1. Briefing on Municipal Infrastructure Grant Expenditure
Select Committee on Appropriation
11 August 2015
Committee Room E249, Parliament

2. PRESENTATION OUTLINE MIG EXPENDITURE – 2014/2015
PROGRESS ON PROJECTS IMPLEMENTATION
CHALLENGES
SUPPORT / INTERVENTIONS

3. MIG EXPENDITURE – 2014/2015

4. Provincial spending patterns since MIG inception

5. Spending on 2014 / 2015 Municipal Infrastructure Grant
In January 2015
R million was taken away from poor spending municipalities
Of which R was re-allocated to municipalities in the province
As at end of June 2015
R1.994 billion (out of R2.748 billion) was spent (73%)
R million remained unspent
6 municipalities have spent 100%
6 municipalities have spent ≥ 90% and ˂ 100%

6. 2014/2015 MIG spending National Comparison
Province
Allocated (R'000)
Transferred to date
Transfers as % allocation
Expenditure to date
Expenditure as % allocation
Balance Unspent
Eastern Cape
3,079,289
100.00%
2,884,338
93.67%
194,951
Free State
829,794
763,424
92.00%
66,370
Gauteng
445,427
426,493
95.75%
18,934
KwaZulu Natal
3,270,390
3,270,420
3,129,728
95.70%
140,692
Limpopo
2,748,406
1,994,465
72.57%
753,941
Mpumalanga
1,717,515
1,484,901
86.46%
232,614
Northern Cape
462,944
391,706
84.61%
71,238
North West
1,725,708
1,707,104
98.92%
1,521,154
88.15%
185,950
Western Cape
484,576
416,351
85.92%
68,225
TOTAL
14,764,049
14,745,475
99.87%
13,009,097
88.11%
1,736,378

7. Expenditure PER MUNICIPALITY as at end June 2015 SEKHUKHUNE DISTRICT
Original Allocation
(R’000)
Adjustment
Revised allocation
Amount spent
% EXP
Ephraim Mogale
31,070 -
27,958 90
Elias Motsoaledi
50,840
15,000
65,840
49,867 76
Makhuduthamaga
57,452
51,791
Fetakgomo
21,388
(10,139)
11,249
100
Greater Tubatse
61,745
35,000
96,745
61,787 64
Sekhukhune
451,120
(170,000)
281,120
125,173 44

8. Expenditure PER MUNICIPALITY as at end of June 2015 MOPANI DISTRICT
Original Allocation
(R’000)
Adjustment
Revised allocation
Amount spent
% EXP
Greater Giyani
56,046
10,000
66,046
100
Greater Letaba
53,440 -
41,797 78
Greater Tzaneen
87,083
24,000
111,083
67,633 61
Ba-Phalaborwa
29,769
25,371 85
Maruleng
25,309
5,000
30,309
25,528 84
Mopani
429,490
(290,000)
139,490
47,614 34

9. Expenditure PER MUNICIPALITY as at end June 2015 VHEMBE DISTRICT
Original Allocation
(R’000)
Adjustment
Revised allocation
Amount spent
% EXP
Musina
18,943 -
17,118 90
Mutale
24,058
100
Thulamela
126,460
109,386 86
Makhado
107,087
62,678 58
Vhembe
486,510
20,000
506,510
369,691 73

10. Expenditure PER MUNICIPALITY as at end of June 2015 CAPRICORN DISTRICT
Original Allocation
(R’000)
Adjustment
Revised allocation
Amount spent
% EXP
Blouberg
38,408
5,000
43,408
34,169 79
Aganang
32,157
(5,000)
27,157
18,517 68
Molemole
28,943 -
28,631 99
Polokwane
266,671
38,243
304,914
301,014
Lepelle-Nkumpi
49,920
20,000
69,920
18,488 26
Capricorn
252,059
7,000
259,059
100

11. Expenditure PER MUNICIPALITY as at end of June 2015 WATERBERG DISTRICT
Original Allocation
(R’000)
Adjustment
Revised allocation
Amount spent
% EXP
Thabazimbi
32,926
(19,756)
13,170
2,053 16
Lephalale
35,992
(7,000)
28.992
28,702 99
Mookgophong
15,766
27,000
42,766
15,425 36
Modimolle
32,364
(13,014)
19,350
100
Bela Bela
22,193 -
Mogalakwena
138,849
(25,000)
113,849
59,251 52
Waterberg
18,014

