 96 97 98 99 2000
2001
2002
2003
2004
2005
2006
Bill
ions
0
200
400
600
800
1000
1200
1400
Contract Awards Number of Tenders
Percentage contribution to total value of awards per annum
00.1
0.20.30.40.5
0.60.7
0<X<3000
3000<X<5000
5000<X<7000
7000<X<10000
10000<X<15000
15000<X<20000
X>20000
%
2004 2005 2006
Work Load Distribution
0
5
10
15
20
25
30
35
40
45
Public Private Public Private Public Private
Earthworks Concrete Structures Specialist Work
% D
istr
ibut
ion
6
Expected Company Growth vs Expected Market Growth (PUBLIC SECTOR)
0
10
20
30
40
50
60
70
80
Potential Company Potential Market Potential Company Potential Market Potential Company Potential Market
Earthworks Concrete Structure Specialist Work
% D
istr
ibut
ion
Expected Company Growth vs Expected Market Growth (PRIVATE SECTOR)
0
2
4
6
8
10
12
14
16
18
Potential Company Potential Market Potential Company Potential Market Potential Company Potential Market
Earthworks Concrete Structure Specialist Work
% D
istr
ibut
ion
IMPLICATIONS OF VIGOROUS GROWTH
PEOPLE: THE KEY; HAVE STRATEGIES TO– KEEP WHAT YOU HAVE; THEY ARE GOLD– DEVELOP ALL POTENTIAL– CHANGE/FIND THE STARS AND INVEST IN THEM
• EQUITY/TRANSFORMATION CHARTER• MATERIALS• PROFITS! • ESCALATION• PRODUCTIVITY
LABOUR & MATERIALS SHORTAGES
0
10
20
30
40
50
60
70
80
90
100
| 72 | 77 | 82 | 87 | 92 | 97 | 02 | 07
Source: BER; MFA DATABASE
LESS
SEV
ERE
BO
TTLE
NEC
KS
/ SEV
ERE
BO
TTLE
NEC
Materials Labour
SHADED AREAS REPRESENT THE UPSWING PHASESIN THE ECONOMY
Key Risk Issues in effective infrastructure project structuring
Low Risk High Risk
Payment
Design Development
Schedule
Status of Partner
Low Bidding
Client Management
Portfolio Risk
Project Development
Growth & Expansion
Risk vs. Reward
Contract Models
Qualified Resources - skills
Risk Management Process
Change Management
Source: ECRI
Extra Engineers & Employees needed to cater for anticipated growth
010000200003000040000500006000070000
200520062007200820092010201120122013201420152016
Empl
oyee
s
0
1000
2000
3000
4000
5000
6000
Civ
il En
gine
ers
EX SAFCEC
7
Site Management
0
10
20
30
40
50
60
70
80
90
Serious More than usual Very Few None
% D
istr
ibut
ion
Site Supervisors
0
10
20
30
40
50
60
Serious More than usual Very Few None
% D
istr
ibut
ion
Skilled Workers (All Artisans and Tradesmen)
0
10
20
30
40
50
60
70
80
Serious More than usual Very Few None
% D
istr
ibut
ion
Civil Engineering – Engineers & Technologists
0 50 100 150 200 250 30024
29
34
39
44
49
54
59
64
69
Age
Number per age group
BlackWhite
EX Allyson Lawless, June 2004
Construction Management Graduations
0
25
50
75
1986
1988
1990
1992
1994
1996
1998
2000
2002
Male Female
0
100
200
300
1986
1988
1990
1992
1994
1996
1998
2000
2002
Male Female
0
25
50
75
1986
1988
1990
1992
1994
1996
1998
2000
2002
White Black
UniversitiesUniversities TechnikonsTechnikons
0
100
200
300
1986
1988
1990
1992
1994
1996
1998
2000
2002
White Black
EX Allyson Lawless
Training and EducationCurrent trends and requirements for technical
skills to cater for growth
-12500
-10000
-7500
-5000
-2500
0
2500
5000
7500
10000
12500
15000
17500
20000
22500
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Retirement
Early retirement
Emigration
Loss due to premature death
Leaving the industry
Immigrants
National Diploma graduate
BSc/BEng graduate
In industry from 2004
EX Allyson Lawless
8
70 73 76 79 82 85 88 91 94 97 0-20
-10
0
10
20
CH
AN
GE
(%)
OUTPUTLAB INPUTLAB PROD
CHANGES: OUTPUT, LABOUR INPUT, PRODUCTIV EQUITY
• Despite various policies that have been introduced since 1994 there has been limited progress in the transformation of the sector.
• Transformation of the Construction Sector will be driven by the Construction Transformation Charter & Scorecard
Transformation driven by the Construction Charter
Targets for Change
14
26
6
6
15
56
1
1
10
12
0.005
30
40
40
40
40
65
1.5
2.5
25
70
0.25
0 10 20 30 40 50 60 70 80
Ownership
Control: Board
Control: Exec Man
Sen Management
Mid Management
Jun M
Training Costs
Learnerships
Bursaries
Procurement
CSI
Percentages (%)
Status Quo Targets
Black contracting participation
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
1990
1990
1991
1992
1993
1993
1994
1995
1996
1996
1997
1998
1999
1999
2000
2001
2002
emerging (%of Value) emerging (% of Number) 5 qrt ma (%value)
Perc
enta
ge o
f Tot
al o
n D
atab
ase
EX SAFCEC
Business/Enterprise Development
0
30000
60000
90000
1-5 6-10 11-20 21-30 31-50 51-75 76-100
101-250
251-500
501-1000
1000+
Size category
Num
ber o
f sta
ff
Staff in Total of 11441 Black CompaniesStaff in Total of 8412 White Companies
Demographic distribution and size of companies in the construction sector
Ex Allyson Lawless
Global E&C Industry Profit Margins
Source: 1) Factset. Includes the 38 publicly traded companies in North America, Europe and AsiaNotes: 2) Profit margin is found by company’s operating margin/net sales
3) Global trend is found from a composite of all companies weighted by market share4) Prepared in cooperation with AT Kearney and the World Economic Forum
• 60% EBITDA decline in 12 years
• Structural issue, not explained by “business cycles”
• Europe has improved (in the past five years), but came from negative territory
• Regions appear to be converging, reflecting globalization
Key Observati
ons
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
7%
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
EB
ITD
A M
arg
in
Asia
GlobalNorth
America
Europe
Global Trend
?
“Global”1991
Recession
“Global”2001
Recession
5-Year GlobalTrend
9
Profitability & Turnover correlation: RSA
0
1
2
3
4
5
6
7
8
70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 2000200120022003200420052006
%
8.5
10.5
12.5
14.5
16.5
18.5
20.5
22.5
24.5
Bill
ions
Net Profit/Turnover Civil Turnover (2000=100) Poly. (Civil Turnover (2000=100))
Competition for Tenders (greater than 10)
05
10152025303540
2002
2002
2003
2003
2004
2004
2005
2005
2006
2006
Civil Engineering Turnover (200=100), Inflation (%), Profitability (%)
5
7
9
11
13
15
17
19
21
23
25
68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 2000
2001
2002
2003
2004
2005
2006
Bill
ions
0
2
4
6
8
10
12
14
16
18
20
22
%
Civil Engineering Turnover Profitability Inflation
7.06%6.5%
5.21%
20%
17%
Challenges – Material
• Material– Cement currently 13 million tons– 2010 Demand – 16.7 million tons– Expansion underway – 15.6 million tons by
2008• Glass and brick manufacturers
announced expansions• Steel – no supply problem?
Purchases in Civils
0%
5%10%
15%20%
25%30%
35%
Sand, stone and building lime
Cem
ent
Ready M
ix
Bricks etc
Textiles
Plastics
Sheets, pipes, tubs etc
Reinforcing Steel
Structural Steel
Doors, W
indows etc
Insulated Cables
Lighting & Switches
Other Electrical
Wood
Glass
Paint
Fuel
Gypsum
Consum
ables
10
Projected Demand vs Industry Capacity
101112131415
1617181920
2004 2005 2006 2007 2008 2009 2010 2011
Mt
Projected Demand Industry Capacity
PPC = 1.2Mt PPC = 1.2Mt
Holcim = 0.45MtNPC = 0.6Mt Lafarge = 1.0Mt
Feasibility Stage
Note: 1. PPC’s expansions cater for old kiln retirements totalling more than 1.0M t 2. Holcim considering 1.2M t cement line for commissioning around 2010
SARMA: READYMIX
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
8000000
9000000
2004 2005 2006
m3
24% Growth
22% Growth
CONCLUSIONS• GROWTH FOR THE FIRST TIME IN 25
YEARS! FOR 10 YEARS AT LEAST …
• PEOPLE WILL BE THE KEY
• GROWTH HAS MORE AND EXCEEDINGLY MORE DIFFICULT DEMANDS THAN CONTRACTIONS
BEST OF LUCK!
ANNEXURE C20
1
Institutionalization of the MIS
Thursday, 24 April 2007
Presented by: Manus Bolton
MANAGEMENT INFORMATION SYSTEM
Problem Statement
Lack of consistent reporting on MIG Projects between/to different stakeholders across government
? ?
RESULT:Incorrect (duplicate) / inconsistent
reporting
National Provincial/ Municipal Sector Departments
Target Date:KPI Report end July 2007
Project Scope / Deliverables
• Identify and address Information Technology (IT) issues – IT
• Identify and address the Capacity related issues - People
• Identify and address the Data capture process and data quality issues in the PMMU, PMU and municipalities - Data
• Identify and address Business processes followed - Processes
• Train and capacitate the users - Training
Support TEAM
MIS Institutionalise
Marelize Nel Corlia Snyman Vuyani Matoti
Mike Gohl Hanyani Maswangani
MpumalangaNorthern Cape Western Cape
Gauteng
Kwazulu NatalFree StateGauteng
Eastern CapeNorth WestGauteng
Limpopo
Project ManagerKgashane Pilusa
Technical SupportManus Bolton
Call Centre:- [email protected] 012 334 4860
Process
• Data• MIG-MIS System• Processes• Personnel• IT Environment
What do we need to do?Who can and should do it?How to implement this?
Target Date: End July 2007
2
Challenges identified
• Incorrect and Missing Information (Some cases No information on MIG1 of Service Provider Consultant Contractor)
• Processes no followed• Different reporting templates (NOT on the MIG
6 and 8)• Slow Internet / No Internet Connections
Feedback for training - “Great system - very user friendly”
Hosting of the MIS - Challenges
• Compete with other internet traffic (In and Out Bound)
• DPLG (mail, users, internet, etc.)• NO SLA’s in place between DPLG IT and
SITA
Resolve in March 2007
Hosting of the MIS - Bandwidth
Before (562 Kb/s) – internet response slow, bandwidth utlized constantly above 80%
After (1536Kb/s) – internet response faster, bandwitdhutilization below 50%
Training (Sept 2006 – Apr 2007)
Mpumalanga19%
North West0%
Northern Cape12%
Western Cape11%
Eastern Cape9% Free State
9%
Gauteng15%
Kwazulu Natal0%
Limpopo25%
195Total
22Western Cape
24Northern Cape
0North West
37Mpumalanga
48Limpopo
0Kwazulu Natal
29Gauteng
18Free State
17Eastern Cape
No of people trained
Province
Capacity to maintain/ operate the MIG-MIS.
