1. Department of Transport 1 Budget 2011 Select Committee on Public Services 31 May 2011

2. Department of Transport Budget Rollout of Provincial Roads Maintenance Programme Provincial Roads Maintenance Grant Intervention Public Transport 2 Contents

3. Budget allocations Per major allocation Roads & roads grants Provincial roads grants Bus (Public Transport Operations grant) Public Transport Infrastructure & Systems 3 Department of Transport Budget

4. Budget allocations Per major allocation 4 Details (R’000) Adjusted 2007/08 Adjusted 2008/09 Adjusted 2009/10 Adjusted 2010/11 Budget 2011/12 Budget 2012/13 Budget 2013/14 R'000 Roads & overload control (excluding disaster fund) 3,560,1504,211,7705,859,0616,893,18915,108,95017,295,69318,600,190 Bus2,835,9972,984,1313,531,9093,863,0334,153,2324,360,8944,600,743 PTIS – Municipalities1,174,0003,178,9002,418,1773,699,4624,803,3474,999,7815,563,604 Taxi581,798471,978644,717512,400487,144511,501539,633 Rural grant0012,80010,40035,43937,38239,250 Rail7,460,6088,893,28310,459,1139,203,5669,479,3989,962,46810,770,038 Transfers to public entities excluding bus, road & rail 156,367155,519159,754141,429154,162150,006157,942 DOT current, capital, & once off RAF, e-NaTIS and disaster 760,9754,582,7581,138,366950,158845,968869,494909,352 Other transfers (foreign, universities, non-profit institutions) 14,03714,50114,62015,44616,37317,19118,137 Total16,543,93224,492,84024,238,51725,289,08335,084,01338,204,41041,198,889 Growth %48.05%-1.04%4.33%38.73%8.89%7.84%

5. 5 Roads & roads grants (excl. disaster fund) 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 Adjusted 2007/08 Adjusted 2008/09 Adjusted 2009/10 Adjusted 2010/11 Budget 2011/12 Budget 2012/13 Budget 2013/14 SANRAL, roads and overload control grants New Provincial roads grants (included in DOT budget from 2011/12) R’000 Growth % SANRAL and grants 18.30%39.11%17.65%25.51%12.44%6.30% Growth % Prov. Roads grant 17.66%25.25%22.33%26.82%17.19%9.14% Total growth % 18.02%33.00%19.60%26.07%14.47%7.54%

6. 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 Adjusted 2007/08 Adjusted 2008/09 Adjusted 2009/10 Adjusted 2010/11 Budget 2011/12 Budget 2012/13 Budget 2013/14 R’000 SANRAL Capital 6 Roads & roads grants (cont.) (excl. disaster fund) Allocations (R’000): SANRAL & grants 3,560,1504,211,7705,859,0616,893,1898,651,5969,728,05510,340,966 Provincial roads 2,824,3103,323,0194,162,1615,091,7106,457,3547,567,6388,259,224 SANRAL, roads and overload control grants New Provincial roads grants (included in DOT budget from 2011/12)

7. 7 Provincial roads grants Details of allocationsBudget 2011/12 Budget 2012/13 Budget 2013/14 R'000 Coal Haulage Network for Mpumalanga 511,000659,838808.259 Coal Haulage Network for Gauteng74,6534,403881 To be allocated to Provinces: Provincial Roads Maintenance grant from Provincial Infrastructure grant 5,771,7016,303,3976,650,084 Preventative maintenance100,000600,000800,000 Total6,457,3547,567,6388,259,224 Conditions attached to the Provincial road grants by Treasury: 1. The funds will be released once the programme schedule has been submitted to National Treasury providing the projects, kilometers or square meters per project, project cash flow projections per year over the MTEF period, responsible entity or relevant service level agreement and start and end dates. 2. All expenditure needs to be reported separately according to project expenditure and progress.

8. 8 Provincial roads grants (continued) Major conditions of 2011 Division of Revenue Framework: Provincial departments must submit quarterly infrastructure reports to the national Department of Transport (DoT) that comply with the infrastructure reporting model and toolkit A final list of projects must be captured on the Infrastructure Reporting Model and submitted to the relevant Provincial Treasury and Department of Transport by the 21 April 2011 A detailed Asset Management Plan, that is compliant with the requirements of the Government Immovable Assets Management Act (2007) and based on the Road Asset Management System must be submitted by 31 August 2011 to DoT and National Treasury by 30 November 2011 The payment of the instalments of this grant is dependent on receipt by DoT of the quarterly performance reports Expenditure of this grant must be in accordance with maintenance requirements as identified by a road asset management system Mpumalanga and Gauteng provinces must allocate the following amounts to coal haulage projects: - Mpumalanga: R511 million in 2011/12, R659 million in 2012/13 and R808 million in 2013/14 - Gauteng: R74 million in 2011/12, R4.4 million in 2012/13 and R0.9 million in 2013/14 Provinces must submit Road Asset Management Systems priority projects in the form of a User Asset Management Plan by 30 November 2011

