1. 26 August 20081 SELECT COMMITTEE ON FINANCE: Public Hearings on Conditional Grants and Capital Expenditure 2008/09 - 1 st Quarter results Presentation by: Rannoi Sedumo – Acting HOD

2. 26 August 20082 CONTENTS Roads infrastructure –Departmental Infrastructure budget –Provincial Infrastructure Grant –Gautrain Public Works infrastructure –Departmental Infrastructure budget –Client Department budgets

3. 26 August 20083 Provincial Infrastructure Grant The department is a recipient of the Provincial Infrastructure Grant from National Treasury The grant is used for maintenance and rehabilitation of roads; upgrading of roads, up-scaling of EPWP A business plan was submitted as required by Division of Revenue Act

4. 26 August 20084 Public Transport

5. 26 August 20085 Infrastructure Budget Allocation: Public Transport

6. 26 August 20086 Infrastructure Quarter Expenditure 2008/09

7. 26 August 20087 Expenditure : Conditional Grant

8. 26 August 20088 Service delivery trends: Transport Infrastructure Capital Projects The projects below are contracts that have been awarded by the Department, and the contractors are already on site, and work has commenced and progressing according to the contracts. Some of the contracts have commenced in 2006/07 and 2007/08 financial years.

9. 26 August 20089 Service delivery trends : Transport Infrastructure Capital Projects Department’s Construction Unit Heidelberg (R40 million) –P174: Reconstruction and upgrading of D77. Project constructed by the Departmental construction team. –The project is ongoing and construction to be completed by November 2008. Cullinan rd P2 – 5 (R9,042) –Zambezi road (R513) P2 – 5 Dinokeng. Upgrading, rehabilitation and resealing (8 km) – –Project currently on final stages to completion. Development (Upgrading) R55: (R112,008) –R55 (K71) doubling of carriage way from N14 to Sunderland ridge (6 km): – Project continues as planned and construction of a bridge is on schedule. The overall projects on earthworks are 2 months ahead of programme. Diversion on the Monavoni circle completed & will be opened in July for traffic. D49 needs to be proclaimed.

10. 26 August 200810 Service delivery trends : Transport Infrastructure Capital Projects Development (Upgrading) K15 (R138,790 m) –K15 – Phase 1 doubling Adcock St carriage way from Leratong Hospital to Dobsonville (6 km) –The work still continues as planned. The issue on the chicken’s farm has not been resolved yet. The construction of the diversion near Leratong hospital completed. Development (Upgrading) P71 (R21,888) –Main Road (P71) Phase 2 - dual carriage way from Zinnia Rd to R55 (2km) The final layers and priming on the newly constructed lanes has been done.

11. 26 August 200811 Service delivery trends : Transport Infrastructure Capital Projects Development (Upgrading) K29 (R80m) –Malibongwe drive :Phase 2- doubling of Malibongwe drive and intersections from Cosmo City to the N14 (3 km). The site has been handed over to contractor, clearing has commenced and site has been established. Concrete slab for the box culvert bridge has been poured. –Upgrading of Gravel Roads. Cayman road. (R30 million) Construction and surfacing of phase 2 Cayman rd D2529 Eye of Africa development. Site has been handed over. The contractor has commenced with site establishment.

12. 26 August 200812 20 Township Roads Program Upgrading and tarring of 20 identified township roads Provision of sidewalks, storm water, road surface Enable economic upliftment and empowerment Utilization of CIDB Levels 1-4, mentorship's Alleviate unemployment by creating jobs Facilitate skills development through training Target woman, youth, disabilities job creation

13. 26 August 200813 SOSHANGUVE ATTERIDGEVILLE MAMELODI MUNSIEVILLE SOWETO SEBOKENG RATANDA BOIPATONG BOPHELONG SHARPVILLE DAVEYTON DUDUZA THEMBISA KAGISO THOKOZA KATLEHONG MOHLAKENG WATTVILLE KWA-THEMA TSAKANE 20 Identified townships

14. 26 August 2008 14 20T PROJECTS

15. 26 August 200815 Service delivery trends : 20 Township

16. 26 August 200816 Service delivery trends : Service Service Delivery trends:Maintenance