HighMedium
Low
Municipal Level
Municipal logins since the inception July 2005.
205, 28%
33, 5%
27, 4%
151, 21%
118, 16%
68, 9%
32, 4%30, 4%
69, 9%
EASTERN CAPE
FREE STATE
GAUTENG
KWAZULU-NATAL
LIMPOPO
MPUMALANGA
NORTH WEST
NORTHERN CAPE
WESTERN CAPE
3
Percentage of use per Province by Municipality
733Grand Total
9.469WESTERN CAPE
4.130NORTHERN CAPE
4.432NORTH WEST
9.368MPUMALANGA
16.1118LIMPOPO
20.6151KWAZULU-NATAL
3.727GAUTENG
4.533FREE STATE
28.0205EASTERN CAPE
% No. of LoginsProvince
Projects in the MIS
1417Kwazulu-Natal Total
1044Pre-Implementation
316Implementation
56Design/Tender
1CompletedKwazulu-Natal
531Gauteng Total
238Pre-Implementation
203Implementation
76Design/Tender
14CompletedGauteng
338Free State Total
214Pre-Implementation
65Implementation
59CompletedFree State
1725Eastern Cape Total
497Pre-Implementation
1093Implementation
135Design/TenderEastern Cape
No. of ProjectProject StatusesProvince
Overall increase in Project Registration as from November 2006.
Projects in the MIS (cont.)
518North West Total
206Pre-Implementation
231Implementation
80Design/Tender
1CompletedNorth West
551Mpumalanga Total
206Pre-Implementation
282Implementation
62Design/Tender
1CompletedMpumalanga
622Limpopo Total
423Pre-Implementation
158Implementation
32Design/Tender
9CompletedLimpopo
No. of ProjectProject StatusesProvince
Projects in the MIS (cont.)
6477Grand Total
614Western Cape Total
227Pre-Implementation
368Implementation
19Design/TenderWestern Cape
161Northern Cape Total
78Pre-Implementation
38Implementation
2Design/Tender
43CompletedNorthern Cape
No. of ProjectProject StatusesProvince
Thank you
ANNEXURE C21
1
EPWP InfrastructureEPWP Infrastructure
Functions, roles and process stepsTechnical Support Strategy
Joint EngagementJoint Engagement
Background, Scope and Objectives
Background
Joint initiative between EPWP Unit and EPWSPComprehensive approach but with clearly distinguished roles for:
Infrastructure Unit: National Technical Support TeamEPWP Stakeholder managers / EPWP Provincial CoordinatorsEPWSP
Scope involves both Municipalities and Provinces. (Start with Municipalities)Includes 5 Direct Engagement and 40 Joint Engagement
Key issue: Report and manage EPWP performance from one data set that is accessible to all role players at any point in time
Management Information
System
Initial and Ongoing Municipal and Project Data
Get project status and deploy technical
assistance
Technical Feed back project progress and removal of blockages
Quarterly progress reports to
M&E
Analysis of data to improve support:•Blockages•Projects•Impact•Effectiveness of Technical Support•Benchmarking
Strategic Management:•Get complete overview•Make decisions on deployment of resources•Make decisions to prioritise areas and or types of projects
Statistics on 45 Municipalities
19 District Municipalities containing 99 local municipalities (2 Direct)6 Metros (3 Direct)20 Local MunicipalitiesTotal 06-07 MIG Allocation: R4.056 billionTotal 07-08 MIG Allocation: R4.974 billion
2
Statistics on 45 Municipalities
41.6% of 532,717 that still needs to be secured by infrastr.
221,708205,79315,915Targeted work opportunities
2006/7: 2007/8:2008/9:
2006/7: R 4.4bn2007/8: R 5.1 bn2008/9: R 4.3 bn
2006/7: R 3.1 bn2007/8: R 3.6 bn2008/9: R 3.0 bn
2006/7: R1.26 bn2007/8: R1.46 bn2008/9: R 1.26 bn
MIG Budgets
53.4% of 234 municipalities countrywide
4519 DMs (99 LMs)6 Metros20 LMs
4017 DMs3 Metros20 LMs
52 DMs3 Metros
Number of Municipalities
% of overall
Total Engagement
Joint Engagement
Direct Engagement
Statistics on the 45 Municipalities
457
104374172
TOTAL
20196TOTAL340LP271KZN103GP300FS151EC400MP100NC430NW101WC
LMDMMetroProvince
National Technical Support Manager
Data Analyst
Administration Support
WC Technical Advisor
GP
Technical Advisor
GP Ass. Technical Advisor
KZN Technical Advisor
KZN Ass.
Technical Advisor
EC Technical Advisor
EC Ass. Technical Advisor
FS Technical Advisor
NC
Technical Advisor
N W Technical Advisor
MPU Technical Advisor
A team of 15 Technical Advisors has been appointed
Technical Support Consultant Organogram
LIM
Technical Advisor
A team of 11 Training Facilitation support officers being appointed
Structure and Resources
CD: LISMaikel
D: Technical SupportI. Ariyo
DDG:B. Gxilishe
National Technical Support Manager
Data AnalystAdministrator
9 Technical Advisors3 Assistant Technical Advisors, 11 Training Facilitation Support officers
ILO Technical Support
Project leader M. Nell
Project ManagerA. Campbell
Joint Engagement Team:P. Foley, Marius Marks
MIS Support Team:D.Seymore, S. Dhlamini
EPWP Support ProgrammeEPWP Unit
Technical Support Consultants and MIS Data Managers
Joint Monthly Management
Meeting
Progress Reports
Instructions for Technical Support
What types of support?
Technical Support will do the following:Identify suitable projectsSet targets for projectsAssist with designs and contract documentationExtract project training needsAssist with procurement processCreate enabling conditions: wage rates, contractors trained etcContract managementReportingProject evaluationEPWP Mainstreaming: Municipal policies and proceduresAdvise on alternative models: large projects/ contractors
What it is not
The technical support team will not:Solve political problems within the municipalityProject manage implementation of projects for the municipalityAct as an EPWP Police forceSupport to municipal officials to do their other non EPWP related work
3
Key challenges to the approach
Identifying high potential projectsKeeping track of progress on individual projectsDeploying support efficiently and effectively, as and when requiredReporting EPWP status and outputs at any time
Critical that MIS is rigorously kept up to date and that data is regularly analysed
Where we are now
Implementing Joint EngagementSurveyed 26 out of the additional 40 municipalitiesDirectly engaged with 16 of the 26
Joint Engagament - Progress to Date
0 10 20 30 40 50
Total
Surveyed
Engaged
Number of Municipalities
Engaged as per strategy
Total No. Engaged
Total No. Targeted
EPWSP
Scope of Joint Engagement
The Joint Engagement strategy aims to:Supporting dedicated technical interventions to increase the allocation of projects and expedite problems in prioritised municipalities.DPW Target: 750,000 work opportunities from the Infrastructure Sector
Initial Overall Municipal Infrastructure Targets:Municipal Target: 450,000 work opportunitiesEPWSP Target: 195,000 work opportunities
Potential to support creation of 270,000 work opportunities over the next 3 years.
Joint EngagementJoint Engagement
Functions and Activities
Functions
8 functions have been identified as necessary components of the Joint Engagement strategy.The following slides identify the roles both Shisaka appointed by the Business Trust and the EPWP Unit will play in each function
Function 1: Municipal Prioritization EPWP Unit
Desktop AnalysisAssess the prioritized top 40 municipalities (prioritized on the basis of MIG and Vuk’uphile)Roles
EPWP Infrastructure Technical AdvisorsInstitutional Analysis
Assess the organizational capacity and commitment to the EPWPRoles
EPWP Stakeholder Managers / EPWP Provincial CoordinatorsOpportunity Identification
Identify potential EPWP project clustersRoles
EPWP Stakeholder Managers / EPWP Provincial CoordinatorsOutcome
Selected municipalities for technical engagementEPWSP Support
Assist in developing tools for assessmentProvide data analysis support
4
Function 2: Structuring the EngagementEPWP Unit
Technical assessment of project listsConfirming the status and suitability of projects and number of potential work opportunitiesRoles: EPWP Technical Advisors (consultants)
Technical interaction to assess operational readiness (policies,processes and structures)
Confirming the organizational readiness and needs of municipalityRoles: EPWP Technical Advisors (consultants)
Agree EPWP support objectives with municipal leadershipEstablish the basis of support, objectives and reporting and reviewRoles: EPWP Infrastructure sector and EPWP Stakeholder managers / Provincial Coordinators
OutcomeLetter of intent setting out nature of support, objectives and reporting and review structures
EPWSP SupportAssist in developing tools for detailed assessment and engagementSupport to develop and implement training for programme managers and technical consultantsProvide MIS support to load municipal profile
Function 3: Project LoadingEPWP Unit & EPWSP
Project RegistrationIdentified projects are loaded on MIS (ongoing process)Roles
EPWP Technical Advisors document project informationEPWP Technical Advisors /EPWSP load project dataEPWSP quality controls data
Project training needs assessmentTraining requirements per project are identified and quantifiedRoles
EPWP Technical Advisors estimates jobs earmarked per project and identify training requirements as per DoL course catalogueEPWP Technical Advisors agree jobs and training needs with municipality
Preliminary project diagnosisIdentify preliminary key challenges and blockages per projectRoles
EPWP Technical Advisors identify and document initial blockagesOutcome
Identified projects, training requirements and initial challenges are loaded on the MISEPWSP Support
Quality control and loading of data on MISProduce status reports on projects, project blockages and training requirements
Function 4: General Tech Support InterventionsEPWP Unit (Technical Advisors)
Establish Wage RatesAssist municipalities to set and proclaim EPWP wage rates
Align Contract DocumentationReview and align municipal contracting documents to EPWP guidelinesRoles:
EPWP Technical Consultants assist in document revisionEPWSP assists EPWP in training EPWP Technical Advisors
Facilitate Contractor ComplianceAssess compliance and facilitate training and registration on CIDB
Facilitate Consultant ComplianceAssess compliance and facilitate training and registration with ECSA
Align Supply Chain ManagementIncorporate EPWP requirements and align with legal framework
Facilitate Training Coordination CapacityAssist in establishing EPWP municipal training coordination capacity
Outcome: Municipal institutional blockages to EPWP implementation removedEPWP Enabling Environment created
EPWSP develops approaches via STA Fund.EPWP Unit implements revised approaches provincially (where necessary) and in
municipalities
Function 5: Project Monitoring & AnalysisEPWP Unit and EPWSP
Maintain and update project dataReceive monthly updates on project status and outputsFollow up and secure missing dataQuality control monthly updatesMaintain project historic and current status
EPWSP manage and maintain MIS EPWP Technical Advisors chase data
Prepare project status and output reportsAccess required reportsQuality control reportsCirculate to joint engagement team
EPWSP produce and quality control reportsAnalyse reports and identify required interventions
Analyse reports deviations and trendsIdentify project specific and generic interventions per municipality
Monthly Joint Management MeetingSchedule required interventions
Allocate and programme resources to interventionsInstruct technical advisors to implement interventions
National Technical support ManagerOutcome: Accurate and current data is available and analysed; Appropriate interventions are identified and scheduled
Function 6: Implement projects interventionsEPWP Unit (Technical Advisors)
Brief municipality on blockages and required interventionsBlockage report and suggested interventions submitted to municipality (through monthly report) for information
Technical AdvisorsImplement planned interventions
Technical advisors implement interventions together with municipal officials, project consultants and contractors
Technical AdvisorsMonitor technical interventions
Progress on interventions submittedInterventions report reviewed and accepted as data
