DEPARTMENT OF TRANSPORT, ROADS AND COMMUNITY SAFETY NORTH WEST DEPARTMENT OF TRANSPORT, ROADS AND COMMUNITY SAFETY PUBLIC HEARING ON CONDITIONAL GRANTS AND CAPITAL EXPENDITURE. 07 NOVEMBER 2007

Provincial Earmarked funds Provincial Rollovers from Financial year 2006/07 Budget and actual expenditure breakdown on Infrastructure Grants: Infrastructure Grant Budget: 2006/2007 Provincial Earmarked funds Provincial Rollovers from 2005/06 Adjusted Budget Expenditure as at end of March. 2007 In Percentage DISCRIPTION R’000 % a. Roads Conditional Grand 292,000 307,081 307,693 100% b. Expanded Public Works Programme 28,000   48,000 47,997 c. Roads Rehabilitation/ Maintenance 91,244 178,744 178,656 d. Other Projects (BPM & Airport) 5,000 6,303 16,303 16,121 99% Total Grant 320,000 96,244 550,128 550,467

2006/07 Audit Report Outcomes QUALIFICATIONS: - Reduced from 5 in 2005/06 to 2 of 2006/07 Fixed assets Tracing fees EMPHASIS OF MATTER: - Reduced from 5 in 2005/06 to 3 of 2006/07 : Internal control Non compliance with legislation Material corrections

NW Provincial Road Network Total Provincial network: 22 998km 6 486km are Surfaced 16 512km are gravel or earth roads More than 65% of network gravel or earth About 30% of paved roads in poor condition

ROADS INFRASTRUCTURE PLAN 2007/08 To upgrade 101,52 km from gravel to paved To reseal/rehabilitate 96,55 km To perform routine maintenance

2007/08 Budget Allocation: R`000 % Accountable allocation: 1 534 110 100% Infrastructure Budget 515 039 34%

INFRASTRUCTURE ALLOCATION COVERS THE FOLLOWING AREAS: Description R`000 Roads Development: 413 968 E. P. W. P: 35 000 Roads Maintenance: 59 071 Other Projects: (BPM): 5 000 Construction Weighbridges: 2 000 Total: 515 039

Provincial Earmarked funds Provincial Rollover from 2007/08 Budget and actual expenditure breakdown on Infrastructure Grants: Infrastructure Grant Budget: 2007/2008 Provincial Earmarked funds Provincial Rollover from 2006/07 Total Budget Expenditure as at end of Sep. 2007 In Percentage DISCRIPTION R’000 % a. Roads Conditional Grand ( National) 375,740 38,228 413,968 194,777 47% b. Expanded Public Works Programme 21,000 14,000  35,000 4,321 12% c. Roads Rehabilitation/ Maintenance 59,071 16,341 28% d. Weighbridges 2,000 1,516 76% e. Other Project (BPM) 5,000 2,130 43% Total Grant 401,740 113,299 515,039 219,085

Monitoring Capacity: As previously reported, the following mechanisms exist to monitor delivery and the concomitant capital expenditure: Submission of business plan to Provincial Treasury and Office of the Premier. Regular site visits which sometimes includes Provincial and National Treasuries. Capex Manager's monthly meetings with Consulting Engineers and produce monthly capex report. Systems for reporting to Treasury: Infrastructure Reporting Model (IRM) and Promis Compilation of monthly variance report. Quarterly Infrastructure progress report to Premier's office EPWP quarterly report to Provincial: Public Works for National: Public Works

ROAD UPGRADING PROJECTS Type Length (km) District D609 Makapanstad Bosplaas Development 7.90 Bojanala D624 Z631 Z632 Bosplaas Majaneng 2.00 Z604 Madidi Oskraal 6.00 D612 Ngobi Cyferskuil 7.70 D414 Logagane to Phitsane 22.00 Modiri Molema D521 Segwaelane to Wonderkop 5.50   TOTAL UPGRADING 51.10

REHABILITATION PROJECTS Road Project Type Length (km) District P28/5(Portion of Road) Nelson Mandela to Ramatlabama Rehabilitation 15.80 Modiri Molema D415 Gopane road in Zeerust 6.00   TOTAL REHABILITATION 21.80

Capacity Constraints: The following factors have a negative impact on service delivery; 1. Recruitment and retention of: Engineers and Technicians 2. Capacity of emerging contractors and consultants

FUNDING REQUIREMENTS ANALYSIS OF BACKLOGS: ESTIMATED BACKLOGS FUNDING REQUIREMENTS   Km 2007/2008 2008/2009 2009/2010  R`000   R`000 Regravelling 1675 502,500 577,875 664,556 Reseal 1105 552,500 635,375 730,681 Rehabilitation 443 620,200 713,230 820,215 Condition Based Backlog 1,675,200 1,926,480 2,215,452 Needs Based Backlog 1651.2 495,360 569,664 655,113 810.75 405,375 466,181 536,108 324.3 454,020 522,123 600,441 Norms and Standards Based Backlog 1,354,755 1,557,968 1,791,663

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