1. TRANSPORT PORTFOLIO COMMITTEE: BRIEFING ON THE ROAD MAINTENANCE FUNDING PLAN
02 November 2010

2. Presentation Outline Background SA road network
Road maintenance allocations
Budget & expenditure for CAPEX and maintenance per province for EPWP
EPWP Up Scaling Allocations per Province
Challenges
Progress
Strategic interventions
Resolutions of the road construction and maintenance summit
Conclusion

3. Background

4. South African Road Network
(Status Quo of roads)
Authority
Paved
Gravel
Total
SANRAL
16,170
Provinces - 9
48,176
136,640
184,816
Metros - 9
51,682
14,461
66,143
Municipalities
37,691
302,158
339,849
153,719
453,259
606,978
Un-Proclaimed (Estimate)
140,000
Estimated Total
593,259
746,978
Un-Proclaimed Roads = Public roads not formally maintained by any Authority

5. SUMMARY OF ROAD NETWORK (Status Quo of roads)
The problem statement in May was defined as follows:
Roads have reached design life
Migration from rail to road
Lack of adequate funding
Competition in the fiscal funding – infra vs social
Annual Maintenance Backlogs
Historic Maintenance Backlogs
Construction Backlogs
The optimal expenditure split for Maintenance & Capital? (Prioritising Existing & New Roads)

6. Road maintenance allocations…..
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
2011/12
R million
Outcome
Pre-audited outcome
Medium term estimates EC FS GP
KZN LP
MPU NC NW WC
424
192
363
656
321
197 80
253
573
566
347
171
821
328
246 83
267
657
668
163
972
443
113
210
813
180
777
1 855
387
541
116
621
749
296
1516
377
432
142
288
558
704
289
876
1 706
520
297
744
723
304
930
1 809
490
546
166
331
791
Total
3 058
3 485
3799
5 543
5 026
5 702
6 089
Maintenance as a percentage of the total provincial road and transport expenditure
18.5%
22.0%
22.8%
23.7%
13.7%
15.5%
21.8%
13.5%
32.3%
22.5%
24.1%
9.9%
27.5% 13.1%
19.3% 20.2% 12.8% 29.1%
22.6%
11.3%
10.2%
27.0%
11.6%
24.3%
19.1% 10.4%
28.0%
21.5%
9.2%
24.4% 32.2% 12.8%
24.9%
15.8%
11.0%
18.6%
15.2%
13.8%
24.6%
10.2% 16.5%
17.9%
15.6%
29.8%
10.7%
20.1%
16.4%
25.1%
17.5%
12.7%
23.8%
29.3%
11.5%
19.4%
17.7%
11.1%
25.9%
20.2%
20.3%
19.0%
21.6%
16.7%
19.9%

7. BUDGET & EXPENDITURE FOR CAPEX AND MAINTENANCE PER PROVINCE FOR EPWP 08/09
Total budget access roads Rands (’000)
Capex Budget
Maintenance Budget
Target Work Opportunities
Achieved Work Opportunities
Total spent
Rands (’000) EC
330,870
195,088
135,782
6563
23173
282,658 FS
288,761
284,261
4,500
3296
1828
206,329 GP
347,127
4980
3428
238,993
KZN
496,002
215,204
280,798
8229
44185
505,059 LP
108,700
93,100
15,600
4444
2837
80,601 MP
57,049
30,292
26,757
4681
2964
45,541 NC
265,319
256,259
9,060
3093
2022
230,112 NW
7,850
1030
858
3,899 WC
378,154
122,306
255,848
2557
5370
321,799
Total
2,279,836
1,543,639
(67%)
736,196
(33%)
38,872
86,665
1,914,997

8. EPWP Up Scaling Allocations per Province over the 2010 MTEF (DORA)
2010/11
Rands (‘000)
2011/12
2012/13
Total per province over MTEF EC
392,707
487,829
579,506
1,460,042 FS
187,422
232,820
276,574
696,816 GP
237,828
295,436
350,957
884,221
KZN
471,881
586,181
696,341
1,754,403 LP
294,744
366,137
434,945
1,095,826
MPU
228,833
284,262
337,683
850,778 NC
152,708
189,698
225,348
567,754 NW
121,404
150,811
179,153
451,368 WC
148,051
183,912
218,474
550,437
Total
2,235,578
2,777,086
3,298,980
8,311,644

9. Challenges
DoT’s mandate is limited to working on National Roads assets
DoT as the lead Department is not sufficiently resourced
Most existing roads have exceeded their design life
Construction and upgrading of rural access roads is not fast enough.
The critical requirement is a decision support system (pavement asset management system) at local and municipal level
Input into the pavement asset management system has to be ongoing
The overall level of road funding is lagging. This implies that backlogs are created rather than addressed.