National Technical Support ManagerTechnical Advisors performance monitored
Progress reports per technical advisor provided to technical support teamTechnical support team reviews reports and takes action
National Technical Support Manager/EPWP Technical TeamDevelop solutions to generic blockages
Identify generic blockagesDevelop tools to resolve generic blockagesDisseminate tools
Joint Technical TeamOutcome: Blockages are resolved through appropriate interventionsEPWSP: Manage and maintain the MIS
Develop generic tools
Function 7: Worker TrainingEPWP Unit
Prepare and submit the municipal training plan to DoL in DoL formatTraining facilitation support officer supported by EPWP Training manager
Follow up with DoL on training readiness (funding, service providers, logistics) EPWP Training manager supported by Training facilitation support officer
Ensure that responsible project person has been provided with the project training plan
Training facilitation support officer supported by Training facilitation support officerMonitor training implementation
Receive monthly training reportsQuality control and load training dataPrepare monthly project and overall training reportsProvide reports to municipal training coordinator (forward copy to contractor where relevant)
EPWSP MIS CoordinatorEPWP Technical Advisor to chase missing data
Provide training compliance reports to the National Technical Support TeamCompliance reports evaluated and acted on
EPWSP MIS Outcome: Performance on compliance with worker training requirements
evaluated and acted on
5
Function 8: ReportingEPWP Unit & EPWSP
Report to municipalitiesProduce monthly reportsPresent monthly reports to municipal officialsPresent quarterly reports to municipal leadership
EPWSP MIS Team generate reportsTechnical Advisors report to municipal officials monthlyEPWP Stakeholder managers/ Provincial Coordinators report to municipal leadership quarterly
Report monthly to the joint infrastructure management teamProduce monthly reports
EPWSP MIS Team generates reportsJoint Management Team
Produce quarterly EPWP reportProduce quarterly reportEnsure municipality has signed off the reportReport submitted through required structures to EPWP National M&E Unit
EPWSP MIS Team generate reportsTechnical Advisors ensure sign off by municipalityOutcome: Municipal leadership are aware of their performance and progress on EPWP
Municipal data is submitted to the national EPWP Unit
Primary Reporting Formats
The following reports will be generated through the MIS and willinclude:Monthly municipal reports
Person days of workNo. of people employedTraining days provided Training coursesNo. of people who received trainingProject status and milestone reports
Monthly technical support management reportsPer technical advisor; per municipality; per project category; per project
Quarterly EPWP reportImport relevant data into EPWP templateMunicipality signs reportReport submitted to M&E Unit
Quarterly Strategic Management ReportOverall outputsOverall complianceTrend analysis Key strategic issues
Function flow diagram
F1: Municipal Prioritisation
F2: Structuring the Engagement
F3: Project Loading F4: General Tech Support Interventions
F5: Project Monitoring & Analysis
F6: Implement projects interventionsF7: Worker Training
F8: Reporting
Tools and Process
MISEPWP Stakeholder manager project list and training spreadsheetsWhat the technical support forms look likeWhat the reports look likeWhat the municipal target and strategy form look like
Other tools Diagnostic; Assessment pipeline; contracting documentation; status and who: training framework; training needs assessment template; contractor reporting template; EPWP policy template; …
ANNEXURE C22
1
1
PROVINCE OF THE EASTERN CAPE
24 April 2007
2
1. Summary of EPWP Results
R 527 millionTotal value of EPWP Projects
1,430Number of MIG: Labour Intensive projects
ECProvince:
15,885Person-days of work created
R1,344,621Total wages paid to workers
1,766R 7,937 billion
Number of MIG projects being implemented or completed
R40 – R70 / dayAverage daily Wage
4 / 9 / 0Percentages Women/ Youth/ Disabled
?Number of work opportunities created
66Number of MIG-EPWP projects
Progress*Indicator
3
EPWP ProgressWhich municipalities are performing well on EPWP?
NMMMWhich municipalities are not performing well?
New receiving municipalitiesWhat are the key challenges being faced by municipalities in implementing the EPWP?
Understanding GuidelinesLack of ownership of the programmeService Provider accreditation Provincial Support and involvementReporting – complete lack
What kind of support would help in improving the performance of the municipalities on the EPWP?
Road show to new councilsRe-emphasize programme and how to “start”Encourage timeous registration of projects to create enough timefor labour intensive construction
ANNEXURE C23
1
1
MIG Quarterly Workshop
Free State Province
Hans Merensky, Phalaborwa, Limpopo Province23-25 April 2007
Reporting format for EPWP Session
2
EPWP Progress
R72,178,304Total value of EPWP Projects registered
59Number of MIG: Labour Intensive projects registered
Free StateProvince:
6,087Person-days of work planned
315Number of MIG projects being registered
296Number of work opportunities planned
3Number of MIG-EPWP projects registered
Progress*Indicator
Please prepare a complete list of the projects so that DPW’scan engage with the respective municipalities on these projects
3
Co-ordination
EPWP invited to all PMU meetings – MonthlyEPWP a member of the PMITT – QuarterlyOne to one meetings with the EPWP section
4
Support to Municipalities
EPWP District Managers supporting Municipalities?PMMU providing training to Municipalities in terms of reporting
5
Challenges
Understanding the guidelinesReporting from MunicipalitiesInvolvement of EPWP in MunicipalitiesNational targets to achieve
ANNEXURE C24
1
1
MIG Quarterly WorkshopAPRIL 2007
Reporting format for EPWP Session
2
1. Summary of EPWP MIG TO DATE End 06/07
C&C: R 1,995,486,765All: R2,848,513,716
Total value of EPWP Projects
Comp & Constr: 565 (52.9%)All : 728 (68.2%)
Number of MIG: Labour Intensive projects
KZNProvince:
C&C: 1,968,267All: 3,273,799
Person-days of work created
C&C: R2,300,430All: R4,383,720
Total wages paid to workers
1068Number of MIG projects being implemented and completed
C&C: R66All: R66
Average daily Wage
C&C: 26% 43% 1%All: 23% 45% 0.6%
Percentages Women/ Youth/ Disabled
C&C: 34,855All: 66 420
Number of work opportunities created
Comp & Constr: 116 (20.5%)All : 166 (15.5%)
Number of MIG-EPWP projects
Progress*Indicator
3
EPWP Progress for 06-07
R 2 343,043,484Total value of EPWP Projects registered
351Number of MIG: Labour Intensive projects registered
KZNProvince:
2,831,623Person-days of work planned
471Number of MIG projects being registered
58 159Number of work opportunities planned
120Number of MIG-EPWP projects registered
Progress*Indicator
Please prepare a complete list of the projects so that DPW’scan engage with the respective municipalities on these projects
ANNEXURE C25
1
MIG
: 200
6/07
M
IG: 2
006/
07 44
ththQ
UA
RTE
R:
QU
AR
TER
: N
ATI
ON
AL
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RK
SHO
PN
ATI
ON
AL
WO
RK
SHO
P
Ba
Ba --
Phal
abor
wa
Phal
abor
wa
23
23 ––
25 A
pril
2007
25 A
pril
2007
Pres
ente
d by
: A.
Pres
ente
d by
: A. M
loyi
swa
Mlo
yisw
a
Sum
mar
y of
EPW
P R
esul
ts: C
umul
ativ
e si
nce
begi
nnin
g of
MIG
to M
arch
200
7
30%
/ 30
% /
5%
604,30
0,30
0
3589
0
175
719
962
NO
.PR
OG
RES
S
R3,
929.
490
mM
IG: L
abou
r Int
ensi
ve p
roje
cts
PRO
VIN
CE:
LIM
POPO
R25
8.01
9mP
erso
n-da
ys o
f wor
k cr
eate
d
R5,
050.
362
mM
IG p
roje
cts
bein
g im
plem
ente
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plet
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N/A
Aver
age
daily
Wag
e
N/A
Per
cent
ages
Wom
en/ Y
outh
/ Dis
able
d
R25
8.01
9mW
ork
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rtuni
ties
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ted
R86
1.46
8 m
MIG
-EPW
P pr
ojec
ts
VALU
E IN
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ATO
R
EP
WP
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gres
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r 06-
07:
(REG
ISTE
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OM
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IL 2
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ARC
H 0
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4,30
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0
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0
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7.28
m
140
291
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NU
MB
ER
PRO
GR
ESS
Tota
l va
lue
of E
PWP
Pro
ject
s re
gist
ered
Per
son-
days
of w
ork
plan
ned
Labo
urIn
tens
ive
proj
ects
regi
ster
ed
PRO
VIN
CE:
LIM
POPO
MIG
pro
ject
s re
gist
ered
Num
ber o
f wor
k op
portu
nitie
s pl
anne
d
MIG
-EPW
P pr
ojec
ts re
gist
ered
IND
ICA
TOR
LIST
OF
MIG
EPW
P PR
OJE
CTS
Des
ign
& te
nder
Spo
rt fa
cilit
y1
Tuba
tse
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onst
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11
Des
ign
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Des
ign
& te
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16 ro
ads
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port
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lity
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xi R
ank
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n
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er;
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xi
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k3
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9 R
oads
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emet
ery
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ds
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TEG
OR
Y
101NU
MB
ER O
F M
IG-E
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PRO
JEC
TS
3 C
onst
ruct
ion;
1 C
ompl
eted
; 5
cons
truct
ion
Con
stru
ctio
n
Giy
ani
Com
plet
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lias
Mot
soal
edi
STA
TUS
MU
NIC
IPA
LITY
LIST
OF
MIG
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P PR
OJE
CTS
Des
ign
& te
nder
Roa
ds1
Mut
ale
4 C
ompl
eted
; 16
con
stru
ctio
n9
desi
gn &
tend
erD
esig
n &
tend
er7
com
plet
ed;
3 co
nstru
ctio
n1
Des
ign
& te
nder
29 W
ater
1 S
anita
tion
11 R
oads
41P
olok
wan
e
Reg
iste
red
Roa
ds1
Mak
hado
Roa
ds
Roa
ds
CA
TEG
OR
Y
24NU
MB
ER O
F M
IG-E
PWP
PRO
JEC
TS
Reg
iste
red
Aga
nang
2 C
onst
ruct
ion;
2 R
egis
tere
dM
arul
eng
STA
TUS
MU
NIC
IPA
LITY
LIST
OF
MIG
EPW
P PR
OJE
CTS
33 C
ompl
eted
; 10
con
stru
ctio
n1
regi
ster
ed8
com
plet
ed;
3 co
nstru
ctio
n3
com
plet
ed4
com
plet
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3 D
esig
n &
tend
er5
regi
ster
edC
ompl
eted
Reg
iste
red
Com
plet
ed4
cons
truct
ion;
1 c
ompl
eted
44 W
ater
11 S
anita
tion
3 M
PC
C12
Roa
ds
1 Fi
re s
tatio
n4
Cem
eter
ies
2 S
port
faci
litie
s5
Taxi
rank
82C
apric
orn
DM
Roa
ds
CA
TEG
OR
Y
2NU
MB
ER O
F M
IG-E
PWP
PRO
JEC
TS
1 C
onst
ruct
ion;
1 D
esig
n &
te
nder
Lepe
lleN
kum
pi
STA
TUS
MU
NIC
IPA
LITY
2
LIST
OF
MIG
EPW
P PR
OJE
CTS
5 R
egis
tere
d3
Des
ign
& te
nder
Roa
ds8
Mog
alak
wen
a
Roa
ds
CA
TEG
OR
Y
1NU
MB
ER O
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IG-E
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PRO
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TS
Con
stru
ctio
nLe
phal
ale
STA
TUS
MU
NIC
IPA
LITY
EPW
P C
HA
LLEN
GES
AN
D IN
TER
VEN
TIO
NS
•DLG
H c
ontin
ue t
o w
ork
clos
ely
with
DPW
and
•Mun
icip
aliti
es to
ens
ure
that
M
unic
ipal
offi
cial
s ar
e tra
ined
on
and
app
ly th
e pr
inci
ples
of
LIC
EPW
P.
