1. STATUS OF THE SPORT AND RECREATION FACILITIES SRSA PORTFOLIO COMMITTEE1

2. PRESENTATION OUTLINE Background DoRA MIG Framework:
Objective of the MIG
MIG Conditions
Planning Deadlines – Ensure Timeous Implementation
Role of SRSA as per the MIG Framework
General MIG Investments in Sports Facilities:
Actual MIG Investments in Sports and Recreation – 30 June 2017
Type of MIG Investments in Sports and Recreation – 30 June 2017
Ring-Fenced Sports Projects - Status:
Status of the 2016/17, 2017/18 and 2018/19 Sports Projects
Key Challenges
Remedial Actions
Collaboration Efforts 2

3. BACKGROUND
The National South African Sports and Recreation Amendment Act of and National Development Plan imposes a mandate on the Department of Sport and Recreation to ensure provision of sporting and recreation in the country.
Schedule 5B of the Constitution requires municipalities to provide physical sporting facilities in their respective areas of jurisdiction.
Notwithstanding a constitutional obligation to provide sporting facilities in their communities and the inclusion of mandatory allocation of funds to spend these facilities in MIG, there has been a poor delivery of sport facilities virtually in all parts of the country
Amongst others, justification for poor delivery is prioritisation of municipal basic infrastructure for provision of basic services, and sport infrastructure is not recognised as such 3

4. BACKGROUND
National Sport and Recreation Plan (NSRP) recognises that South Africa has a challenge of provision, equitable access and maintenance of sport and recreation facilities, which has far reaching consequences for the transformation and development of the sector
NSRP acknowledges that failure to address sport infrastructure backlogs will compromise the country’s objective of transformation, sports development and increased participation because sport facilities forms the foundation of the entire sport and recreation system, and therefore provision of sport facilities is an indispensable requirement to achieve a 2030 vision of Active and Winning Nation.
For these reasons, the ringfencing of R300 million was introduced as a pilot for innovative and effective delivery mechanisms to accelerate and broaden delivery of sport facilities. 4

5. BACKGROUND
2016/17 financial year R300 million of MIG funds allocated for sports facilities outside of the MIG formula.
Funds allocated based on a Municipality Facility Project list identified by SRSA.
30 municipalities benefitting from the programme.
SRSA encouraged Municipalities to prioritize sports infrastructure in line with their own IDPs.
SRSA worked through the MIG structures to guide, assess and approve funding for these municipal projects.
Conditions relating to the grant have been captured into the conditional Grant Framework and gazetted.
The decision to allocate funds was communicated in October 2016 so timelines to finalise plans were very tight. 5

6. DoRA MIG FRAMEWORK 6

7. OBJECTIVE OF THE MIG
Strategic goal: Subsidise the capital costs of providing basic services to poor households
Grant purpose: To provide specific capital finance for eradicating basic municipal infrastructure backlogs for poor households, micro enterprises and social institutions servicing poor communities
Outcome statements: Improved access to basic services infrastructure for poor communities 7

8. MIG CONDITIONS
To receive the first tranche, municipalities must have followed the process for approval of 2016/17 projects and have confirmed by 2 June 2017 with the Department of Cooperative Governance (DCoG) their programme, project planning and implementation readiness;
This above should be done prior to the year of implementation and be informed by their Integrated Development Plan (IDP) and three year capital plans;
MIG priorities set by municipalities (as stated in there three year capital plan) can only be changed with municipal council approval, the concurrence of the sector departments and the approval of DCoG;
Municipalities must spend at least 60 per cent of their previous transfer and comply with reporting provisions before the second and subsequent transfers are made;
Municipalities must spend 40 per cent of their total MIG allocation by December 2016;
Municipalities must comply with sector norms, standards and legislation as confirmed by sectors during the MIG project registration processes;
Ring-fenced sport infrastructure allocation: municipalities that have allocations gazetted as part of the ring-fenced allocation for specific sport infrastructure projects may only spend these allocations on the projects identified by Sport and Recreation South Africa (SRSA)
Withholding or stopping of transfers and reallocation of MIG allocations will be instituted where municipalities deviate from and/or do not comply with the conditions above. 8

