1. NCOP PRESENTATION 05 FEBRUARY 2008
Report on Conditional Grants and Capital Expenditure 3rd Quarter 2007/2008 Financial Year
NCOP PRESENTATION
05 FEBRUARY 2008

2. Eastern Cape Department of Roads & Transport
Presentation outline
Purpose of the Conditional Grant and Capital Expenditure managed by the department in terms of the DORA
Expenditure trends on Conditional Grants and Capital Expenditure for the MTEF period 2005/06 – 2007/08
Explanation of expenditure variances.
4. Management & monitoring of Conditional Grants and Capital Expenditure
Social & EPWP indicators for new roads 2007/2008
Results in 07/08
7. Challenges faced in management of grants and Capital Expenditure.
Future budget trends: MTEF
Eastern Cape Department of Roads & Transport

3. 1. Purpose of this Conditional Grant and Capital Expenditure
To accelerate construction and rehabilitation of new and existing Eastern Cape Provincial road infrastructure and Transport Services.
Accelerate implementation of the Provincial Growth Development Plan.
The grant requires us to focus on the application of labour intensive methods in order to maximise job creation and skills development.
Enhance capacity to deliver Road Infrastructure and Transport facilities.
Create the necessary Transport Services facilities in Municipal Areas as supported by ITP and MTABs.
Eastern Cape Department of Roads & Transport

4. DEPARTMENTAL EXPENDITURE
Expenditure as at 31/12/07
Eastern Cape Department of Roads & Transport

5. Eastern Cape Department of Roads & Transport3.
2. Expenditure Trends CG
Provincial Infrastructure Grant
Provincial Infrastructure Grant
2005/06
R’000
2006/07
2007/08
Budget
675,330
742,057
838,937
Expenditure to
31 December 2007
742,139
682,580
% Expenditure to
31 December 2007
100%
81,36%
Eastern Cape Department of Roads & Transport

6. 3. Explanation for expenditure variances
The variance (R53, ) or 6.36% over expenditure was due to:
The accelerated programme of the contractor on the Maclear to Mount Fletcher and Middledrift to Alice projects which will be completed three and two months before scheduled completion time, respectively.
Early start on the Mthatha Quarry Road.
However, the programme is expected to break even, come the 31 March 08.
Eastern Cape Department of Roads & Transport

7. Expenditure Trends – PIG and (Total) Capital Expenditure
Sub-programme
2005/06
R’000
2006/07
2007/08 2ND Q
Prov. Infr Grant (PIG)
675,330
742,139
682,580
Transfers to Municipalities (from Equitable Share)
25,478
52,248
Current Projects
521,399
Capital Payments
223,675
137,393
137,998
Total Capital Expend
924,483
931,780
1,341,977
% PIG 73 80
50.9%
Eastern Cape Department of Roads & Transport

8. PROJECT BREAKDOWN
Project Information
2007/08 Budget
Expenditure up to date
% Exp.
Number of projects
Capital Projects
1,103,210
820,578
74.4% 75
Current Projects
781,833
521,399
66.7% 56
Total
1,885,043
1,341,977
71.2%
131
EPWP Projects
Total Available this Financial Year
903,575
695,914
77.0% 66
619,234
415,621
67.1% 50
1,522,809
1,111,535
73.0%
116
Eastern Cape Department of Roads & Transport

9. 9. Management & Monitoring mechanism
Departmental officials attend monthly site progress meetings
In addition the CFO and programme manager conduct random site visits on the progress of the contracts.
District Roads Engineers visit and inspect projects in their particular areas.
Professional Engineering Consultants on site monitor the projects.
The Department submits a detailed quarterly report to Provincial and National Treasuries, which captures the full details of the projects including the allocation for the year, the expenditure for the period in question and outputs achieved.
Specific reports are submitted on progress with respect to social indicators such as employment, BEE, local resources etc.
Monthly In-Year Monitoring reports are also submitted to the provincial treasury to monitor the expenditure.
SANRAL(SA National Roads Agency) implements 6 projects on behalf of the department in terms of a Service Level Agreement monitored by Departmental staff.
Eastern Cape Department of Roads & Transport

