Briefing on Municipal Infrastructure Grant Expenditure Select Committee on Appropriation 11 August 2015 Committee Room E249, Parliament

PRESENTATION OUTLINE MIG EXPENDITURE – 2014/2015 PROGRESS ON PROJECTS IMPLEMENTATION CHALLENGES SUPPORT / INTERVENTIONS

MIG EXPENDITURE – 2014/2015

Provincial spending patterns since MIG inception

Spending on 2014 / 2015 Municipal Infrastructure Grant In January 2015 R539.909 million was taken away from poor spending municipalities Of which R224.257 was re-allocated to municipalities in the province As at end of June 2015 R1.994 billion (out of R2.748 billion) was spent (73%) R753.941 million remained unspent 6 municipalities have spent 100% 6 municipalities have spent ≥ 90% and ˂ 100%

2014/2015 MIG spending National Comparison Province Allocated (R'000) Transferred to date Transfers as % allocation Expenditure to date Expenditure as % allocation Balance Unspent Eastern Cape 3,079,289 100.00% 2,884,338 93.67% 194,951 Free State 829,794 763,424 92.00% 66,370 Gauteng 445,427 426,493 95.75% 18,934 KwaZulu Natal 3,270,390 3,270,420 3,129,728 95.70% 140,692 Limpopo 2,748,406 1,994,465 72.57% 753,941 Mpumalanga 1,717,515 1,484,901 86.46% 232,614 Northern Cape 462,944 391,706 84.61% 71,238 North West 1,725,708 1,707,104 98.92% 1,521,154 88.15% 185,950 Western Cape 484,576 416,351 85.92% 68,225 TOTAL 14,764,049 14,745,475 99.87% 13,009,097 88.11% 1,736,378

Expenditure PER MUNICIPALITY as at end June 2015 SEKHUKHUNE DISTRICT Original Allocation (R’000) Adjustment Revised allocation Amount spent % EXP Ephraim Mogale 31,070 - 27,958 90 Elias Motsoaledi 50,840 15,000 65,840 49,867 76 Makhuduthamaga 57,452 51,791 Fetakgomo 21,388 (10,139) 11,249 100 Greater Tubatse 61,745 35,000 96,745 61,787 64 Sekhukhune 451,120 (170,000) 281,120 125,173 44

Expenditure PER MUNICIPALITY as at end of June 2015 MOPANI DISTRICT Original Allocation (R’000) Adjustment Revised allocation Amount spent % EXP Greater Giyani 56,046 10,000 66,046 100 Greater Letaba 53,440 - 41,797 78 Greater Tzaneen 87,083 24,000 111,083 67,633 61 Ba-Phalaborwa 29,769 25,371 85 Maruleng 25,309 5,000 30,309 25,528 84 Mopani 429,490 (290,000) 139,490 47,614 34

Expenditure PER MUNICIPALITY as at end June 2015 VHEMBE DISTRICT Original Allocation (R’000) Adjustment Revised allocation Amount spent % EXP Musina 18,943 - 17,118 90 Mutale 24,058 100 Thulamela 126,460 109,386 86 Makhado 107,087 62,678 58 Vhembe 486,510 20,000 506,510 369,691 73

Expenditure PER MUNICIPALITY as at end of June 2015 CAPRICORN DISTRICT Original Allocation (R’000) Adjustment Revised allocation Amount spent % EXP Blouberg 38,408 5,000 43,408 34,169 79 Aganang 32,157 (5,000) 27,157 18,517 68 Molemole 28,943 - 28,631 99 Polokwane 266,671 38,243 304,914 301,014 Lepelle-Nkumpi 49,920 20,000 69,920 18,488 26 Capricorn 252,059 7,000 259,059 100

Expenditure PER MUNICIPALITY as at end of June 2015 WATERBERG DISTRICT Original Allocation (R’000) Adjustment Revised allocation Amount spent % EXP Thabazimbi 32,926 (19,756) 13,170 2,053 16 Lephalale 35,992 (7,000) 28.992 28,702 99 Mookgophong 15,766 27,000 42,766 15,425 36 Modimolle 32,364 (13,014) 19,350 100 Bela Bela 22,193 - Mogalakwena 138,849 (25,000) 113,849 59,251 52 Waterberg 18,014

