1. Infrastructure development
Intergovernmental
Fiscal Review 2001
Infrastructure development
15 October 2001

2. Overview Context Overall provincial infrastructure development Roads
Spending trends
1997/98 to 2000/01
MTEF period
Roads
spending trends 1997/98 to 2003/04
Looking ahead
Challenges to accelerating infrastructure delivery

3. Context Considerable backlogs Uneven spread
in education, health facilities, roads, housing
Uneven spread
high concentration in parts of former republic
unavailability in historically black areas & former homelands
Makes prioritisation much harder
non-maintenance leads to escalating cost
not extending to previously neglected areas has equity implications

4. Overall infrastructure development

5. Spending trends Pre-1997/98 period 1997/98 to 2000/01 MTEF period
strong growth largely fuelled by clinic & school building programmes
1997/98 to 2000/01
spending declined by 23% in 1998/99
marginal recovery of 3% in 1999/00 followed by strong growth in 2000/01 of 19%
MTEF period
average annual growth of 22,6%
strong growth in all areas
education 61%
heath 38%

6. Sources of funding

7. CAPEX spend by function

8. Observations Past trend shows slowdown in spending
But downward trend in spending clearly reversed, moving forward
2003/04 set for R14 billion, more than double 1999/2000
success hinges on improving service delivery mechanisms

9. Achievements Education Clinics & hospitals have been built
new classrooms
schools without sanitation 55% to 17%
schools without water 40% to 34%
schools without power 60% to 47%
Clinics & hospitals have been built
Over 500 clinics & PHC centres built
IALCH in KZN, Nelson Mandela in EC, extension of PTA Academic in GT
But, over a third of public hospitals require renovation or replacement

10. Roads

11. SA road network Extensive network of over 500 000 km
All three spheres of government responsible for maintenance, rehabilitation & development
Estimated km fall under provinces
7 200 km fall under national
the rest fall under local government
All national and about 25% provincial roads paved

12. Budget trends (1) Roads expenditure Non-toll national roads
Difficult to isolate transport related activities in provinces as transport budgets are combined with other departments (like PW or Economic Affairs)
Between 1997/98 and 2000/01 over R12 b was spent on non-toll national and provincial roads
Data should be treated with caution at this stage
Non-toll national roads
funded through national transfers and user charges

13. Budget trends (2) Provincial roads
funded primarily through equitable share
over R10 bn spent between 1997/98 and 2000/01
spending in 2000/01 R3,1 bn, grows to R3,4 b in 2001/02 and is expected to grow to R4,8 b in 2003/04 (9% average real growth)
strong growth of 30% expected between 2001/02 and 2002/03

14. Spending on roads (capex & maintenance)

15. Looking ahead Key challenges
Institutional issues
institutional arrangements, coordination & efficacy
capacity
Planning
project selection, identification & evaluation
lessons from PPP process
Budgeting & funding
is funding still a problem?
Implementation & monitoring

16. Infrastructure development
Intergovernmental
Fiscal Review 2001
Infrastructure development
15 October 2001