9. PLANNING DEADLINES – ENSURE TIMEOUS IMPLEMENTATION
DoRA and MIG Framework Preparatory Requirements (e.g. 2017/18 F/Y):
Municipalities must submit all technical reports to the sector departments responsible for water, sanitation, solid waste, sport and recreation, roads and transport by 29 July 2016, for all projects to be implemented in 2017/18
The responsible sector department must evaluate reports and provide final recommendations to the municipality by 30 September 2016
The municipality must submit all project registration forms by 3 October 2016, for the projects to be implemented in 2017/18, to the provincial department responsible for local government
The provincial departments must provide final recommendations to municipalities by 30 November 2016
Municipalities must submit to DCOG by 31 January 2017, detailed project implementation plans for all the projects to be implemented in the 2017/18 and 2018/19 financial years
Such plans should include timelines regarding project designs, initiation of procurement, and Environmental Impact Assessment (EIA) and/or relevant permit/license approvals in the prescribed format
Municipalities must submit updated implementation plans as mentioned above by 2 June 2017, justifying any changes from the 31 January 2017 detailed plan
Submission of 2018/19 projects should have been done by 31 July 2017
Final allocations to municipalities to be send to National Treasury by 01 December 2017, including SRSA R300 million targeted allocations to municipalities 9

10. Role of SRSA as per the MIG Framework
Responsibilities of provincial sector departments
Develop sector norms and standards for basic services (including unit cost guidelines);
Participate in district appraisal and progress committee meetings;
Evaluate and provide recommendations on sector technical reports before projects are appraised;
Each provincial sector department must fulfil a sectoral monitoring and guidance role on relevant sectoral outputs;
Provide technical advice as required by a municipality through the feasibility, planning, design, tender and construction phases of a MIG project. 10

11. GENERAL MIG INVESTMENTS IN SPORTS FACILITIES AS AT 30 JUNE 201711

12. Actual MIG investments in sport and recreation facilities as at 30 June 201712

13. Type of MIG investments in sport and recreation facilities as at 30 June 201613

14. RING-FENCED SPORTS PROJECTS – STATUS:
Progress, Key Challenges And Remedial Actions 14

15. Status of the 2016/17, 2017/18 and 2018/19 Targeted Sports Projects – R900 million MTEF Allocations
R300 million MIG funding ring-fenced;
30 municipalities benefited from the allocation;
An average15% spent by the 30 municipalities as at 30 June 2017.
/18 Projects:
29 municipalities benefiting;
34 projects to be implemented;
All 34 projects at planning stage;
Projects must have been registered and appraised by Appraisal Committees by 30 November 2016.
2018/19 Projects:
R300 million MIG ring-fenced;
No beneficiary municipalities identified yet; process to be concluded 30th October
Projects must be registered and appraised by the Appraisal Committees by 30 November 2017. 15

16. 2016/17 PROJECTS PROGRESS STATUS

17. PROJECT STATUS 17 Province Municipality Project Cost
Expenditure to date
% of Expenditure
Progress on Site
Comments EC
Makana
R ,00 R 8% 0%
Rollover application lodged
Engcobo
R ,00 R
30%
60%
King Sabatha Dalindyebo
R ,00 R
71%
80%
Ntabankulu R
47%
78% FS
Mohokare
R ,00 R
Tokologo R
100%
Project completed GP
Rand West R 4% 17

18. PROJECT STATUS Province Municipality Project Cost Expenditure to date
% of Expenditure
Progress on Site
Comments KN
Richmond
R ,00 R 2% 0%
No rollover application lodged
Greater Kokstad R 3%
uPhongola R 5% LP
Greater Giyani R
Rollover application lodged
Maruleng
R ,00 R
100%
Molemole
R ,00 R
10%
Elias Motsoaledi
R ,00
32%

