1. Department of Transport
Select Committee on Finance
Public Hearings on Division of Revenue Bill 2009/10
3 March 2009

2. Contents of presentation
Additional allocations:
List of additional allocations
MTEF Overview:
Budgets per Programme
Breakdown of major budgets
Growth in major capital budgets
Other budgets and major projects
Conditional Grants:
Bus subsidies
Gautrain
Other Grants: Roads, overload control & rural transport
Public Transport Infrastructure and Systems (PTIS) 2

3. Additional allocations
Details (R’000)
2009/10
2010/11
2011/12
SANRAL
70,047
298,928
1,062,807
PTIS: SANRAL
6,559
SARCC
98,177
338,381
818,752
Compensation of employees SARCC
71,357
75,867
78,832
PTIS: SARCC
14,758
Bus operations and fuel costs
483,094
624,289
720,163
PTIS Grants to Local Government
93,177
325,275
416,638
Gautrain Rapid Rail Link
325,480
23,134
Taxi operations
200,000
100,000
50,000
Railway Safety Regulator
3,000
5,000
Compensation of employees
5,401
5,095
5,271
Capital
1,854
3,572
4,576
Reduction in transfers to Departmental Agencies
(1,103)
(683)
(722)
Efficiency saving
(18,337)
(19,099)
(6,450)
Reduction in goods and services (5% per year)
(30,609)
(29,821)
(31,284)
Total
1,322,855
1,749,938
3,123,583 3

4. Medium-term estimates
Budgets per Programme
Table 33.1: Transport
R thousand
2008/09
2009/10
2010/11
2011/12
Adjusted
Appropri-ation
Medium-term estimates
MTEF Baseline
1. Administration
245,165
231,023
230,753
235,291
2. Transport Policy and Economic Regulation
47,211
51,592
52,083
54,766
3. Transport Regulation and Accident and Incident Investigation
432,563
195,580
207,997
224,190
4. Integrated Planning and Inter-sphere Co-ordination
8,767,012
8,855,424
11,908,301
13,444,044
5. Transport Logistics and Corridor Development
35,076
31,809
38,992
40,288
6. Public Transport
12,277,229
14,191,689
12,953,416
13,829,382
7. Public Entity Oversight and Border Operations and Control
2,688,584
177,712
88,755
92,980
Total
24,492,840
23,734,829
25,480,297
27,920,941 4

5. Breakdown of major budgets
Details R’000
2008/09
2009/10
2010/11
2011/12
SARCC
4,917,290
6,567,635
7,688,206
8,607,979
SARCC – Shosholoza Meyl
500,000
450,000
400,000
424,000
Bus subsidies
2,984,131
3,531,909
3,863,033
4,153,232
SANRAL
4,072,974
5,594,986
6,964,501
8,128,314
Taxi
571,567
751,561
624,409
605,303
PTIS (2010 Soccer World Cup)
3,480,000
3,089,494
4,789,775
5,149,008
Gautrain
3,265,993
2,832,691
340,660
Disaster Fund Grant - Provincial roads
1,035,473
RAF
2,500,000
Other
1,165,412
916,553
809,713
853,105
Total
24,492,840
23,734,829
25,480,297
27,920,941
% Growth
48.05%
-3.09%
7.35%
9.58% 5

6. Breakdown of major budgets (Continued – excl
Breakdown of major budgets (Continued – excl. once off allocations in 08/09)
R’000
Gautrain
PTIS Grant
2009/10
7,017,635
3,531,909
5,594,986
3,089,494
2,832,691
Allocations for rail operations and capital remain the largest single budget item.
The budget for road infrastructure overtook that of bus subsidies from 2007/08 onwards.
Allocations for infrastructure from the Public Transport Infrastructure and Systems Grant was introduced in 2005/06 at R241,7m, growing to R3,1bn in 2009/10.
The National contribution to the Gautrain Rapid Rail Link was introduced in 2006/07 at R3,241Bn, and declines to zero in 2011/12 6

7. Growth in major capital budgets7

8. Breakdown of other budgets and major projects
Details R’000
200910
2010/11
2011/12
Compensation of Employees
212,798
208,867
221,272
P1: October Month & World Remembrance Day
26,362
36,575
37,515
P1: Conferences (AFI-RAN)
3,800
P1: Arrive Alive
14,250
P1: NLTIS, VPN, ECM, Recruitment
15,152
15,580
16,144
P1: Security, Skills development
8,740
P1: Centres of Development
8,178
8,669
9,189
P1: Comms: BEE, events, exhibitions, web & audio visual, branding
10,925
P1: Property management
14,884
16,372
17,356
P1: Other
45,236
49,166
45,897
P2: Transport Policy, Research and Economic Regulation
15,806
16,361
17,341
P2: Rail economic regulation
11,382
11,623
11,893
P3: eNaTIS
3,682
7,419
11,598
P3: Special Investigating Unit
21,235
22,439
23,785
P3: Rail Economic Regulator
4,257
4,498
4,768
P3: ICAO and IMO offices
7,365
7,785
8,251
P3: Watch Keeping services
27,109
28,644
30,363 8

