MARCH 2006 BUDGET PREVIEW PRESENTATION TO THE PORTFOLIO COMMITTEE ON PUBLIC WORKS

2 Key Policy Developments Affecting Budgeting Devolution of budgets and introduction of acccommodation charges GIAMA – more systematic planning, prioritisation of maintenance Envisaged devolution of Property Municipal Rates to the Provinces concerned has been delayed. It is however, envisaged that this process may still be finalised in the forthcoming financial year.

3 New funding arrangements after devolution DPW Client departments, including DPW Devolved budgets: leases, maintenance, municipal rates and services Accommodation charges based on areas occupied Treasury Accommodation budget per department DPW vote Trading entity Treasury Quarterly invoices, MOU

4 DPW Budget Vote Allocation for 2006/07 - Vote allocation for the 2006/07: R Year-on year decrease as a result of budget devolution: R Breakdown per programme: Programme 1(Administration) : R Programme 2 (Land and buildings) : R Programme 3 (NPWP): R Programme 4 (Auxilliary): R

5 Analysis of DPW Vote Allocation by Standard Items (after devolution) (R’000) Personnel Budget R Administration R Office Rental* R Accommodation charge* R Backlog Maintenance* R Capital Works Budget R Municipal Rates on Provincial Prop R EPWP R Facilities Management* R Transfer Payments to CIDB R Transfer Payments to CBE R Transfer Payment to Agreeme’nt Board R Auxiliary Services R TOTAL R *Funds to be transferred to Trading Entity

6 Trading entity estimates of revenue: 2006/07 DETAILSAMOUNT RECEIPTSR’000 Accommodation Charges (State-owned) Operating Leases (Private Sector Leases) Municipal Services Municipal services management fees Transfers Received Total Received

7 DETAILSAMOUNT PAYMENTSR’000 Leasing (Private Sector Landlords) Maintenance Municipal Services Rates on State Property Total Payments Trading entity estimates of expenditure: 2006/07

8 Improvements in Funding Over the MTEF period, there has been a significant improvement in the baseline allocation for Property Management (including funds devolved to client departments) The maintenance allocation increased from R927 million in 2005/06 to R1 494 million in 2006/07 The following are some of the projects on which additional funds received for 2006/07 will be spent: –Expanded Pubic Works Programme: R10 million –Re Kgabisa Tshwane: R73 million –Border Control Operational Coordinating Committee (BCOCC): R190 million –Maintenance backlog: R450 million –Prestige projects of R73 million, the bulk of funds to be spent on Parliamentary Precinct Facilities Management

9 Prioritised Maintenance Budget 2006/07

10 THANK YOU