November 2007 KwaZulu-Natal Department of Transport Conditional Grants and Capital Expenditure

Summary of Conditional Grants & Infrastructure Expenditure Trends Outcome BudgetMedium-Term Estimates Audited 2004/ / / / / / /2011 Capital New Construction128,351341,412365,092387,260477,635600,988704,681 Rehabilitation/ Upgrading598,371614,215716,3781,029,7761,202,4041,406,0661,426,177 Infrastructure transfer -- 1,0002,0006,00011,000 Provincial Infrastructure Grant282,594315,121351,292573,012649,422818,843 Sub Total Capital1,009,3161,270,7481,433,7621,992,0482,335,4612,836,8972,960,701 Current289,790476,976459,822451,476528,910651,691702,542 Total Expenditure1,299,1061,747,7241,893,5842,443,5242,864,3713,488,5883,663,243 % Conditional Grant22%18% 23% 22%

Mid year results for infrastructure /2008 In the 2007/08 financial year the infrastructure budget is R 2,443,524 million and the Provincial Infrastructure Conditional Grant is R 573,012 million which equates to 23% of the total infrastructure budget. The Department has spent 44% of the Provincial Infrastructure Conditional Grant and is well on track to meet its milestones that were set for the financial year. This department, has enough capacity and appropriate monitoring and evaluation systems in place to effectively manage this program and to deliver on our mandate. It is anticipated that the Department’s total infrastructure budget will be spent in the current financial year.

Summary of Infrastructure Expenditure 2007/08 Budget %of Budget 2 nd Quarter Actual %of Budget Spent R’000 Equitable Share Capital 1,419, ,125 New Construction387, ,147 Rehabilitation/Upgrading1,029, ,978 Infrastructure Transfer2,000- Current451, ,837 Equitable Share Total1,870,51277%737,96239% Provincial Infrastructure Grant Capital553,012249,699 New Construction222,54897,531 Rehabilitation/Upgrading330,464152,168 Current20, Provincial Infrastructure Grant Total573,01223%250,61044% Total2,443,524100%988,57241%

Summary of Conditional Grant Expenditure Project nameRegion Project details 2007/08 Target Outputs 2007/08 Budget R 000's 2007/08 2 rd Quarter Expenditure R 000's Access RoadsAll RegionsNew Gravel Roads330117,72635,154 ARRUP ProjectsAll Regions Upgrading from gravel to surfaced road55330,464152,168 Up scaling EPWPAll RegionsVarious activities124,82263,288 Total573,012250,610

Summary of Conditional Grant Expenditure Project nameRegion Project details 2007/08 Target Outputs 2007/08 Budget R 000's 2007/08 2 rd Quarter Expenditure R 000's Access RoadsAll RegionsNew Gravel Roads330117,72635,154 ARRUP ProjectsAll Regions Upgrading from gravel to surfaced road55330,464152,168 Up scaling EPWPAll RegionsAlien Vegetation10, Drainage Clearing10, Road upgrading77,11161,178 Pedestrian infrastructure17, Learner ships10, Up scaling EPWP TotalAll RegionsVarious activities124,82263,288 Total573,012250,610

Monthly reports for transfers to Departments & Municipalities The Department does not make any transfers to other departments. No transfers to municipalities have taken place in the first half of the 2007/2008 financial year. Payments will however, be made during the second half of the year for which the department will receive monthly reports.

Conclusion The province needs to source additional funding for the construction and maintenance of the Road Network. The advances made in providing access and upgrading roads to historically disadvantaged areas will soon be lost due to the deterioration in the condition of roads. Failure in this will result in the economic stagnation of large areas of the country.

Conclusion….. There is significant backlog of providing access to community facilities through the provision of all weather access roads and pedestrian bridges. The Department of Transport is committed and challenged to build a People’s Contract for sustainable transport system that takes full cognisance of the fact that KwaZulu-Natal is the Gateway province to South Africa’s international trade.

Thank you