9. Breakdown of other budgets and major projects (Continued)
Details R’000
200910
2010/11
2011/12
P3: Oil Pollution prevention services
48,805
51,572
54,666
P3: Maritime Security Coordination Centre
6,559
6,930
7,346
P3: Commissioner of Civil Aviation
4,742
5,011
5,312
P3: Maritime Rescue Coordination Centre (Transfer payment)
5,236
5,533
5,865
P3: International membership fees
5,114
5,420
5,745
P3: Road Transport Regulation projects
20,800
21,980
23,299
P3: Other and Administration
5,592
5,876
6,229
P4: Transport planning and infrastructure projects
12,096
12,371
13,164
P4: Rural transport and NMT projects
52,293
55,231
58,520
P4: Road infrastructure planning
2,829
2,449
5,252
P4: Sani Pass and Overload Control
44,416
48,688
52,399
P4: 2010 SWC Monitoring and Evaluation
23,750
P4: Other and Administration
4,389
4,619
4,897
P5: Transport Logistics and Corridor Development
19,475
26,593
27,151
P6: Bus contract model
4,750
P6: Project Implementation 2010 and beyond
7,600
P6: Other and Administration
11,092
11,501
12,191 9

10. Breakdown of other budgets and major projects (Continued)
Details R’000
2008/09
2009/10
2010/11
P7: Transfers to RTMC
83,603
P7: Transfers to RSR
37,260
35,634
37,475
P7: Transfers to Ports Economic Regulator
13,603
8,832
9,361
P7: Transfers to SAMSA
8,896
9,402
9,966
P7: Transfers to SACAA
7,781
8,223
8,716
P7: Performance Management System
950
1,007
P7: RAF restructuring
13,300
P7: Other and Administration
4,311
4,535
4,807
Total
916,553
809,713
853,105 10

11. Bus subsidies
Subsidy levels have been insufficient since 2005/06 to halt the declining levels of service, escalation in costs and the growth in demand
In order to improve operational and financial efficiency a more focussed approach to determining service priorities will need to be developed
Implementation Plan:
Conditional Grant to Provinces introduced
Phased implementation in co-operation with Provinces
Negotiated performance based contracts for route operations
Formalisation of unscheduled Interim Contract services
Define operating areas that will not be served
Implementation of supporting infrastructure
Continued enforcement and monitoring of all contracted Public Transport Operations 11

12. Bus subsidies: Interventions for achieving change 2009/10 onwards
Bus Subsidy Funding - Conditional Grant in DORA
Critical conditions:
Interim contracts to be converted to negotiated (kilometre based) contracts by September 2009
Alignment with IRPTN`
Finalise integrated road based networks
Develop KPI’s
Identify key role-players who are to be part of the operating entity
Engage with all parties to establish operating entity
Implement depots and vehicles if so decided
Recruit/develop admin capacity to manage the contracts
Contracting authorities will have to:
Change in compensation method – based on fixed kilometre
KPI’s
New national monitoring model
Fare levels as set by the authority
Fleet replacements to be based on requirements of the contracting authority
Contracting authority may purchase existing assets (eg depots) and contract compliant vehicles
Operators will have to accept: 12

13.   Bus subsidies: Intervention conditions
Operators that accept will sign an negotiated contract that includes:
KPI’s
Provision that the operator will be provided with an opportunity to be party to a new integrated contract regime for some or all of the services within the contract area
Operators that do not accept will continue on month-to-month basis and their contracts will be terminated as and when required  13

14. Gautrain
Allocations from 2006/07 to 2010/11 14

15. Gautrain Annual allocations are paid in terms of a payment schedule
Key and General Milestones have to be achieved before payment
The Provincial Support Team then checks whether Milestones have indeed been achieved
The Milestones are certified by the Independent Certifier (IC)
The certified claim is submitted by the IC to the Gauteng Management Agency to check claims for compliance
The GMA then sends the claim to the Department with a request for payment from the DORA Grant
The Department satisfies itself that there has been compliance with the DORA requirements and the conditions contained in the DORA Framework
Currently, indications are that Phase 1 of the Project, i.e. the section between OR Tambo International Airport and Sandton will be completed in September 2010, while the rest of the Project will be completed in September 2011. 15