INTE
RVE
NTI
ON
S•L
ow a
ppre
ciat
ion
and
unde
rsta
ndin
g of
the
prin
cipl
es o
f
EPW
P at
Mun
icip
al L
evel
.
•Lac
k of
inco
rpor
atio
n of
EPW
P p
rinci
ples
into
the
IDP
pr
oces
s an
d pr
ocur
emen
t
•Ina
ccur
ate
repo
rting
CH
ALL
ENG
ES
THA
NK
YO
UTH
AN
K Y
OU
ANNEXURE C26
1
1
LIMPOPO PROVINCE
MIG Quarterly Workshop
23- 25 APRIL 2007
Reporting format for EPWP Session
2
1. Summary of EPWP Results
R512.742mTotal value of EPWP Projects
193Number of MIG: Labour Intensive projects
MpumalangaProvince:
56 900Person-days of work created
R2 845mTotal wages paid to workers
609Number of MIG projects being implemented or completed
R50Average daily Wage
Women- 41%Youth- 57%Disabled- 2%
Percentages Women/ Youth/ Disabled
2 584Number of work opportunities created
132Number of MIG-EPWP projects
Progress*Indicator
3
EPWP Progress for 2007- 08
R 59.072mTotal value of EPWP Projects registered
23Number of MIG: Labour Intensive projects registered
Province:
18200Person-days of work planned
60Number of MIG projects being registered
19Number of MIG-EPWP projects registered
Progress*Indicator
4
EPWP ProgressWhich municipalities are performing well on EPWP?Which municipalities are not performing well?What are the key challenges being faced by municipalities in implementing the EPWP?What kind of support from National/ Province would help in improving the performance of the municipalities on the EPWP?
5
EPWP Progress
The Following municipalities are performing well:Most of the municipalities in Nkangala and Ehlanzeni District are performing well
Non Performing Municipalities A challenge remains with municipalities in GertSibande District
6
KEY CHALLENGES
Ranges from understanding the policiesAvailability of suitable service providersCIDB requirementsPlanning of the projects
Registration processes
2
7
KEY INTERVENTIONS
DPW to coordinate information sessions with municipalitiesGuidelines and hands-on support be provided to the PMU’sSet clear targets Provide technical intervention through Engineers Enhance capacity for project registration
8
THANK YOU
ANNEXURE C27
1
2
ANNEXURE C28
1
MIG Quarterly Workshop (NW EPWP Report)23-25 April 2006
1. Summary of EPWP Results (061. Summary of EPWP Results (06--07)07)
R138 076 848R138 076 848Total value of EPWP ProjectsTotal value of EPWP Projects
358358Number of MIG: Labour Intensive projectsNumber of MIG: Labour Intensive projects
North WestNorth WestProvince:Province:
141 154141 154PersonPerson--days of work createddays of work created
R8 186 932R8 186 932Total wages paid to workersTotal wages paid to workers
116116Number of MIG projects being implemented and Number of MIG projects being implemented and completedcompleted
R58R58Average daily WageAverage daily Wage
41%/55%/0.3441%/55%/0.34%%
Percentages Women/ Youth/ DisabledPercentages Women/ Youth/ Disabled
20892089Number of work opportunities createdNumber of work opportunities created
4141Number of MIGNumber of MIG--EPWP projectsEPWP projects
Progress*Progress*IndicatorIndicator
EPWP Progress for 07EPWP Progress for 07--0808
R68 830 131R68 830 131Total value of EPWP Projects registeredTotal value of EPWP Projects registered
110110Number of MIG: Labour Intensive projects Number of MIG: Labour Intensive projects registeredregistered
North WestNorth WestProvince:Province:
3 6303 630PersonPerson--days of work planneddays of work planned
195195Number of MIG projects being registeredNumber of MIG projects being registered
246246Number of work opportunities plannedNumber of work opportunities planned
1313Number of MIGNumber of MIG--EPWP projects registeredEPWP projects registered
Progress*Progress*IndicatorIndicator
EPWP ProgressEPWP Progress
-- Rustenburg ,Rustenburg ,MatlosanaMatlosana ,,MerafongMerafong & Central & Central District Municipality are implementing EPWP District Municipality are implementing EPWP projects projects
-- The Province anticipate/expect better The Province anticipate/expect better implementation in 07/08 because all above implementation in 07/08 because all above mentioned municipalities has established EPWP mentioned municipalities has established EPWP units to deal with EPWP projectsunits to deal with EPWP projects
-- Provincial EPWP officials should be involved in Provincial EPWP officials should be involved in planning, design and monitoring of these planning, design and monitoring of these projects projects
ChallengesChallenges
Number of EPWP projects have declinedNumber of EPWP projects have declinedMost municipalities are not keen to implement EPWP Most municipalities are not keen to implement EPWP projects due to projects due to labour labour issues and time involvedissues and time involvedMinimum wages allowed on the Minimum wages allowed on the programmeprogramme, which , which communities and municipalities do not accept.communities and municipalities do not accept.DPW is not providing sufficient support or taking the DPW is not providing sufficient support or taking the lead in assisting municipalities in understanding and lead in assisting municipalities in understanding and implementing EPWP projects.implementing EPWP projects.Poor coordination between DPW, Poor coordination between DPW, DoLDoL and municipalities and municipalities to ensure that the necessary training is done.to ensure that the necessary training is done.
THANK YOU THANK YOU
ANNEXURE C29
1
Asset Management and Comprehensive Infrastructure Plans
Quarterly Workshop Limpopo24April 2007
What is Asset Management?The process of decision-making, planning and control over the acquisition, use, safeguarding and disposal of assets to maximize their service delivery potential and benefits, and to minimize their related risks and costs over their entire life.
LEGISLATIVE FRAMEWORK FOR ASSEST MANAGEMENT
In terms of Section 63 of the MFMA: (1) The accounting officer of a municipality is responsible for the
management of—(a) the assets of the municipality, including the safeguarding and
the maintenance of those assets; and(b) the liabilities of the municipality.
(2) The accounting officer must for the purposes of subsection (1) take all reasonable steps to ensure—(a) that the municipality has and maintains a management,
accounting and information system that accounts for the assets and liabilities of the municipality;
(b) that the municipality’s assets and liabilities are valued in accordance with standards of generally recognised accounting practice; and
(c) that the municipality has and maintains a system of internal control of assets and liabilities, including an asset and liabilities register, as may be prescribed.
Supported by Section 55 of the MSA.
• In terms of section 73(2)(c) of the MSA the services provided by the municipality must be, amongst other requirements, be financiallysustainable.
• Chapter 1 of the MSA defines financial sustainability in relation to the provision of a municipal services in a manner aimed at ensuring that the financing of that service from internal and external sources, including budgeted income, grants and subsidies for the service, is sufficient to cover the costs of:
(i) the initial capital expenditure required for the service;(ii) operating the service; and(iii) maintaining, repairing and replacing the physical assets used in
the provision.
LEGISLATIVE FRAMEWORK FOR ASSEST MANAGEMENT
PURPOSE OF GUIDELINES
The “Guidelines for IAM in Local Government”:
• meets legislative requirements• supports improvement in the strategic management of municipal infrastructure
assets towards sustainable improvements in service delivery;• describes a framework to facilitate the preparation of sector-specific IAMP’s
and the aggregation of these into CMIP’s;• provides guidelines on the core principles, methodology and basic techniques
for AM;• draws on international best practice, and interpret these for local conditions;
and• considers the management of the following municipal services:
Community facilities and administration buildingsElectricity
Solid waste servicesSanitation
Roads, street lighting and stormwater drainageWater
What is a Infrastructure Asset Management Plan?
• A plan developed for the management of Infrastructure Assets with the aim of providing specified levels of service in a cost-effective manner, now and in the future.
• Multi-disciplinary management techniques (including technical and financial) are combined to determine the aggregated asset life-cycle needs.
• A significant component of the plan is a long-term cashflow.
2
What is Comprehensive Municipal Infrastructure Plans?
A plan that provides a holistic overview of existing service performance, a vision of future performance scenarios, the risks, priorities, funding and tariff implications, as a strategic input to the IDP process.
STRATEGIC FRAMEWORK FOR IAM (Cont’d)
The CMIP:• Contains summarised inputs from the IAMPs, and represents the integrated
infrastructure component of the IDP.
• This arrangement allows for:– optimised decision-making, – considered organisational level investments in infrastructure and cross-
subsidy arrangements; and– Effective replicable improvements in infrastructure management practices
across sectors.
Comprehensive Municipal Infrastructure Plans (CMIPs):
The preparation of these plans will, amongst other, enable municipalities to:
• rank projects and develop budgets based on an holistic view of local needs & priorities;
• assess optimum funding arrangements; and
• demonstrate their ability to effectively manage and maintain infrastructure investments.
WHY?
• During analysis of information from sector departments it was revealed that there is a weighted average of about 3.2 million households (out of an average of 12.8 million, i.e. 26%) without services (water, sanitation, electricity and solid waste). This backlog requires an estimated budget of R63 billion. Additional amounts would be required for roads, public infrastructure and refurbishment.
• The backlog reflects that there is asymmetry in infrastructure services delivery because approximately 26% of households are still without infrastructure in one or several services. This could only be resolved through decentralised comprehensive infrastructure planning.