10. Strategic Interventions
National Infrastructure Maintenance Strategy (NIMS)
Headed by National Treasury (CIDB). The Following Challenges being addressed by NIMS
Asset Management Practices
Norms and Standards
Budget constraints and backlog
Skills Capacity
Institutional arrangements
Construction and Maintenance Summit (May 2010)
Fiscal and non fiscal funding options
Asset preservation – Guidelines and best practice (RISFSA)
Efficiency Outcomes /Performance based
Development of Women Enterprises in Transport (SANWIT)
Road Safety
Minister announcement re: dedicated roads funding from fuel levy

11. PROGRESS

12. resolution of the road construction and maintenance summit:
Delivery models
Funding and asset management systems
Capacity development
BEE and women empowerment
Road safety

13. Construction and maintenance summit resolutions and progress….
Delivery model resolutions:
Progress
Up scaling of Zibambele across the country
Up scaling funds should be directed to access roads
Creations of more jobs to attract EPWP incentive funding
Provide infrastructure cost effectively
Department is developing a flagship national programme for the creation of jobs and maintenance of infrastructure. (SSP)
The discussions in this session looked at case studies of roads delivery models in KwaZulu- Natal (Zibambele) and the Western Cape (Koeberg Interchange project) as well as changes in EIA regulation as they impact on roads. The models emphasised the provision of access to community facilities and the need for integrated planning, correct design for purpose, the need for job creation to be central in road infrastructure delivery, making recommendations that relates to design, funding and other strategic processes that affects roads delivery e.g. implementation of freight logistics strategy regarding the movement of freight from road to rail. The main resolution was with regard the up-scaling of Zibambele across the country which should be directed to access roads, the need for authorities to increase job creation in order to access the EPWP incentive of additional funds.
Other resolutions include:
Build Capacity within the sector for improved timeous approval process
Include EIA in the integrated planning
Align business process and regulatory framework to ensure the achievement of broader economic and social objectives and targets
We need to have capacity including skills and numbers
Provision of cost effective service delivery
Correct utilisation of funds 13

14. Possible benefits from a National Rollout of Zibambele
Potential Targets
RSA
KZN - DOT
Existing Kilometers of roads
750,000
27,998
Number of contractors
875,000
40,000
Potential kilometers of roads
438,000
28,000
Person days of employment
84,000,000
3,800,000
Full Time Equivalents
366,000
16,700
Budget Estimates
R4,945 Billion
R225,6 million

15. Construction and maintenance summit resolutions and progress….
Sustainable funding:
Progress
Dedicated funding from fuel levy
Budget increases and capacity need to be phased in.
Need to ensure allocated budgets are spent on roads
Restructuring of Infrastructure Grant to Provinces process now underway providing scope for funding and budgeting process reforms to be considered including measures to address efficiency of spending by authorities
Discussions with National Treasury re: DOT responsible for the Infrastructure Grant to Provinces which should enable establishment of a fully fledged national programme, maximising decent job creation
Engagement with National Treasury: developing a framework for DOT to take full responsibility for Infrastructure Grants for Provinces in order to address the resolutions

16. Construction and maintenance summit resolutions and progress….
Progress/process to date
Asset management system resolution
Development of an asset management framework
Need to ensure that portion of budget is allocated for Preventative Maintenance
Need to ensure that portion (at least 60%) of maintenance budgets are allocated for preventative maintenance (routine and periodic)
MOU with DBSA to deal with :
- Asset management system
- Funding model
- Sector skills
- Review of roll-out of ITPN’s
Implementation of NIMS -
Mechanism for enforcing through MINMEC and COTO to be developed
Assessments on higher volume roads: additional automated condition surveys – Roughness, Rut Depth etc.
The issue of technical skills for road assement management system:
It is important to ensure that appropriate technical skills are available at all government levels, for proper Asset Management and project identification, to ensure appropriate design standards are applied, ensure quality of work, sharing of resources between government levels. A need to streamline government procurement procedures was also emphasised which will require the standardisation of tender documents, as well as tender evaluation and award procedures. Training and Quality Control procedures
Will also need to be developed.

17. Conclusion
Present allocations should be streamlined to achieve effectiveness
DoT to streamline a flagship programme:
Key regional economic routes / NATMAP
Rural transport development
Labour intensive roll-out
Road safety
DoT to develop implementation proposals with provinces to seek funding
DoT to refocus from policy development to implementation coordination

18. Thank You