Department of Transport Conditional Grants and Capital Expenditure KwaZulu-Natal Department of Transport Conditional Grants and Capital Expenditure PUBLIC HEARINGS September 2006

Road Network In keeping with Governments mandate to achieve equity the KwaZulu-Natal Department of Transport is progressively working towards its minimum road equity of 42,025 kilometres. However, despite the budget increases received over the past years and the increases proposed over the MTEF period the department remains woefully under funded for the execution of its mandate.

Road Network cont.. The road network has two components: The Department requires additional funding to address the road network equity. The road network has two components: Restoring the network to its true asset value by increasing the level of maintenance and renewal expenditure. Providing access to all community facilities and supporting the Provincial Spatial Development Strategy A ten year strategy has been developed which indicates an estimated under funding of R12,8 billion and to implement this would required an annual additional budget of R1,28 billion

Total Value of Projects Access Access remains the key challenge to service delivery. The demand for pedestrian bridges and access roads is huge particularly in the rural areas of KwaZulu-Natal. Programme Total Value of Projects 2006/07 Budget Budget Shortfall (R’000) Community Road Upgrading R 1 175 000 R 67 500 R 1 107 500 Access Roads R 574 300 Pedestrian Bridges R 173 750 R 17 500 R 156 250 Total R 1 923 050 R 85 000 R 1 838 050

Access cont…

Transport Corridor Development Economic development particularly at a local level still remains a focal point in the government agenda. Transport corridor development as a flagship project as outlined by the Premier continues to receive our attention and support as the Department. This project focuses on continued support for the Lebombo Spatial Development Initiative that is linked to the construction of Main Road 700. The revitalisation of the rail link in the area of P700 will lead to spin-offs similar to those seen on the M4 to Mpumalanga. Importantly, the corridor has the potential of linking Richards Bay and Vryheid.

Transport Corridor Development cont.. Indeed there is hope for the weak in KwaZulu-Natal when there is partnership and collaboration amongst the different spheres of government for the general good.

Transport Corridor Development cont.. In response from business representatives and community based organisations the KwaZulu-Natal Department of Transport is considering for proposals for the upgrading of provincial roads that are of strategic national importance namely: Projects Budget R’millions Sipofu 50 Impendle 100 Sani Pass 240 Cecil Max Pass 90 John Ross Highway 450 Inanda to Pinetown 560 Ulundi to Vryheid 200 Dube Trade Port 555 Total 2,245

Cross Border Demarcation The Department has inherited the Umzimkhulu District Municipality from the Eastern Cape in terms of the Cross Border Demarcation changes The Department has conducted a needs assessment study with regard to the road infrastructure which identified a serious shortage of new infrastructure, maintenance and renewal needs in the Umzimkhulu Municipality, at a estimated cost of R1,6 billion.

Government Led Initiatives and Programmes It is of critical importance to ensure that the ideals of a seamless government are upheld. To this end, the Department of Transport pledges its support for all government led programmes as per the mandates of the government of the day. Operation Mbo, Project Consolidate, the Accelerated Shared Growth Initiative of South Africa (ASGISA), Provincial Spatial Development Strategy amongst others are such programmes that this department will advocate for.

2010 Soccer World Cup The success of the 2010 World Cup is at the forefront of our planning in the Department of Transport amidst budgetary constraints. Road Infrastructure development, Integrated Transport Planning, a safe, regulated, affordable and efficient public transport system as well as overall safety on our roads are the critical issues that we have embarked upon a drive to ensure that KwaZulu-Natal and South Africa as a whole is ready to host the 2010 Soccer World Cup. A report has been submitted to the National Department of Transport detailing the road infrastructure needs for the 2010 World Cup which is approximately R3 billion.