19. PROJECT STATUS 19 Province Municipality Project Cost
Expenditure To Date
% of Expenditure
Progress on Site
Comments MP
Albert Luthuli
R ,00 R
15%
35%
Rollover application lodged
Msukaligwa
R ,00 R
81%
90%
Lekwa
R ,00 R
95%
100%
Victor Khanye
R ,00 R
83%
85%
Emalaheni
R ,00 R
99% NC
Kamiesberg
R ,00
R 0 0%
Khai Ma R 4% 19

20. PROJECT STATUS 20 20 Province Municipality Project Cost
Expenditure To Date
% of Expenditure
Progress on Site
Comments NC
Umsobomvu
R ,00 R
74%
68%
Rollover application lodged
Gamagara
R ,00 R
29% 0% NW
Ratlou
R ,00 R
80%
95%
Mahikeng
R ,00 R
21%
20%
Mamusa
R ,00 R
83%
90%
Lekwa Teemane
R ,00 R
65% WC
Cederberg
R ,00 R 3% 20 20

21. PROJECT STATUS 21 21 Province Municipality Project Cost
Expenditure To Date
% of Expenditure
Progress on Site
Comments WC
Swellendam
R ,00 R 4%
35%
Rollover application lodged
Beaufort West
R ,00 R 0% 21 21

22. PROGRESS SUMMARY 22 22 PROVINCIAL SUMMARY Eastern Cape R 46 661 000.00
Eastern Cape R R
36%
Free State R R
52%
Gauteng R R 4%
KZN R R 3%
Limpopo R R
12%
Mpumalanga R R
77%
Northern Cape R R
31%
North West R R
33%
Western Cape R R
NATIONAL TOTAL R R
30% 22 22

23. 2017/18 PROJECTS PROGRESS STATUS23

24. 2017/18 FIN YR – EASTERN CAPE PROJECTS
PROJECT NAME
BUDGET
MUNICIPALITY
PRPJECT STATUS
DEVIATION STATUS
EASTERN CAPE
Construction of a Sport Facility within Mbizana Local Municipality
R 12 000 000,00
Mbizana Local Municipality
Waiting appraisal
 Granted
Upgrading of sports field within Sakhisizwe Local Municipality.
R 12 500 000,00
Sakhisizwe Local Municipality
Registered
Granted
Upgrading of a sSport field within Raymond Mhlaba Local Municipality
R 5 000 000,00
Raymond Mhlaba Local Municipality
Upgrading of a sport field within Water Sisulu Local Municipality
R 10 821 016,00
Walter Sisulu Local Municipality
R 40 321 016,00

25. 2017/18 FIN YR – FREE STATE PROJECTS
PROJECT STATUS
DEVIATION  
Construction of a sport field within Ngwathe Local Municipality
R 7 411 935,00
Ngwathe Local Municipality
Registered
Granted
Upgrading of a Sport Facility within Nala Local Municipality
R 4 373 040,00
Nala Local Municipality
Construction of a sport field within Kopanong Local Municipality
R 9 200 000,00
Kopanong Local Municipality
Namahadi/Kgatholoha:Upgrading of sports ground.
R 4 307 886,00
Mafube Local Municipality
Rgistered
Upgrading of a Sport field within Phumelela Local Municipality
R 9 604 000,00
Phumelela Local Municipality
Waiting Appraisal
R 34 896 861,00

26. 2017/18 FIN YR – GAUTENG PROJECTS
PROJECT STATUS
DEVIATION  
Zuurbekom Multi Purpose Sport and Recreation Community Centre:Soccer Facility
R 8 171 805,00
Rand West Local Municipality
Registered
No application received
Upgrading of President Park Swimming Pool Facility in Vereeniging.
R 9 593 100,00
Emfuleni Local Munincipality
Approved
Construction of Heidelberg Ext 23 Sports Complex
R 15 108 454,00
Lesedi Local Munincipality
TOTAL
R 32 873 359,00

