BUFFALO CITY METROPOLITAN MUNICIPALITY 2017/18 FINANCIAL YEAR (30 JUNE 2018) 1

PERFORMANCE OF THE BUDGET WITH MORE EMPHASIS ON DELIVERY OF INFRASTRUCTURE PLANS 2

Total Capital Budget Expenditure The City had a capital budget of R1.77 billion of which R1.43 billion (81% incl. vat) was spent. Own funded projects had a budget of R793.78 million and R495.93 million (62%) of the budget was spent. Grant funded projects had a budget of R977.06 million and R930.59 million (95% incl. vat) was spent. The 81% expenditure is below the target of 100%, a turnaround strategy to assist the municipality to improve the expenditure performance has since been developed. Cont… Next slide 3

Total Capital Budget Expenditure Cont… Some of the intervention measures that have been put in place are the following: All bid committee members have been taken through formal training in an effort to improve the turnaround in processing of bids at committees. The number of bid committees has increased from 3 to 6. there are 2 bid specifications committees, 3 bid evaluation committees and 1 bid adjudication committee. The two tables below reflect capital expenditure performance per source of funding and capital expenditure performance per service. 4

Total Capital Budget Expenditure per Funding FUNDING SOURCE 2017/2018 ADJUSTED CAPITAL BUDGET TOTAL EXPENDITURE 30 JUNE 2018 % TOTAL OWN FUNDING 793 777 800 495 926 259 62% URBAN SETTLEMENTS GRANT 856 926 000 856 643 363 100% PUBLIC TRANSPORT NETWORK GRANT 79 113 561 41 959 765 53% INTERGATRED CITY DEVELOPMENT GRANT 6 956 000 INTEGRATED NATIONAL ELECTRIFICATION PROGRAMME 19 800 000 19 799 433 ENERGY, EFFICIENCY AND DEMAND SIDE MANAGEMENT 5 000 000 LOCAL GOVERNMENT & TRADITIONAL AFFAIRS 9 036 112 0% GAVLE 229 000 TOTAL GRANT FUNDING 977 060 673 930 587 543 95% TOTAL PER FUNDING SOURCE 1 770 838 473 1 426 513 802 81% 5

Total Capital Budget Expenditure per SERVICE 2017/2018 ADJUSTED CAPITAL BUDGET TOTAL EXPENDITURE 30 JUNE 2018 % WATER 149 277 579 144 845 698 97% WASTE WATER 288 866 235 273 367 794 95% ELECTRICITY 142 851 175 128 318 175 90% ROADS AND STORMWATER 348 208 171 277 610 714 80% HUMAN SETTLEMENTS 142 770 072 142 661 144 100% TRANSPORT PLANNING 176 013 587 122 052 694 69% LOCAL ECONOMIC DEVELOPMENT 50 950 150 34 501 169 68% SPATIAL PLANNING 44 916 018 21 510 723 48% WASTE MANAGEMENT / REFUSE 46 544 278 46 372 389 AMENITIES 83 280 624 48 900 714 59% PUBLIC SAFETY 41 122 480 20 655 871 50% SUPPORT SERVICES 159 071 309 69 342 470 44% OTHER - BCM FLEET 96 966 795 96 374 247 99% TOTAL BUDGET PER SERVICE 1 770 838 473 1 426 513 802 81% 6

BUILT ENVIRONMENT PERFORMANCE PLANS 7

Overview of key achievements for Catalytic Projects Development of a precinct plan and precinct management model for Mdantsane Urban Hub. Development of the concept plan for the Sleeper Site. Department of Land Administration is currently undergoing land registration, cadastral clean-up and land clearance in order to amend zoning, align cadastral data and SG diagrams and undertake subdivisions, consolidations and road closures as per approved proposals contained in the precinct plan. Council adoption of the maintenance programme of the provincial road. BCMM/DRPW (EC) MOA. Development of a draft informal trading policy for township and CBD revitalization. 8

Overview of key achievements for Catalytic Projects Upgrading and refurbishment of critical infrastructure projects to provide capacity that will enable economic development and growth, e.g. Diversion of sewer from central East London to Reeston (that will provide for Amalinda Junction, Reeston and Duncan Village developments). Ward based Roads and Storm water Maintenance Programme (500 participants). Department of Human Settlements is at planning stages of Breidbach mixed housing Project: 159 FLISP/GAP Market Units, 88 Open Market Units. Implementation of Vukuphile Learnership Programme (SMME Development Programme in construction 42 learners). 9