9. 9 Bus (Public Transport Operations grant) Growth % 5.2%18.4%9.4%7.5%5.0%5.5% R’000

10. 10 Public Transport Operations Grant allocations Province (R’000) Budget 2010/11 Budget 2011/12 Budget 2012/13 Budget 2013/14 Eastern Cape148,078166,954180,461196,061 Free State169,264184,566195,515208,162 Gauteng1,496,4421,577,6111,635,6951,702,781 KwaZulu-Natal714,587773,473815,611864,281 Limpopo214,472249,497274,561303,510 Mpumalanga397,003420,099436,626455,715 Northern Cape30,37037,56642,71548,662 North West60,41677,21189,230103,111 Western Cape632,402666,255690,480718,460 TOTAL3,863,0344,153,2324,360,8944,600,743 Bus (Public Transport Operations grant) Major conditions of 2011 Division of Revenue Framework: Designs and operators’ business plans detailing subsidised services will have to be approved by the Public Transport Integration Committee Supervision, monitoring and or verification must be done to certify the correctness of the operator’s claim in terms of km of services provided and reported to Department of Transport (DoT) monthly Submit monthly and quarterly performance reports to DoT

11. 11 PTIS – Municipalities Growth % - PTIS 170.8%-23.9%53.0%29.9%4.1%11.3% R’000 2010 Budget Additional allocations

12. 12 PTIS – Municipalities (continued) Allocations proposed by National Treasury (R,000) R’000 2011/122012/132013/14 Baseline in DORA ChangeProposed baseline Baseline in DORA ChangeProposed baseline Cape Town1,600,000200,0001,800,000900,000700,2001,600,2001,600,000 Ekurhuleni20,00010,00030,00020,0000 eThikwiini20,000180,000200,00020,00074,00094,00075,000 Johannesburg1,200,000500,0001,700,000800,000750,0001,550,0001,556,875 Nelson Mandela600,000(250,000)350,000800,000(400,000)400,000700,000 Tshwane500,000(300,000)200,000800,0000 850,000 Buffalo City400,000(200,000)200,000700,000(500,000)200,000380,000 Mangaung15,000 30,00015,0005,00020,000 Mbombela15,00031,40046,40015,0005,00020,000 Msunduzi15,00056,00071,00015,00075,00090,00030,000 Polokwane20,00037,50057,50020,00010,00030,000 Rustenburg20,000160,000180,00020,000220,000240,000350,000 Overall total4,425,000439,9004,864,9004,125,000939,2005,064,2005,631,875 Savings to be allocated(61,553)(64,419)(68,271) Budget4,803,3474,999,7815,563,604

13. Road Infrastructure Strategic Framework for South Africa (RISFSA) Extent of road network and condition data Holding strategy 13 Rollout of Provincial Roads Maintenance Programme

14. Challenges -Institutional Arrangements -Road Network and Classification -Information Systems & Decision Support -Funding Sustainability -Human Capital Strategies -Roads Coordinating Body -Service delivery models -Standardisation of systems -Inter-linkage of systems -Road needs study -Funding strategies -Review of toll strategy -Skills audit -Short term interventions -Long term interventions Key Focus Areas -Community Access Roads -Support for Economic Growth Areas -Labour Intensive Construction -Support for ISRDP, URP & IDPs -BEE, Entrepreneur & SMME Development -Uniform classification system -Comprehensive prioritisation system 14 Road Infrastructure Strategic Framework for South Africa

15. 15 Extent of the road network AuthorityPavedGravelTotal SANRAL16,1700 Provinces - 948,176136,640184,816 Metros - 951,68214,46166,143 Municipalities 2 37,691302,158339,849 Total 1 153,719453,259606,978 Unproclaimed (Estimated) 140,000 Estimated Total153,719593,259746,978 Notes: 1.The total extent of the network is as calculated form the 1:50000 RSA data set from Surveys and Mapping. 2.The extent of the municipal network was calculated based on subtracting the received data from Tota

16. 16 Available network condition data

17. 17 Holding strategy In 2002 cabinet approved a R64b, 5 year holding strategy for roads as follows:

18. 18 Provincial Roads Maintenance Grant Intervention Allocations to Provinces S’hamba Sonke Programme implementation framework Implementation through the Division of Revenue Act Targets for job creation Expected outputs from Provinces