12. Expenditure PER DISTRICT as at end of June 2015
Original Allocation
(R’000)
Adjustment
Revised allocation
Amount spent
% EXP
Sekhukhune
673,615
(130,139)
543,476
327,825 60
Mopani
681,137
(251,000)
430,137
273,990 64
Vhembe
763,058
20,000
783,058
583,021 74
Capricorn
668,158
65,243
733,401
659,059 90
Waterberg
278,090
(19,756)
258,334
146,975 57
Province
3,064,058
(315,652)
2,748,406
1,994,465 73

13. 2. PROGRESS ON PROJECTS IMPLEMENTATION

14. Projects implementation
A total of 367 projects were implemented during the financial year with the 2014/2015 MIG allocation
At end of financial year, these projects were at various stages of implementation
62 were at tender and evaluation (planning for 2015/2016)
219 were at various stages (%) of construction
86 have been completed
The next slides provide details per municipality
The attached project list provide details per project including challenges and specific remedial action were applicable.

15. PROJECT STATUS (no. of projects)
SEKHUKHUNE DISTRICT
Municipality
TOTAL No. of Projects
PROJECT STATUS (no. of projects)
Design & Tender
Construction
Completed
Ephraim Mogale 12 3 6
Elias Motsoaledi 10 8 2
Makhuduthamaga - 9
Fetakgomo 5 1 4
Greater Tubatse
Sekhukhune 19 13
TOTAL 67 35 22

16. PROJECT STATUS (no. of projects)
MOPANI DISTRICT
Municipality
TOTAL No. of Projects
PROJECT STATUS (no. of projects)
Design & Tender
Construction
Completed
Greater Giyani 8 3 4 1
Greater Letaba 18 11
Greater Tzaneen 13 2
Ba-Phalaborwa 5 -
Maruleng 9
Mopani 12 10
TOTAL 65 16 41

17. PROJECT STATUS (no. of projects)
VHEMBE DISTRICT
Municipality
TOTAL No. of Projects
PROJECT STATUS (no. of projects)
Design & Tender
Construction
Completed
Musina 8 1 5 2
Mutale 4 -
Thulamela 9 6 3
Makhado 10 7
Vhembe 14
TOTAL 45 31 11

18. PROJECT STATUS (no. of projects)
CAPRICORN DISTRICT
Municipality
TOTAL No. of Projects
PROJECT STATUS (no. of projects)
Design & Tender
Construction
Completed
Blouberg 10 - 3 7
Aganang 1 2
Molemole
Polokwane 28 20 6
Lepelle-Nkumpi 5 4
Capricorn 88 47 21
TOTAL
137 22 78 37

19. PROJECT STATUS (no. of projects)
WATERBERG DISTRICT
Municipality
TOTAL No. of Projects
PROJECT STATUS (no. of projects)
Design & Tender
Construction
Completed
Thabazimbi 5 2 3 -
Lephalale 7 1
Mookgophong 4
Modimolle 6
Bela Bela
Mogalakwena 26 17
TOTAL 53 11 34 8

20. FUNDING FOR INFRASTRUCTURE PROVISION (MTEF)
Funding Source
2015/2016
R’000
2016/2017
2017/2018
Total
Municipal Infrastructure Grant
3,160,598
3,290,731
3,485,794
9,937,123
Integrated National Electrification Programme
ESKOM & Municipal Grant
1,128,195
1,168,157
1,200,105
3,496,457
Regional Bulk Infrastructure Grant
953,667
1,029,457
955,649
2,938,773
Municipal Water Infrastructure Grant
528,574
846,727
955,753
2,331,054
TOTAL
18,703,407

21. Major infrastructure to be implemented for provision of access basic services
Provision of Water:
Bulk Distribution pipeline from DeHoop to Steelpoort to be completed this year,
Bulk Distribution system from Flag Boshielo to Mogalakwena and Steelpoort to Mooihoek planned to start in current financial year.
Mokolo Crocodile Water Augmentation project, Phase 1 planned for completion in the current financial year.
Pipeline from Valdezia to Mowkop (in Louis Trichardt) on the Nandoni scheme has started and earmarked for completion in 2016.
Electricity provision
house holds are earmarked to be electrified in the current financial year