Expenditure PER DISTRICT as at end of June 2015 Original Allocation (R’000) Adjustment Revised allocation Amount spent % EXP Sekhukhune 673,615 (130,139) 543,476 327,825 60 Mopani 681,137 (251,000) 430,137 273,990 64 Vhembe 763,058 20,000 783,058 583,021 74 Capricorn 668,158 65,243 733,401 659,059 90 Waterberg 278,090 (19,756) 258,334 146,975 57 Province 3,064,058 (315,652) 2,748,406 1,994,465 73

2. PROGRESS ON PROJECTS IMPLEMENTATION

Projects implementation A total of 367 projects were implemented during the financial year with the 2014/2015 MIG allocation At end of financial year, these projects were at various stages of implementation 62 were at tender and evaluation (planning for 2015/2016) 219 were at various stages (%) of construction 86 have been completed The next slides provide details per municipality The attached project list provide details per project including challenges and specific remedial action were applicable.

PROJECT STATUS (no. of projects) SEKHUKHUNE DISTRICT Municipality TOTAL No. of Projects PROJECT STATUS (no. of projects) Design & Tender Construction Completed Ephraim Mogale 12 3 6 Elias Motsoaledi 10 8 2 Makhuduthamaga - 9 Fetakgomo 5 1 4 Greater Tubatse Sekhukhune 19 13 TOTAL 67 35 22

PROJECT STATUS (no. of projects) MOPANI DISTRICT Municipality TOTAL No. of Projects PROJECT STATUS (no. of projects) Design & Tender Construction Completed Greater Giyani 8 3 4 1 Greater Letaba 18 11 Greater Tzaneen 13 2 Ba-Phalaborwa 5 - Maruleng 9 Mopani 12 10 TOTAL 65 16 41

PROJECT STATUS (no. of projects) VHEMBE DISTRICT Municipality TOTAL No. of Projects PROJECT STATUS (no. of projects) Design & Tender Construction Completed Musina 8 1 5 2 Mutale 4 - Thulamela 9 6 3 Makhado 10 7 Vhembe 14 TOTAL 45 31 11

PROJECT STATUS (no. of projects) CAPRICORN DISTRICT Municipality TOTAL No. of Projects PROJECT STATUS (no. of projects) Design & Tender Construction Completed Blouberg 10 - 3 7 Aganang 1 2 Molemole Polokwane 28 20 6 Lepelle-Nkumpi 5 4 Capricorn 88 47 21 TOTAL 137 22 78 37

PROJECT STATUS (no. of projects) WATERBERG DISTRICT Municipality TOTAL No. of Projects PROJECT STATUS (no. of projects) Design & Tender Construction Completed Thabazimbi 5 2 3 - Lephalale 7 1 Mookgophong 4 Modimolle 6 Bela Bela Mogalakwena 26 17 TOTAL 53 11 34 8

FUNDING FOR INFRASTRUCTURE PROVISION (MTEF) Funding Source 2015/2016 R’000 2016/2017 2017/2018 Total Municipal Infrastructure Grant 3,160,598 3,290,731 3,485,794 9,937,123 Integrated National Electrification Programme ESKOM & Municipal Grant 1,128,195 1,168,157 1,200,105 3,496,457 Regional Bulk Infrastructure Grant 953,667 1,029,457 955,649 2,938,773 Municipal Water Infrastructure Grant 528,574 846,727 955,753 2,331,054 TOTAL 18,703,407

Major infrastructure to be implemented for provision of access basic services Provision of Water: Bulk Distribution pipeline from DeHoop to Steelpoort to be completed this year, Bulk Distribution system from Flag Boshielo to Mogalakwena and Steelpoort to Mooihoek planned to start in current financial year. Mokolo Crocodile Water Augmentation project, Phase 1 planned for completion in the current financial year. Pipeline from Valdezia to Mowkop (in Louis Trichardt) on the Nandoni scheme has started and earmarked for completion in 2016. Electricity provision 56 167 house holds are earmarked to be electrified in the current financial year