Factors that will Promote Acceleration
• Infrastructure and Service Provision– Close funding gaps– Technical and management capacity– Water resources– Bulk infrastructure especially in rural areas– Institutional arrangements (IGR, Powers and Functions)– Policy issues– Agreement on data, statistics, service levels and standards– Differentiated support approach– Technology innovations– Refurbishment and rehabilitation– Forward planning and project and contract
management
3
Factors that will Promote Acceleration
• National Project and Contract Management Facility
– Convert national targets into projects with clear activities anddeliverables per municipality and per sector
– Manage delivery directly in areas where there is no capacity
– Simultaneously build infrastructure planning and management capability in provinces and municipalities
– Undertake and build capacity for Comprehensive Infrastructure Plans
• It is recommended that Cabinet notes progress on the report on municipal infrastructure backlogs and the provision of sustainable infrastructure services and support: (i) the different streams derived from the analysis and proposed interventions based on the perceived challenges per stream; (ii) development of comprehensive infrastructure plans per municipality to address the full life cycle of infrastructure with concomitant budgets; and (iii) the sector departments to develop sector support strategies and to enhance the existing sector master plans so as to inform the Comprehensive Infrastructure Plans (CIPs) of municipalities by the end of May 2007.
• It is also recommended that Cabinet approves the allocation of 1% of the 2007/8 MTEF Municipal Infrastructure Grant (MIG) allocation towards the development of CIPs.
Proposal by DPLG
Way Forward
• Implementation plan
• Support from dplg to provinces– Guidelines– Toolkit
• Roll out by provinces
• Possible funding to support municipalities
ANNEXURE C30
1
Presentation MIG Progress
DEC 2007
Progress as end December 2006
Water supply is the most important basic service funded through MIG to poor communities in South Africa. Water services projects registered make up 45% of the total MIG value of registered residential projects at dplg.
The next two biggest funding categories on MIG were sanitation (26%) and roads (23%) .
WaterSanitationRoadsStormwaterStreet / Community LightingSolid Waste Removal26%
23%
2% 1%3%
45%
Progress as end December 2006
Since the start of MIG, R28 911.88 million (The total value of all the MIG projects, including the multi-year projects, registered on the dplg database) has been allocated to the B, P and E funding.
The bulk of the funding for registered projects in the programme is funded from MIG and is 89.09% of the total source of funding to date.
The contribution from the public (e.g. municipality’s own funds) and private sectors are 10.61% and 0.30% respectively since the inception of MIG.
Million % B (basic residential infrastructure) R25 757.58 89.09 P (public municipal service infrastructures) R3 066.67 10.61 E (social institutions and micro-enterprises infrastructures) R87.63
0,30
Total R28 911.88 100,00
Progress as end December 2006Up to the end of December 2006, 21 657 432 person days employment opportunities have been created through MIG projects. The employment opportunities for women (including female youth and disabled persons) in person days expressed, as a percentage was 34% of the total employment opportunities. The employment of youth was 37% of the total employment opportunities.
Employment on MIG Projects
20.48%
41.46%
13.17%
24.01%0.55%0.32%
Women Men Youth (Female) Youth (Male) Disabled (Female) Disabled (Male)
Progress as end September 2006
At the end of December 2006 the total number of Small Medium and Macro Enterprises is 1 605 and 976 Black Economic Empowerment companies was involved on implemented MIG projects by the municipalities.
Project Status of all (B-,P-& E Components) projects Up to September 06 Up to December 06Pre-Implementation 778 786 Design / Tender 745 880 Construction 2,504 2,664 Completed 2,168 2,276 Total 6,195 6,606
Progress as end September 2006As at December 2006, 3,636,438 households have been serviced on completed MIG projects since the inception of MIG in April 2004.
Households serviced on Completed Projects Up to September
2006October-
December
Up to December
2006Water 769,107 206,317 975,424Sanitation 300,794 90,362 391,156Roads 512,009 35,891 547,900Multi purposes community halls 164,445 11,734 176,179Multi purposes sport centre / fields 198,144 20,754 218,898Parks and open spaces 439 0 439
2
Municipal Infrastructure Municipal Infrastructure Grant: CommitmentsGrant: Commitments
Commitments as at March 2007
Municipal Infrastructure Grant National Financial Year
Eastern Cape 99% 88% 72%Free State 95% 55% 36%Gauteng 100% 47% 7%KwaZulu Natal 97% 92% 61%Limpopo 100% 90% 25%Mpumalanga 92% 68% 36%Northern Cape 97% 63% 66%North West 100% 79% 62%Western Cape 100% 90% 48%National 98% 76% 46%
Province 2006/07 (R'000)
2007/08 (R'000)
2008/09 (R'000)
INTERVENTIONS AND CHALLENGES
GENERAL CHALLENGES FACING MUNICIPALITIES
• Planning in the context of Integrated Development Planning.
• Intergovernmental cooperation (municipalities, provinces, and sector departments involvement in MIG implementation)
• Overlapping of financial years (national and municipal)• Lack of capacity to manage MIG projects (Project
Management Units)• Supply chain management• Technical reports and Environmental Impact Assessment
THANK YOU
ANNEXURE C31
11
PRESENTATION PRESENTATION MUNICIPAL SERVICES
TURN AROUND PROJECTS
AND
COST RECOVERY
KHUVUTLU: WATER, CONSULTING, ROADS & SERVICES cc
Kkkw KHUVUTLU: WATER, CONSULTING, ROADS &
SERVICES cc
22
PRESENTATION OVERVIEWPRESENTATION OVERVIEW
1. PURPOSE OF PRESENTATION
2. INTRODUCTION OF KWCRS cc
3. TURN AROUND & COST RECOVERY PROJECTS
3.1 GREATER GIYANI TURN AROUND PROJECT
3.2 BA-PHALABORWA MUNCIPALITY TURN AROUND STRATEGY
3.3 BUSHBUCKRIDGE DEBT MANAGEMENT / COST RECOVERY
3.4 ELANDSKRAAL COST RECOVERY
6. FUNDING OF PROJECTS
7. CONCLUSION
KHUVUTLU: WATER, CONSULTING, ROADS & SERVICES cc
Kkkw
33
1. PURPOSE 1. PURPOSE
TO SHARE BEST PRACTICES ON COST RECOVERY MANAGEMENT IN TO SHARE BEST PRACTICES ON COST RECOVERY MANAGEMENT IN PERIPERI--URBAN AREAS.URBAN AREAS.
TO PROVIDE FIRST HAND EXPIERENCE ON STRATEGIC COMMUNITY TO PROVIDE FIRST HAND EXPIERENCE ON STRATEGIC COMMUNITY MANAGEMENT FOR PAYMENT OF MUNICIPAL SERVICES. MANAGEMENT FOR PAYMENT OF MUNICIPAL SERVICES.
TO PRESENT SERVICES OFFERED BY KWCRS TO DEPARTMENT OF TO PRESENT SERVICES OFFERED BY KWCRS TO DEPARTMENT OF LOCAL GOVERNMENT & HOUSING.LOCAL GOVERNMENT & HOUSING.
TO SHARE EXPERIENCES ON COST RECOVERY PROJECTS GAINED AT TO SHARE EXPERIENCES ON COST RECOVERY PROJECTS GAINED AT MUNICIPALITIES.MUNICIPALITIES.
SHARE IDEAS ON POTENTIAL COST RECOVERY STRATEGIES FOR THE SHARE IDEAS ON POTENTIAL COST RECOVERY STRATEGIES FOR THE PERI PERI ––URBAN AREAS.URBAN AREAS.
TO SHARE NEW APPROACH TO ELIMINATION OF SERICES BACKLOG TO SHARE NEW APPROACH TO ELIMINATION OF SERICES BACKLOG ON EXISTING INFRASTRUCTURE.ON EXISTING INFRASTRUCTURE.
KHUVUTLU: WATER, CONSULTING, ROADS & SERVICES cc
Kkkw
44
COMPANY BACKGROUND COMPANY BACKGROUND
(KWCRS)THE “KEEN WATER CARE AND RELATED SERVICES” PROVIDER
KHUVUTLU: WATER, CONSULTING, ROADS & SERVICES cc
55
OUR COMPANYOUR COMPANYCOMPANY OWNERSHIP
- 100% owned by historically disadvantaged black professionals
- 25% are youth i.e. 35 years and younger- 25% ownership belongs to women
STAFF PROFILE
- 100% management in the hands of black South African professionals.
- 33% of management are black women- 44% of management are youth- 75% of shareholders are working fulltime in the company- The company has 44 permanent employees with full benefits
i.e. pension, funeral cover, life cover, registered with UIF, OHSACT, Professional Indemnity Insurance
KHUVUTLU: WATER, CONSULTING, ROADS & SERVICES cc
66
OUR SERVICESOUR SERVICES
Water & Waste Water Management
Operations & maintenance of water systems
Customer Management
Capacity Building
Electrical & Mechanical maintenance
Institutional Design & Organizational Development
Feasibility Assessment
Training & Development
Programme / Project Management & Coordination
Rural Development & Municipal Infrastructure
Consultancy services
Roads & Stormwater Design & Supervision
Road rehabilitation work & Maintenance
Geometric & Pavement Design
KHUVUTLU: WATER, CONSULTING, ROADS & SERVICES cc
77
OUR COMPANYOUR COMPANYOFFICE LOCATIONS:
POLOKWANE:38A Bodenstein Street/37 Compensatie Street
THOHOYANDOU:182A Sibasa, Thohoyandou
GIYANI:518 E Giyani
PHALABORWA:13 Appelblaar Street
MIDRAND:1332 Ground Floor Montrose Place waterfall Office Park
KHUVUTLU: WATER, CONSULTING, ROADS & SERVICES cc
Kkkw
88
BACKGROUNDBACKGROUNDMunicipalities in Limpopo like many others Municipalities in Limpopo like many others are faced with the following challenges:are faced with the following challenges:
Many Municipalities being newly established Many Municipalities being newly established
Changes in demarcationChanges in demarcation
Changes in powers & functions e.g.: new water Changes in powers & functions e.g.: new water services authorities. services authorities. Increase in none payment of municipal servicesIncrease in none payment of municipal services
Kkkw
99
PROJECT LOCATIONPROJECT LOCATION
1010
PROJECT LOCATIONPROJECT LOCATION
1111
PROJECT LOCATIONPROJECT LOCATION
1212
TURN AROUND PROJECT
BABA--PHALABORWA MUNICIPALITY OPERATED SCHEMES SUPPLYING PHALABORWA MUNICIPALITY OPERATED SCHEMES SUPPLYING THE TOWN ONLY.THE TOWN ONLY.
THE BATHE BA--PHALABORWA MUNICIPALITY RECEIVED SCHEMES FROM PHALABORWA MUNICIPALITY RECEIVED SCHEMES FROM DWAF, SERVICING 293 TOWNS AND SURROUNDING VILLAGES. DWAF, SERVICING 293 TOWNS AND SURROUNDING VILLAGES.
TRANSFER ARRANGEMNT WAS ACCOMPANIED BY 3 YEAR PHASED TRANSFER ARRANGEMNT WAS ACCOMPANIED BY 3 YEAR PHASED OUT SUBSIDY FROM DWAF OUT SUBSIDY FROM DWAF
POOR PAYMENT CULTURE FOR SERVICES IN THE AREA SUPPLIED BY POOR PAYMENT CULTURE FOR SERVICES IN THE AREA SUPPLIED BY DWAF SCHEMESDWAF SCHEMES
HIGH CONSUMPTIONS AVERAGE 94 KL/MONTH / HOUSEHOLD HIGH CONSUMPTIONS AVERAGE 94 KL/MONTH / HOUSEHOLD OCTOBER 2004OCTOBER 2004
LOCAL MUNICIPALITY WAS UNABLE TO SERVICE BULK WATER LOCAL MUNICIPALITY WAS UNABLE TO SERVICE BULK WATER ACCOUNT.ACCOUNT.