22. 3. CHALLENGES

23. Major infrastructure to be implemented for provision of access basic services
Provision of Water:
Bulk Distribution pipeline from DeHoop to Steelpoort to be completed this year,
Bulk Distribution system from Flag Boshielo to Mogalakwena and Steelpoort to Mooihoek planned to start in current financial year.
Mokolo Crocodile Water Augmentation project, Phase 1 planned for completion in the current financial year.
Pipeline from Valdezia to Mowkop (in Louis Trichardt) on the Nandoni scheme has started and earmarked for completion in 2016.
Electricity provision
house holds are earmarked to be electrified in the current financial year

24. Only 23% of implemented projects completed
CHALLENGES
Only 23% of implemented projects completed
Premier Intergovernmental Forum directed that all municipalities should utilise the 1st quarter to finalise plans and start implementation in the second quarter LATEST.
Projects on Design and Tender very few, meaning that most municipalities are not ready to appoint contractors during July – August,

25. 4. SUPPORT / INTERVENTION MEASURES

26. SCOPE & PRIMARY OBJECTIVE OF CORRECTIVE MEAUSRES
To provide for the provisioning and establishment of three interlinked forums:
Municipal Infrastructure Forum (MIF) (municipalities to district; coordination districts).
District Municipal Infrastructure Forum (DMIF) (districts on municipalities; coordinator CoGHSTA)
Limpopo Intergovernmental Infrastructure Forum (LIIF) (DMIF, and ITMC; coordinator SGM LPT)
The overall goal and primary objective of this assignment is to provide a fresh approach to infrastructure delivery ability of municipalities. To provide for infrastructure coordination both financial and of the built environment requirements.
The primary objective of this proposal on municipal infrastructure coordination comprises of two components; one deals with the financial management aspect and the second deals with built environment; specialist scares skills, exchange, collaboration and acquisition where necessary and infrastructure management.

27. INSTITUTIONAL ARRANGEMENT
PROJECT DELIVERY
PROGRAMME AND PROJECT DELIVERY
PROGRAMME INTEGRATION
PORTFOLIO INTEGRATION
Infrastructure Technical Committee (ITC)
Limpopo Intergovernmental Infrastructure Forum (LIIF)
District Municipalities Infrastructure Forums (DMIF)
Capricorn Municipalities Infrastructure Forums (LMIF)
Mopani Municipalities Infrastructure Forums (LMIF)
Sekhukhune Municipalities Infrastructure Forums (LMIF)
Waterberg Municipalities Infrastructure Forums (LMIF)
Vhembe Municipalities Infrastructure Forums (LMIF)
Infrastructure Technical Management Committee (ITMC)
Departmental Coordinating Committees (DCC)

28. SECONDARY OBJECTIVE OF SUPPORT MEASURES
The secondary objective of this intervention is to enable the principle of integrated infrastructure development to become a reality, in line with the prescripts of the Intergovernmental Relations Framework Act (Act 13 of 2005).
It is to address the backlog in infrastructure delivery, which has accumulated over a period of years. These have negatively affected the infrastructure delivery ability of municipalities of Limpopo.
It is noted that most Limpopo municipalities will have to improved their infrastructure delivery trajectory and financial accountability, by ensuring that sufficient skills, knowledge and capacity, are available for service delivery.
It is envisaged that through a dedicated Municipal Infrastructure Forum backlogs and skills shortages can be addressed.
This proposal is therefore aimed at endeavouring to support the building of capacity, specialist scares skills, exchange, collaboration and acquisition within identified municipalities. By the end of the financial period March 2018.

29. MOTIVATION FOR THE INTERVENTION / SUPPORT MEASURES
Scarce skills are crucial and necessary for all infrastructure units, for infrastructure service delivery to Limpopo both at provincial and local level. The Limpopo Provincial Executive Committee approved the development of an improved conditional grant model for infrastructure delivery at Provincial level. This model was developed in line with the approved Limpopo Infrastructure Delivery Management System (LIDMS).
This proposal seeks to motivate for the approval and implementation of various components to allow for the establishment of a Municipal Infrastructure Forum (MIF).
Provisioning for the establishment of a Municipal Infrastructure Forum (MIF).
Procedures which link Provincial Infrastructure forums to the Municipal Infrastructure Forum (MIF) will be undertaken as part of a transparent and fair processes of capacitation and providing for specialist scares skills, exchange, collaboration and acquisition where necessary.
Delegation and or exchange of contracted staff/officials, in the fulfilment of the primary objective of municipal infrastructure, built environment capacitation.
Municipal Infrastructure Support Programme (MISP) capacitation through the establishment of a MIF.