Achievements on Key Infrastructure 99% access to water against 2011 water backlog status Engagement of local labour (250 participants) to assist with water leakage (to assist curb non-revenue water) 94% access to sanitation 90% Access to electricity On average 62% of surfaced road network is in good condition On average 25km of gravel are surfaced to tar annually An average of 120km of gravel roads are maintained per annum Electrified +4500 informal settlements in the last 3 years All completed and occupied RDP houses electrified 10

Intergovernmental Projects Project Name Description IGR Partners Duncan Village Redevelopment Upgrading of informal settlement Department of Human Settlements MELD Corridor Expansion of single to dual way Department of Transport Sleeper Site Unlocking investment in the city without privatizing public assets Universities, State entities and private sector Mdantsane Urban Hub Targeted upgrades and mixed use development ECDC, Private Sector, Taxi Industry Zwelitsha Regional Bulk Sewage Scheme Bulk infrastructure DWA 11

CATALYTIC URBAN DEVELOPMENT PROGRAMMES A. Catalytic Urban Development Programmes within the Primary Integration Zone: East London CBD Inner City Revitalization The Meld Corridor Mdantsane CBD B. Catalytic Urban Development Programmes within the Secondary Integration Zone King Williams Town and Bhisho Nodes & Corridor 12

CATALYTIC URBAN DEVELOPMENT PROGRAMMES CATALYTIC PROGRAMMES 2017/2018 ADJUSTED CAPITAL BUDGET TOTAL EXPENDITURE 30 JUNE 2018 % INNER CITY REDEVELOPMENT 64 601 854 64 591 760 100% INNER CITY REGENERATION 42 268 949 27 594 004 65% MDANTSANE URBAN HUB 14 618 358 9 434 207 MELD CENTRAL 167 762 123 123 069 890 73% BHISHO-KWT CORRIDOR 215 083 443 206 881 767 96% NON-CATALYTIC 1 266 503 746 994 942 173 TOTAL BUDGET PER SERVICE 1 770 838 473 1 426 513 802 81% 13

BUILT ENVIRONMENT PERFORMANCE PLAN 2018 / 2019 1 . EAST LONDON CBD REVITALISATION Name of Catalytic Programme Catalytic Projects & Mega Projects Total Value (R‘000) Own (2018/2019) (R‘000) Loan (2018/19) Grant Province SOE 1. East London CBD Revitalization a. Fitzpatrick Road Re-alignment R 60,000, R10,000   b. City to Sea Bouevard R 255,000 R4,000 R23,000  R9,657  c. East London Beachfront and Esplanade Upgrade R 5,087 R 1,500 d. Complete: Reconstruction and Rehabilitation of Fleet Street and sidewalks e. Orient Theatre Upgrade R 4,000 R 3,950 f. Upgrade of Ubuhlanti Park & Little Mauritius R 2,000 R 1,250 g. Traffic and Transportation/ Other Studies / Projects: Sleeper Site R 1,800 R1,8000  h. East London Station Development: Railway Station Precinct R 133,898 R 5,000 i. Cleaning and Greening No current projects j. Eastern Beach Sewer Upgrade R 138,000 R33,881 k. Electricity: Upgrade and replacement of existing network R 300,000 R40,000 l. Port of East London: Extend Main Breakwater and Deepen Entrance R1,500,000 2018/19 allocation unknown m. Port of East London: Rehabilitation of Latimer's Landing R 80,000 R 7,041 USDG ICDG ICDG PRASA USDG National Ports Authority Pre-feasibility underway National Ports Authority Pre-feasibility underway 14

BUILT ENVIRONMENT PERFORMANCE PLAN 2018 / 2019 2 . MELD CORRIDOR Name of Catalytic Programme Catalytic Projects & Mega Projects Total Value (R‘000) Own (2018/2019) (R‘000) Loan (2018/19) Grant Province SOE 2. MELD Corridor a. Upgrading of the Public Transport Corridor from East London to Mdantsane (Qumza) R 500,000   R81,165  b. Duncan Village Redevelopment Housing Project R 34,500 R2,741  c. Reeston Housing R 2,500 Central to Reeston Sewer Diversion, WWTW Tunnel and Civil Works R 69,000 d. Upgrading of the Mzonyana Treatment Works R 300,000 R60,000 R 18,950 e. Amalinda Informal Settlements Upgrade Budgets available for 2021 f. North West Corridor: Feasibility for extension of NW Expressway and link to Amalinda Main Road. R 40,000 R4,000 National Station Improvement Programme R 50,883 R16,652 PTIG USDG USDG PRASA 15