19. 19 Provincial Roads Maintenance Grant allocations to provinces Vote Name of allocation Province2011/122012/132013/14 Transport (Vote 36) R'000 Provincial Roads Maintenance Grant Eastern Cape1 034 086 1 215 920 1 312 210 Free State447 165 525 794 567 433 Gauteng, Includes Coal Haulage 566 917 583 226 625 542 74 6534,403881 KwaZulu-Natal1 236 648 1 454 099 1 569 251 Limpopo934 208 1 098 478 1 185 468 Mpumalanga Includes Coal Haulage 1 016 603 1 253 564 1 449 002 511,000659,838808,259 Northern Cape308 760 363 053 391 803 North West501 826 590 067 636 795 Western Cape411 141 483 437 521 720 TOTAL6 457 939 7 568 301 8 260 032

20. 20 S’hamba Sonke Programme implementation framework Adopted by Transport MINMEC 2 nd February 2011: –S’hamba Sonke loosely translated S’hamba Sonke means “We are moving together” or “We are moving together in step” –The programme thrust is to focus on a few key actions whose achievement will represent a turnaround in the sector outlined in the key ensuing key programme components

21. 21 S’hamba Sonke Programme implementation framework (cont.) Key Programme ComponentsKey Actions Increase investment in maintenance of key arterial routes to support the rural economy Provincial authorities to identify roads for approval by DoT Outline methods of implementation that unbundle contracts to create opportunities for Emerging Contractors and local labour Collect key condition data on such roads Increased focus in the cost efficient use of labor absorptive methodologies in road construction and maintenance; Best practice labour intensive programmes to be rolled out nationally Cost-efficiency is key in the rollout of programmes Pothole patching programme to be rolled out Co-operatives to be introduced on road maintenance Improving Access to Schools and Clinics and other public facilities Provinces to itemise backlogs and progress Business plans that respond to job creation to be submitted Know your network: A focussed attention on deployment of local resources to support road network asset management Roads authorities are to retain information on network conditions on a regular basis Collected information must be fed into the asset management system collected condition information must be used to inform investment decisions Delivering a safe Road Environment

22. 22 Implementation through the Division of Revenue Act

23. 23 Implementation through the Division of Revenue Act (cont.)

24. 24 Implementation through the Division of Revenue Act (cont.)

25. 25 Implementation through the Division of Revenue Act (cont.)

26. 26 Type, goal and purpose of grant: Schedule 4 Grant to supplement provincial road investments and support preventative, routine and emergency maintenance on provincial road network & ensure provinces implement and maintain road asset management systems Implementation through the Division of Revenue Act (cont.)

27. 27 Outputs: Square meter/Kilometers of preventative, routine and emergency maintenance Updated traffic volumes and pavement condition data Updated road asset management systems Improvement in percentage of roads in poor to very poor condition and stabilisation of roads in better condition (very good, good and fair) Number of jobs created : commitment of 70 000 full-time equivalent on maintenance. Indication of opportunities that may be created from construction, rehabilitation Number of S3 students provided with experiential training and assisted with registration Number of emerging contractor opportunities created Implementation through the Division of Revenue Act (cont.)

28. 28 Implementation through the Division of Revenue Act (cont.) Grant conditions: Expenditure by and large in accordance with maintenance requirements identified in PMS Detailed asset management plan (compliant with GIAMA) by 31st August 2011 Adherence to Infrastructure Delivery Management Toolkit Exemption: Projects for which tendered contracts have been entered into or funding committed prior 31st March 2011 Coal haulage allocations for Mpumalanga and Gauteng

29. 29 Targets for job creation per Province

30. 30 Expected outputs from Provinces

31. 31 Public Transport Achievements 2010/11 Priorities 2011/12

32. Planned ObjectivesAchievements Establish Public Transport Integration Committee Established and revived Public Transport Integration Committees in all provinces to oversee and drive the phased implementation of new subsidised service contracts through the development of Integrated Public Transport Networks. As a result of the 37% increase in subsidy allocation in 2010/11, the PTIC in Northern Cape approved the introduction of new rural public transport services in the Namakwa and the Frances Baard District Municipalities. Appoint a team of Transport Professionals for the implementation of the PTOG A team of transport specialist has been appointed to assist the Department in developing the necessary strategies and frameworks to align the current bus subsidy process, paid through the Public Transport Operations Grant, with provisions of the Public Transport Strategy in preparation for the roll out of Integrated Public Transport Networks. Achievements 2010/11 32