17. 26 August 200817 Service delivery trends : Maintenance Introduced and implemented a Road Maintenance Strategy aimed at outsourcing routine maintenance to private sector. In December 2007, the Department outsourced 500 km of roads to CIDB 1 to 4 registered construction companies to perform routine road maintenance for a period of 24 months. The proposed outsourcing strategy focus on labour-based and equipment supported approach and integrate Expanded Public Works Programme; and Increased funding and resources for road maintenance to enable easy transformation and to outsource of a number of provincial roads. Utilizing Impophoma Infrastructure Entity (previously known as Yellow Fleet) to run a SMME support programme that provides easier and cost effective access to fleet and plant

18. 26 August 200818 Service delivery trends : Maintenance Contractual outsourcing of 500km roads (308 maintained in Q1) –400 people are employed on the program –120 people on this program are registered on a 12 month skills program –Contractors are trained parallel with the supervisors on a contractor development program –15 additional women were employed on the skills program working with the contractors –All contractors and their workers will be trained on invader plant species, application of herbicides

19. 26 August 200819 Service delivery trends : Maintenance Empowerment of woman through road maintenance –101 woman was employed since 1 November 2007 and is currently on a 12 months skills program –Another 25 woman was appointed on the programs –The process to form woman co – operatives is in process

20. 26 August 200820 Monitoring capacity and planning The business plans regarding the conditional grants and in general was submitted to Treasury by means of the Infrastructure Management Plan that must be submitted on an annually basis. Regular monitoring meetings are held in respect with expenditure against the planned projects to safe guard against under/over expenditure. The multi year construction and maintenance is revised on a quarterly basis after the revision of the one year operational plan which is done on a monthly basis.

21. 21 GAUTRAIN Gautrain Rapid Rail Expenditure for 2008-09 Actual first quarter - 2008-09Projections BudgetAprilMayJuneJuly - MarchTotal National DORA 3,265,993 707,000 407,000 476,764 1,675,229 3,265,993 Provincial MTEF 1,500,000 135,639 194,108 70,880 1,099,373 1,500,000 Total: Province funding 4,765,993 842,639 601,108 547,644 2,774,602 4,765,993

22. 22 Gautrain Rapid Rail expenditure for 2008-09 Actual first quarter - 2008-09Projections BudgetAprilMayJuneJuly - MarchTotal GMA: Operational costs 14,600 601 663 220 13,116 14,600 Technical support 326,603 22,183 27,027 30,026 247,367 326,603 Independent monitors 33,855 2,997 2,766 3,172 24,920 33,855 Capital provisions- integration 32,342 Land procurement 461,860 79 40,584 37,462 383,735 461,860 Construction & commissioning 3,896,732 816,779 539,068 476,764 2,064,122 3,896,733 Total: Province expenditure 4,765,993 842,639 610,108 547,644 2,765,602 4,765,993 % spent17,7%12,8%11,5%58,0%100,0% % cumulative17,7%30,5%42,%100,0%

23. 23 GAUTRAIN Gautrain Rapid Rail Expenditure for 2008-09 including provincial borrowings Actual first quarter - 2008-09Projections BudgetAprilMayJuneJuly - MarchTotal National DORA 3,265,993 707,000 407,000 476,764 1,675,229 3,265,993 Provincial MTEF 1,519,338 135,639 194,108 70,880 1,118,711 1,519,338 Provincial borrowings 3,815,515 Total: Province funding 8,600,846 842,639 601,108 547,644 6,609,455 8,600,846

24. 24 Gautrain Rapid Rail expenditure for 2008-09 including provincial borrowings Actual first quarter - 2008-09Projections BudgetAprilMayJuneJuly - MarchTotal GMA: Operational costs 14,600 601 663 220 13,116 14,600 Technical support 326,603 22,183 27,027 30,026 247,367 326,603 Independent monitors 33,855 2,997 2,766 3,172 24,920 33,855 Capital provisions-integration 32,342 Land procurement 461,860 79 40,584 37,462 383,735 461,860 Construction & commissioning 7,731,5826 816,779 539,068 476,764 5,898,975 7,731,586 Total: Province expenditure 8,600,846 842,639 610,108 547,644 6,600,455 8,600,846 % spent9,7%7,2%6,4%76,7%100,0% % cumulative9,7%16,9%23,3%100,0%