BUILT ENVIRONMENT PERFORMANCE PLAN 2018 / 2019 3. MDANTSANE URBAN HUB Name of Catalytic Programme Catalytic Projects & Mega Projects Total Value (R‘000) Own (2018/2019) (R‘000) Loan (2018/19) Grant Province SOE 3. Mdantsane Urban Hub a. Improved Regional Access R 8,000   b. Toyana Road Pedestrian link to Station R 13,250 R13,250   c. New Government Offices: Feasibility Ongoing Engagements with NDPW underway d. Mdantsane Library Maintenance and Upgrade R 561,000 R150,000 e. Extension of Mdantsane Arts Centre R 3,600 R 1,600 f. Redevelopment of Mdantsane Sport Precinct NU2 Swimming Pool R 6,000 R 1,000 g. Orlando Stadium: Construction of the ablutions Refurbishment of boundary wall and gates Caretaker Cottage, Installation of floodlights, Rehabilitation of playing surface R 4,000 R 4,000 h. Upgrade of Mount Ruth Substation R100,000 i. Upgrade replacement of the 132/33/11 kV network R 80,000 NDPG Provincial Sports & Rec 16

BUILT ENVIRONMENT PERFORMANCE PLAN 2018 / 2019 4. BHISHO KING WILLIAMS TOWN CORRIDOR Name of Catalytic Programme Catalytic Projects & Mega Projects Total Value (R‘000) Own (2018/2019) (R‘000) Loan (2018/19) Grant Province SOE 4. Revitalization of KWT-Bhisho & Corridor a. KWT Public Transport Interchange, Market Square Bus Rank, Market Square Taxi Rank R 120,000 R 40,000   b. Mary Street Upgrade  R 19,000 R 6,000 c. Zwelitsha Regional Bulk Sewage Scheme R 700,000 R 86,294 R200,000 d. Kei Road Bulk Water Scheme R 500,000 R 6,000 e. Upgrade of the KWT Electrical Network R 10,000 f. Upgrade of Provincial Administration Buildings: Bhisho R 255,543 R 23,297 Dept. of Water & Sanitation USDG USDG Dept. of Water & Sanitation 17

BUILT ENVIRONMENT PERFORMANCE PLAN 2018 / 2019

INTERGRATED DEVELOPMENT PLANS 19

2017/2018 PERFORMANCE HIGHLIGHTS LOCAL GOVERNMENT 5 NATIONAL KEY PERFORMANCE AREAS Performance Management at local level is categorised and reported in terms of 5 National Key Performance Areas namely : Basic Service Delivery and Infrastructure Development Local Economic Development Municipal Financial Viability and Management Good Governance and Public Participation Municipal Transformation and Organisational Development 20

2017/2018 PERFORMANCE HIGHLIGHTS BASIC SERVICE DELIVERY AND INFRASTRUCTURE DEVELOPMENT This talks to the following developmental goals as prioritized in the financial year, the provisioning of houses, electricity, water and sanitation, roads and waste removal. ROADS: BCMM has continued to rehabilitate existing roads within BCMM jurisdiction and re-gravelling of rural roads in the 2017/18 financial year. 38.058 km road surfaced across BCMM 80.2km of roads rehabilitated. 3 bridges rehabilitated 21

2017/2018 PERFORMANCE HIGHLIGHTS BASIC SERVICE DELIVERY AND INFRASTRUCTURE DEVELOPMENT ELECTRICITY: In the 2017/18 financial year, 4% of the revenue generated is reinvested back into the electrical network so that it remains reliable and meets safety standards. The main capital works that were undertaken were electrical infrastructure upgrades in King Williams Town, Breidbach, Woodbrook, West Bank, Wilsonia, Gompo, East London City Centre, Zwelitsha, Buffalo Flats, Wilsonia and many other suburbs within the Metro. 22

