1 CONDITIONAL GRANTS PROGRESS AND CAPITAL EXPENDITURE 2007/2008 MEC DP Magadzi 22 January 2008

2 PERFORMANCE & TRENDS IN ALLOCATION/TRANSFER /06 Allocated & Transferred % Spent 2006/07 Allocated & Transferred % Spent 2007/08 Allocated 2007/08 Transferr ed 2007/08 Spent CASP52,217m10050,143m9662,921m50,337m14,000m Land Care 5,308m1007,950m907,943m6,654m1,907m IGP60,255m4943,767m9438,480m-1,624m

3 2007/08 CASP PROGRESS REPORT The following activities were targeted –Deliver well planned & massified projects –Resource auditing e.g. water resource development, Soil testing –Implementation of projects found feasible –Farmer capacity building –Comprehensive planning for 2008/09

4 2007/08 PROGRESS REPORT CONT’D ACTIVITIESOUTPUTS Boreholes tested83 Boreholes drilled18 Irrigation Infrastructure84 ha Complete designs, spec and BoQs45 projects Fencing144 km Projects planned, packaged & ready for tendering (2008/9) implementation 29 projects constituting 70% of 2008/9 budget are ready for tendering Poultry House Construction of houses started in 2006/07 8 houses completed Delivery of new houses2 houses completed Houses in progress1 house Farmers Trained76

5 PROJECTED SPENDING FOR QUARTER 3 (07/08) ProjectValueMunicipalityDisbursement JanFebMar Irrigation Infrastructure 8.3MMaruleng, Tzaneen Polokwane, Molemole Blouberg, Makhado 1, , , Poultry Houses6.4MBa Phalaborwa Tzaneen, Polokwane , , Juice processing & drying facilities 20.5MMakhado0020.5M Livestock infrastructure 4MAll , , Training & Capacity building 3,7MAll1, Project Planning 1.7MAll TOTALR44, , , ,

6 One of the massified poultry projects

7 2006/07 IGP projects Outcomes 90% of the budget was spent. 10 of 12 Poultry houses of 40,000 capacity were completed. 42 Microenterprises with 1247 beneficiaries were developed. Fresh Produce Packhouse facilities were located, first seller withdrew offer. Facilities to lease in Seshego were withdrawn by ExCo decision.

8 IGP PROJECTS 2007/08 PROJECTBUDGETProgress Fresh Fruit &Vegetable Packhouses R6,700,0003 individual projects identified Honey Bee ProductionR5,000, beehives and equipment have been delivered. Integrated LivestockR7,100,00086 of 100km fencing done, 8 boreholes drilled & equipped. Feedlot & abbatoir site preparation. 20 crush pens under construction. Mechanization Credit Access R20,000,00Procurement, Negotiations with Absa & Land Bank at 95%. TOTALR38,800,000

9 LandCare Objectives 2006/7 ACTIVITYTARGETOUTPUTS Awareness creation65 Capacity building Institutional structures66 Conservation measures Clearing of alien and invader plants 300(ha)305 Job creation Fence construction Access roads Fire belts265195

10 PROJECTBUDGETCOMMITTEDEXPENDITUREBALANCE MARULENG1,000,00073,000R 8,700R 918,300 GA-KIBI1,000,000R 441,528R 185,150R 373,322 LEPELLANE1,000,000R 446,570R 469,855R 83,575 MOGALAKWEN A 1,000,000R 279,755R 515,648R 204,597 BOLOBEDU1,000,000R 67,967R 81471R 850,562 KUTAMA-S1,000,000R 203,924R 424,939R 371,137 MPHAHLELER 647,666R 201,000R 143,794R 302,872 LEOLOR 647,666R 3,000R 47,478R 597,188 MUTALE- NWANEDI R 647,666R 29,965 R 587,736 TOTALR 7,943,000R 1,746,709R 1,907,000R 4,289,289 LandCareQ3 Financial Progress

11 TARGET vs OUTPUTS 2007/08 ACTIVITYTARGETOUTPUT Awareness Creation30011O Capacity Building Institutional Structures123 Conservation Measures40,00010,000 Clearing of Alien and Invader Plants 3150 Job Creation Fence Construction5427

12 Expected Outcomes -LandCare All funds will be committed by end of January Expected spending by end March 2008 will be R6,943mill. Expected to be rolled over R1,8mill.

13 DEVELOPMENTAL CHALLENGES Assessment and program review revealed the need to move from quantity to quality (economic feasibility and impact) Late appointment of planning engineers in line with a change of strategy from delivery of minute to massification, which necessitated detailed planning, therefore very delayed implementation with both happening in the same year – performance still expected to be just over 90% (R58, ) Managing slow conceptualization to change of strategy by both farmers and officials took over 14months. Engineering capacity to monitor mega projects is limited.

14 PLANS TO ADDRESS THE SHORTCOMINGS Massified approach delivers fewer, and more sustainable projects which are cost effective to both planning and monitoring resources Demand officials have been capacitated on the procurement processes requisite to the mega projects e.g. contract management, drawing of TOR and SLAs Use of external engineering capacity where necessary Current readiness for 2008/9 evident that planning will henceforth be fully completed six months ahead.

15 Challenges – IGP 2006/07 Poultry House Contracts was re-advertised in June 2006 contractors were on site. Fresh Produce market infrastructure delays due to Montina Seller withdrawal from Purchase Offer & cancellation of Lease at Seshego by ExCo Decision. (ExCo wanted an integrated Plan with LEDET & Funding Plan = +-R300m) Micro enterprises delayed due to Electricity connections but most are complete. Testing has to be done before finalizing and hand-over.

16 MONITORING CAPACITY & PROCESSES LDA makes use of the following tools: –Monitoring tools developed (involve rigorous approval criteria) –Monthly narrative & financial reporting by Districts (with digital recording of projects status –Provincial team meetings involving Districts, municipalities & specialized agric service units –Ad hoc projects sampling and field visits. –Sharing of best practice across districts. All demand managers have been trained on contract management in order for them to enforcement adherence to the TOR and delivery of quality products LDA has complied with reporting requirements of Dora.