3. CHALLENGES

Major infrastructure to be implemented for provision of access basic services Provision of Water: Bulk Distribution pipeline from DeHoop to Steelpoort to be completed this year, Bulk Distribution system from Flag Boshielo to Mogalakwena and Steelpoort to Mooihoek planned to start in current financial year. Mokolo Crocodile Water Augmentation project, Phase 1 planned for completion in the current financial year. Pipeline from Valdezia to Mowkop (in Louis Trichardt) on the Nandoni scheme has started and earmarked for completion in 2016. Electricity provision 56 167 house holds are earmarked to be electrified in the current financial year

Only 23% of implemented projects completed CHALLENGES Only 23% of implemented projects completed Premier Intergovernmental Forum directed that all municipalities should utilise the 1st quarter to finalise plans and start implementation in the second quarter LATEST. Projects on Design and Tender very few, meaning that most municipalities are not ready to appoint contractors during July – August,

4. SUPPORT / INTERVENTION MEASURES

SCOPE & PRIMARY OBJECTIVE OF CORRECTIVE MEAUSRES To provide for the provisioning and establishment of three interlinked forums: Municipal Infrastructure Forum (MIF) (municipalities to district; coordination districts). District Municipal Infrastructure Forum (DMIF) (districts on municipalities; coordinator CoGHSTA) Limpopo Intergovernmental Infrastructure Forum (LIIF) (DMIF, and ITMC; coordinator SGM LPT) The overall goal and primary objective of this assignment is to provide a fresh approach to infrastructure delivery ability of municipalities. To provide for infrastructure coordination both financial and of the built environment requirements. The primary objective of this proposal on municipal infrastructure coordination comprises of two components; one deals with the financial management aspect and the second deals with built environment; specialist scares skills, exchange, collaboration and acquisition where necessary and infrastructure management.

INSTITUTIONAL ARRANGEMENT PROJECT DELIVERY PROGRAMME AND PROJECT DELIVERY PROGRAMME INTEGRATION PORTFOLIO INTEGRATION Infrastructure Technical Committee (ITC) Limpopo Intergovernmental Infrastructure Forum (LIIF) District Municipalities Infrastructure Forums (DMIF) Capricorn Municipalities Infrastructure Forums (LMIF) Mopani Municipalities Infrastructure Forums (LMIF) Sekhukhune Municipalities Infrastructure Forums (LMIF) Waterberg Municipalities Infrastructure Forums (LMIF) Vhembe Municipalities Infrastructure Forums (LMIF) Infrastructure Technical Management Committee (ITMC) Departmental Coordinating Committees (DCC)

SECONDARY OBJECTIVE OF SUPPORT MEASURES The secondary objective of this intervention is to enable the principle of integrated infrastructure development to become a reality, in line with the prescripts of the Intergovernmental Relations Framework Act (Act 13 of 2005). It is to address the backlog in infrastructure delivery, which has accumulated over a period of years. These have negatively affected the infrastructure delivery ability of municipalities of Limpopo. It is noted that most Limpopo municipalities will have to improved their infrastructure delivery trajectory and financial accountability, by ensuring that sufficient skills, knowledge and capacity, are available for service delivery. It is envisaged that through a dedicated Municipal Infrastructure Forum backlogs and skills shortages can be addressed. This proposal is therefore aimed at endeavouring to support the building of capacity, specialist scares skills, exchange, collaboration and acquisition within identified municipalities. By the end of the financial period March 2018.

MOTIVATION FOR THE INTERVENTION / SUPPORT MEASURES Scarce skills are crucial and necessary for all infrastructure units, for infrastructure service delivery to Limpopo both at provincial and local level. The Limpopo Provincial Executive Committee approved the development of an improved conditional grant model for infrastructure delivery at Provincial level. This model was developed in line with the approved Limpopo Infrastructure Delivery Management System (LIDMS). This proposal seeks to motivate for the approval and implementation of various components to allow for the establishment of a Municipal Infrastructure Forum (MIF). Provisioning for the establishment of a Municipal Infrastructure Forum (MIF). Procedures which link Provincial Infrastructure forums to the Municipal Infrastructure Forum (MIF) will be undertaken as part of a transparent and fair processes of capacitation and providing for specialist scares skills, exchange, collaboration and acquisition where necessary. Delegation and or exchange of contracted staff/officials, in the fulfilment of the primary objective of municipal infrastructure, built environment capacitation. Municipal Infrastructure Support Programme (MISP) capacitation through the establishment of a MIF.

