1. Danai Magugumela Chief Executive Officer
Parliamentary Briefing Budget Review of the Municipal Infrastructure Investment Unit (MIIU)
Danai Magugumela Chief Executive Officer
15 April 2005

2. Business plan & KPIs for 2005-2006 Approved Budget for 2005-2006
CONTENTS
MIIU Performance
Strategy for year
Business plan & KPIs for
Approved Budget for
15 April 2005

3. PERFORMANCE
15 April 2005

4. Multi Year Capital and Operational Expenditure

5. A. AUDITABLE (PFMA) KPIs
Key Performance Area
Target
April 2004 to March 2005
Actual
Active MSP Projects 50 77
Completed projects: 7
4 MSPs
1 loan guarantee 4
Uthungulu Water (KZN);
CPT drop-off (solid waste) WC);
CPT SMMEs (solid waste) (WC);
Epping Fresh Produce Market (WC)
0 loan guarantee
2 revenue management
Mogale City (GA);
Albert Luthuli (MP)
Disbursement on MSP’s:
R12,8 m
R12,77m
Efficiency ratio:
25.5%
18.8%
Active Guarantee projects: 3
3: Joburg Water (GA)L
Nigake (GA);
Midvaal (GA)
Active Revenue Enhancement Projects
3: Ugu (KZN);
Thembisile (MP)
Dr JS Moroka (MP)
Target value of guarantees to be committed:
50% of $35 mil
Disbursement related to guarantee projects: $ $
Monitoring of major projects: 5
5 ongoing
Customer surveys
5 completed projects
3 new projects
5 ongoing – Nelspruit (MP) ;Dolphin Coast (KZN)
Kelvin Power (GP); Msunduzi (KZN); Mogalakwena (LM)
0 – not yet started

6. B. INTERNAL KPIs Key Performance Area Target April 2004 to March 2005
Actual
Case studies written up 5
5 in progress (75% complete)
Standard terms of reference documented 2 3
Generic Terns of Reference
Generic Request for Proposals
Template financial model
Publication of MIIU history and case studies 1
1 Pending
Technical Assistance not associated with projects
4 hours per project manager per month or a total number of equivalent hours as a ceiling
Section 78 task team, dplg MSP workshops, Project Consolidate
TA Disbursement of USAID funds $
$43 365
Market Development Seminar with financial sector
Session with Standard Bank in Aug 04; with Nedbank in Mar 05
Staff development SA staff (includes the use of USAID* funds of $15 000
6 personal development plans
6 plans followed: UK Study tour, Midrand Graduate Institute, various short courses
Implement MIIU obligations of JHI fund becomes operational
N/A

7. Completed Projects Uthungulu Water (KZN) an interim O & M contract
MSPs
Uthungulu Water (KZN) an interim O & M contract
with WSSA for operations of all rural schemes
CPT drop –off (solid waste) (WC) establishment of four green waste drop-off centres
CPT SMMEs (solid waste) (WC)
Epping Fresh Produce Market (WC) - sale of a non-core asset. A 20yr lease was entered into with the new owner, with repair, maintenance & expansion risk transferred to new owner.
15 April 2005

8. Completed Projects Revenue Management Loan Guarantee
Mogale City (GA) – data cleansing, debt review and audit of customers, meters, connections, tariffs, etc resulting in significant saving of lost revenues. Private partner entered a shared risk contract with municipality, earning a reward only in the event where the municipality saves revenues relative to set revenue benchmarks.
Ugu District (KZN) - data cleansing, debt review and audit of meters, connections, etc to improve revenue. Private partner is recommending a replacement of the existing revenue management systems to improve coordination of all billing systems that have existed in the individual B municipalities.
Thembisile (MP) - data cleansing, debt review and audit of meters, connections, etc to improve revenue.
Dr J S Moroka (MP) - data cleansing, debt review and audit of meters, connections, etc to improve revenue.
Loan Guarantee
MIIU has recently refined the implementation methodology and tender document for banks to bid on.
15 April 2005

9. STRATEGY FOR YEAR
15 April 2005

10. Key Focus Area 1: PROJECT IMPLEMENTATION
MSP Creation
Revenue Enhancement
Credit Enhancement
Regulation
Other Private Sector Participation
15 April 2005

11. Key Focus Area 2: INSTITUTIONAL PRESERVATION
MSP Standardisation
Contract Monitoring and Evaluation
Institutional Memory
Marketing and Communication
Training and Development
15 April 2005

12. OTHER FOCUS AREAS INTERNAL
Provide on-going technical assistance to municipalities for Municipal Service Partnerships
Management of a local government loan guarantee programme
Development Credit Authority (DCA) product
Contract Monitoring and Evaluation
Resourcing of MIIU and staff development
PFMA compliance
Package MIIU institutional memory
Transition plan?
15 April 2005

13. OTHER FOCUS AREAS EXTERNAL
Liaison with other local government strengthening programmes:
Project Consolidate of the dplg
ISLGS (Increasing Sustainable Local Government Service Delivery) Programme of the USAID
Collaborate with National Treasury on regulation of and guidelines for MSPs
Engage the financial sector on issues of municipal access to finance
15 April 2005

14. Business Plan and Key Performance Indicators for 2005 - 2006
15 April 2005

15. Target March 2006 (Shut down)
Key Performance Areas
Indicator
Tool of Measurement
Target March 2006 (Shut down)
MSPs
No. of completed MSPs
Completed MSP agreements 8
Credit Enhancement
No. of active loan guarantee projects
Loan Guarantee grant agreements 3
Revenue Enhancement
No. of active revenue enhancement projects
Revenue Enhancement grant agreements
Other Municipal Projects
No. of completed other projects
Final deliverable completed 9
Contract Monitoring & Evaluation
Completed M&E Assessments
Report submitted to MIIU 5
Community Relations Monitoring
Completed Community Relations M&E Surveys
Survey reports submitted to MIIU
Loan Guarantee
Target value of Guarantees
$ value of guarantees provided
$17m
Credit Enhancement technical assistance
Feasibility studies towards DCA loan guarantee projects
$ value of disbursements on DCA feasibility $
Disbursement on Projects
Total disbursements via grants to clients
Rand value of invoices paid to municipalities and consultants
R12.2m
Funding
Disbursement – related operational costs to total grant expenditure
Efficiency ratio
29.0%
Active MSP Projects
No. of projects leading up to MSP
Projects in Phase 2 or 3 50

16. APPROVED BUDGET FOR
15 April 2005

17. THANK YOU
15 April 2005