10. 10. EPWP SOCIAL INDICATORS
Project Name
Total local Labour Employed for 1st, 2nd and 3rd Q 07/08
Male
Female
Youth
Disabled
Local Labour Value for 1st, 2nd and 3rd Q 07/08
Local Resource Value for 1st, 2nd and 3rd Q 07/08
Rands
1. Ugie to Langeni Phase 1 45 5 16 24
996,342
5,797,698
2. Ugie to Langeni Phase 2
661
261
131
267 2
7,242,312
13,214,324
3. Ugie to Langeni Phase 3
691
245
156
289 1
8,708,432
15,142,421
4. Middledrift to Alice
667
239
164
262
9,131,234
12,984,534
5. MaClear: Halycon Drift to Ketekete
321
109 77
133
4,342,425
9,425,323
6. Motherwell Intersection 15 9 21
985,643
1,926,453
7. N10 to Alicedale
120 37 61
1,060,000
1,264,231
8. Graaff Reinet to Jansenville 38 11 6
1,123,245
5,174,640
9.. Xuka Bridge 26 36
1,320,043
953,429
10. Klipplaat to Jansenville
145 42 66
2,154,324
3,699,359
11. Sulenkamma Hospital Road
974
345
241
386
9,142,657
13,245,324
12. Mt Frere to R56 Ph 1
123 19
2,126,747
12,574,325
13. Peddie to Bira River 22 8
365,937
98,453
13. Chintsa Bridge 12
55,678
14. Routine Maintenance Programmes
3256
651
488
2084 33
15,985,643
36,954,654
Community Based Transport Programmes
1971
389
583
977
11,345,261
4,323,546
9168
2420
1978
4704 63
76,085,923
136,778,714

11. Eastern Cape Department of Roads & Transport
RESULTS
Launched train service between Queenstown and Molteno in October 07.
Received Testing License from Rail Safety Regulator.
Linked MaClear with Mount Fletcher with surfaced road.
Renovated Bhisho airport such that aircrafts are able to land.
Handed over to contractors the Greenville Hospital Road, Madwaleni Hospital Road and Zithulele Hospital Road.
Eastern Cape Department of Roads & Transport

12. Eastern Cape Department of Roads & Transport
12. CHALLENGES
Acute shortage of road building materials .
Lack of adequate funding for roads impacts negatively on delivery of a good Road Network and Transport Services.
Ever increasing road construction costs
The construction industry CPIX is currently 24%.
Many of the Access Roads are still impassable and inaccessible.
High Ratio of Gravel to Surfaced Roads (85:15).
Eastern Cape Department of Roads & Transport

13. Eastern Cape Department of Roads & Transport
14. Future budget trends: MTEF before reduction CG allocation
Budget
2005/06
R’000
2006/07
2007/08
2008/09
Conditional Grant (PIG)
675,330
742,139
984,943
1,055,321
Total Capital Exp budget
924,483
931,780
1,247,778
1,263,163
% Conditional
grant of
Total Capital
budget 73 80 79 84
Eastern Cape Department of Roads & Transport

14. Eastern Cape Department of Roads & Transport
16. Future budget trends:MTEF after reduction of CG allocation
Budget
2005/06
R’000
2006/07
2007/08
2008/09
PIG
675,330
742,139
838,657
838,937
Capital Exp Portion
249,153
189,641
263,721
279,106
Total Capital budget
924,483
931,780
1,102,378
1,118,043
% PIG of
Capex
budget 73 80 76 75
Eastern Cape Department of Roads & Transport

15. Eastern Cape Department of Roads & Transport
17. Future budget trends: MTEF after reduction CG allocation
Eastern Cape Department of Roads & Transport

16. Eastern Cape Department of Roads & Transport
18. BUDGET SUMMARY
2005/06 
 2006/07
 2007/08
 Nominal
Growth
% of total
budget 
 2008/09
 2009/10
Administration
107,123
151,867
144,030
( 5.2 % )
6 %
152,386
158,695
Roads
Infrastructure
1,368,965
1,494,437
1,615,105
1.38 %
69 %
1,566,248
1,605,001
Public Transport
129,181
162,261
191,884
18.26 %
8 %
212,696
221,784
Traffic
Management
113,346
123,792
146,472
18.32 %
7 %
160,835
167,530
Community
Based
Transportation
54,392
82,056
241,574
194.4 %
10 %
354,053
510,686
Total
  1,773,007
 2,014,413
  2,339,065
11.15 %
 100 %
  2,446,218
 2,663,696
Eastern Cape Department of Roads & Transport

17. 19. Effect of PIG reduction
Eastern Cape Department of Roads & Transport

18. 21. Impact of Infrastructure backlogs on MTEF
Financial Years (R ' )
2005/06
2006/07
2007/08
2008/09
Maintenance allocation
424
561
629
701
Maintenance needs
1,991
Backlogs
1,567
1,430
1,362
1,290
Accumulative backlog
8,067
9,508
10,870
12,160
Eastern Cape Department of Roads & Transport

19. 23. Estimated Cost of backlog
Item
Rand x '000
Gravel roads to surfaced roads
4,479,000
Rehabilitation of surfaced roads
2,520,000
Bridges
89,500
Hospital accesses
1,251,350
Total Provincial backlog
8,339,850
Access roads
3,500,000
Total Backlog
11,839,850
Eastern Cape Department of Roads & Transport

20. Eastern Cape Department of Roads & Transport
Province of the
EASTERN CAPE
Department of Roads & Transport
Quality service delivery through transportation excellence I
thank you…
Eastern Cape Department of Roads & Transport