1. Department of Transport Conditional Grants and Capital Expenditure
KwaZulu-Natal
Department of Transport
Conditional Grants and Capital Expenditure
PUBLIC HEARINGS
September 2006

2. Road Network
In keeping with Governments mandate to achieve equity the KwaZulu-Natal Department of Transport is progressively working towards its minimum road equity of 42,025 kilometres.
However, despite the budget increases received over the past years and the increases proposed over the MTEF period the department remains woefully under funded for the execution of its mandate.

3. Road Network cont.. The road network has two components:
The Department requires additional funding to address the road network equity.
The road network has two components:
Restoring the network to its true asset value by increasing the level of maintenance and renewal expenditure.
Providing access to all community facilities and supporting the Provincial Spatial Development Strategy
A ten year strategy has been developed which indicates an estimated under funding of R12,8 billion and to implement this would required an annual additional budget of R1,28 billion

4. Total Value of Projects
Access
Access remains the key challenge to service delivery. The demand for pedestrian bridges and access roads is huge particularly in the rural areas of KwaZulu-Natal.
Programme
Total Value of Projects
2006/07 Budget
Budget Shortfall (R’000)
Community Road Upgrading R R R
Access Roads R
Pedestrian Bridges R R R
Total R R R

5. Access cont…

6. Transport Corridor Development
Economic development particularly at a local level still remains a focal point in the government agenda. Transport corridor development as a flagship project as outlined by the Premier continues to receive our attention and support as the Department.
This project focuses on continued support for the Lebombo Spatial Development Initiative that is linked to the construction of Main Road 700. The revitalisation of the rail link in the area of P700 will lead to spin-offs similar to those seen on the M4 to Mpumalanga. Importantly, the corridor has the potential of linking Richards Bay and Vryheid.

7. Transport Corridor Development cont..
Indeed there is hope for the weak in KwaZulu-Natal when there is partnership and collaboration amongst the different spheres of government for the general good.

8. Transport Corridor Development cont..
In response from business representatives and community based organisations the KwaZulu-Natal Department of Transport is considering for proposals for the upgrading of provincial roads that are of strategic national importance namely:
Projects
Budget R’millions
Sipofu 50
Impendle
100
Sani Pass
240
Cecil Max Pass 90
John Ross Highway
450
Inanda to Pinetown
560
Ulundi to Vryheid
200
Dube Trade Port
555
Total
2,245

9. Cross Border Demarcation
The Department has inherited the Umzimkhulu District Municipality from the Eastern Cape in terms of the Cross Border Demarcation changes
The Department has conducted a needs assessment study with regard to the road infrastructure which identified a serious shortage of new infrastructure, maintenance and renewal needs in the Umzimkhulu Municipality, at a estimated cost of R1,6 billion.

10. Government Led Initiatives and Programmes
It is of critical importance to ensure that the ideals of a seamless government are upheld.
To this end, the Department of Transport pledges its support for all government led programmes as per the mandates of the government of the day.
Operation Mbo, Project Consolidate, the Accelerated Shared Growth Initiative of South Africa (ASGISA), Provincial Spatial Development Strategy amongst others are such programmes that this department will advocate for.

11. 2010 Soccer World Cup
The success of the 2010 World Cup is at the forefront of our planning in the Department of Transport amidst budgetary constraints.
Road Infrastructure development, Integrated Transport Planning, a safe, regulated, affordable and efficient public transport system as well as overall safety on our roads are the critical issues that we have embarked upon a drive to ensure that KwaZulu-Natal and South Africa as a whole is ready to host the 2010 Soccer World Cup.
A report has been submitted to the National Department of Transport detailing the road infrastructure needs for the 2010 World Cup which is approximately R3 billion.

12. Collaboration with the National Department of Transport
I would be failing in my duty if I do not acknowledge the contribution of the National Department of Transport to infrastructure development to change the lives of the people of this Province.
The John Ross Highway Project, the Isikhwebezi River Bridge, the nKobide Interchange, the Road to eQhudeni, to mention but a few are evidence of this collaboration with the national Department of Transport

13. Collaboration with the National Department of Transport cont..
Indeed there is hope for the weak in KwaZulu-Natal when there is partnership and collaboration amongst the different spheres of government for the general good.

