Annual Report 2003 / 2004 Programme Two: Governance and Development Presentation to the Portfolio Committee on Provincial and Local Government 19 October 2004

Purpose of presentation To present the Annual Report 2003/2004 for Program Two to the Portfolio Committee of the National Assembly To explain progress for the period for seven (7) sub programs, namely – Intergovernmental relations Development and Planning Local Economic Development CMIP MIG Public participation ISRDP/ URP dplg 2

1. Intergovernmental relations Output one: Legislation Objective: To provide a legal framework for intergovernmental relations and intergovernmental dispute settlement to give effect to section 41 of the Constitution Target: September 2003 Progress: Bill drafted and consulted on dplg 3

Policy context of Bill Constitutional Requirement (s41) Integrated Act providing for structures to facilitate IGR and procedures for dispute resolution Integrated governance Makgotla resolutions Realizing national vision given relative autonomy of provincial and local government Ten Year Review December 2004 deadline for Bill POA (2004-2008) dplg 4

Lengthy, inclusive consultation 2003 June 2004 2004-05 Version of Bill Version 1 Version 2 Version 3/4 Cabinet Workshop Cabinet approval Cabinet Committee 10YR ELECTION Premiers wkp LG MinMEC PCC 2nd Cabinet wkp Cabinet Com Revision Cluster Distribution Cluster (2) PCC MinMEC Budget Coun. Written inputs dplg 5

Intergovernmental relations … Output two: Assessment of powers and functions Objective: To assess distribution/ assignment of powers and functions as it pertains to consolidation of local government Target: September 2003 Progress: First phase completed dplg 6

Intergovernmental relations … Output three: assignment framework Objective: To provide a clear framework for managing future assignment of functions to local sphere Target: March 2003 Progress: Municipal Systems Act amended to provide more certain procedure. Assignment framework developed and consulted on dplg 7

Development planning Output one: Guidelines on intergovernmental Objective: To provide framework guidelines for aligning planning of all three spheres Target: September 2003 Progress: Guidelines developed and incorporated into intergovernmental relations bill dplg 8

Development planning … Output two: Guidelines for LED Objective: To promote LED Target: July 2003 Progress: IDP nerve center pilot in NW commenced IDPNC website activated Draft LED policy developed and consulted on dplg 9

Development planning … Output three: Provincial performance assessment Objective: To develop strategy for dplg support to provinces Target: July 2003 Progress: Work not completed. Dedicated unit included on establishment dplg 10

LED Output one: LED and social plan Objective: To promote job creation through grant finance Target: As in DORA Progress: 100% funds transferred 96 projects (1551 job opportunities created) dplg 11

CMIP Output one: Funding for bulk infrastructure Objective: Revenue stream for capital projects Target: As in DORA Progress: 721,328 households serviced 42,79% allocated to ISRDP/URP nodes 2,38 million person days employment created 112,159 person days training provided 336 SMMEs utilised dplg 12

MIG Output one: Consolidation of capital grants Objective: To integrated revenue streams to municipalities within Municipal Infrastructure Grant and to pilot Target: March 2004 Progress: Policy framework approved Rollout for pilot projects commenced 590,323 households benefited 1635 employment opportunities 163 training opportunities dplg 13

MIG … Progress (cont) DORA allocations for 2004/05 finalised R40,5 m transferred to MIG pilot sites in nine municipalities MIG rollout plan completed Introductory guide for MIG completed Program management capacity established in dplg dplg 14

Public participation Output: Municipal Service Partnerships (MSP) Objective: To provide guidelines on MSP Target: March 2004 Progress: Guidelines and regulations completed dplg 15

ISRDP/URP Output one: Effective intergovernmental Coordination of program Objective: To co-ordinate participation of relevant departments in program Target: Quarterly meetings Progress: Intergovernmental forum established and active. dplg 16

ISRDP/URP … Output two: Demonstrate visible delivery in nodes Objective: To coordinate investment in anchor projects in nodes Target: Quarterly Progress: 98 anchor projects in urban nodes (March 2004), 79 in July 2003 Project value: R 1,95 billion (R1,3 billion in July 2003) dplg 17

ISRDP/URP … Progress cont 177 anchor projects in rural nodes in March 2004 (155 in January 2003) Value of projects in July 2003 was R45, 4 billion dplg 18

ISRDP/URP … Output two: Securing and co-ordinating funding Objective: To secure and coordinate funding for projects in nodes Target: July 2003 for funding, and March 2004 for finalisation of financing protocol Progress: Dplg allocated R400 m to nodes (CMIP and equitable share) General national funding to nodes exceeds R2 billion Financing protocol reached an advanced stage of development dplg 19

Priorities for 2004 Priorities in new Government’s 5 year Program of Action: Legislation on intergovernmental relations Provincial legislation on institution of traditional leadership Completing establishment of Branch: Governance, Policy and Research dplg 20

Thank you dplg 21 dplg 21