25. 26 August 200825 SELECT COMMITTEE ON FINANCE: Public Hearings on Conditional Grants and Capital Expenditure 2008/09 - 1 st Quarter results Presentation by: Gilberto Martins DDG: Public Works

26. DPTRW – Vote 9 : Program 2 – Capital Works To construct new facilities Upgrade, rehabilitation, maintain existing facilities Implement client departments needs Render professional and technical service Ensure optimum usage and benefits of provincial property portfolio

27. Expenditure Report – Prg 2 :Public Works Capital Works BudgetApril 2008 Actual Exp May 2008 Actual Exp June 2008 Actual Exp Total 1st Quarter 2008 Exp Year to Date Exp % Total Exp R 78 513 000R 0R 3 004 198R 4 099 778R 7 103 976 9% BudgetCommitted Total Committed Year to Date % Total R 78 513 000R15 789 757R 7 625 664R2 779 565R26 194 986 33% Note Budgets of the 1st Quarter were spent in line with the project commitments and the cash flow indications.

28. Expenditure Report – Programme 2 Public Works: Capital

29. DPTRW – Vote 9 : Program 2 – Maintenance Upgrade, rehabilitation, maintain existing facilities Implement client departments needs Render professional and technical service Ensure optimum usage and benefits of provincial property portfolio

30. Expenditure Report – Prg 2 :Public Works Maintenance BudgetApril 2008 Exp May 2008 Exp June 2008 Exp Total 1st Quarter 2008 Exp Year to Date Exp % Total Exp R 12 000 000R 0R 472 349R147 093R 619 442 5% BudgetCommitted Total Committed Year to Date % Total R 12 000 000R 0 R 7 013 181 58% Notes Budgets of 1st Quarter were spent in line with the project commitments and the cash flow indications.

31. Expenditure Report – Prg 2 :Public Works Maintenance Budget R 000 000

32. 1st Quarter Expenditure Review Social Development Financial year 2008/09 Period : April 2008 to June 2008

33. Expenditure Report – Social Development - Capital ProgramBudget April 2008 Exp May 2008 Exp June 2008 Exp Total 1 st Quarter 2008 Exp Year to date Exp % Total Exp Capital:R 56 629 896R 0R 2 161 794R 4 310 904R 6 472 698 11% BudgetCommitted Total Committed Year to Date % Total Capital:R 56 629 896R 49 070R 7 119 402R 5 618 500R12 786 973 23% Budget R 56 629 896

34. Expenditure Report – Social Development - Maintenance ProgramBudget April 2008 Exp May 2008 Exp June 2008 Exp Total 1st Quarter 2008 Exp Year to date Exp % Total Exp Mainten:R 8 000 000R 0 % BudgetCommitted Total Committed Year to Date % Total Mainten:R 8 000 000R 0 R 5 640 753 71% Budget R 8 000 000

35. 1st Quarter Expenditure Review DACE Financial year 2008/09 Period : April 2008 to June 2008

36. Expenditure Report – DACE - Capital Programme Number BudgetApril 2008 Exp May 2008 Exp June 2008 Exp Total 1 st Quarter 2008 Exp Total Year To Date % Total Exp Capital:R 6 470 000R 0R 307 553R 0R 307 553 5% BudgetCommitted Total Committed Year to Date % Total Capital:R 6 470 000R 0R 64 695R 335 692R 400 388 6% Budget R 6 470 000

37. Expenditure Report – DACE - Maintenance Programme Number BudgetApril 2008 Exp May 2008 Exp June 2008 Exp Total 1st Quarter Exp 2008 Total Year To Date % Total Exp MaintenanceR 5 132 000R 0 % BudgetCommitted Total Committed Year to Date % Total MaintenanceR 5 132 000R 0 R 1 286 121 25% Budget R 5 132 000

38. 1st Quarter Expenditure Review Health Financial year 2008/09 Period : April 2008 to June 2008