16. Roads, Overload Control and Rural Transport Grants
These grants to be introduced in 2010 budget 16

17. Road Grants
The grant was introduced to develop road infrastructure projects that promote regional integration, development and connectivity between neighbouring states
Construction of the Sani Pass:
Phase 1 – Upgrade of P318 Sani Pass (km 0 to 13.6) - completion scheduled for April 2010.
Phase 2 – Upgrade of sections 1 and 2 (km 14 to 25 and 25 to 33):
Environmental Impact Assessment Studies underway with record of decision scheduled for announcement in September 2009
Engineering designs are underway and are at various stages of completion by the joint venture consultant team
Future road construction projects to be identified for inclusion in the Division of Revenue Act 17

18. Overload Control Grants
To achieve the objectives of the national overload control strategy, a 3-year grant has been developed in conjunction with National Treasury
Grant funds are currently being used for upgrading the weighbridge infrastructure facilities in Mpumalanga and Limpopo
In Mpumalanga, projects for the upgrade of weighbridge infrastructure were completed in October 2008:
Kinross Traffic Control Centre
Ermelo Traffic Control Centre
In Limpopo, the detailed design, planning and bill of quantities have been compiled, and construction works are set to begin in 2009/10 on:
Rathoke Traffic Control Centre
Mooketsi Traffic Control Centre
Future allocations:
2009/10
Gauteng R4,8m
Limpopo R4,8m
2010/11
Eastern Cape R5,1m
Mpumalanga R5,1m 18

19. Rural Transport Grants
Purpose :
To improve mobility and access in rural municipalities in support of Integrated Development Plans
Reasons for not incorporating in equitable share:
This is a specific purpose grant mainly for the provision of rural transport infrastructure and services.
This grant ensures that district municipalities are giving priority to the following rural transport interventions:
infrastructure construction
maintenance, upgrading and rehabilitation
support rural development and
accelerated and shared growth initiatives in line with government priorities
It is also used as vehicle for stimulating the use of labour intensive methods in large infrastructure programmes / projects to create jobs and develop required skills in terms of the Expanded Public Works Programme 19

20. Rural Transport Grants
Timeframes : MTEF Allocations
R8.9 million 2008/09,
R9.8 million 2009/10
R10.4 million 2010/11
R11,1 million 2011/12.
Details of Projects : 2008/09 Allocations: DM
PROJECT
BUDGET
Chris Hani
Intermodal Public Transport Facility
R 4,1m
Thabo Mofutsanyane
Upgrading of Access Road to a Thusong Service Centre
R 2.0m
Dr Ruth S. Momphati
Construction of 2No. Pedestrian Bridges
Sekhukhune
Development of a Pedestrian & Bicycle Paths Master Plan
R0.8m 20

21. Public Transport Infrastructure and Systems Grants
Contents:
PTIS Background
Allocations
Conclusion 21

22. Background Information
The PTIS grant is aimed at improving transport infrastructure & systems for 2010 and beyond;
Total PTIS grant from 2005/06 to 2010/11 = R13.639bn
Total Host Cities PTIS grant = R10.979bn which is 80% of PTIS Grant
Ongoing Monitoring and Evaluation of progress is in place, with monthly reporting
Five Host Cities currently receiving technical assistance (Polokwane, Rustenburg, Mangaung, Mbombela and Tshwane) 22

23. PTIS Allocations per City and/or Entity
Allocations per City / Entity
Budget
Totals
R'000
2009/10
2010/11
Period
Johannesburg
600,214
950,471
2,831,756
Tshwane
565,245
864,180
2,068,744
Ethekwini
376,926
529,699
1,690,934
Cape Town
291,912
527,270
1,602,025
SARCC
450,000
1,315,000
Nelson Mandela
147,079
323,058
1,029,871
Mangaung
82,168
183,551
586,166
Inter-city buses
500,000
SANRAL
200,000
430,000
Mbombela
60,833
135,893
424,910
Polokwane
66,146
147,161
420,914
Non Host Cities
66,695
152,880
414,134
Rustenburg
67,782
150,337
323,776
CBRTA
1,000
Total
2,975,000
4,464,500
13,639,230 23

24. PTIS Allocations per City and/or Entity
Total R13,64 Billion
from 2005/06 to 2010/11 24

25. Thank you 25 25