2017/2018 PERFORMANCE HIGHLIGHTS BASIC SERVICE DELIVERY AND INFRASTRUCTURE DEVELOPMENT ELECTRICITY: (cont…) 10 new highmast lights were installed (Amalinda Forest, Duncan Village, Western Avenue x2, Qalashe, Ginsberg, Dimbaza, Phakamisa, Zwelitsha and Mzamomhle). In 2017/18 financial year, R40 million was committed for the roll-out of electricity to many formal households. The following areas were connected: 700 connections in Mdantsane Buffer Strip 500 connections at Potsdam unit P (EXT.2) 550 connection at the Buffer strip Mdantsane 197 connections at Fynbos and Scenery park250 connection at Phakamisa 23

2017/2018 PERFORMANCE HIGHLIGHTS BASIC SERVICE DELIVERY AND INFRASTRUCTURE DEVELOPMENT ELECTRICITY (cont…) d) 197 connections at Fynbos and Scenery park250 connection at Phakamisa e) 600 connections in Ndancama f) 168 connections at Mount Ruth Mdantsane g) 311 connections in Mzamomhle Phase 1 h) 400 connections at Reeston Phase 3 i) An additional 45 informal dwellings were electrified in Mdantsane and Duncan j) Village at a value of R10 million. 24

2017/2018 PERFORMANCE HIGHLIGHTS BASIC SERVICE DELIVERY AND INFRASTRUCTURE DEVELOPMENT WATER In 2017/18 financial year, BCMM implemented four major water projects at the value of R146 million: Augmentation of water treatment work at Mzonyana Dam at a value of R30 million. Construction of bulk water supply reservoirs and villages reticulation to eradicate backlogs. Replacement of existing bulk water infrastructure to bursts an installation of water meters. The continuing upgrade of Amahleke water supply scheme. This will augment water supply so that village extensions are accommodated. 25

2017/2018 PERFORMANCE HIGHLIGHTS BASIC SERVICE DELIVERY AND INFRASTRUCTURE DEVELOPMENT PUBLIC SAFETY: 3 CCTV cameras have been installed along the EL CBD, Beacon Bay and Gompo. HOUSING: 583 Top Structures were built. 1 572 Number of sites provided with municipal basic services 26

2017/2018 PERFORMANCE HIGHLIGHTS BASIC SERVICE DELIVERY AND INFRASTRUCTURE DEVELOPMENT HALLS: 5 community halls were upgraded during the 2017/18 financial year (Parkside, Scenery park, Clements Kadalie, Robbie De Lange and Ilitha). REFUSE REMOVAL: 20 refuse removal trucks were procured at a value of R54 million. 8 tipper trucks and 3 TLBs were also procured. 27

2017/2018 PERFORMANCE HIGHLIGHTS MUNICIPAL TRANSFORMATION AND ORGANISATIONAL DEVELOPMENT Three additional HODs were appointed during the 2017/18 financial year for the following Directorates: Economic Development Agencies Human Settlements Health, Public Safety and Emergencies 28

2017/2018 PERFORMANCE HIGHLIGHTS MUNICIPAL FINANCIAL VIABILITY AND MANAGEMENT The City developed an aggressive Revenue Enhancement Strategy whose key feature is the management of the City’s debtors book. The current collection rate for the period ended 30 June 2018 is 93.32% (the target for 2017/18 was 92.50%). The total debt to revenue ratio is 9.99% as at 30 June 2018. The municipality is therefore highly solvent to meet its debt obligation as it is below the set ceiling of <45%. The cost coverage ratio of the City is 3.9 months. This ratio denotes that the City can meet its monthly operating commitments 3.9 times, which is above the target of > 3x the fixed operating expenditure. 29

2017/2018 PERFORMANCE HIGHLIGHTS GOOD GOVERNANCE AND PUBLIC PARTICIPATION TO STRENGTHEN GOOD GOVERNANCE PRINCIPLES: The following stakeholders plays a critical role in the evaluation of Performance Information: Performance Audit Committee Internal Audit Municipal Public Account committee Portfolio Committees Ward Committees BCMM also convened IDP/Budget Road Shows (April 2018 to May 2018). 30

2017/2018 PERFORMANCE HIGHLIGHTS LOCAL ECONOMIC DEVELOPMENT BCMM provided tendering trainings to 22 companies. 600 small businesses and cooperatives were supported in 2017/18 financial year. 3 429 job opportunities were created through LED initiatives. 3 509 jobs were created through the EPWP. Upgrade of Kiwane Campsite resort at a value of R10 million in 2017/18 financial year: 7 single stories, 5 double stories chalets accommodating 48 people in two backpacker accommodating 16 people were built. 31

THANK YOU 32