1. WESTERN CAPE DEPARTMENT OF TRANSPORT AND PUBLIC WORKS
SELECT COMMITTEE ON FINANCE
2007/08
MID YEAR REPORT ON
CONDITIONAL GRANTS AND CAPEX
WEDNESDAY 7 November 2007
PRESENTED BY:
HEAD OF DEPARTMENT
THAMI MANYATHI

2. TRENDS IN ALLOCATIONS
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
IGP ROADS
78 408
88 757
IGP PUBLIC WORKS
3 300
7 100
19 017
5 240
5 476
CAPEX OTHER THAN IGP
TRF to MUN *
60 916
68 950
IGP = Infrastructure grant to provinces
Includes subsidized municipal proclaimed roads – maintenance; public transport infrastructure in terms of mobility strategies and integrated transport plans; and Athlone Soccer Stadium.

3. OUTCOMES - 2006/07 2006/07 Budget Actual expenditure % Spend 215 269
IGP
ROADS
84%
R33,578m received late in the financial year for flood damage was not spent and rolled over to 07/08
PUBLIC WORKS
19 017
7 284
38%
R11,733m received late in the financial year for flood damage was not spent and rolled over to 07/08
CAPEX OTHER THAN IGP
99%
TRANSFERS TO MUNCIPALITIES
94%
Outstanding municipal claims to be settled in 2007/08

4. INFRASTRUCTURE GRANT TO PROVINCES PUBLIC WORKS
Main budget 2007/08
5 240
Adjustments still to be effected - S/Cape flood damage (as at 31 September 2007)
11 733
Adjusted budget (proposed)
16 973
Expenditure 1st quarter
(3 823)
Expenditure 2nd quarter
(3 427)
Total expenditure
(7 250)
% spent at mid year
42.71%
Notional spending benchmark in terms of time dimension is 50%
Spending behind benchmark – on the margin

5. INFRASTRUCTURE GRANT TO PROVINCES ROADS INFRASTRUCTURE
Main budget 2007/08
Adjustments still to be effected -S/Cape flood damage (as at 31 September 2007)
33 578
Adjusted budget (proposed)
Expenditure 1st quarter
(83 190)
Expenditure 2nd quarter
(78 950)
Total expenditure
( )
% spent at mid year
57.98%
Notional spending benchmark in terms of time dimension is 50%
Spending ahead of benchmark

6. CAPEX OTHER THAN IGP R’000 Main budget 2007/08 740 603
Adjustments still to be effected (As at 31 September 2007)
27 381
Adjusted budget (proposed)
Expenditure 1st quarter
( )
Expenditure 2nd quarter
( )
Total expenditure
( )
% spent at mid year
51.71%
Notional spending benchmark in terms of time dimension is 50%
Spending ahead of benchmark

7. CAPEX TRANSFERS TO MUNICIPALITIES
Main budget 2007/08
Adjustments still to be effected (As at 31 September 2007)
Adjusted budget (proposed)
Expenditure 1st quarter
(9 000)
Expenditure 2nd quarter
(581)
Total expenditure
(9 581)
% spent at mid year
7.00%
(a) Majority of transfers scheduled for payment in the last two quarters of the year.
(b) Problems are experienced with performance by municipalities – gap in the legislative framework to address the withholding of funding in these cases.
(c) Subsidies to municipalities for road maintenance – municipalities have difficulty in securing their 20% contribution.
(d) Monthly reporting from municipalities weak – Will be addressed at LG MTEC.

8. WC 2010 PUBLIC TRANSPORT INFRASTRUCTURE & SYSTEMS GRANT(PTIS) FUNDING
Structured/designed as a grant to municipalities
Original purpose to deal with public transport needs
Funding should be directed to the Department
Delays in decision making and accessing of resources impacting on performance

9. WC 2010 - Projects Public Transport Restructuring: Vehicle procurement
Public Transport Operating Trading Entity (PTOE)
Public Transport Driver Development Programme
Integrated Fare Management and Advanced Vehicle Location System
Public Transport Contracts (City and George) including business development of operators
Vehicle procurement

10. WC 2010 – Projects (continued)
Infrastructure
Depots
Interchanges
Shared Services Centre
N1 Corridor – Port access/ Church Str/ Marine Dr/ auxiliary lanes/ Culemborg Spine Rd/ Bus Way/ Koeberg I/C
N2 Upgrade including BMT lanes, airport I/C

11. ISSUES OF CONCERN
Capacity in construction industry to handle increased demands – tender prices up by 30% +

12. WC 2010 N 2 PRIORITY LANE – OPENED AUG. 2007

13. WC 2010 KOEBERG INTERCHANGE

14. THANK YOU