LIMITED BILLING COVERAGE LIMITED BILLING COVERAGE
ILEGAL CONNECTIONSILEGAL CONNECTIONS
BABA--PHALABORWA LOCAL MUNICIPALITYPHALABORWA LOCAL MUNICIPALITY
Kkkw
1313
ACHIEVEMENTSACHIEVEMENTS
TURN AROUND PROJECT
UPWARD TRENDUPWARD TREND15%15%% RECOVERY BILLED TO % RECOVERY BILLED TO PRODUCEDPRODUCED
UPWARD TRENDUPWARD TREND25%25%% RECOVERY PAID TO BILLED% RECOVERY PAID TO BILLED
IST AND LAST THREE MONTHSIST AND LAST THREE MONTHS144%144%AVERAGE PAYMENT LEVEL BY AVERAGE PAYMENT LEVEL BY NUMBERNUMBER
1ST AND LAST THREE MONTHS1ST AND LAST THREE MONTHS56%56%AVERAGE PAYMENT LEVEL BY AVERAGE PAYMENT LEVEL BY VALUEVALUE
UPWARD TRENDUPWARD TREND60%60%PAYMENT LEVEL BY VALUEPAYMENT LEVEL BY VALUE
METERS REPLACED, REPAIRED & METERS REPLACED, REPAIRED & INSTALLEDINSTALLED
55%55%CUSTOMER DATABASECUSTOMER DATABASE
REMARKSREMARKSINCREASEINCREASE
29 MONTHS
KHUVUTLU: WATER, CONSULTING, ROADS & SERVICES cc
BABA--PHALABORWA LOCAL MUNICIPALITYPHALABORWA LOCAL MUNICIPALITY
1414
PROJECT LOCATIONPROJECT LOCATION
1515
PROJECT LOCATIONPROJECT LOCATION
1616
PROJECT LOCATIONPROJECT LOCATION
1717
GIYANI MUNICIPALITY AREA EXPRIENCING WATER CRISIS.GIYANI MUNICIPALITY AREA EXPRIENCING WATER CRISIS.
MOPANI DISTRICT MUNICIPALITY WANTED TO EXPAND WATER MOPANI DISTRICT MUNICIPALITY WANTED TO EXPAND WATER SYSTEM AT MIDDLE LETABA TO ADDRESS THE PROBLEM.SYSTEM AT MIDDLE LETABA TO ADDRESS THE PROBLEM.
DWAF NATIONAL INSISTED ON WATER DEMAND MANAGEMENT TO BE DWAF NATIONAL INSISTED ON WATER DEMAND MANAGEMENT TO BE IMPLEMENTED AND DISAPROVED EXPANSIONS. IMPLEMENTED AND DISAPROVED EXPANSIONS.
POOR PAYMENT FOR SERVICES WAS RIPE IN THE AREA.POOR PAYMENT FOR SERVICES WAS RIPE IN THE AREA.
IRREGULAR BILLING. IRREGULAR BILLING.
CUSTOMER LOST CONFIDENCE ON BILLING PROCESS.CUSTOMER LOST CONFIDENCE ON BILLING PROCESS.
HUGE DEBT FOR CUSTOMERS, SOME NEVER HAVING PAID FOR IN THE HUGE DEBT FOR CUSTOMERS, SOME NEVER HAVING PAID FOR IN THE PAST 4 YEARS AND AVERAGE DEBT WAS R7 000.00 PER CUSTOMER.PAST 4 YEARS AND AVERAGE DEBT WAS R7 000.00 PER CUSTOMER.
GIYANI LOCAL MUNICIPALITY GIYANI LOCAL MUNICIPALITY
TURN AROUND PROJECT
KHUVUTLU: WATER, CONSULTING, ROADS & SERVICES cc 1818
TURN AROUND PROJECT
32,12%32,12%% RECOVERY PAID TO PRODUCED% RECOVERY PAID TO PRODUCED
53,1%53,1%% RECOVERY PAID TO BILLED% RECOVERY PAID TO BILLED
IST AND LAST THREE MONTHSIST AND LAST THREE MONTHS2790%2790%AVERAGE PAYMENT LEVEL BY AVERAGE PAYMENT LEVEL BY NUMBERNUMBER
2791%2791%PAYMENT LEVEL BY NUMBERPAYMENT LEVEL BY NUMBER
1ST AND LAST THREE MONTHS1ST AND LAST THREE MONTHS583%583%AVERAGE PAYMENT LEVEL BY AVERAGE PAYMENT LEVEL BY VALUEVALUE
632%632%PAYMENT LEVEL BY VALUEPAYMENT LEVEL BY VALUE
RECEIVING SERVICES BUT NOT RECEIVING SERVICES BUT NOT BEING BILLEDBEING BILLED
25%25%CUSTOMER DATABASECUSTOMER DATABASE
REMARKSREMARKSINCREASEINCREASE
41 MONTHS
KHUVUTLU: WATER, CONSULTING, ROADS & SERVICES cc
ACHIEVEMENTSACHIEVEMENTSGIYANI LOCAL MUNICIPALITY GIYANI LOCAL MUNICIPALITY
1919
PROJECT LOCATIONPROJECT LOCATION
2020
PROJECT LOCATIONPROJECT LOCATION
2121
PROJECT LOCATIONPROJECT LOCATION
2222
BACKGROUNDBACKGROUND
PAYMENT LEVEL FOR SERVICES ACCOUNTS VERY LOW PAYMENT LEVEL FOR SERVICES ACCOUNTS VERY LOW ASSESSMENT RATES INTRODUCED & WORSENED THE PAYMENT RATE. ASSESSMENT RATES INTRODUCED & WORSENED THE PAYMENT RATE. INACCURATE BILLING FOR VARIOUS SERVICES AMOUNTS INACCURATE BILLING FOR VARIOUS SERVICES AMOUNTS
ACHIEVEMENTSACHIEVEMENTS
DATA CLEANSING & ACCURATE BILLING & PROPER ACCOUNTS MANAGEMENTDATA CLEANSING & ACCURATE BILLING & PROPER ACCOUNTS MANAGEMENTADVISE MUNICIPALITY ON DEBT COLLECTION STRATEGY & IMPLEMENTATIONADVISE MUNICIPALITY ON DEBT COLLECTION STRATEGY & IMPLEMENTATIONTHEREOFTHEREOFMUNICIPALITY OFFICIALS, COUNCILLORS & COMMUNITY AWARENESS CAMPAIMUNICIPALITY OFFICIALS, COUNCILLORS & COMMUNITY AWARENESS CAMPAINS ON NS ON ALL COST RECOVERY ASPECTSALL COST RECOVERY ASPECTSTRAINING OF MUNICIPALITY OFFICIALS. TRAINING OF MUNICIPALITY OFFICIALS. PAYMENT RATE INCREASED FROM 35% TO 64%PAYMENT RATE INCREASED FROM 35% TO 64%
BUSHBUCKRIDGE LOCAL MUNICIPALITY BUSHBUCKRIDGE LOCAL MUNICIPALITY
DEBT COLLECTION & REVENUE MANAGEMENT
KHUVUTLU: WATER, CONSULTING, ROADS & SERVICES cc
Kkkw
2323
PROJECT LOCATIONPROJECT LOCATION
2424
PROJECT LOCATIONPROJECT LOCATION
2525
PROJECT LOCATIONPROJECT LOCATION
2626
BACKGROUND
A NEED TO IMPLEMENT WATER DEMAND MANAGEMENT A NEED TO IMPLEMENT WATER DEMAND MANAGEMENT & COST RECOVERY WAS IDENTIFIED AT THE 4 & COST RECOVERY WAS IDENTIFIED AT THE 4 VILLAGES. VILLAGES.
METERS WERE INSTALLED IN ALL +4 500 UNITS METERS WERE INSTALLED IN ALL +4 500 UNITS
A SERIOUS WATER SUPPLY PROBLEM A SERIOUS WATER SUPPLY PROBLEM
KHUVUTLU: WATER, CONSULTING, ROADS & SERVICES cc
Kkkw
COST RECOVERYFLAG BOSHIELO WEST WATER SUPPLY
(ELANDSKRAAL, REGAE, MBUZINI & MORARELA)
2727
ACHIEVEMENTS
PROJECT COORDINATION COMMITTEE ESTABLISHED.PROJECT COORDINATION COMMITTEE ESTABLISHED.
MAINTENANCE TEAM AND MAINTENANCE PROGRAMME WAS PUT IN PLACEMAINTENANCE TEAM AND MAINTENANCE PROGRAMME WAS PUT IN PLACE
CONSUMER EDUCATION (WORKSHOP & MASS MEETINGS) ON THE PROPER CONSUMER EDUCATION (WORKSHOP & MASS MEETINGS) ON THE PROPER USAGE OF WATER, FBW POLICY IMPLEMENTATION, CREDIT CONTROL USAGE OF WATER, FBW POLICY IMPLEMENTATION, CREDIT CONTROL POLICY ETC.) POLICY ETC.)
NEIGHBORING VILLAGES (DICHOENG & KLIPHUIWEL) NOT RECEIVING NEIGHBORING VILLAGES (DICHOENG & KLIPHUIWEL) NOT RECEIVING WATER AT ALL. WATER AT ALL. WATER SUPPLY CURRENTLY 24 HOURSWATER SUPPLY CURRENTLY 24 HOURSPAYMENT LEVEL CURRENTLY AT 10% PAYMENT LEVEL CURRENTLY AT 10% CREDIT CONTROL IMPLEMENTATION STARTED CREDIT CONTROL IMPLEMENTATION STARTED ENVISAGED PAYMENT LEVEL FOR OCTOBER IS AT 60%ENVISAGED PAYMENT LEVEL FOR OCTOBER IS AT 60%
KHUVUTLU: WATER, CONSULTING, ROADS & SERVICES cc
Kkkw
COST RECOVERYFLAG BOSHIELO WEST WATER SUPPLY
(ELANDSKRAAL, REGAE, MBUZINI & MORARELA)
2828
FUNDING OF THE PROJECTFUNDING OF THE PROJECTVARIOUS FUNDING SOURCES BASED ON COMPONENTS:
1. INFRASTRUCTURE RELATED: DOMESTIC WATER METER – CHINESE GRANT MATERIALSEXTENSION OF RETICULATION – MIG
2. FREE BASIC WATER IMPLEMENTATION MANAGEMENT: MASIBAMBANE FUNDS EQUITABLE SHARE FBS COMPONENT
3. COST RECOVERY RELATED ACTIVITIES PERCENTAGE BASED ON COLLECTED AMOUNT
4. MUNICIPAL IMPROVEMENT GRANT (DLGH/DPLG) Kkkw
KHUVUTLU: WATER, CONSULTING, ROADS & SERVICES cc
2929
CONCLUSIONCONCLUSIONMIG to consider funding such projects MIG to consider funding such projects
Existing infrastructure can be brought to functionality Existing infrastructure can be brought to functionality through the Turn around / Cost Recovery project.through the Turn around / Cost Recovery project.