39. Expenditure Report – Health - Capital Programme Number Budget R,000 April 2008 Exp May 2008 Exp June 2008 Exp Total 1st Quarter Exp 2008 Total year to date % Exp Capital: R1 109 494 R 0R 106 980 720R 71 308 336R 178 289 056 16% Budget R,000 Committed Total Committed Year to Date % Total Capital: R1 109 494R32 125 732 R112 144 253R 76 994 374R 221 264 361 20% Budget R 1 109 494 000

40. Expenditure Report – Health – Maintenance Prog Num Budget April 2008 Exp May 2008 Exp June 2008 Exp Total 1st Quarter 2008 Exp Total year to date % MaintR 336 290 000R 0 R 870 310 0.26% BudgetCommitted Total Committed Year to Date % Total MaintR 336 290 000R 0 R97 317 056 29%

41. 1st Quarter Expenditure Review SCAR Financial year 2008/09 Period : April 2008 to June 2008

42. Expenditure Report – SCAR Prog Num Budget April 2008 Exp May 2008 Exp June 2008 Exp Total 1st Quarter Exp 2008 Total year to date% CapitalR 77 300 000R 0R 4 183 973R 3 650 827R 7 834 800 11% BudgetCommitted Total Committed Year to Date % Total CapitalR 77 300 000R 264 094R 11 753 789R 3 772 200R 15 790 104 20%

43. 1st Quarter Expenditure Review EDUCATION Financial year 2008/09 Period : April 2008 to June 2008

44. Expenditure Report – EDUCATION Prog Num Budget April 2008 Exp May 2008 Exp June 2008 Exp Total 1 st Quarter Exp 2008 Total year to date % CapitalR 351 964 592R 0R 6 284 882R 5 715 719R 12 000 601 3% BudgetCommitted Total Committed Year to Date % Total CapitalR 351 964 592R 244 616R 10 579 934R 3 457 244R 14 281 794 4%

45. 1st Quarter Expenditure Review COMMUNITY SAFETY Financial year 2008/09 Period : April 2008 to June 2008

46. Expenditure Report – COMMUNITY SAFETY Prog Num Budget April 2008 Exp May 2008 Exp June 2008 Exp Total 1 st Quarter Exp 2008 Total year to date % CapitalR 6 657 476R 0 R 910 820 14% BudgetCommitted Total Committed Year to Date % Total CapitalR 6 657 476R 0 R 910 820 14%

47. Expenditure Report – COMMUNITY SAFETY Maintenance Prog Num Budget April 2008 Exp May 2008 Exp June 2008 Exp Total 1 st Quarter Exp 2008 Total year to date % MaintenanceR 6 746 000R 0 0% BudgetCommitted Total Committed Year to Date % Total MaintenanceR 6 746 000R 0 R 795 300 12%

48. 1st Quarter Expenditure Review EPWP Financial year 2008/09 Period : April 2008 to June 2008

49. DPTRW – Vote 9 : Program 5 – EPWP Enable economic upliftment and empowerment Reduce infrastructure backlogs Alleviate unemployment by creating jobs Facilitate skills development through training Target woman, youth, disabilities job creation

50. Expenditure Report – Prg 5 - EPWP Prog Num Budget April 2008 Exp May 2008 Exp June 2008 Exp Total 1 st Quarter Exp 2008 Total year to date % EPWP R200 000 000 R 0R13 013 709R15 671 750 R 28 685 459 14% BudgetCommitted Total CommittedYear to Date % Total EPWP R200 000 000R12 441 288R3 824 505R27 419 666R43 685 459 23 % Budget R 200 000 000

51. 1st Quarter Expenditure Review 20 IDENTIFIED TOWNSHIPS Financial year 2008/09 Period : April 2008 to June 2008

52. Expenditure Report – Prg 3 – 20 IDENTIFIED TOWNSHIPS Prog Num Budget April 2008 Exp May 2008 Exp June 2008 Exp Total 1st Quarter Exp 2008 Total year to date % 20Tt R320 628 000 R 886 765R 31 108 631R 26 097 395 R 58 092 791 18% BudgetCommitted Total Committed Year to Date % Total 20Tt R 320 628 000R 331 271R 37 587 739R 31 238 189R 69 155 201 22% Budget R 320 628 000

53. Monitoring capacity and planning Monthly Expenditure Report meetings are held between programme managers and the Finance branch. Senior quarterly management meetings are used to discuss performance of the various programmes. The Executive Management committee also receives monthly expenditure report from the CFO. The HOD and DDG PW holds one-on-one meetings with individual managers from time to time to ensure accountability for service delivery.