27. 2017/18 FIN YR – KZN PROJECTS KWAZULU-NATAL PROJECT STATUS DEVIATION
Construction of Sports Fields within Ndwedwe Local Municipality
R 11 000 000,00
Ndwedwe Local Municipality
Awaitng Appraisal but registered
Granted
Construction of Sports Fields within Nongoma Local Municipality
Nongoma Local Municipality
Construction of Sports Fields within Umshwati Local Municipality
Umshwati Local Municipality
Registered
No application received
Construction of Sports Fields within Nquthu Local Municipality
Nquthu Local Municipality
Refered back on MIG-MIS
TOTAL
R 44 000 000,00

28. 2017/18 FIN YR – LIMPOPO PROJECTS
PROJECT STATUS
DEVIATION 
Construction of Stadium within Ba-Phalaborwa Local Municipality
R 7 084 000,00
Ba-Phalaborwa Local Municipality
Registered
No application received
Construction of Stadium within Greater Letaba Local Municipality
R 2 564 000,00
Greater Letaba Local Municipality
Granted
Construction of Stadium within Ephraim Mogale Local Municipality
R 10 832 000,00
Ephraim Mogale Local Municipality
Construction of Sport Complex within Polokwane Local Municipality
R 7 764 000,00
Polokwane Local Municipality
Construction of Stadium within Lepelle-Nkumpi Local Municipality
R 5 137 000,00
Lepelle-Nkumpi Local Municipality
R 33 381 000,00

29. 2017/18 FIN YR – MPULANGA PROJECTS
LIMPOPO
PROJECT STATUS
DEVIATION 
Mkhondo LM Sport Complex Construction
R 7 084 000,00
Mkhondo LM
Registered
 No application received
Upgrading of sports complex Dr. Pixley Ka Isaka Seme LM
R 2 564 000,00
Dr. Pixley Isaka Seme
Construction of sports complex Thembisile Hani LM
R 10 832 000,00
Thembisile Hani
Granted
Construction of sports complex Nkomazi LM
R 7 764 000,00
Nkomazi LM
Construction of sports complex Bushbuckridge LM
R 5 137 000,00
Bushbuckridge LM
R 33 381 000,00

30. 2017/18 FIN YR – NORTHERN CAPE PROJECTS
PROJECT STATUS
DEVIATION 
Construction of sport field within Sol Plaatje Local Municipality
R 6 866 588,00
Sol Plaatje Local Municipality
Registered
Granted
Construction of sport field within Siyancuma Local Municipality
Siyancuma Local Municipality
Awaiting Appraisal
No application received
Construction of sport field within Hantam Local Municipality
Hantam Local Municipality
R 20 599 764,00

31. 2017/18 FIN YR – NORTH WEST PROJECTS
PROJECT STATUS
APPRAISAL  
Construction of a sport facility within Moretele Local Municipality
R 15 000 000,00
Moretele Local Muncipality
 Not Registered
No application received
Upgrading of multi-purpose stadium within Ramotshere Local Municipality
R 7 274 000,00
Ramotshere Moiloa Local Municipality
Not registered
Construction of a sport facility within Greater Taung Local Municipality
Greater Taung Local Municipality
R 37 274 000,00

32. 2017/18 FIN YR – WESTERN CAPE PROJECTS
PROJECT STATUS  
DEVIATION
Construction of sports ground within Bitou Local Municipality
R 13 000 000,00
Bitou Local Municipality
Awaiting Appraisal
No application received
Upgrading of sport ground within Langeberg Local Municipality
R 15 000 000,00
Langeberg Local Municipality
Granted
R 28 000 000,00

33. 2017/18 - PROJECT SCHEDULE Task Name Duration Start Finish
Site assessment visits
5 weeks
2017/04/24
2017/05/26
Completion of detailed designs
7 days
2017/05/29
2017/06/06
Cost estimate of detailed designs
1 week
2017/06/07
2017/06/13
Approval of standardised design and cost estimate
2017/06/14
2017/06/20
Finalise construction drawing
3 week
2017/06/21
2017/07/11
Complete standard Bill of Quantities
2 weeks
2017/07/12
2017/07/25
Submit SDP for each project to municipalities for approval
2017/06/26
2017/08/01
Municipality invites contractors from panel to price the tender
2017/08/02
2017/08/15
Submission of priced tenders
0 days
2017/08/16
Evaluation & appointment of contractor
2017/08/17
2017/09/13
Site handover & construction start
0 day
2017/09/14
Construction period
9 months
2017/09/15
2018/05/24
Practical completion
2018/05/25
Defects liability period
90 days
2018/05/27
2018/09/27
Final completion & final account
1 months
2018/09/28
2018/10/25 33