The water demand can be greatly reduced.The water demand can be greatly reduced.
Viability of the Water Services greatly improved. Viability of the Water Services greatly improved.
Kkkw
3030
THANK YOUTHANK YOUKkkw
ANNEXURE C32
1
Regional Bulk Water Services Regional Bulk Water Services InfrastructureInfrastructure
25 April 200725 April 2007Fred van Fred van ZylZyl
PurposePurpose
•• This is a specific purpose capital grant to supplement the This is a specific purpose capital grant to supplement the financing of the social component of regional bulk water financing of the social component of regional bulk water & sanitation infrastructure& sanitation infrastructure
•• Only for Regional Bulk water services infrastructureOnly for Regional Bulk water services infrastructure•• Focus on Focus on …… RegionalRegional•• Only social componentOnly social component•• It is NOT for internal bulkIt is NOT for internal bulk•• Motivation Motivation
–– Different characterDifferent character–– Scope & extent Scope & extent –– TopTop--up funding requirement.up funding requirement.
Definition Definition
•• Regional bulk is defined as infrastructure Regional bulk is defined as infrastructure required to connect a water resource on a required to connect a water resource on a regional scale over vast distances with regional scale over vast distances with internal bulk and reticulation systems. It is internal bulk and reticulation systems. It is also defined as large bulk infrastructure also defined as large bulk infrastructure serving numerous communities over a large serving numerous communities over a large area.area.
Regional Bulk: Rules of the GameRegional Bulk: Rules of the Game•• Only for regional bulk infrastructureOnly for regional bulk infrastructure•• Only for social componentOnly for social component•• No duplication (only coNo duplication (only co--funding)funding)•• Proven implementation readinessProven implementation readiness•• Confirmed need & solution (Acceptability)Confirmed need & solution (Acceptability)
–– TechnicalTechnical–– Water resourcesWater resources–– Environmental & legislativeEnvironmental & legislative–– Governance e.g. IDPGovernance e.g. IDP
•• Institutional arrangement in placeInstitutional arrangement in place–– ImplementationImplementation–– O&M (Sustained management)O&M (Sustained management)–– OwnershipOwnership
•• Financing confirmed: Social & Economic component.Financing confirmed: Social & Economic component.
Special conditions as per Special conditions as per DoRADoRA
•• DWAF must ensure appropriate involvementDWAF must ensure appropriate involvement•• Role players must understand implicationsRole players must understand implications•• Agreement to be reached on:Agreement to be reached on:
–– OwnershipOwnership–– ImplementationImplementation–– Operation & MaintenanceOperation & Maintenance–– Social & Economic component fundingSocial & Economic component fundingPrior to implementationPrior to implementation
•• The above mentioned implies total business The above mentioned implies total business planning.planning.
Features & CharacteristicsFeatures & Characteristics
•• Scope & extentScope & extent•• Water resource development Water resource development •• Social AND Economic developmentSocial AND Economic development•• Total needs services & supportTotal needs services & support•• ComplexityComplexity•• Institutional arrangementsInstitutional arrangements•• Financial planning & financing Financial planning & financing •• SustainabilitySustainability•• Enabling infrastructureEnabling infrastructure•• Longer term developmentLonger term development•• Environmental implicationsEnvironmental implications•• Master infrastructure reference system.Master infrastructure reference system.
2
ImplicationsImplications
•• Requires macro planningRequires macro planning•• Requires technical planningRequires technical planning•• As well as As well as ……
–– Sustainability planning & arrangementsSustainability planning & arrangements–– Institutional planning & arrangementsInstitutional planning & arrangements–– Financial planning & arrangementsFinancial planning & arrangements
Funding Funding
•• Allocation:Allocation:–– 07/08 07/08 …… R300 millionR300 million–– 08/09 08/09 …… R450 millionR450 million–– 09/10 09/10 …… R650 millionR650 million
•• NB: Fund small compared to MIG:NB: Fund small compared to MIG:–– 8.6% of annual MIG8.6% of annual MIG……relative small impactrelative small impact
•• Fund transferred to DWAF as schedule 7 grant: Grant in Fund transferred to DWAF as schedule 7 grant: Grant in kindkind
•• Grant split:Grant split:–– R7m/a for regional managementR7m/a for regional management–– R40R40--50m/a for planning: to ensure implementation readiness50m/a for planning: to ensure implementation readiness–– Remainder for implementation.Remainder for implementation.
Project NominationProject Nomination3 Categories3 Categories
1. SA Overview1. SA Overview 2. Feasibility2. Feasibility3. Annual 3. Annual
Implementation Implementation readyready
Nomination Process (Implementation ready)Nomination Process (Implementation ready)
•• Nomination profile & checklist sheets developedNomination profile & checklist sheets developed•• Allocation not formula driven Allocation not formula driven •• Allocation based on caseAllocation based on case--byby--case and meritcase and merit•• Nomination received through DWAF Regions Nomination received through DWAF Regions (not all (not all
nominations valid) (MIG alignment to be implemented)nominations valid) (MIG alignment to be implemented)•• Self validationSelf validation•• Regional validation & assessmentRegional validation & assessment•• Macro assessment & adjudication panelMacro assessment & adjudication panel•• Cash flow based on logical functional components to be Cash flow based on logical functional components to be
delivered (Multi year)delivered (Multi year)•• DWAF management signDWAF management sign--off.off.
Specific issuesSpecific issues
•• Ownership Ownership •• Implementation (Model, capacity)Implementation (Model, capacity)•• Operation & maintenanceOperation & maintenance•• Funding (especially coFunding (especially co--funding)funding)•• MIG alignmentMIG alignment•• Planning.Planning.
Issues & ExpectationsIssues & Expectations•• Bulk fund not a magic wandBulk fund not a magic wand
–– Fund only 8.6% of MIGFund only 8.6% of MIG–– MIG: 07/08 = R3.5m and 08/09 = R4.3mMIG: 07/08 = R3.5m and 08/09 = R4.3m–– So ?So ?
•• Projects nominated: Projects nominated: –– Many not regional bulkMany not regional bulk–– Many not implementation readyMany not implementation ready
•• Extent of bulk projects:Extent of bulk projects:–– Requires extensive integrated planning, institutional arrangemenRequires extensive integrated planning, institutional arrangements & ts &
financingfinancing–– Project consist of social & economic components Project consist of social & economic components –– requires total planningrequires total planning
•• Cost of projects:Cost of projects:–– Many projects costs is in the order of R400m to R1.2bMany projects costs is in the order of R400m to R1.2b–– Fund allocation very small compared to requirementsFund allocation very small compared to requirements–– Many schemes to be split into smaller functional delivery unitsMany schemes to be split into smaller functional delivery units–– Total demand exceed available funds by far e.g. de Hoop water seTotal demand exceed available funds by far e.g. de Hoop water services rvices
infrastructure = R3b excluding reticulation. Zululand bulk requiinfrastructure = R3b excluding reticulation. Zululand bulk requires R1.2b.res R1.2b.
3
Actions Actions •• Policy document availablePolicy document available•• Project Checklist developed Project Checklist developed •• Nomination process for 2008 99% complete (need some Nomination process for 2008 99% complete (need some
confirmation, validation & budget reconciliation)confirmation, validation & budget reconciliation)•• Project profiles being capturedProject profiles being captured•• Project list 2009 being finalizedProject list 2009 being finalized•• Task Teams established to support institutional as well as waterTask Teams established to support institutional as well as water
resources componentsresources components•• Feasibility guide: 80% complete Feasibility guide: 80% complete •• Feasibility & implementation readiness task teamsFeasibility & implementation readiness task teams•• Funding allocation to Regions by mid to end MayFunding allocation to Regions by mid to end May•• Expert teams: Institutional, Financing & Implementation supportExpert teams: Institutional, Financing & Implementation support•• National infrastructure overview in progress.National infrastructure overview in progress.
2008 Project List 2008 Project List
ProvinceProvince 2008 2008 ImplementationImplementation FeasibilitiesFeasibilities CommentsComments
ECEC R19.5m*R19.5m* R8.00mR8.00m Projects to be confirmed & Projects to be confirmed & allocation finalizedallocation finalized
FSFS R38.1mR38.1m R2.15mR2.15m Focus on bucketsFocus on buckets
KZNKZN R70mR70m R4mR4mLPLP R72.5mR72.5m R8.55mR8.55mMPMP R30mR30m R2.57mR2.57mNCNC R5mR5m R2.3mR2.3mNWNW R20mR20m R1mR1mGPGP R0R0 R1.5mR1.5mWCWC R0R0 R4mR4m
TotalTotal R258.9mR258.9m R34.1mR34.1m R7m ManagementR7m Management
••Allocation already committed R1.2bAllocation already committed R1.2b••Actual requests exceeding R13bActual requests exceeding R13b
Critical requirements Critical requirements
•• SA overview:SA overview:–– Regional perspective & requirementRegional perspective & requirement–– Financial requirementsFinancial requirements
•• Internal bulkInternal bulk–– SA requirementSA requirement–– Asset managementAsset management–– New, replacement, extensions, refurbishment, growth New, replacement, extensions, refurbishment, growth
& development& development–– FundingFunding
•• MIG alignment MIG alignment –– Infrastructure master plans.Infrastructure master plans.
EndEnd
ANNEXURE C33
1
Water Supply & Sanitation: Making it Water Supply & Sanitation: Making it happen !happen !
The ENDThe END
In sight!In sight!
Buckets 2007Buckets 2007Clinics 2007Clinics 2007
Water supply 2008Water supply 2008Sanitation 2010Sanitation 2010Schools 2008/10Schools 2008/10Program 2010Program 2010
The JourneyThe Journey
Buckets 9 monthsBuckets 9 monthsClinics 9 monthsClinics 9 months
Water supply 21 monthsWater supply 21 monthsSanitation 45 monthsSanitation 45 months
Schools 21/45 months?Schools 21/45 months?Program 2010: 33 monthsProgram 2010: 33 months
SO ?SO ?
PresidentPresident’’s Office Requirements Office Requirement
•• We have to indicate how we will succeed We have to indicate how we will succeed and submit convergence graphs.and submit convergence graphs.