30. APPROACH PHASE I IMPLEMENTATION PROGRAMME
The programme is unique in that it supports the capacitation, specialist scares skills, exchange, collaboration and acquisition in two ways:
Firstly institutionally: To strengthen the ability of the municipal finance officials in Provincial Treasury by linking them directly to infrastructure officials within municipalities, through the forum to the technical strengths, which have been developed at provincial level.
The Municipal Financial Support Programme aims to build the capacity of municipal officials through training and development, and technically, to help the officials ensure compliance with the implementation of the MFMA and to improve the audit outcomes in district and local government within the Province.
The MIF is structured in such a way as to open up an infrastructure support initiative with a single forum which coordinates specialist scares skills, exchange, collaboration and acquisition towards needy municipalities. Pending the findings and cooperative support achieved the initiative should assist participating municipalities to further develop programmes aimed at specific needs at district and local municipal level.

31. Approach PHASE II IMPLEMENTATION PROGRAMME
The second phase of this intervention is aimed at providing the infrastructure platform linkages between the Districts Municipal Infrastructure Forum (DMIF) and the provincial Infrastructure Technical Management Committee. This joint forum Limpopo Intergovernmental Infrastructure Forum (LIIF) will provide for collaboration between the municipal and provincial levels on the IDMS and infrastructure implementation and delivery.
Efforts of this LIIF, collaborative forum, will focus on the following fields:
Governance and the Municipal Infrastructure Delivery Management System (MIDMS) and its linkages to the LIDMS and its continued developments.
Capacitation, specialist scares skills acquisition, exchange, collaboration and knowledge management.
Other issues of common interest can also be addressed:
Infrastructure cycle and budget cycle alignment.
Standard Infrastructure Supply Chain Management System.
MIDMS Infrastructure planning for portfolio and programme levels
Monitoring and Reporting.

32. WORK PLAN
Accountability and responsibility
The development of a MIDMS will inform the infrastructure delivery and alignment for all municipal infrastructure delivery. The development of a Municipal User Asset Management and an Infrastructure Programme Management Plans together with a Construction Procurement Strategy will lead efforts in Municipal infrastructure delivery.
The Annual MIDMS aligned Work Plan for the MIF will be developed in conjunction with the development of a Municipal Infrastructure Alignment model. This alignment model will be based on the municipal budget cycle and the MIDMS infrastructure delivery cycle.
The MIF activities and tasks detailed in the plan shall be informed by the “Back to Basics” programme. The programme has been developed, initiated and will be supervised by the Senior General Manager Sustainable Resource Management in Provincial Treasury.
Participating Departments and Municipalities to the DMIF and the ITMC shall be represented by their Technical Directors including Provincial Infrastructure General Managers and or specific pre-identified departmental or municipal officials.

33. SKILLS TRANSFER
Knowledge management and discipline specific development of infrastructure officials is seen as the main driving motivation for this MIF initiative.
MIF municipal officials shall be included in all work activities performed. Participation in discussions, meetings and workshops will be encouraged as they will be utilised to transfer skills and knowledge, between technical professionals and state and municipal officials.
All MIF staff will be compelled to draft, plan and undertake knowledge management and community of practice session. These sessions shall ensure technical development receives and maintains the highest standard of work ethic and support necessary for service delivery.

34. QUALITY CONTROL
MIF municipal officials will be managed in accordance with the principles and objectives of the “Back to Basics” concept plan and code of ethics and a quality management system developed for the MIF.
Quality standards will be determined by the discipline specific best practice models of respective professional organisations which will be discussed at LIIF meetings.
Knowledge Management of the municipal support programmes will focus on the following:
Monitoring of media reports with the aim to identify issues that may affect infrastructure management within the municipality;
Introduction and maintenance of an information back-up and recovery plan;
Introduction and maintenance of a filing systems and business continuity plans.
Developing an infrastructure information hub which can assist with high level quality statistical analysis and reports;
Maintenance of a repository of documents on a single filing system and website;
Maintenance of a database of infrastructure information in respect of the municipalities.
Distribution of publications to management and staff;
Preparation and implementation of infrastructure management policies, processes and procedures; and
Retention of infrastructure as built information as per prescripts, to be determined by policies.

35. Thank you.