34. GENERAL CHALLENGES
Poor communication between the department and municipalities causing delay in critical activities of the project
Limited time for project implementation. Both planning and implementation expected to be completed in a period less than financial year
Alignment between MIG requirements and SRSA project selection
Compliance with legislative framework that affect land development. (e.g. EIA in Gamagara and Kokstad)
Poor/ Lack of planning for provision of sports facilities at municipal level
Absence of project steering committees to drive and ensure implementation of projects
Poor cooperation from some municipalities (i.e. attendance of provincial meetings, submission of reports and lack of response to communication send by department) 34 34

35. KEY CHALLENGES
Limited capacity of provincial sports departments to play expected role in the MIG value chain
Lack of needs based National, Provincial and Local Facility Plan(s)
Inadequate consultation with Cogta resulting, in some instances, in identification not fully compliant with MIG conditions
Poor consultation with targeted municipalities in identifying sports projects;
Poor alignment between SRSA selection timelines and that of the MIG grant framework;
Lack of a plan by SRSA to ensure that the sports facilities developed through MIG are utilised over their lifespan; (not related to R300 million)
Limited capacity within SRSA to manage sports projects;
Resistance to use transversal contracts, and delays in deviation process caused significant lag times
Reluctance to cooperate with SRSA PMU for provision of technical and management support 35

36. REMEDIAL ACTION
Increased technical and management support to individual municipalities
Establishment of Provincial Project Steering Committees to ensure implementation
Enforcement of submission of Project Implementation Plans for effective monitoring
Improved cooperation between Department of Sports and Cogta to collaboratively resolve sticky issues during implementation of projects
Participation in Treasury’s Rollover Meetings to ensure approval of applications for sports facilities
SRSA must ensure cooperation of beneficiary municipalities with its PMU in respect to all phases of the project 36 36

37. REMEDIAL ACTIONS - Continue
Sector guidance on priorities – SRSA needs to finalise Natioanal Facility Plan with clear sector targets and priorities to ensure a well coordinated allocation of sport infrastructure investment
SRSA must be in a positing to monitor projects – SRSA capacity needs to be addressed
Strengthening the participation of the SRSA and its provincial counterparts in MIG business processes, i.e appraisal and MIG planning sessions with municipalities;
Improved coordination of activities and efforts between government spheres (intergovernmental coordination) and government departments (inter-departmental coordination); 37

38. REMEDIAL ACTIONS - Continue
SRSA to develop a sports master plan that will inform municipal plans;
SRSA and its provincial counterparts to participate in municipal IDP processes to inform sports priorities;
Enforce identification of projects in line with IDP priorities
Ensure identified projects comply with the MIG Framework and are aligned to NDP priorities
SRSA to develop a three year project implementation plan and communicate it with beneficiary municipalities in time, to ensure timeous registration and implementation of projects;
SRSA categorise suitability and level of service in line with its Facility Classification Framework
Improve the efficiency of the use of transversal contracts or scrap it;
SRSA will strengthen its support to municipalities to ensure that sports projects in general are properly operated and maintained;
SRSA will enforce development and submission Sport Infrastructure Asset Management Plan as part of handover report to ensure full utilisation of sports facilities;
SRSA to build internal capacity to undertake the above recommendations. 38

39. COLLABORATIVE EFFORTS39

40. COLLABORATIONS Dedicated SRSA MIG workshop to address sports issues;
Regular meetings between SRSA, National Treasury, DCoG, Misa and SALGA:
Engagements and support by provincial departments responsible for local government (i.e. Coghstas);
Participation in the rollover assessment engagements in order to provide inputs/motivations; 40