Reality Check Reality Check -- Water SupplyWater Supply
8.2 million 8.2 million peoplepeople
16.2+ 16.2+ MillionMillion
20062006 2006/72006/7 20072007
••Access to basic infrastructure Access to basic infrastructure –– 8.8m8.8m••Infrastructure but not functional Infrastructure but not functional –– 5m5m••Higher service levels Higher service levels -- ??••Housing solutions Housing solutions –– 1.2+1.2+
2
Western Cape Perspective Example Western Cape Perspective Example (Sanitation HH backlog 2006)(Sanitation HH backlog 2006)
Formal Formal HHHH
Informal Informal HousingHousing
Shared Shared servicesservices
Backyard Backyard dwellers dwellers with SSwith SS
TotalTotal GrowthGrowth
9,9009,900 14,60014,600 141,000141,000 254,000254,000 419,000419,000 177,000177,000
Housing Solution: R10.4 billion for WSHousing Solution: R10.4 billion for WS
InterventionIntervention
Reality Check Reality Check -- Water SupplyWater Supply
8.2 million 8.2 million peoplepeople
16.2+ Million16.2+ Million
20062006
--
2006/72006/7
1.2 million 1.2 million deliverydelivery
7 million 7 million people over 2 people over 2
yearsyears
20072007
Reality Check Reality Check -- Water SupplyWater Supply
3.5 million 3.5 million people +people +
200720072006/72006/7
1.2 million 1.2 million deliverydelivery
3.5 million 3.5 million people ++people ++
20082008
2 million 2 million peoplepeople
5.2 million 5.2 million peoplepeople
??Reality Check Reality Check -- SanitationSanitation
3.8 million 3.8 million HHHH
4.7 m4.7 m HHHH
20062006
--
2006/72006/7
0.1 million 0.1 million HH deliveryHH delivery
3.7 million 3.7 million HH over 4 HH over 4
yearsyears
20072007
0.9 m 0.9 m HH +HH +
20072007
0.9 m 0.9 m HH +HH +
20082008
0.9 m 0.9 m HH HH ++++
20092009
0.9 m 0.9 m HH HH ++++
20102010
Reality Check Reality Check -- SanitationSanitation2006/72006/7
0.1 m HH 0.1 m HH deliverydelivery
0.3 m 0.3 m HHHH
1.2 m 1.2 m HHHH
0.6 m 0.6 m HHHH
1.6 m 1.6 m HHHH
??ActionAction
•• Leadership and drive: handsLeadership and drive: hands--on controlon control•• Dedicated management/ Dedicated management/ programmeprogramme•• Challenge definitionChallenge definition•• Reality action plan: March 2007Reality action plan: March 2007
–– Clarity on goals to be deliveredClarity on goals to be delivered–– deliverablesdeliverables–– Funding reconciliationFunding reconciliation–– Effort reconciliationEffort reconciliation–– Existing actions and projects alignmentExisting actions and projects alignment
•• Implementation models and delivery mechanismsImplementation models and delivery mechanisms•• Intervention and delivery actionsIntervention and delivery actions•• Resource Resource mobilisationmobilisation e.g. Funding.e.g. Funding.
3
Choices: Areas of InterventionChoices: Areas of Intervention
Goals & Goals & ExpectatiExpectati
onsons
11
ResourceResourcess
22 Process & Process & ImplementatImplementation Modelion Model
33
Leakage & Leakage & Quality Quality controlcontrol
44
Reconciliation, Reconciliation, Integration & Integration &
Strategic/Tactical Strategic/Tactical managementmanagement
55
Situation/NeedsSituation/Needs Successful outcomeSuccessful outcome
Choices: Areas of InterventionChoices: Areas of Intervention
Goals & Goals & ExpectationsExpectations
11
ResourcesResources
22 Process & Process & Implementation Implementation
ModelModel
33
Discipline & Discipline & Quality controlQuality control44
Reconciliation, Integration & Reconciliation, Integration & Strategic/Tactical managementStrategic/Tactical management
55
Program of Action Program of Action -- 11
•• Political & municipal ownership and commitmentPolitical & municipal ownership and commitment•• Dedicated programDedicated program•• Backlog perspective: agreed and signed offBacklog perspective: agreed and signed off•• Application/Solution/Delivery Plan per WSA Application/Solution/Delivery Plan per WSA
(by April 07)(by April 07)–– Clarity on goalsClarity on goals–– RingRing--fenced user categoriesfenced user categories–– Solutions classificationSolutions classification–– GIS basedGIS based–– Resource and goal reconciliationResource and goal reconciliation–– Logical development framework.Logical development framework.
Program of Action Program of Action -- 22
•• Program activities : confirmation and realignment Program activities : confirmation and realignment / reprioritization/ reprioritization
•• Address implementation models and processesAddress implementation models and processes•• Communication systemCommunication system•• Shared knowledge baseShared knowledge base•• Resource mobilization (Funding & Capacity)Resource mobilization (Funding & Capacity)•• Monitoring and trackingMonitoring and tracking•• Dedicated integrated program managementDedicated integrated program management
–– PartnershipsPartnerships–– Monthly management.Monthly management.
Addressing the Goal: (Approach)Addressing the Goal: (Approach)
Direct water Direct water services solutionservices solution Housing solutionHousing solution
20082008Interim Interim solutionsolution20082008
Permanent Permanent solutionsolution20142014
Bulk Infra & services supportBulk Infra & services support
ChallengeChallenge
Addressing the Goal: (Approach)Addressing the Goal: (Approach)
•• In principle adopted by most MetroIn principle adopted by most Metro’’ss•• Already applied by Already applied by TshwaneTshwane•• Logical Logical •• Potentially achievable.Potentially achievable.
4
Solutions action plan Solutions action plan –– RingRing--FencingFencing
Housing Housing
ServedServed
RDP RDP
InterimInterim= Target= Target
NB NB NBNB NBNB
•• Distinguish between infrastructure and Distinguish between infrastructure and management backlogsmanagement backlogs
•• Sustainability a priority issueSustainability a priority issue
The BusinessThe Business
•• Core Programs:Core Programs:Water Services programWater Services programHousing programHousing programSustainable managementSustainable managementService quality.Service quality.
Implications Implications
•• Extended backlog classification to include Extended backlog classification to include informal settlement perspectiveinformal settlement perspective
•• RingRing--fence and clustering per solution typefence and clustering per solution type•• Implementation action planImplementation action plan
–– Prioritization towards achievement of targetsPrioritization towards achievement of targets–– Reconciling of budgets & targetsReconciling of budgets & targets–– Implementation modelsImplementation models
•• Existing programs & models realignment.Existing programs & models realignment.
Schools & ClinicsSchools & Clinics
•• PositioningPositioning•• Task teamsTask teams•• Backlog definitionBacklog definition
–– InfoInfo–– CriteriaCriteria
•• Solutions classificationSolutions classification•• Existing actions alignmentExisting actions alignment•• Action planAction plan•• Action, action, actionAction, action, action•• MonitoringMonitoring•• Support Support
Action !!!Action !!!
5
EndEnd
ANNEXURE C34
1
DEPARTMENT OF TRANSPORT
MIG QUARTERLY WORKSHOP, PHALABORWA
23–25 APRIL 2007
BRIEFING ON THE SCALING-UP THE EXPANDED PUBLIC WORKS PROGRAMME
• Brief Background• Status quo of SA road network• Strategic perspective for roads development• Current labour intensive roads programmes• Programme challenges and opportunities• Allocations for roads: EPWP• Delivery management
BACKGROUND
• DoT and DPW, in collaboration with other roads authorities and NT developed a proposal for scaling-up the EPWP through the implementation of road construction and maintenance programmes.
• Additional allocation of R3 billion was approved over the MTEF 2007-08.
STATUS QUO OF SA ROAD NETWORK
• Total road network system of approximately 753 000 km
• 15 000 km of national roads• 350 000 km of provincial roads• 168 000 km of municipal roads, • Estimated 221 000 km of unclassified roads.
Comprises of access roads and local streets in rural communities and settlements (formal and informal) in urban areas.
STRATEGIC PERSPECTIVE FOR ROADS DEVELOPMENT
RISFSA calls for:• The development of an integrated road network
system that provides access and mobility for social and economic activities;
• A road network system that responds to the needs of communities and key growth sectors of the economy;
• A road network system that is a catalyst, enabler and stimulant of growth, development and transformation
Integrated Road Network System (RISFSA Classification
Integrated Road Network System (RISFSA Classification)
National Provincial Municipal
National Roads
Safety Infrastructure
Provincial Roads Municipal Roads
Access Roads
Non-Motorised Access Ways
• Urban and Rural• Surfaced and Gravel
2
Current Labour Intensive Roads Programmes
Roads Authority Programme
Capex Maintenance
Eastern Cape Labmax Vukuzakhe
Free State Vuk’uphile -
Gauteng Labmax, Siyakha Labour intensive programme
KwaZulu-Natal Vukuzakhe Zibambele
Limpopo Gundo Lashu -
Mpumalanga Vuk’uphile Siyatentela
North West Labmax, Vuk’uphile -
Northern Cape Vuk’uphile -
Western Cape Labmax, Vuk’uphile Zenzele
SANRAL Labmax Labmax
Programme Challenges & Opportunities
Challenges Opportunities
Provincial readiness i.r.o MTEF plans Increase involvement of SANRAL in NMT, safety infrastructure and access roads development
Quantity of access roads administered by provinces
Incorporation of approach into MIG framework – core of access roads and other municipal roads
Planning of NMT and safety infrastructure Integrate roads with other infrastructure initiatives within the EPWP, MIG and PIG frameworks
Existence of (or willingness to launch) provincial road maintenance programmes (like Zibambele)
Proven willingness of municipalities and provinces to buy into labour-intensive programmes if guidance and support is provided
Existence of (or willingness to launch) provinciallabour intensive capex programmes (otherGundo Lashu’s)
Targeting of (or willingness to focus) labour maximisation in conventional capex projects, particularly large scale
EPWP Allocations for Roads: EPWP
Table 8: Revised allocations to Roads: EPWP based on 70 per cent of additions to baseline
2007/08 2008/09 2009/10
Eastern Cape 96,880 135,909 282,816 Free State 50,088 68,259 134,976 Gauteng 82,678 103,117 171,277 KwaZulu-Natal 124,822 170,414 339,835 Limpopo 61,243 92,024 212,266 Mpumalanga 76,766 96,935 164,799 Northern Cape 50,454 64,051 109,976 North West 6,437 21,330 87,432 Western Cape 38,631 52,961 106,622
Total 588,000 805,000 1,610,000
Roads: Additions to Baseline
Delivery Management
• Institutional arrangements for programme coordination and management
• Monitoring and evaluation systems• Technical support
Delivery Management
• Institutional arrangements for programme coordination and management
• Monitoring and evaluation systems• Technical support
Conclusion
• Government has made interventions in the macro economy that have stabilised the South African economy and placed it in a growth trajectory.
• There are strong government intentions to achieve a 4.5% economic growth rate in the short term, and 6% in the medium to long term.
• Increased investments in roads will contribute to achieving the desired increased growth rates, while also contributing to a more equitable spread of the benefits of increased growth.
• The economy is still not achieving the desired levels of job creation.• The EPWP has been rolled out for one year and Cabinet found that the scale of the
programme is not large enough to yield the desired levels of employment.• Although there is a general under-expenditure problem in Government, and at provincial
level in particular, the roads sector has been performing better in comparison to other sectors and has the ability to absorb additional funds.
• The roads sector has implemented progressive programmes that have been found to possess potential in terms of scaling-up the EPWP and generating the requisite job creation and skills development levels, while providing social and economic infrastructure.
• In addition to these programmes the EPWP can also be scaled-up by implementing large labour-intensive road construction projects, using the approach outlined above.
3
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