14. Medium-Term Estimates
KwaZulu-Natal Department of Transport Summary of Infrastructure Expenditure Trend
Outcome
Budget
Medium-Term Estimates
Audited
2003/2004
2004/2005
2005/2006
2006/2007
2007/2008
2008/2009
2009/2010
Capital
New Construction
288,549
128,351
341,412
347,292
416,751
429,414
486,400
Rehabilitation/ Upgrading
509,827
598,371
614,215
669,276
845,732
1,020,363
1,050,173
Infrastructure transfer
1,000
5,000
5,225
Current
51,190
289,790
476,976
459,728
513,792
691,853
722,986
Sub Total
849,566
1,016,512
1,432,603
1,477,296
1,777,275
2,146,630
2,264,784
Conditional Grant
Provincial Infrastructure Grant
200,121
282,594
315,121
348,194
448,190
479,007
Total
1,049,687
1,299,106
1,747,724
1,825,490
2,225,465
2,625,637
2,743,791
% Conditional Grant
19%
22%
18%
20%
17%

15. Slide 1
As can be seen for the attached slides the Department of Transport Infrastructure Budget has grown from R1,050 million since 2003/04 to R2,744 million in the 2009/10 financial year.
The Provincial Infrastructure Conditional Grants have increased from R200 million to R479 million which equates to between 17% and 22% as a percentage of the budget.

16. KwaZulu-Natal Department of Transport Summary of Infrastructure Expenditure 2006/07 Financial Year
Budget
%of Budget
1st Quarter
Actual
%of Budget Spent
Capital
New Construction
347,292
51,038
Rehabilitation/Upgrading
669,276
98,358
Current
459,728
106,870
Sub Total
1,477,296
81%
256,266
17%
Conditional Grant
Provincial Infrastructure Grant
348,194
19%
87,996
25%
Total
1,825,490
100%
344,262

17. Slide 2
In the 2006/07 financial year the Infrastructure budget is R1,825 million and the Provincial Infrastructure Conditional Grant is R348 million which equates to 19%.of the total infrastructure expenditure.
I am pleased to report that for the 1st Quarter the department has spent 19% of the Infrastructure Budget in line with the Cash Flow Projection.

18. KwaZulu-Natal Department of Transport CONDITIONAL GRANT Project Schedule 2006/07 Financial Year
name
Region
details
Target
Outputs
Actual
1st Quarter
2006/07
Budget R 000's
1stQuarter
Expenditure
R 000's
Local Roads
Empangeni Region
New Gravel Roads 59 8
17,500
5,488
Ladysmith Region 35 4
10,500
2,525
Pietermaritzburg Region 34 6
10,000
6,173
Durban Region 10
10,194
4,214
ARRUP:
Projects
All Regions
Upgrading from gravel
to surfaced road 55
300,000
69,596
Total
218 38
348,194
87,996
Percentage of Actual versus Target % 17 25

19. Slide 3
As can be seen from the slide that 25% of the Provincial Infrastructure Grant has been spent by the end of the 1st Quarter, indicating that the Department is well on track to meet its milestones that were set for the financial year with regards to outputs and budgets .

20. Conclusion
In summary the Department requires an additional budget of R18,483 billion. If this is funded over a 5 year period it amounts to R3,670 billion per annum.
As can be seen from the figures presented this department, we have enough capacity and appropriate monitoring and evaluation systems in place to deliver on our mandate.
If additional funding can be sourced the Province of KwaZulu-Natal will write its own history and it will be a history of Glory and Dignity, as we continue "Defending the Weak" through the provision of more transport infrastructure such as pedestrian bridges, access roads, a safer road environment and an effective and efficient public transport system.

21. Conclusion cont..
Massification of our rural growth and sustainable economic growth and development is not possible unless it is supported by appropriate transport infrastructure. Transport the world over is seen as a catalyst for change and improved service delivery.

22. Thank you