54. Monitoring capacity and planning At unit level performance is monitored against operational plans. Monthly and quarterly infrastructure reports are send to Treasury. Project Management Resource Groups assist in ensuring performance happens at site level. Client departments needs/plans developed and implemented.

55. Service Level Agreements SRAC Social Development DACE Health Department SLA’s with Blue IQ are in place for the Cradle of Humankind and Dinokeng projects.

56. DEVOLUTION OF RATES AND TAXES Gauteng Province State of Readiness Portfolio Committee Presentation Mr. Gilberto Martins DDG: Public Works

57. Agenda: 1. Background 2. Implementation-Preparation 3. Provincial State of Readiness 4. Implications of Devolution of Rates and Taxes on the Municipal Rates Act and GIAMA 5. Recommendations

58. 1. Background The aim: for Provinces to take accountability of payment of rates and taxes in relation to provincially owned properties. Where it started  The NPW devolved the function of payment for rates and taxes in line with the 1997 National Public Works White Paper and the Government Immovable Asset Management (no. 19 of 2007).  The devolution of rates was meant to initially commence during the 2005/6 financial year.

59. 1. Background The aim: for Provinces to take accountability of payment of rates and taxes in relation to provincially owned properties. Where it started  Due to lack of readiness of Provinces, this was later deferred to 2007/2008 financial year.

60. 1. Background…cont  Payment of all provincial municipal accounts rates and taxes accounts on all Provincially owned properties.  On 8th November 2005, Provincial Treasury provided DPTRW with a schedule of properties to verify in line with its respective asset register.  DPRTW completed this task and communicated to Provincial Treasury all findings/verification by end of 2007.

61. 1. Background…cont  Efficiently manage the property budget from Treasury in line with the PFMA and Treasury Regulations Act.  To fully function independently of National Public Works in payment of Rates and Taxes and take full accountability of the management of the asset register within Provinces.

62. 2. Implementation - Preparation What have we done  Engaged all relevant 12 municipalities with the view of assessing all accounts to be paid for.  The Province has further assessed and verified all properties provided by both Treasury and National Public Works.

63. 2. Implementation - Preparation What have we done With the help of municipalities, we’ve identified all accounts to be paid through a valuation roll exercise determination: A. Tshwane Metropolitan: Valuation Roll - 100% completed B. City of Joburg Metropolitan: Valuation Roll - 80% completed C. Ekurhuleni Metropolitan: Valuation Roll - 73% completed

64. 3. Provincial State of Readiness  We’ve captured payments amounting to R10 million.  We’ve trained officials to address all property rates payment.  We’re constantly in communication with the National Public Works iE-Works technical team for further training.

65. 4.Implications of Devolution of Rates and Taxes on the Municipal Rates Act and GIAMA  The Province expects a shortage of funds ( approximately R 97, 470, 796) due to the impact of the Municipal Rates Act which saw a significant increase in property values.  Calculation of rates and taxes has now been revised to factor both the land an improvements.  The current allocations are based on the historical calculation prior to the introduction of the Municipal Rates of Act.  GIAMA requires that all values of on the asset register reflect both municipal values as well as market values.

66. 4.Challenges  An allocated budget of R 155, 265, 000.00 was allocated from Treasury.  The allocated budget would come in four tranches of quarter amounts, i.e. R 38, 816, 250.00 granted per quarter (as stated in the GIAMA Technical Committee held on 20/21 August 2008 - Durban).  The function was not devolved with consideration of personnel implications.  Some accounts were devolved with historical arrears, Province has stated to National Public Works that we will only settle current accounts.

67. Thank You “In order to achieve real action you must yourself be a living part of Africa and of her thought; you must be an element of that popular energy which is entirely called forth for the freeing, the progress and the happiness of Africa.” Frank Talk, Steve Biko, I write what I like