APPROACH PHASE I IMPLEMENTATION PROGRAMME The programme is unique in that it supports the capacitation, specialist scares skills, exchange, collaboration and acquisition in two ways: Firstly institutionally: To strengthen the ability of the municipal finance officials in Provincial Treasury by linking them directly to infrastructure officials within municipalities, through the forum to the technical strengths, which have been developed at provincial level. The Municipal Financial Support Programme aims to build the capacity of municipal officials through training and development, and technically, to help the officials ensure compliance with the implementation of the MFMA and to improve the audit outcomes in district and local government within the Province. The MIF is structured in such a way as to open up an infrastructure support initiative with a single forum which coordinates specialist scares skills, exchange, collaboration and acquisition towards needy municipalities. Pending the findings and cooperative support achieved the initiative should assist participating municipalities to further develop programmes aimed at specific needs at district and local municipal level.

Approach PHASE II IMPLEMENTATION PROGRAMME The second phase of this intervention is aimed at providing the infrastructure platform linkages between the Districts Municipal Infrastructure Forum (DMIF) and the provincial Infrastructure Technical Management Committee. This joint forum Limpopo Intergovernmental Infrastructure Forum (LIIF) will provide for collaboration between the municipal and provincial levels on the IDMS and infrastructure implementation and delivery. Efforts of this LIIF, collaborative forum, will focus on the following fields: Governance and the Municipal Infrastructure Delivery Management System (MIDMS) and its linkages to the LIDMS and its continued developments. Capacitation, specialist scares skills acquisition, exchange, collaboration and knowledge management. Other issues of common interest can also be addressed: Infrastructure cycle and budget cycle alignment. Standard Infrastructure Supply Chain Management System. MIDMS Infrastructure planning for portfolio and programme levels Monitoring and Reporting.

WORK PLAN Accountability and responsibility The development of a MIDMS will inform the infrastructure delivery and alignment for all municipal infrastructure delivery. The development of a Municipal User Asset Management and an Infrastructure Programme Management Plans together with a Construction Procurement Strategy will lead efforts in Municipal infrastructure delivery. The Annual MIDMS aligned Work Plan for the MIF will be developed in conjunction with the development of a Municipal Infrastructure Alignment model. This alignment model will be based on the municipal budget cycle and the MIDMS infrastructure delivery cycle. The MIF activities and tasks detailed in the plan shall be informed by the “Back to Basics” programme. The programme has been developed, initiated and will be supervised by the Senior General Manager Sustainable Resource Management in Provincial Treasury. Participating Departments and Municipalities to the DMIF and the ITMC shall be represented by their Technical Directors including Provincial Infrastructure General Managers and or specific pre-identified departmental or municipal officials.

SKILLS TRANSFER Knowledge management and discipline specific development of infrastructure officials is seen as the main driving motivation for this MIF initiative. MIF municipal officials shall be included in all work activities performed. Participation in discussions, meetings and workshops will be encouraged as they will be utilised to transfer skills and knowledge, between technical professionals and state and municipal officials. All MIF staff will be compelled to draft, plan and undertake knowledge management and community of practice session. These sessions shall ensure technical development receives and maintains the highest standard of work ethic and support necessary for service delivery.

QUALITY CONTROL MIF municipal officials will be managed in accordance with the principles and objectives of the “Back to Basics” concept plan and code of ethics and a quality management system developed for the MIF. Quality standards will be determined by the discipline specific best practice models of respective professional organisations which will be discussed at LIIF meetings. Knowledge Management of the municipal support programmes will focus on the following: Monitoring of media reports with the aim to identify issues that may affect infrastructure management within the municipality; Introduction and maintenance of an information back-up and recovery plan; Introduction and maintenance of a filing systems and business continuity plans. Developing an infrastructure information hub which can assist with high level quality statistical analysis and reports; Maintenance of a repository of documents on a single filing system and website; Maintenance of a database of infrastructure information in respect of the municipalities. Distribution of publications to management and staff; Preparation and implementation of infrastructure management policies, processes and procedures; and Retention of infrastructure as built information as per prescripts, to be determined by policies.

Thank you.