33. Planned ObjectivesAchievements Create a national IPTN model [taxi recap, bus subsidies, Public Transport Information System (PTIS)], for implementation by the cities Continued Engagement with CoJ, CoCT and NMB on their IRPTN business models to incorporate incumbent operators and workers CoJ handed over Rea Vaya to the Taxi Operators Investment Company (PioTrans (Pty) Ltd), formally taking control of the BRT's Bus Operating Company to operate Rea Vaya’s Phase 1a. Phase 1a feeder and distribution networks were launched. Create a project management unit to facilitate the IPTN implementation and appoint a team of transport professionals to assist cities with operational and business plans Service providers in this regard appointed Achievements 2010/11 (continued) 33

34. Planned ObjectivesAchievements Monitor initial 4 IRPTN cities‘ Phase 1 Network Business Plans Reviews of CoCT, CoJ, Tshwane, NMB and Buffalo have been done focusing on project management, technical design, industry transition, overall business structure and universal access Facilitate the completion of Phase 1 Network Operational Plans for all 8 remaining cities Buffalo, Polokwane and Rustenburg – Draft Operational Plans completed Have commenced with the Business and Finance Plan Phases Accessible PT corridors as part of Phase 1 Networks Engaged with engagement with CoCT on the accessibility of its Phase 1a. Site inspection/ visits of the CoCT and CoJ Phase 1a systems. Engaged with SANTACO on the Accessible PT Strategy & Action Plan and with the South African Disability Alliance Finalise and Gazette Electronic Fare Collection Regulations The Regulations were published for Public Comments again and have been submitted to Minister for final approval and gazetting Achievements 2010/11 (continued) 34

35. Planned ObjectivesAchievements Scrapping Target – 8758 vehiclesVehicles scrapped – 5758 due to:  Access to funding  Cost of preferred vehicle (Toyota) very expensive  Recession  Operator credit worthiness and requirement of the National Credit Act Wc 2010 regulations for special OL’sDone Review and update pltf regulation in line with the NLTA Done Coordinate the processing of 2010 special OL’s in all 9 provinces Done Develop business and project plan to establish NPTR Done Public Transport Industry formalised*Data-base developed. Managed to register 691 Small Bus Operators with 2069 fleet on national data base Achievements 2010/11 (continued) 35

36. Strategic Objective 4.2 Development of integrated Rapid Public Transport Networks (IRPTNs) in cities and rural districts Objective Statement IRPTNs rolled out in five (5) cities by developing 300km of trunk Bus Rapid Transit (BRT) by 2014 and empower the industry through cooperatives Baseline5 cities have developed Network Operational Plans Rea Vaya Phase 1a; IRPTN infrastructure in Cape Town and Nelson Mandela JustificationImprove public transport access, affordability for urban and rural passengers and integrate all public transport modes into seamless single system Performance Indicators Key Performance Indicator Annual target 20111/12 Annual target 2012/13 Annual target 2013/14 No. of cities with approved plans 9 cities8 cities3 cities Number of cities implementing Integrated PT Networks, Feeder and Distribution Systems 1 (Cape Town’s Integrated Rapid Transit (IRT) Starter Service 2 (Johannesburg’s Rea Vaya 1b & Cape Town IR Phase 1a) 4 (Cape Town Full Phases 1,Jo’burg Phase 1, Tshwane, eThekwini and Nelson Mandela Priorities 2011/12 36

37. Strategic Objective 4.2… Development of integrated Rapid Public Transport Networks (IRPTNs) in cities and rural districts Objective Statement IRPTNs rolled out in five (5) cities by developing 300km of trunk Bus Rapid Transit (BRT) by 2014 and empower the industry Baseline5 cities have developed Network Operational Plans Rea Vaya Phase 1a; IRPTN infrastructure in Cape Town and Nelson Mandela JustificationImprove public transport access, affordability for urban and rural passengers and integrate all public transport modes into seamless single system Performance Indicators Key Performance Indicator Annual target 20111/12 Annual target 2012/13 Annual target 2013/14 No. of rural districts with planned IPTN’s Assessment report (6 districts) 3 Network plans Daily passenger trips45 00070 000110 000 Empowerment model for small operators Desktop research and benchmarking Stakeholder engagement Approved model Priorities 2011/12 (continued) 37

38. Strategic Objective 4.3 Effective regulation of public transport operations Objective Statement Establish the National Transport Regulator, Provincial Regulatory Entities and build municipal capacity by 2014 BaselineOperating Licences Boards, Provincial Taxi Registrars in all provinces JustificationEffective regulation of public transport to improve economic performance Performance Indicators Key Performance Indicator Annual target 20111/12 Annual target 2012/13 Annual target 2013/14 New institutions in 9 provinces and Metros Established National PT Regulator 9 PRE’sMRE’s in 6 Metros Redevelopment of the NLTIS Develop a new NLTIS Compliance with the NLTA Full integration of systems Review regulatory instruments Review the NLTAReview the Taxi Recap Ensure seamless operations Priorities 2011/12 (continued) 38

39. Thank you 39