Collaboration with the National Department of Transport I would be failing in my duty if I do not acknowledge the contribution of the National Department of Transport to infrastructure development to change the lives of the people of this Province. The John Ross Highway Project, the Isikhwebezi River Bridge, the nKobide Interchange, the Road to eQhudeni, to mention but a few are evidence of this collaboration with the national Department of Transport

Collaboration with the National Department of Transport cont.. Indeed there is hope for the weak in KwaZulu-Natal when there is partnership and collaboration amongst the different spheres of government for the general good.

Medium-Term Estimates KwaZulu-Natal Department of Transport Summary of Infrastructure Expenditure Trend Outcome Budget Medium-Term Estimates Audited 2003/2004 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010 Capital   New Construction 288,549 128,351 341,412 347,292 416,751 429,414 486,400 Rehabilitation/ Upgrading 509,827 598,371 614,215 669,276 845,732 1,020,363 1,050,173 Infrastructure transfer 1,000 5,000 5,225 Current 51,190 289,790 476,976 459,728 513,792 691,853 722,986 Sub Total 849,566 1,016,512 1,432,603 1,477,296 1,777,275 2,146,630 2,264,784 Conditional Grant Provincial Infrastructure Grant 200,121 282,594 315,121 348,194 448,190 479,007 Total 1,049,687 1,299,106 1,747,724 1,825,490 2,225,465 2,625,637 2,743,791 % Conditional Grant 19% 22% 18% 20% 17%

Slide 1 As can be seen for the attached slides the Department of Transport Infrastructure Budget has grown from R1,050 million since 2003/04 to R2,744 million in the 2009/10 financial year. The Provincial Infrastructure Conditional Grants have increased from R200 million to R479 million which equates to between 17% and 22% as a percentage of the budget.

KwaZulu-Natal Department of Transport Summary of Infrastructure Expenditure 2006/07 Financial Year Budget %of Budget 1st Quarter Actual %of Budget Spent Capital   New Construction 347,292 51,038 Rehabilitation/Upgrading 669,276 98,358 Current 459,728 106,870 Sub Total 1,477,296 81% 256,266 17% Conditional Grant Provincial Infrastructure Grant 348,194 19% 87,996 25% Total 1,825,490 100% 344,262

Slide 2 In the 2006/07 financial year the Infrastructure budget is R1,825 million and the Provincial Infrastructure Conditional Grant is R348 million which equates to 19%.of the total infrastructure expenditure. I am pleased to report that for the 1st Quarter the department has spent 19% of the Infrastructure Budget in line with the Cash Flow Projection.

KwaZulu-Natal Department of Transport CONDITIONAL GRANT Project Schedule 2006/07 Financial Year name Region details Target Outputs Actual 1st Quarter 2006/07 Budget R 000's 1stQuarter Expenditure R 000's Local Roads Empangeni Region New Gravel Roads 59 8 17,500 5,488 Ladysmith Region 35 4 10,500 2,525 Pietermaritzburg Region 34 6 10,000 6,173 Durban Region 10 10,194 4,214 ARRUP: Projects All Regions Upgrading from gravel to surfaced road 55 300,000 69,596 Total 218 38 348,194 87,996 Percentage of Actual versus Target % 17 25

Slide 3 As can be seen from the slide that 25% of the Provincial Infrastructure Grant has been spent by the end of the 1st Quarter, indicating that the Department is well on track to meet its milestones that were set for the financial year with regards to outputs and budgets .

Conclusion In summary the Department requires an additional budget of R18,483 billion. If this is funded over a 5 year period it amounts to R3,670 billion per annum. As can be seen from the figures presented this department, we have enough capacity and appropriate monitoring and evaluation systems in place to deliver on our mandate. If additional funding can be sourced the Province of KwaZulu-Natal will write its own history and it will be a history of Glory and Dignity, as we continue "Defending the Weak" through the provision of more transport infrastructure such as pedestrian bridges, access roads, a safer road environment and an effective and efficient public transport system.

Conclusion cont.. Massification of our rural growth and sustainable economic growth and development is not possible unless it is supported by appropriate transport infrastructure. Transport the world over is seen as a catalyst for change and improved service delivery.

Thank you